Travel outside the box — uncommon trips

By Peter Greenberg
TODAYShow.com contributor
Updated: 3:31 p.m. PT July 19, 2007


Nicaragua

Nicaragua is the Bahamas before it went upscale. It's St. Barts without the attitude. And it's lots of Americans vacationing — even buying second homes — without the Sandinistas. Yes, Daniel Ortega is back in power, but with a new vision — perhaps a shocking one to those who remember his former regime — but not surprising to those who realize the key to saving and improving the economy of the largest country in Central America is by focusing on travel and tourism.

No Starbucks yet. No over-the-top spas. But great beaches. One of the other reasons Nicaragua is so attractive now is that it remains the least densely populated country in Central America with a population in size to its smaller neighbors. The country is bordered on the north by Honduras and on the south by Costa Rica. Its western coastline is on the Pacific Ocean, while the east side of the country is on the Caribbean Sea.

About 60,000 Americans visit Nicaragua each year, attracted by the beaches, jungles, history and culture. Although Nicaragua has been largely peaceful since the election of the first democratically-elected female president in Latin America, Violeta Chamorro, in 1990, the country still bears some scars from the decade-long civil war.

But the country is well on its way to recovery. Since Nicaragua is less developed, it's often mentioned as a cheaper alternative to its richer and more developed neighbor, Costa Rica. Ecotourism, volcano walks and nature activities are a rapidly growing sector of the tourism industry. Nicaragua has 78 nature parks that draw in visitors each year.

León Viejo, the old village of Leon, is viewed to be one of the oldest and the most well-developed historical Spanish settlements, giving it important archaeological value. Leon Viejo was abandoned in 1610 after almost 100 years of habitation when the Momotombo volcano erupted. The ruins have now been largely excavated and have been a UNESCO site since 2000.

The Island of Ometepe is formed by two volcanoes that rise out of Lake Nicaragua. Much of the island is now a nature preserve (farms cover much of the rest) with unique rainforest environments in the shadow of the volcano.

Granada is considered to be one of the most beautiful towns in Nicaragua, with its nostalgic atmosphere and colonial architecture. It's also the second-oldest city founded by Europeans in the Americas, founded in 1524. Many of the town's old buildings are now being refurbished after years of neglect in the conflict-ridden 1980s and the poverty-filled 1990s. Granada also attracts visitors to its beaches on the shores of Lake Nicaragua, which is also home to a large number of freshwater bull sharks.

Wildlife attractions
Filled with all kinds of interesting animals, birds, fish, insects and plants, an animal lover will find Nicaragua a virtual paradise. Of course, not all these delightful creatures are within easy access to the public. Much of Nicaragua's wildlife live protected lives in wildlife reserves and have made their homes in rainforests, lakes, mountains and volcanoes.

Each year thousands of sea turtles make the journey from the sea to the beach, where they spend the entire night digging a nest and laying their eggs before returning to the water. The event can be fascinating to watch — as are the hatchings of these precious little creatures. Birdwatchers will rejoice in the wide variety of beautiful birds that have made their home in Nicaragua. Nicaragua has several wild cat species, including the puma, the cougar, the jaguarondi, the margay and the ocelot.

Selva Negra Coffee Estate
The organic coffee estate of Selva Negra is an eco-friendly, sustainable farm located in the Selva Negra Cloud Forest Reserve. You can explore the forest on walking trails and on horseback, tour the coffee plantation and an extensive greenhouse.

Tours
Exito Travel offers an interesting “San Juan Experience” — a boating experience that travels from Lake Nicaragua to the Caribbean via the San Juan River. Though no boating experience is required for the minimally-exhaustive trip, the waters will take you through the heart of the country's best-preserved rainforests and rivers. The cost for this eight-day tour is $2,469 per person, and does not include international flights.

Brendan Tours features the “Best of Nicaragua” on an eight-day tour. The tour's highlights include a few days in Granada and Managua along with plenty of visits to the Pacific shore. Prices start at $1198 per person, and include guides, transport within Nicaragua, lodging, and some meals, and do not include international flights.

For nature lovers, Tours Nicaragua has the 14-day, 13-night “Nicaragua Natural History Expedition.” This 14-day tour covers six distinct ecosystems and nine nature reserves, from cloud forests to coastal mangrove swamps. Included are plenty of boat tours and private wilderness guides to give you a truer view of Nicaragua's nature.

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Navigating Nicaragua

Published on: Monday, April 02, 2007
Written by: NuWire Investor April 2007

San Juan del Sur, Nicaragua

Few people who are on a road trip to a foreign country lease a property for business after only three days there, but that’s just what Charles Southwell did nine years ago. Southwell is an investor and real estate developer who lived and worked in Costa Rica for years; he went on a trip to Nicaragua with a friend nine years ago. “Within a matter of 72 hours, I had leased a building for business and basically decided to move here,” Southwell, who now owns the RE/MAX Granada franchise in Nicaragua, said. “I could feel the opportunity.”

Owning oceanfront property on a sunny beach or a period home in an historic city are distant dreams for many people. Such properties seem beyond reach in most areas but are surprisingly affordable in Nicaragua. Nicaragua is beginning to attract global attention because of its rare combination of stunning beauty, which includes long stretches of ocean beaches and cities featuring colonial architecture, and a low cost and high quality of living.

“We enjoy a lot more time because we’re able to afford help here in certain aspects of our living,” Jeff Finch, a real estate developer who moved from Virginia to Nicaragua, said. “We have two housekeepers. We have a gentleman and all he does is take care of our landscaping, he’s kind of our handyman. We also have a pool keeper and a nanny. They’ve become extended members of our family.” Finch pays each of his employees between $100 and $150 per month.

Other luxuries are bargain priced in Nicaragua as well. A high quality meal can cost as little as $10 per person; suites at luxury hotels can be had for $120 per night. Finch and his family pay about $12 per doctor visit and less than $5 per prescription. With prices such as these, it is easy to see why Nicaragua is growing in popularity as a vacation, investment and even retirement destination.

Simple geography is another reason many investors are turning to Nicaragua. “To get here from the States, it’s easy,” Southwell said. “It’s a pretty viable destination for somebody that lives in the States or Canada. It’s turned into quite a tourist mecca, and it has huge investment potential.”

Some, including Southwell, have drawn comparisons between Nicaragua and Costa Rica. Only a decade or two ago, Costa Rica was a poor, beautiful Central American country with limited infrastructure. The country made a conscious effort to market itself as a tourist destination and an inexpensive place to do business, bringing Intel, Microsoft and GE into the country.

The influx of businesses boosted employment, which led to the creation of a larger middle class in Costa Rica. “The countries that build the middle class are the countries that have long-term success, and that’s what’s happening here,” Finch said of Nicaragua.

Costa Rica now has a per capita GDP of $12,000, behind only the U.S. and Canada in the western hemisphere, and nearly $2,000 more than the worldwide average of $10,000, according to the CIA World Factbook. Costa Rica’s success has largely been the result of a stable democracy and investor-friendly policies.

Nicaragua is undertaking a similar effort to secure foreign investments and businesses by offering foreigners property rights equal to residents and granting substantial tax breaks and deferrals for tourism-related expenses.

“Law 306 was passed during the last 20 years for tourism investment incentive,” attorney Byron Mejia said. Mejia is a native Nicaraguan who spent 20 years working as an attorney for American Express in Miami. Mejia moved back to Nicaragua 10 years ago and has been specializing in real estate law there ever since.

“Specifically, they have 10 different categories of tourism-related projects in which the government gives tax incentives,” he said. “For example, if you want to establish a hotel or a bed and breakfast, they give you free import duties, you only pay 20 percent on your income tax, you pay no sales tax, and you pay no property tax.”

Nicaragua’s young population could also help lure foreign investments. Nicaragua’s median age is 20.9, and 96.9 percent of Nicaraguans are under 64, according to the CIA World Factbook. Nicaragua’s high percentage of young people means that it has a large population of workers available.

“The education system is booming ahead, and there’s going to be a really nice employment pool available here in the next five years,” Southwell said. “I think you’re going to have a really good opportunity to employ service industries, not to mention textiles and the tourism industry.”

Nicaragua has made great strides in recent years in shrugging off the perception many people have that it is a volatile and unsafe country. Still, many potential investors remain on the sidelines because they view Nicaragua as riddled with poverty and political unrest. According to Southwell, that’s just not true.

“It’s one of the safest countries in the hemisphere,” he said. “They really, really are kind, gentle people. They’ve been through hell and back. They want peace, they want prosperity.”

Though Nicaragua is the largest country in Central America, it is a poor country, with a per capita GDP of $3,000, according to the CIA World Factbook. It is the second-poorest country in the western hemisphere, trailing only Haiti. Its poverty was largely caused by the twentieth century’s political turmoil, suppression and revolution. This tumultuous environment left Nicaragua’s infrastructure badly damaged.

Many Americans are only aware of Nicaragua because of the Iran-Contra Affair, a political scandal from the 1980s. The Reagan Administration sold arms to Iran and used those profits to fund guerilla forces, called Contras, who were opposed to the leftist Nicaraguan revolutionaries, called Sandinistas.

Daniel Ortega was one of the leading Sandinistas in Nicaragua in the 1970s and 1980s; he served as president from 1985 to 1990, and was re-elected in November 2006 for another five-year term, much to the chagrin of many observers. They fear Ortega will revert to the leftist leanings he displayed in his past, which could hinder Nicaragua’s development and economic growth by alienating potential investors and causing the bustling tourism industry to grind to a halt.

Such a regression is not likely, according to Southwell. “Having been involved personally with the Sandinistas over the years—I lease two buildings from them and I know Daniel [Ortega] personally—I know that he’s probably going to be more interested in his legacy than in any of the things he was [interested in] in his leftist past,” he said.

Southwell is not alone in his optimism that Nicaragua is on the path toward stabilization and growth. “I don’t think they [the Sandinistas] want to go back to the past,” Mejia said. “We already had our civil war, and now it’s time to move the country forward.”

Concerns about private property rights, especially for foreigners, are keeping many investors at bay. During Ortega’s previous term, some private property was seized, leaving many wary about purchasing property in Nicaragua. That shouldn’t be too much of a concern anymore, according to Mejia. He has specific advice for investors concerned about title issues.

“What is advisable today is to stay away from municipal property, temporary titles or agrarian reformed titles, because even private banks do not make loans to these types of titles,” Mejia said.

Kevin Fleming, who moved to Nicaragua two years ago, is a real estate developer from Vancouver, Canada. He agreed that private property seizure is a thing of the past. “Daniel Ortega has gone on record many times as saying the days of stealing from the rich and giving to the poor, those days are gone. All that did was create poverty,” Fleming said.

Ortega has acknowledged that he must change his ways in order to help Nicaragua recover from its civil war and fulfill its potential. His efforts will be buoyed by two key economic events of 2005.

The G8—a coalition of the world’s seven leading industrial nations and Russia—granted foreign debt relief to Nicaragua in 2005. There are strings attached: in exchange for the relief, Nicaragua must strive to eradicate poverty, be forthcoming with the government’s finances, achieve political stability and support human rights.

Also, Nicaragua signed the Central American Free Trade Agreement (CATFA). Since signing CAFTA, which strengthened Nicaragua’s relationships with its Central American neighbors and the U.S., Nicaragua has exported 33 percent more goods to the U.S. than before. These events have allowed Nicaragua to grow its economy, and along with it, its infrastructure.

The biggest hurdle Nicaragua faces is updating its infrastructure. The country is devoting a lot of money and effort to improving infrastructure, particularly in areas most frequented by tourists.

“The airport in Managua has been rebuilt; it’s brand new. We have several ports in the Pacific that have been rebuilt and are ready to go,” Mejia said. “And it’s my understanding that there are plans of improving the inner roads of the country for production purposes.”

Few medical facilities are up to U.S. standards, but a state-of-the-art facility was recently opened along the Masaya Highway, which runs between two major cities: Managua and Granada. Managua, the capital, has better medical resources than most of the country. In addition, Managua’s airport is now one of the nicest in Central America, thanks to a recent $50 million overhaul.

Still, only one in four roads in Nicaragua is paved, and public transportation is substandard. The rainy season—from May to October—renders many roads useless. The government is focusing its building and repair efforts on the roads most often traveled by tourists, which is expected to boost tourism and create new investment opportunities.

Access to technology is also improving. “Now it is normal to see farmers riding on their horses on the backroads of the country with a cell phone on their hip,” Fleming said.

Technological development has made living and working in Nicaragua easier for Southwell than Costa Rica ever was. “Here, you can go down to the corner and get a cell phone, you’ve got three Internet companies to choose from—I mean, it’s just a lot easier to get things done here,” he said.

Electricity is sometimes spotty, but it is steadily improving. “The power used to go out here four to six hours a day, almost every day, before Daniel Ortega got elected,” Finch said. “Since he’s been elected, I can think of maybe three days that the power went out for maybe one or two hours. That’s because they’re building new substations.”

The new substations are only one component of the growth of Nicaragua’s energy infrastructure. Energy is undergoing a surge in development and investment popularity. “The government is promoting a lot of investment in energy,” Mejia said. “We are rich in rivers, volcanoes and other sources of energy revenue, such as wind power, solar power, geothermal power and hydroelectric power. Laws are being renewed to give investors sufficient incentive to invest in these types of energy products.”

The excitement and energy surrounding Nicaragua will grow as more people become aware of its potential. The right pieces seem to be in place for Nicaragua to catch up with its neighbors. A continued focus on building up infrastructure, combined with aggressive incentive and property rights laws to attract foreign investors, should provide a bright future for Nicaragua if the political climate remains stable.

From its natural beauty to its historical architecture, Nicaragua has a lot to offer; if Nicaragua can capitalize on its potential, investors could see significant returns.

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The 'Eyes' have it in Nicaragua

By Jason George
Tribune staff reporter
Published May 13, 2007

San Juan del Sur, Nicaragua

The list of places claiming to be "The Next Costa Rica" is as long as it is suspicious.

Few spots in the world can truly compete with Costa Rica's natural beauty, charm and ease for the American traveler.

Yet San Juan del Sur, a once sleepy beach backwater on Nicaragua's Pacific Coast, is now giving a run to its neighbor whose border sits only 20 miles to the south.

Of course no mention (or visit) of San Juan is complete without a stay at Pelican Eyes (officially Piedras y Olas), which opened in 2004. The positive buzz has been deafening, not bad when you consider the hotel's not on the water -- it's on a hill overlooking the town and the ocean -- nor is it the most expensive place in town -- that's Morgan's Rock Hacienda and Ecolodge.

What Pelican Eyes does have is great food, spacious rooms and a fantastic vibe.

Costa Rica, watch out.

CHECKING IN: The check-in desk had us worried upon arrival. With employees yelling to each other, tossing paper around and ignoring the rings of countless telephones, we feared that we had magically stumbled back into Nicaragua's manic capital of Managua.

Luckily, the process was fast, and within a few minutes we were headed toward our room.

A word to the wise: Pelican Eyes is built on a very steep hill, so any attempts to carry one's own bags is not only foolhardy, but could qualify as mountaineering depending on your room's location. For your sake, use -- and tip -- the porters. ROOMS: The room restored any doubts we had about the place at check-in, and we began to see why this place is considered one of the hottest hotels in all of Central America.

Lodging at Pelican Eyes is divided into three increasingly large property types: habitaciones, casitas and villas. We stayed in one of the eight habitaciones, the smallest and simplest of the options, but the space still featured two queen beds, a large bathroom, a kitchenette and a private terrace that comfortably accommodated six sunset watchers -- newly acquired friends at the resort.

TVs broadcast 35 channels, including two HBOs and Cinemax, and there's a DVD player attached.

BATHROOMS: Each room is unique at Pelican Eyes, but all sport sizable stone-floor bathrooms with walk-in showers stocked with scented soaps that claim to reduce insect appeal.

KIDS/FAMILIES: Hotel staff can arrange canopy tours, surfing lessons, visits to a local sea turtle refuge (July through December), fishing trips and cruises on their own boat.

Every kid we saw -- and they were there, but rare -- at least got a kick out of the hotel's little zoo, filled with animals that could not be returned to the wild after treatment at the hotel's veterinary clinic.

ROOM SERVICE: Room service features a mix of food from the hotel's two restaurants: the poolside bar restaurant, Bistro La Canoa, offering light sandwiches and ceviche, and Restaurant La Cascada, a fantastic gem, specializing in entrees like a lobster curry, rack of lamb and a seafood penne. The room service charge is about $5.


PERKS & PEEVES: A real, made-to-order breakfast is included.

We also enjoyed the fact that even though the hotel sells properties on site, essentially fractional ownership, we never heard about it.

The hotel is also closely aligned with a local charitable foundation, meaning that dollars spent at Pelican Eyes help educate Nicaraguan schoolchildren.

Another perk: Wi-Fi access via the resort's laptops -- or your own -- in the bar/restaurant.

The biggest peeve is that physically disabled travelers could have a very hard time getting around the property given its steep incline. Chris Berry, the hotel's owner, said some accommodations could be made, but calling ahead is highly recommended.

BOTTOM LINE: Our room cost $130 a night ($120 with no ocean view), based on double occupancy. Up to two more adults or children are allowed in the room at $15 or $5, apiece, respectively. Private casitas and villas run from $175 to $225. All year-round rates nearly double around Christmas and the week before Easter. Very limited handicap accessibility. 866-350-0555; www.piedrasyolas.com.

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Sunday, March 11, 2007

San Juan del Sur, Nicaragua — WHAT second-home buyers yearn for in Central America is Costa Rica before the building boom. They want ocean views and unspoiled land, without the steep prices, crime and American fast-food chains. They want Panama before Donald Trump.

Adventurous Americans, Canadians and Europeans willing to dodge livestock and potholes for the two-hour car ride south from Managua to this sleepy fishing village on the west coast of Nicaragua are finding just that. Three-bedroom homes with unfettered views of shimmering bays and turquoise water start at $155,000; condos, from $129,000. Undeveloped land with ocean views — sites of a quarter-acre — start at $35,000. Construction costs generally range from $55 to $75 per square foot. To investors, it simply screams "ground floor."

Sure, Costa Rica is still a destination for many U.S. retirees and near-retirees — condos at Marisol at Punta Dominical in the southwestern coastal region of Costa Rica, for example, start at the mid-$200,000s, and come with three community pools and nearby hiking trails. Then there's also the province of Guanacaste in the northwest region, where luxury condos start at $500,000. Seems the word is out.

"The prices keep going up," said Barbara Black, a 61-year-old Woodland Hills resident who, with her husband, Jay Goldenberg, 62, purchased two beachfront condos in Costa Rica three years ago, one for $250,000 and one for $275,000. Those units today are worth $750,000 to $850,000. The couple plans to retire there.

"There are some condos here for $200,000 and little beachfront houses in Costa Rica for $2 million," she said, adding that a rise in crime has prompted many complexes, including hers, to hire private security companies.

In Panama, also known as the "new Costa Rica," the town of Boquete has condos starting at $260,000. Trump Ocean Club International Hotel & Tower in Panama City, to open in late 2009, will feature 68 stories of hotel rooms and condos, with a yacht club, casino and business center. Condo-hotel prices start at $375,000 for a studio.

But Nicaragua's San Juan del Sur has retained its small-town charm: Burros are parked between cars in front of homegrown businesses such as El Gato Negro — the Black Cat — a popular bookstore and cafe for expats, and children play in the church plaza, which is in the middle of a face-lift. Wooden houses with tin roofs are painted in bright colors, and open-air restaurants with palm-thatched roofs line the main street along the beachfront.

Paradise comes with a few blemishes, however: mosquitoes, roosters that don't know day from night, vegetable peddlers hawking goods over megaphones and the incessant sound of hammers and drills from home construction. It's rainy half the year — about 29 inches of rainfall annually — and hot most of the time. For now, living here means relying on unreliable electricity and shaky infrastructure in general, and having a dearth of medical care. But, ah, the beaches.

"Nicaragua is wedged between the two best real estate markets in the Western Hemisphere — Costa Rica and the U.S.," said expat Sam Stewart, a former Peace Corps volunteer and current ReMax Tierra Nica agent. "We're the ugliest house on the nicest block."

OK, so it's not perfect yet. But relative ease of purchase, tax incentives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make Nicaragua appealing.

Be prepared to pay cash, however. Although lending is available to foreigners through Nicaraguan banks, interest rates are steep.

Nothing could deter Jan and Duane Sanow from purchasing land in Nicaragua. The Minnesota owners of a manufactured-home dealership, 50 and 49, respectively, had searched the coasts of Mexico and in Panama for an investment/vacation property for 10 years, but didn't find what they wanted.

"We were always at the tail end of the development boom," Jan Sanow said. "This time, we're at the front end."

The couple purchased a quarter-acre beachfront parcel for $220,000 on which they're building a five-unit condo development, a mere 150 feet from the water at Coco Beach, a deserted strip of white-sand seashore 10 miles from San Juan del Sur with a view of Salinas Bay and Costa Rica, to the south.

When their complex is completed — at a construction cost of about $800,000 — there will be a swimming pool, on-site laundry, air conditioning and gated parking. Just don't look for a Ralphs. There's always the traveling vegetable vendor, however, and Puesto del Sol — an al fresco restaurant — down the beach. The two-bedroom condos, in 1,300 square feet, will sell for $275,000.

The Sanows say they're thrilled to have found a beachfront investment they can afford, a 45-minute drive north from Costa Rica's border. And they like to emphasize the positives. "There's a strong sense of community here," Jan said. "It's a great place for expats."

Fasten your seat belts, though. The 20-minute drive from San Juan del Sur south to Coco Beach winds along a spine-fusing dirt road. Plans call for that road, over the next few years, to become a paved coastal thoroughfare connecting Nicaragua and Costa Rica.

For now, the bumpy camino is festooned with a canopy of tropical trees that serve as a playground for howler monkeys and screeching parrots. Four-wheel-drive vehicles scramble around ox- and mule-drawn carts carrying fruits and construction supplies.

New developments dot the way, including Las Fincas de Escamequita, an eco-friendly community of 1- to 5-acre acre parcels for sale from $65,000. Homes will be solar-powered and feature other green amenities. Owner Donn Wilson, from Solano Beach in San Diego County, has set aside an additional 450 acres as a wilderness reserve.

Despite the widespread perception of Nicaragua as politically chaotic, the nation has enjoyed peace and the constitutional democracy for more than 16 years. The Sandinistas won the election last November, making their longtime leader, Daniel Ortega, president again. This is, apparently, a new Ortega who is promising economic prosperity through foreign investment and tourism, a distinct change from the principles under which his last regime operated. Still, poverty remains a major issue — Nicaragua is the second-poorest nation in the Western Hemisphere, according to the U.S. State Department — and unemployment is at 17%.

During the Sandinista Revolution of 1979, many private properties were confiscated by the government. Lawyers still are sifting through ownership claims, which is why it's important to hire an attorney to establish clear title, said Managua-based attorney Terencio García Montenegro, of García y Bodán. The real estate transactions are fee-simple, meaning ownership is absolute. Title insurance is available to protect U.S. buyers today.

Tax incentives encourage some foreigners to buy in Nicaragua. Americans 45 and older who can prove monthly income of $400 or more can gain Nicaraguan residency status. They may bring a car worth up to $10,000 and furniture valued up to $10,000 into the country duty-free, García said. Income derived from abroad is tax-exempt.

Chris Barry arrived in San Juan del Sur from San Francisco in 1988 and in 1997 bought a parcel of ocean-view land tucked into the hillside above the town. It evolved into the Pelican Eyes Hotel & Resort, or Piedras y Olas, the area's most upscale resort, offering luxury accommodations and fine dining.

The success of the enterprise helped him set up a nonprofit providing educational funds and occupational training for the local youth, as well as expand his business. The project now offers homes for sale on a condo-hotel model that defines the high-end of the local market — furnished studios start at $200,000, two-bedroom town houses cost $580,000 and two-bedroom villas, now $650,000.

Santa Rosa, Calif., residents John and Ardys Jones, both 51, recently purchased one of those villas with friends for $426,000. For the first five years of occupancy, the partners will divide the three months per year they're entitled to use the villa; under the terms of their contract, Pelican Eyes will rent the villa to guests the rest of each year. After five years, the partners can use it all of the time. The couples hold the title to the villa and pay $600 to $800 in monthly fees, which include insurance and property taxes. They keep 60% of the rental income.

Nearby, ReMax Tierra Nica agent Stewart, 26, and his fiancée, Dana Eager, 25, are putting the finishing touches on a three-bedroom home. The expats will live on the bottom floor and rent out the top, which has a view of Nacascolo Bay, one of countless inlets carved into the coastline. The total cost when completed, including a swimming pool, will be $190,000.

Still, it's a leap of faith to buy in a city that has only one small hospital and an infrastructure that barely serves the population of 19,000.

That's why business partners Ken Ross, based in San Juan del Sur, and Laguna Niguel-based Alex Wilson, co-owners of Paradise Development Holdings, installed the water lines for their 130-acre development at Paradise Bay, as well as sewer and water lines for the locals living along the road up to the site. The parcel sits atop a hill with Pacific Ocean views. The 150 sites, each a third of an acre, will sell for $80,000 to $150,000. Completed homes are expected to cost $165,000 to $270,000. There is no lack of materials and local skilled labor.

Ross, a contractor and big-time surfer who moved to San Juan del Sur in 2000, and Wilson helped create a waste pickup system for the city. The goal: to improve the quality of life for everyone, while maintaining the town's character.

"Some investors think of this town as the next Costa Rica," Stewart said. "But developers here don't want that…. We're all striving to keep a fishing-village feel to the place."

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The basics of buying in Nicaragua

U.S. buyers can find good real estate values in Nicaragua but purchases are not without risk. Here's how the process works:

• First, find an agent. ReMax, Century 21 and Coldwell Banker are among familiar, U.S.-based companies selling land and homes in San Juan del Sur. Or firms such as Paradise Development Holdings, which owns 2,000 acres of land, know the ropes and can guide buyers through the process. Sellers pay the agents' commission of 6% to 10%; buyers pay the closing costs of about 3%.

• Once a property has been selected, hire a Nicaraguan attorney to undertake a title search and confirm that the property has no encumbrances. Conflicts can arise about who the legal owner is, said Managua real estate lawyer Terencio García Montenegro. In most cases, a lawyer can resolve the issue, he added. Title search fees range from $300 to $900. Additional closing costs apply as well. Florida-based First American Title Insurance Co. provides coverage for ownership issues, liens, mortgages and contracts. Once title is settled, a 30- to 60-day escrow begins.

• Overwhelmingly, cash is used for most home purchases in Nicaragua. At the beginning of the purchase, a 10% deposit is paid and the remainder is paid at the closing. Homes bought in new developments require multiple payments during the building process, García said, including a 25% deposit at the beginning of the transaction, with additional payments during construction and the final 20% at the closing.

• Financing through Nicaraguan banks is available with proof of income and collateral. Interest rates are higher than in the U.S., though, and range from 9% to 11%. U.S. mortgage lenders are not in Nicaragua yet, but will be fairly soon, said Jeff Seabold, president of Beverly Hills-based CS Financial. Success in the Mexican market has fueled confidence in areas farther south.

• Non-citizens pay a one-time transfer tax on a new property of about 1% of the assessed value. Annual property taxes are 1% of the assessed value. Tax withholding on rental income is 21%.

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Friday, June 2, 2006

The Nicaragua Tourist Board announced the launch of 1-888-SEE-NICA, a toll free number that provides those interested in visiting Nicaragua with valuable travel information. North American travelers can receive information about the destination 24 hours a day, 7 days a week in English and Spanish as well as request brochures. More detailed information will still be available on the tourist board's website, http://www.visit-nicaragua.com.

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Wednesday, April 2, 2006

POSTCARD FROM NICARAGUA
Baroque grandeur in old Granada
Just before dawn, make your way through the narrow cobblestone streets of Granada, cross the still-silent Calle Vega and take a seat amid towering palms and lush mango trees dotting the Parque Central.

Just before dawn, make your way through the narrow cobblestone streets of Granada, cross the still-silent Calle Vega and take a seat amid towering palms and lush mango trees dotting the Parque Central. You'll have a fine vantage point when the sun rises over Lago de Nicaragua and illuminates the towering cathedral. Granada may be only a 45-minute drive southeast of the capital of Managua, but watching the day arrive here is like stepping back hundreds of years.

The day begins

Birds soon fill the trees and slender telephone wires around the plaza. As if drawn to their chatter, the first carriages pull up along the park's western edge. Sleepy drivers with crossed arms slouch on worn leather seats and breathe in the last bit of cool air before the day's heat descends. Meanwhile, early-risers are just beginning to appear on the plaza, most heading toward the market. Shopkeepers are out sweeping the walks against the backdrop of the looming volcano Mombacho to the south.

Once, it was pirate bait

This is Nicaragua's oldest town, founded in 1524 by Francisco Fernández de Córdoba. With its access to the Caribbean by way of the Río San Juan, Granada soon grew to be an important and wealthy trade center, filled with opulent churches and manicured lanes that ran right down to the lakeshore. All the Spanish treasure passing through the city soon attracted the attention of English pirates, who sacked Granada three times between its founding and 1685.Walker's revengeYet its worst attack came from American renegade William Walker, who was bent on ruling one Latin American country or another. In 1855, he and his band of men conquered Granada. He even succeeded in becoming president (through rigged elections) but was forced to flee the following year. On his way out of town, he torched the city, leaving behind a placard that read "Aquí fue Granada" (Here was Granada).

Burn some calories

For those seeking an active itinerary, the possibilities are numerous. The nearby volcanoes make for some strenuous but rewarding hikes, with views to the Pacific on clear days. There are also boat trips out on Lago de Nicaragua — Central America's largest lake — to the lush and sparsely inhabited islands of Las Isletas, or beyond, to the twin peaks dominating Ometepe. Lunch at one of the island's restaurants, followed by a swim in the crystal-clear lake, makes for an eminently enjoyable afternoon. Later, back in town, charming Nicaraguan, Spanish and Italian restaurants — for some favorites, see "Where to eat" — offer a delectable end to a glorious Granada day.

Where to stay

Overlooking the main square, La Gran Francía is a colonial gem with a spacious courtyard, elegant tile floors, a swimming pool and many charming features among its comfortable rooms and suites. Doubles from $100; 011-505-552-6000, http://www.lagranfrancia.com . El Club, run by a friendly Dutch couple, is a converted colonial mansion that offers a handful of attractive, stylishly furnished rooms, all set around an inner courtyard lined with tropical plants and cozy nooks. Doubles from $45; 011-505-552-4245, http://www.elclub-nicaragua.com .

Where to eat

At Doña Conchi, on Calle el Caimito, you can dine in a romantically lighted patio garden as Doña Conchi serves up deliciously prepared specialties from her native Spain. Paella paired with sangria is hard to top. Don't overlook the bullet holes in the wall, supposedly left by Walker's would-be executioners, who — on this occasion at least — left him unscathed. Entrees from $7; 011-505-552-7376. Mediterraneo, also on Calle el Caimito, has excellent seafood specials, served in a beautifully set colonial dining room. Entrees from $8; 011-505-552-6764.

Getting there

From LAX, Taca offers direct flights (stop, no change of plane) to Managua. American, Copa, Continental, Delta, Lacsa and Taca offer connecting service (change of plane). Restricted round-trip fares begin at $489. After arriving in Managua, there's no need to hassle with buses. Most taxi drivers will take you straight to Granada for less than $25.

For more information

Nicaragua is named after the ruling native Indian chief who was in power when the Spanish arrived. For background on the country, tips on getting around and more lodging information, see http://www.nicaragua.com

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