Savvy Investors Know These Things About Central America. Do You?
A growing number of people are considering purchasing property abroad. And for North Americans, Central American countries are often at the top of the list due to their close proximity to key US hubs, affordable real estate, friendly people and low cost of living. If you are interested in buying property in Nicaragua, Panama, Costa Rica or Belize, whether for investment reasons or as a lifestyle choice, make sure you know what you are getting into. Here are some points to get you started.
In the US, finding out what is on the market is simple. You walk into any broker's office that is affiliated with the MLS and ask for a list of all properties for sale in your price range. (In fact you can do this on the internet without leaving your home). In Central American counties such as Costa Rica, Belize, Nicaragua and Panama there is no MLS. Each real estate agent has their own database of properties that they know about (essentially pocket listings). So in order you see all there is to see on the market, you'll have to put in the legwork and visit each agent individually.
Your first step to investing safely in Central America (and other emerging markets for that matter) is to buy only what you see. Real estate vendors will be quick to tell you that the road will be improved, a bridge will be put in or a new airport is about to be built in the area. That's all great news, but don't factor these things into your purchase price. It's most prudent to assume that improvements and upgrades will never take place, or will take at least 10 years to be complete. Are you still happy with the property? Only move forward if the answer to that question is "Yes."
Forget trying to find official property statistics, price trend graphs, or information on how long individual properties have been on the market. That kind of data simply does not exist. You're going to have to draw from a variety of different sources to build your own analysis of the market. A good idea is to compile a spreadsheet of asking prices of data that is on the market so you can compare different opportunities objectively. Then seek out unbiased viewpoints and independent analysts to round out the picture.
Seek independent legal advice on every real estate transaction. Some sellers will recommend you use their own attorney at the closing for efficiency. Resist the temptation. It may be more expensive to hire your own adviser, but that's the only way you can be certain you will be represented properly. It is also advisable to take out title insurance on your property purchase. It's not a mandatory condition of purchase in Central America but will require your lawyer to undertake a detailed check of the title history.
Central America is coming of age as a real estate investment destination. It's been on the tourism map for decades but is slowly evolving into a second home and retirement home market, particularly for North Americans. It's currently a buyers market, so follow the advice laid out in this article and use this to your advantage.
Article Source: FxTradingStock.com
About the Author
Places to watch in Central America for emerging property opportunities are Placencia in Belize and San Juan del Sur Nicaragua.
by: Janet Pattin
Total views: 34
Word Count: 543
Date: Sat, 3 Jul 2010
Publish/Share this article
To use this article on your site click here to get the HTML code
Rating: Not yet rated
Login to vote
Related Articles
How to Invest in 2011 and Beyond Without a ClueWhat Is Forex Trading?
Quick Way To Trade In Shares
ATM Calendar Spreads, Are You Aware Of The Hidden Gotchas?
Emini Day Trading Requirements
The Coming Death Of The Dollar
Fantastic Fundraising Suggestions
Winning Big In The Share Market
