Investing in San Juan del Sur, Nicaragua: An Attractive Real Estate Opportunity

Nicaragua's real estate market has seen significant price declines in recent years, offering attractive opportunities for investors. Particularly in the coastal town of San Juan del Sur, property prices have dropped 30-40% despite the country's solid government finances.

This presents a compelling value proposition for those seeking a lifestyle change or investment potential. The weather, low cost of living, and lack of COVID-19 restrictions have drawn many North Americans, especially Canadians, to relocate to Nicaragua.

Additionally, Nicaragua's territorial tax system allows non-US individuals to live largely tax-free, if structured properly. For the price of a small home in Toronto, one can purchase a house with sea views, a pool, and abundant sunshine in San Juan del Sur.

The region is also poised for significant infrastructure development, with Chinese financial and technical support for new highways, railroads, and an international airport. This could further boost the area's appeal and investment prospects.

However, investors should be aware of the risks, including the potential for increased Western sanctions and foreign interference, which could lead to instability. Additionally, rental returns in Nicaragua are currently not as attractive, making it more of a capital gains play for patient, long-term investors.

Despite the risks, the author is actively investing in Nicaragua and recommends exploring the San Juan del Sur real estate market further. Interested parties can reach out to the author's recommended realtor for more information.