How Nicaraguan Real Estate Can Diversify Your Investments

Posted by Mike Cobb on Dec 2, 2015 1:53:11 PM


As the old adage goes, never place all of your eggs into one basket. Never could that be truer than in the world of investing. If you keep all of your hard-earned assets in a single bank account, a single currency or even a single country, you might be making a mistake.

In order to mitigate financial risk and reduce your vulnerability, diversification across multiple industries, currencies and countries is a smart choice. While there are plenty of ways to diversify, one of the most promising is investing in real estate in Nicaragua.

Discover how purchasing real estate in the community of Gran Pacifica, Nicaragua, could have a tremendously positive impact on your investment portfolio and its level of diversification.

Global Diversification

One of the biggest ways that buying real estate in Nicaragua can diversify your investments is by spreading assets to a new country. Although it is never pleasant to think about an entire government, economy or political system having major problems, these things can and do occur.

If all of your assets are placed in the United States, and something were to happen that would devalue those assets, having real estate in Nicaragua would provide you with a valuable alternative investment. 

Investment Diversification

Real estate in Nicaragua may also offer diversification in the form of industry and investment type. Even if you're already a player on the international market, make sure that not all of your investments are the same type.

If you only invest in global stocks, for instance, a market collapse might mean that tangible real estate could be your financial safety net. If you don't yet have an investment property in your portfolio, adding one from Nicaragua can be a smart and affordable option.

Currency Diversification

For most investors, the bulk of their investments come in their preferred home currency. While there is nothing wrong with doing so, it can be smart to also have investments not tied to any one specific currency. Real estate, for example, can be purchased in Yen, Euros, Dollars or any other currency imaginable. 

Income Generation

Most investments have some kind of objective, and these can include asset preservation, long-term security or income generation. Real estate purchases in a place such as Gran Pacifica in Nicaragua can be an excellent way to generate income from an investment.

If you rent out the property to vacationers or long-term residents, you can bring in a significant amount of money that goes toward your own living expenses or even into reinvesting options that will further boost your diversification and your portfolio.

While not all of your investments should bring in income, depending on your financial objectives, having some that do can help you grow your net wealth and feel more secure about your spending.

Retirement Planning

Many North Americans have very straightforward means of saving for retirement that include either reliance on Social Security or on an IRA. While these can be factors in your plan, diversification is just as important when planning for retirement.

Owning real estate in an the affordable country of Nicaragua can provide you with a low cost of living and a rent-free residence, should you decide to move there once you are officially retired.

Investing in real estate in Nicaragua can be a savvy way to diversify your portfolio through a different currency, a unique investment type and even a different geographic location. Plus, a real estate investment in Nicaragua can generate income and help you plan for a comfortable retirement.

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Mike Cobb

Written by Mike Cobb

In 1996, Michael K. Cobb and his business partner formed a company, Exotic Caye International, to provide loans to North Americans purchasing properties in Belize, Honduras, Costa Rica, and throughout the region. With a strong focus on consumer need, Mr. Cobb accurately predicted the growing demand for high quality, residential product for North American "baby boomer" retirees in the region. He led the group into real estate development and created a holding company called ECI Development for several properties, including a resort on Ambergris Caye, Belize. Michael speaks at dozens of international conferences annually about offshore real estate finance, development, and ownership. He was a consultant to The Oxford Club, hosted a weekly radio program, contributes regularly to overseas publications, sits on the board of several international companies, gives counsel to various real estate projects throughout Central America, and serves on the Board of Directors and the President’s Advisory Group for the National Association of Realtors, NAR.

Topics: Real Estate in Nicaragua