Investing in Developing Nations at the Right Time

Posted by Mike Cobb on Dec 29, 2015 8:26:45 AM


For portfolio diversification and greater profits, international investment is nothing new. However, many people thinking about making their first move into investing in global real estate sometimes struggle to know when the time is right. The sweet spot is to jump into an investment when it is getting off the ground and while real estate is still affordable.

Too early, however, and you could be tying up valuable assets for years while the market improves. Any investors contemplating a future investment overseas should look to Nicaragua for the greatest profit potential.

Now is the perfect time to invest in Nicaraguan real estate, particularly the wonderful homes available at Gran Pacifica Beach and Golf Resort. These are some of the top signs that right now is the perfect time to invest in the developing nation of Nicaragua.

Foreign Investment is on the Rise

One of the best indicators that it is the right time to invest internationally is when other foreign investors are writing checks to do the same thing. Nicaragua has become a hotspot for investors who are willing to put up capital for local businesses to develop and serve the local market.

One American company called Arrow Global, for example, now offers pilot loan programs for those who want to invest in Nicaragua and take advantage of the impressive economy development in the nation.

As foreign investment increases, infrastructure improves, real estate prices go up and everyone who got in at the ground floor will see an impressive return on their investment.

Property Values are Still Affordable

How do you know when you've missed the boat, and investment in a developing nation is coming too late? When property prices are no longer affordable, the initial rush has passed, and there may be less potential for big profit margins.

Thankfully, that time has not yet come for Nicaragua. Real estate is still incredibly affordable, which might come as a surprise if you never dreamed that you could buy a vacation home by the beach or invest in a property to use in retirement in a tropical destination.

Managua is Undergoing a Massive Revitalization

If you need more proof that Nicaragua is on the precipice of a major shift from developing nation to international tourist destination, take a look at the capital city of Managua. The city has a history that stretches back 6,000 years, and it has been incorporated since 1819, but in recent months major revitalization has given Managua new life.

Millions have gone toward the renovation of the enormous Galerías Santo Domingo Shopping Center, and as much as $35 million is being set aside for the construction of a new world-class baseball stadium in the heart of the city. 

Tourism is Booming

Finally, a great indicator of investment potential is tourism. This is especially true if you're thinking of buying residential real estate at a place like Gran Pacifica. Buying a home in a development like Gran Pacifica could be your family's vacation home or a future retirement residence, but it can also be a fantastic way to generate income.

Renting it out to the increasing number of tourists who visit Nicaragua each year means boosting profits annually while the equity value in the home rises. 

Knowing when the time is right to invest in developing nations can be complicated. Right now, however, is clearly the perfect time to purchase real estate in Nicaragua.

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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: Investing in Nicaragua