About Central America

Dispel the Myths…

Contrary to popular perception and press coverage, Central America has enjoyed political stability and democracy for at least 10 years now-Nicaragua is the poorest yet safest country in Latin America. US real estate buyers are changing public perception of the region. Thousands of Europeans already own property in Mexico, Belize and Panama. The "Costa Rica" Trend is spreading to Nicaragua. The extremely low cost of labour is fueling manufacturing investment-even investors from the Far East are bringing their business to Central America.

A Region Set for Growth…

The economic indicators in most of these emergent states are showing huge growth. Central America provides some of the most naturally beautiful and unspoiled areas on earth. The Region's underdeveloped status still allows for pockets of exceptional value.

...the Region is developing rapidly aided by memberships to various International Organizations and increasing interest from overseas home buyers and retirees. Title Insurance and Political risk insurance legitimise and protect the market further.

... Short Term Client. Long Term Partner

Nicaragua

Frontier focuses considerable effort on Nicaragua. So why consider Nicaragua as a destination or investment?

Fastest growing tourist destination in Central America: approximately 800,000 tourists
Foreign Direct Investment increased 60.7% in last four years to $260 million in 2004
GDP growth was over 4% in 2005
Growth has been stable for several years
IMF and WB agreed to forgive debt and to an annual foreign investment of $318.4 million for infrastructure improvements
Exports rising breaking the $1 billion mark with ratification of the DR-CAFTA Agreement
OPIC offers political risk insurance, loan guarantees and project finance
Capital appreciation and growing rental return potential
prices are about 5 times more in Costa Rica and 10 times more in California.
Mexico is already classed as a mature market

The 'Costa Rica' Factor

It is estimated that Nicaragua is at the level of Costa Rica 15 years ago. Many Americans started buying and investing in real estate there in the 1990's.

Property values are up to 5 times higher in Costa Rica than on Nicaragua's Pacific Riviera; only 45 minutes to the north

In the last few years, tourism and business has moved from Costa Rica to San Juan del Sur, Granada, and the Pacific Coast in Nicaragua

Cruise Ships have started coming to San Juan del Sur, Nicaragua

Real Estate values have mirrored first portion of Costa Rica's curve

Some of the measures Nicaragua is taking to ensure lasting investment...

Better Infrastructure
Construction of the Coastal Highway linking coastal developments. Roads to other regional towns like Ometepe, Leon and Matagalpa
Modernized and upgraded International Airport
The Ministry of Tourism in Nicaragua has hired an International Marketing Firm

Ask Frontier Properties...

Which Countries is Frontier Properties focusing on?

Nicaragua, Panama, Honduras, Belize

Why not the others?

If Frontier has ANY concerns about security in a given area, we do not recommend it. For example, in recent years, some concerns have been raised over El Salvador and Guatemala

What is motivating people to invest in Central America?

Regional Stability
Increasing Interest from the US
Personal Safety
Cost of Living
Cost of Labour
Low Cost of Property and investment
Incentives to invest

What sort of returns can we expect?

Returns are difficult to predict without referring to specific land or properties – location, price, asset value, asset class, development costs, infrastructure must all be taken into consideration when estimating returns.

Can you get clear title to land in Central America?

The answer is basically, yes you can. There are many caveats, however. In Nicaragua, for example, there are areas where title is clear, areas where you have to be careful and areas you should not even attempt to buy. It is VITAL to check with a lawyer with experience in this field. Frontier can advise.

Can you get Title Insurance?

Title Insurance is considered on a case-by-case basis, but if you are thinking of purchasing a single property such as a beach house or lot upon which to build, you should buy in a development where a Master Title Insurance Policy has already been issued.

What taxes will we have to pay?

This is an area Frontier may be able to comment on but not advise. Professional tax advice should always be sought before making any decision or purchase. Frontier can refer you to competent professional tax advisers. Title Transfer Tax has recently been reduced from 4% to 1% to encourage foreign investment Annual Property Tax is only 1% of the appraised value

Is private property ownership protected by law?

In most cases, the answer is, yes it is. You must again make your title to property is clean through a competent professional.

Are all Professionals competent?

By no means. Most of Central America is in classed as Third World and therefore there are problems with bureaucracy and corruption. There are few formal checks and balances. You should check with Frontier for a list of trustworthy professional advisers.

Frontier has chosen Nicaragua as its Central American base. Why?

Improving Infrastructure
Better economic results
Anticipated Appreciation and rental potential - Priced 20-50% of comparable property in Costa Rica; just 2-hours away
Early-in opportunity

Is the cost of living low in Nicaragua?

Roast chicken, salad, rice, vegetables, plantains & Coke: US$2.50
Domestic Help $125/month including benefits
Bottle of Rum: $3.50
First Run Movie: $2.75
Bus fare in Managua: 18 cents

Can you find western goods?

State-of-the-art Metropolitan Hospital opened in Managua
Bilingual schools and Colleges
Two new shopping centres opened in Managua
Four new supermarkets
Price Smart Warehouse

What sort of opportunities can you find?

This is a unique opportunity for investors to capitalize on the fact that many of these countries provide:

Access to undervalued assets.
potential to redevelop and renovate: to add value.
Identifiable and suitable projects and new developments to market.
Potential to build a land and asset bank for short, medium and long term growth.