Cashing In on a Second Home in Central America

How to Buy, Rent and Profit in the World’s Bargain Zone ($19.95)
From the great urban high-rise developments in Panama City, to the eco-conscious beach escape in Nosara, Costa Rica to the distinguished colonial estates of Antigua, Guatemala . . . Second homes of any type, taste, and budget are available in Central America.

It is a straightforward, informative guide that helps potential second home buyers, investors and renters easily understand the nuances of Central America property, mortgages and escrow, plus: * Strategies on researching a property for purchase * Creative avenues of financing your dream retreat * Innovative ways of attracting desirable, qualified renters * Tax benefits, ramifications.

Why Buy a  Home in Central America? There are so Many Places to Start.

Topping the list of reasons to cash in on a second home in Central America is affordability, weather, increased airlift by major carriers and the rapid growth of the Internet which has made the international market accessible to millions of consumers. More dreamers have become active second home players because once difficult-to-gather data is now at their fingertips.

In addition, there is more political and economic stability for home buyers in the Cdentral America region than in years past; the U.S. dollar goes a long way; improved, inexpensive health care; homes and amenities often resemble what boomers-retirees find in the States, and most Central America countries are rolling out the red carpet with appealing tax incentives.

While Europe has also been a popular destination for U.S. consumers to purchase second homes (were you part of the group ready to jump on a plane after reading Under the Tuscan Sun?), the dollar has been weak against the euro for several years and air travel tends to be more costly and lengthy to European destinations. Couple that with the number of first-generation Latino residents in the U.S. who have a particular interest in staying connected to their homeland and you have an entirely new category of potential second-home buyers.

But the wildcard in the boomer deck is adventure – it is part of their hardwiring. Not only is this the largest, healthiest and wealthiest group ever to come down the U.S. pipeline, but boomers also seek the thrill of the exotic and are very willing to borrow to obtain that experience.

Central America for your Next Home — An Overview of a Diverse, Fascinating Region

The region is an absolute paradox. It may be all that you imagine, but surprisingly, it is much more than one could ever embrace. It is more than the long and winding territory that connects North and South America. To the typical North American, the area conjures up vivid and varied images. On the geographical side, a mountainous area with volcanoes, colonial cities, jungles, and, of course, bananas and coffee. On the political front, turmoil, dictatorships and instability. On the economic front, rich versus poor, agriculture-based economies, and sweatshops where United States garments are manufactured and exported. It is a complex and fascinating place, home to 41 million people with a total gross domestic product of about $88 billion.

How do you begin to categorize such a dramatic and extraordinary For starters, this region geographically encompasses seven countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. These countries have many mysterious cities and fascinating destinations that you could only hope to place them on the map in your mind. Where, exactly, are those exotic places on the flight boards at the Miami, Los Angeles and Houston airports? Cities such as Tegucigalpa (Honduras), Liberia (Costa Rica), Belmopan (Belize) and Colon (Panama) . . . Once you learn where to place the countries on a map, then you’ll realize the geographic diversity that these countries present. Striking and picturesque volcanoes line El Salvador, Guatemala, and Costa Rica. Coastlines range from remarkable and mountainous (Costa Rica), to black volcanic (El Salvador and Guatemala) to low-lying Caribbean. Culturally, Central America is extremely diverse. Guatemala has a strong history of native American Mayan cultures where much of the population is mixed or mestizo. Some countries such as Costa Rica have over 90 percent European ancestry with nearly no mestizo influence. The slave migration from Africa to the Americas resulted in English-speaking areas of African ancestry along the eastern coasts called garifunas. Panama is a true melting pot, with Asian, European, and Latin American cultures meeting at a true crossroads of the world.

The economies also differ. Nearly every country has its own currency (El Salvador and Panama utilize the dollar) and rely on agricultural exports such as coffee, bananas and other natural resources. Others have heavy manufacturing maquiladora bases (El Salvador and Honduras) and other countries are discovering tourism as a major source of income (Panama and Costa Rica). Some countries have a stable middle class (Costa Rica and Panama) while others have dramatic differences between rich and poor (nearly every other country in the region).

Once you can recognize differences between countries (if you can tell the difference between each country’s flags, currencies, and can point to the location on a map, it’s a good start!) then you need to sift through these markets and make a decision. Where would you buy a second home . . . and why?

Who is Buying Second Homes in Central America. . . and why?

According to the U.S. State Department, more than four million Americans live abroad, excluding military and government personnel. Mexico is by and far the largest at 25 percent, or 1 million American transplants, followed by Canada with more than 688,000. Central America is not far behind. In fact, an Urban Land Institute study on tourism developments estimated that up to 100,000 Americans live in Costa Rica alone. What does all this mean? As a North American, you will be in good company in Central America. There are many, many Americans living there full time as well as locals who have spent some time in the United States either studying or working.

Geography also plays a factor. Major Central American cities are a mere three-hour flight from international airports in the southern United States, including cities such as Miami, Atlanta, Dallas and Houston. All of these cities offer numerous direct flights to Central American cities that you can’t pronounce or quite place on the map. The “U.S. connection,” both culturally and geographically, also points to a reason why Central America is so exciting: it feels close to home.

What is driving second home investment in the region is price. Central America, considered by many as the “third world”, offers real estate at a fraction of the price found in the United States. Better yet, the geography presents opportunities to own property in beach and mountain locations at prices that haven’t been seen in the United States in more than 30 years. A low cost of living allows you to live like a millionaire on a modest retirement income. Thousands of foreigners are buying second homes because they have found Central America is a place where their dreams can come true – along with a live-in maid, cook, gardener and chauffer.

Cashing In On A Second Home in Central America covers the following: Costa Rica real estate, Panama real estate mortgages, Guatemala properties, Honduras real estate developments, Belize home buying, El Salvador real estate, Bocas realty, Bocas del Toro real estate, Dominical Realtor, Roatan home, Utila homes, La Libertad homes, Quepos homes, San Juan del Sur homes, Bay Islands homes, Ambergis Cay residential real estate, San Pedro Sula real estate, La Ceiba home buying, Nosara homes, Tamarindo homes, Nicoya homes and more.