If you are looking for a speculative real estate play that holds the potential for short term profits then it makes sense to spend some time exploring opportunities in Central America. The region is known for its emerging real estate areas where you can position yourself in the path of progress and enjoy real estate growth as development arrives and the tourism industry develops.
Let’s start with international real estate investing in Belize, a tiny country located in the north of Central America bordering Mexico, that is often overlooked as a real estate destination. For ‘early in’ investment opportunities head for places like Placencia and Corozal on the mainland which are less well known than Ambergris Caye, the main tourism spot. But even on Ambergris Caye, if you head to the more remote northern and southern parts of the island, away from the town of San Pedro, you can still get into the property market at ground floor prices.
If you’ve got a strong stomach for risk, then don’t overlook Nicaragua. According to data from Reveal Real Estate, Nicaragua has lower real estate prices than Belize, Costa Rica or Panama and also the lowest cost of living in the region. Many investments here would be classified as ‘speculative’ in nature but should hold the promise for capital appreciation in the future. Tourism numbers are growing rapidly and that’s always a good sign for property markets, and the country has scenery that will rival any in Central America.
Panama offers classic ‘middle market’ investing. Places like Boquete and Bocas del Toro, for example, can’t really be described as emerging, but they’re not fully developed either. Head to Azuero peninsula for more pioneering investment opportunities. Given the growing economy, massive infrastructure improvements and the strong development path in Panama, your investment even in areas such as Azuero will be less speculative than it emerging locations in other countries.
You find areas in Central America to suit all risk/reward profiles. But start by clarifying your objectives as these will help you decide where to focus.
Tags: belize, Nicargua, Panama