Читать книгу Cashing In On a Second Home in Central America: How to Buy, Rent and Profit in the World's Bargain Zone - Tom Hammond Kelly - Страница 8

According to the U.S. State Department, more than four million Americans live abroad, excluding military and government personnel. Mexico has the largest percentage 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 destinations are a mere three-hour flight from international airports in the southern United States, including major hubs such as Miami, Atlanta, Dallas and Houston. All of these cities offer numerous direct flights to Central American places 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.

These countries are in the same time zone as many U.S. departure points, making it easy to get to and from home. Network news is broadcast on television via satellite live at the same time as it is in New Orleans or Houston. And it is also comforting to know that you can actually drive to all cities in Central America in a four-or five-day period from the southern United States. (Granted … it’s a long, windy, and bumpy trip and not highly recommended for a variety of reasons we’ll outline later.)

While buying a second home in a foreign land may lead you to initially consider places such as Europe, the South Pacific or Australia, practically speaking, Central America makes sense from a geographic, cultural, and economic standpoint that we’ll explore in later chapters. This proximity has also resulted in Central American countries being a haven for U.S. companies and franchises. Drive in any Central American city and it may resemble a typical U.S. suburb, with every fast food franchise imaginable, warehouse/membership clubs, hotel franchises, rental car agencies, malls and other comforts of home. You can buy peanut butter in Central America and get U.S. brand products at prices similar to what you would find at home! The recent passage of the Central American Free Trade Agreement (CAFTA) means that more products than ever will be available from the United States.

What is driving second-home investment in the region is price. Central America, considered by many to be 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 chauffeur.

Low purchase price is not the only factor driving the second-home boom in the region Many Americans are drawn to Central America because it is an appealing alternative to Mexico or the Caribbean. Mexico, a much larger international second-home market, is an obvious and popular choice for North American citizens buying abroad. (For more information on Mexico, check out the first edition of this series, Cashing In on a Second Home in Mexico). Second-home buyers are oftentimes drawn to Central America because Mexico, for whatever reason, didn’t make their list. While Mexico hotspots such as Los Cabos, San Miguel de Allende, and Ajijic have reached a “critical mass” of North American second-home communities, Central America is just beginning. It’s “the next frontier” in international real estate investment. Some people are simply finding lives that they could not have in Mexico by finding their perfect getaway, or opening small businesses, operating farms or growing crops. Some have been able to integrate more easily into the culture of these countries since they are smaller and more manageable—and it’s just not about money. It’s true that many foreign buyers of second homes are enjoying excellent appreciation rates and are finding the region is a good investment. But many others are learning that Central America is a unique place and are drawn there because it is not Mexico.

In a capsule, Central America is an exotic place. It is different. The risks can be greater because the region is so atypical. Decisions are less obvious and more choices need to be made.

Second homes of any type, taste, and budget are available in Central America. Great urban high-rise developments are common in Panama City and Guatemala City. Attractive beachfront developments are in every market. Inviting subdivisions are tucked away in mountain retreats and numerous farms and agricultural properties offer distinctive opportunities. Local, charming homes offer unusual tile work, living areas and access to wonderful local culture that you could never find in Florida. However, if you want your second home to resemble a sprawling Florida manor, then numerous master-planned communities offer aesthetics, lifestyle and security that is familiar and comfortable. There are prices to match every taste and budget.

Central America is not for everyone. Despite a promising future and improving economies, these are third-world countries. They are not immune from natural disasters such as hurricanes and earthquakes. There is extreme wealth and poverty as well as crime. The region has become more stable over the years but governments are fragile and corruption is real. Getting around from country to country is painfully slow and the roads are terrible. The rainy season (North America’s summer) is a bit long.

But, by and large, the region is changing dramatically and has a very promising future, one filled with tourist dollars and partnerships with the United States and other foreign countries. Gone are the days of CIA intervention, communist struggles and military rulers. Dictatorships have dissolved and democratic governments are in place. The region as a whole is friendly to North Americans and Americans are viewed relatively favorably here, unlike in many areas of the world. Visitors will not find graffiti declaring “Yankee, Go Home!”

The United States returned the Canal to Panama and the Panamanians have done an outstanding job managing it. Multinational corporations are discovering the healthy work ethic and are launching major manufacturing and service operations in once-taboo areas such as El Salvador. Newly discovered retreats such as the Bay Islands of Honduras, Guanacaste (Costa Rica) and Antigua, Guatemala, are booming with tourism. The economies are irreversibly tied to the U.S. dollar. The region is changing dramatically with new construction and modern conveniences—no longer the stereotypical “banana republics.” Most importantly, every government in the region recognizes the magnitude of the international second-home market and the multiplier effect it has on jobs, economic development, and international relations. By buying a second home in the region, investors become important contributors to the economic development of a rapidly emerging region.

The goal of this book is to provide an educational adventure to a vastly undiscovered region. It will not require riding on old U.S. school buses with musical hits from the 1970s blasting in the background as you drive along bumpy roads with hairpin curves. You won’t have to change currencies or wait hours to cross borders in front of guards with machine guns. But have a seat and imagine yourself in a thatched hut palapa with a cool drink, fresh food and sunshine along a deserted beach. Or, imagine yourself hiking through a misty rainforest with a view of a volcano in the distance while counting exotic birds. All of this unfolds a few hours’ flight from the predictability of life at home. Stay with this book and discover why buying a second home in Central America may change your life, economically, mentally and spiritually. Where is the most activity? Sure … there’s plenty of information about Panama and Costa Rica but we’ll provide you some intriguing content on the new-look Nicaragua, the cayes of Belize, the colonial magnet of Guatemala, the islands of Honduras and a few unknown beaches of El Salvador approximately 20 minutes from one of the most efficient airports on any continent. What are the most important rules of buying real estate in the region? Be open, flexible, cautious, a bit adventurous and most importantly, diviértete! (have fun!).

In Part I, we explore the countries and explain where and how second-home buyers—real people—have purchased property in Central America. There are simply too many cool hideaways and gorgeous towns to chronicle, yet let’s investigate some of the most intriguing locations of a terrific region. Some of the stops already have been discovered, yet others are just appearing on the radar screen. First up, that booming country of Panama.