Why Buy a Home in Central America?
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 Central 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.
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.
Information
provided by http://www.tomkelly.com/book_centralamerica.html
