Friday, August 7, 2015

The Great Recession and Overseas Retirement

The Great Recession devastated income, earnings and savings of the baby boomers. A recent Washington Post article states that the downturn wiped out 40% of the wealth of Americans. No other group has been as hard hit by the economic downturn of the last few years as those close to retirement. As one woman in a recent NYT article claims she will probably have to work until she is 100 before she retires. For many who have lost their jobs the downturn is particularly frightening, they can be one single accident, or medical illness from losing it all; their homes, their retirement savings, the world as they know it.

 These are some of the reasons that overseas retirement is being contemplated by many baby boomers. Here in Nicaragua, their income from retirement, the money they gained from selling their northern home, the low cost of living, and low medical care costs can allow them to live a lifestyle many, many times more luxurious than in the US, Europe, or Canada. Furthermore, while economic prospects for older workers are dismal in North America and Europe, here in a rapidly growing economy, with a deficit in skilled workers it is much easier to start ones own business.
Playa Madera on the southwest coast of Nicaragua is a center of immigration for retirees

The rapid growth in GDP for all Nicaraguans, and the tremendous growth in tourism, have created great conditions for starting a business here. The ex-pat population creates a large group looking for many of the comforts of home, whether it is familiar food, Western style houses, fresh herbs and spices, or a comfortable place to hang their hats during vacations. Investments in real estate are bound to increase in value. At a time when many investments are only gain meager returns real estate here is booming. Yet, with the fall in prices during the Great Recession there are still many great deals here. Prices are 1/3 to 1/7 of North American and Costa Rican prices. One could sell one's home in Canada, the US, or Europe and live comfortable for decades on the money earned. One can even use one sIRA's or 401(k) to invest in real estate, and then sell it to yourself when you move here.
Playa Madera on the southwest coast of Nicaragua is a center of immigration for retirees

The southwest coast of Nicaragua is an excellent area to buying income generating real estate. There is a strong tourism potential, and many new arrivals looking for a place to rent for the winter. It is also famous for its surfing. The best months for surfing are April to October. This extends the tourist season, from a boom and bust two to three month season to a virtually all year round proposition. There are many, many older surfers looking for comfortable homes near the best beaches. Playa Madera is one of the most famous surf beaches in Nicaragua. Its location just 15 minutes north of San Juan del Sur makes it a must go for surfers and all beach lover the world round. Vista us at Vista Playa Madera, or visit our Facebook page.