Real estate at a fraction of the price
“Nicaragua is next in line for fractional real estate offerings after Costa Rica and Mexico” according to Scott A. Preston of law firm Ballard Spahr Andrews & Ingersoll, speaking at a recent event hosted by the Association of Nicaraguan Investors and Developers (ANID).
Fractional real estate is broadly defined as vacation real estate sold in intervals of more than one week and less than whole ownership. It sits alongside destination clubs, condo hotels, timeshare and private residence clubs on the spectrum of real estate models being used in the second home and vacation market.
Despite being new to the market here, Nicaragua has an advantage over Mexico (where fractionals are booming) when it comes to the legal basis of fractional ownership. With a simpler legal system and an environment where foreigners can own land with fee simple title, fractional offerings are set to flourish.
Hassle free absentee landownership
For investors not equipped or not willing to be absentee landlords, fractionals offer a compelling proposition. It is often not a matter of being unable to afford a vacation home, but a case of not wanting the hassle and expense of maintaining a home 52 weeks of the year when they are likely to occupy it only for two or three weeks each year.
We know of a number of developers in Nicaragua planning fractional products. All part of a wider trend towards mixed use offerings in the vacation real estate world.
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