Nicaragua is a terribly nice place to call home, full time or part of the year. And more and more people who come to visit decide that they would like to be able to return regularly and with their friends and family. They buy lots to build…and then reality sets in. They are faced with the proposal to erect a house.
Building in a foreign country can be a daunting proposition, especially if you’re operating long distance in a place where you don’t speak the language.
My husband and I are in this position ourselves, making plans to break ground on a home on Nicaragua’s glorious southern Pacific coast in Los Perros. We’ve been traveling the country for nearly a decade and have friends and business associates willing to lend a hand in any way they can. Still, we’re nervous.
So many ways things can go wrong. Entire houses laid out incorrectly, with rooms in the front that should be in the back and views of the hillside instead of the beach…retaining walls that crumble…foundations that crack…fixtures second category installed on top. Utilities stipulated (and paid for)…pools leaking…pipes bursting…(All the real life stories of people we know who have built houses in this part of the world).
How do you successfully manage the construction process from afar?
The most important thing to recognize is that you are not operating in the United States. Different building codes. Maybe there are no building codes. No inspection process.
The second most important thing (given the first) is to hire a reliable general contractor that you have found with the recommendation of someone you trust and for whom you have gotten three current references. The best case scenario (and what we’re trying to fix) is to be in the field, on site, for the first month of construction. Your GC can then take care of you between your follow-up visits. If you can’t be on site when the ground is broken up and foundation work etc is being done, your GC plays an even bigger role.
Hire an independent agent to track construction progress for you…to be your eyes on the site. Someone who lives in the country during construction and who preferably speaks the language of the workers. We have someone living in the country who will be able to fill this role for us. When we finally start building we will receive weekly updates and photos via email.
Arrange for payments to be made according to construction benchmarks. Maybe 25% to start, 25% after certain milestones, 25% after the next set of milestones, 15% after another set of milestones, and the last 10% after visiting the property and making sure it’s in place. completely satisfied with the work.
One of the biggest advantages of building a house in this country right now is how affordable it can be. Nicaragua has not yet been affected by the construction boom (and rising construction costs) that are common in nearby areas, Costa Rica for example.
This means you can build a spectacular home, complete with hardwood floors, French doors, Italian or Mexican tiled kitchens and bathrooms, wooden decks, air conditioning, and all the amenities for as little as $45 a square foot, a total of approximately $60,000. for a spacious two-bedroom house.
Or you could build a house that could make the pages of Architectural Digest for maybe $90 a square foot. But these construction savings won’t last forever.
President Bolaños is preparing to launch an aggressive campaign to increase the number of foreign visitors to the country from the current 475,000 a year to 800,000 a year by 2006. More visitors will generate more buyers will generate higher prices.
Managua, especially, has seen millions of dollars in new construction recently: new hotels, restaurants, apartment complexes, shopping malls. With all this activity, construction prices won’t stay at their current low levels for long.
Here are 14 more tips to help you safely take advantage of today’s opportunity to build in paradise:
1. Identify what IS and what IS NOT included in the contract. For example: retaining walls, the pool, landscaping, etc. Get a firm price in writing and be as specific as possible. Err on the side of details: includes electrical outlets, includes poolside wall lamps (they’re on the drawing, but make sure they’re in the price), includes “hookup” for appliances.
2. Understand what your house will look like and what view you will have if all the houses around you end up being built.
3. Understand all maintenance costs: landscaping, security, pool maintenance, insect control (especially on a traditional palapa roof if you’re adding one).
4. Consider whether you want to air condition bedrooms, public rooms, hallways, or all of the above. This can make a big difference in design.
5. Don’t let your builder change anything without your consent or without giving you a written estimate of how much it will cost.
6. If you’re building on water, use salt and water resistant materials on exposed surfaces (sounds obvious, but your builder may not remember).
7. If you are going to put your house in a rental pool, remember that when you select furniture, bedding, sheets, etc.
8. Stormproof your home and provide instructions to your property manager in the event of a storm.
9. Expect delays. The weather will sometimes be bad… materials will often not arrive on time.
10. Choose your own appliances and finishes: tiles, air conditioners, generator, toilets, light fixtures, etc.
11. Get a written warranty from your builder, including items such as plumbing and electrical.
12. A palapa roof looks beautiful, but it requires a lot more maintenance than a tile roof. It is said that the palapa lasts five years. Hornets and scorpions also prefer the palapa, so that may be another vote in favor of the tile.
13. Talk to your builder about “Covintec” sheets. It is a wire frame styrofoam sheet that you can use for walls and ceilings. It has excellent thermal qualities and is designed for seismic areas. It can also be used for swimming pools. It is a huge cost and time saver.
14. Buy a generator, one that is proportional to the size of your home. Ask your builder for recommendations.
Knowing that you are in a foreign country, be smart and assume nothing… and you can build the beautiful home of your dreams in a tropical paradise.