By SHANNON ROXBOROUGH

 

Nicaragua. Thanks to the Iran-Contra affair, this Central American nation forever calls to mind Oliver North, the CIA, the Sandinistas and news of an arms-for-hostages scheme.

 

But truth be told, Nicaragua’s scandalous skin was shed a long time ago. Until relatively recently, however, Nicaragua was the kind of place travel writers kept to themselves. They visited, enjoyed it and returned home to share their stories only with their closest friends. Nicaragua was one of Latin America’s best-kept secrets, with only a handful of adventurous types dropping in to explore its unspoiled beaches, spectacular volcanoes, old-growth tropical forests and weathered Colonial towns. Then the place became more stable and mainstream tourists began arriving.

 

In the last few years Americans in search of second homes and investment property, put off by the long-standing popularity and inflated prices of Costa Rica to the north, have spawned a boom of sorts. Nicaragua has been rediscovered by travelers and those drawn to places with a frontier spirit.

 

Following in the footsteps of a legendary author and admirer of Nicaragua, Mark Twain, Matthew Brown’s first visit to the country included a trip down the Río San Juan River, which flows from Lake Nicaragua into the Caribbean. Nine years later, he happily splits his time among Manhattan, London and Nicaragua.

 

"When an old globetrotter friend of mine told me about Nicaragua, I was initially skeptical, and a bit afraid, I must admit," said Brown. "Beyond memories of the bloody conflict two decades removed, I still thought of Nicaragua as a dangerous, unstable place with streets filled with armed men. When I arrived in the rough-edged but relatively safe capital, Managua, I felt at ease." After combing the country high and low on annual trips, he finally set his sights on Granada, the oldest city in Latin America, where last year he purchased a roomy four-bedroom house, with a private walled courtyard, in the city’s historic district for $69,000.

 

With its brightly painted architecture and cobbled Colonial boulevards, this graceful, small metropolis of 111,000 feels frozen in time, which is exactly what makes life here so appealing. Situated on the northwestern shore of Lake Cocibolca in the shadow of a lush, green volcano, its exotic air and subtle grandeur are a welcome exception in the touristy world of Disneyesque artificiality.

 

Real estate in Granada’s historic heart tends to sell for more than in lesser-known towns, but prices are still a fraction of what you’re accustomed to. Local real estate agents list a number of Colonial-era homes from $100,000 to $200,000, with fixer-uppers starting around $50,000 (in nearby towns, such as Jinotepe, which is known for having the cleanest streets in the country, prices are even lower).

 

Beyond Nicaragua’s lake towns and mountainous interior, the dream of an unspoiled beachfront is alive and well. While a few resorts and residential developments have sprung up on the Caribbean coast, it remains largely undeveloped. The Pacific coast is virtually untouched. Oceanfront lots start at under $100,000; those with views of the ocean are going for as little as $40,000 (sometimes less). Re/Max Colonial Properties (remaxcolonialproperties.com; 011-505-552-3199) is selling two four-tenths-acre golf course lots with sea views near Iguana Beach, a popular surfing destination in South Western Nicaragua, for $35,000.

 

"The Nica [Nicaraguan people] make you feel very much at home here," said Brown. "And you just can’t beat the prices on everything from property to daily staples. I consider Nicaragua to be the perfect winter playground."

 

Perks
A rock-bottom cost of living with real estate that is downright cheap. A breathtaking coastline, crowd-free beaches, picturesque towns, untamed jungles, huge lakes and friendly people. The U.S. dollar is widely used, though the córdoba is the official currency. While Spanish is the official language, English is understood by many, especially in tourist areas.

 

Drawbacks
The economy is among the poorest in the hemisphere. Crime is on the rise and civil flare-ups occur sporadically. For U.S. citizens, a valid passport is required for entry, though no visa is necessary for stays of less than 90 days.

 

The weather
Nicaragua has a tropical climate with highs usually in the 80s and 90s, though temperatures are much cooler in mountainous areas. Rain showers are common.

 

The costs
Real estate prices in Nicaragua vary greatly, depending upon on the location. While you can spend a few hundred thousand or more for a prime property in a to-die-for destination, in many towns comfortable single-family residences in move-in condition can be had for $50,000 to $100,000.

 

Where to stay
The Nicaragua Channel provides a searchable database of hotels and other accommodations. Visit nicaragua.com.

 

Must see
Las Isletas is a 365-island archipelago of enchanting forested islets in Lake Nicaragua; San Juan del Sur is a coastal city on the Pacific Ocean popular with tourists.

 

For more information
The Nicaraguan Post (nicaraguanpost.com) is a biweekly English-language newspaper serving the country’s expatriate population. Between the Waves (wavesnicaragua.com) is a quarterly lifestyle magazine distributed free at hotels.

 

ABOUT THE CONTRIBUTOR

Shannon Roxborough, a former Money magazine correspondent and current newspaper columnist, is a widely-published writer and international consultant who has helped countless people with living and retiring abroad and offshore planning over the past 20-plus years. He is editor and publisher of BorderlessLiving.com, a new online global lifestyle magazine that will launch in April 2009.