Living in Nicaragua the following are excepts from an article written by Michael Cobb of Gran Pacifica Resorts, “due to one’s retirement, the overall cost of living, or simply a desirable change of pace, Nicaragua has seen a surge in popularity in recent years as a relocation destination. This Central American country does offer many considerable allures, both culturally and functionally; from recreational facilities and idyllic beaches to a welcoming culture and a pleasant tropical climate, it stands to reason that Nicaragua has found such appeal. The most practical concern with any such endeavour, however, remains the cost of living – whether one’s relocation is financially both sustainable and preferable. In this regard, comparing the cost of living between the United States and Nicaragua can yield both interesting and useful results.”

He goes on to say the following:

“In such analyses, it is imperative that housing costs receive their due focus. Monthly expenses  add up and can be a determining factor, but all such endeavors must begin with residence acquisition. In terms of rentals, it is important to divide varying residence types into categories:

  • 1 bedroom apartment – within the city center
  • 3 bedroom apartment – within the city center
  • 1 bedroom apartment – outside of city center
  • 3 bedroom apartment – outside of city center

This distinction is important for an understandable reason; in all markets, prices will vary based on both residence size and features, and proximity to — or location in —the city center. The same could only be true for Nicaragua.

As of February 2020, rental prices in Nicaragua are massively lower than in the U.S. for comparable residences. Within Nicaragua’s city center, prices tend to average at $215 for 1-bedroom apartments and at $448 for 3-bedroom apartments. In New York City, 1-bedroom apartments average at $1305 and 3-bedroom apartments at $2100that’s a respective difference of 507% and 368%. The same trend holds true for apartments outside the city center; Nicaragua sees 1-bedroom apartments averaging at $171 and 3-bedroom apartments at $331, while those outside of New York City experience 1-bedroom apartments average at $1041 and 3-bedroom apartments at $1654that’s a difference of 508% and 400%, respectively.”

We used to live in Kansas City Kansas before we moved to Nicaragua in 2015 and bought our home outside of Granada in an area called Pueblos Blancos. Let me provide some background to what we have and had in Kansas City.

In our last property we lived in Kansas City was a two bedroom one bathroom apartment that we where paying approv $1200 per month, with cable and utilities then max $1500 or so per month. Our overall monthly living expenses where 4200 per month including rent car lease health and life insurance.

We are now in Nicaragua living on a budget of approx $1200, excluding business expenses or upgrades to our home. WE paid cash for our home since we did not want to pay monthly mortgage payments with a high interest rates. Mortgages can be had here in Nicaragua but keep in mind most banks provide variable interest loans, currently at 12% annual interest with a 20% down payment. Expat can get bank loans, but with this high rate its best to negotiate with a seller.

Please also see some recent videos we created about living in Nicaragua

A conversation with Michael Cobb:

Interview with Michael Cobb at Gran Pacifica Beach Golf and Surf resort

Here is another video with Michael Cobb

Second Interview with Michael Cobb at Gran Pacifica Beach Golf and Surf resort

And finally why we selected Nicaragua as our new home

Why we decided to move to Nicaragua

And here is breakdown home buying costs in US versus other countries 2020

Here breakdown of living expenses in Nicaragua May 2020

Here is an overview of our costs to live as well as operate our business in Nicaragua.
Of course we did not post any income or costs associated to this, or taxes in Nicaragua or US.
You will also note we only went out twice this month for lunch and drinks, which has saved us some money, at the same time being under a pandemic, your life style changes and you buy a few things that are not really a norm, like stocking up on wine just in case.

We say that one can live in Nicaragua, specifically outside of Managua and own your own home at less than US1200 a month for two people, based on our farm living life style.

Our overall none business expenses was USD1429.625 in May but this takes into account a large quantity of dog food that not all expats in Nicaragua, have a pack of dogs LOL, living in a small rural farm community without access to cable therefore we use satalite, high energy use since we have too many refrigerators, computers and other technology that eats watts and our budget.

We started a garden that we hope will help us reduce store bought vegatables. Cost if this was minimal since we used our groundskeeper – cuidador, to prepare that land and the seeds basically came from items we used such as bokchoy cut the bottom stem and replant, or use onions and other green materials to replant. So far we can tell some issues but also successes like lettuce, bokchoy, spinach and lots of fruit trees keep giving us some great juice and smoothie items. If we have too much production we bring to the local retirement center that is on a very tight budget.
I probably missed an item or two but this is pretty close to our monthly expenses.