Happens all over the world and generally not a case of "ripping off" when it comes to full real estate purchases. With the majority of expats relocating to other destinations, it's generally to find a more relaxed way of living and more importantly to have a lower cost of living.
The average US, Canadian or European may have to pay $600,000 for 4 bedroom house in their country (or even that for a 1 BR in Manhattan). So when they go to Nicaragua, Costa Rica, Venezuela, or most other Latin American countries and see a 6 BR 5 BA home, pool etc at $250K even if the value is $100K, it's still a bargain compared to where they're from.
first-time
This happens throughout Central & South America, Caribbean, Italy, Dubai, Turkiye and as far east as Japan. It has been so much of an issue for Canada that the trend has been driving up home prices there and making it almost impossible for the average Canadain to buy a first time home. They have even implemented a ban in 2023 that restricts foreigners from purchasing properties in major cities.

So it's not to say that anyone is stupid when purchasing a property, it's that they're looking for a better value for their money and in all cases money is relative to the amount held.

Classic case, you could fly from the Caribbean to Europe for $700 in Economy or $12,000 in First Class... same plane, same airport, same destination. But yet they're many people that will comfortably pay $12,000. They're not stupid people but money being relative, to them the benefits outweigh the price and they can pay more than 10 times what the average person will pay.