Panama Investment Property Buying Tips

The general consensus of opinion in the property investor world right now would seem to be that you can’t go wrong with investment real estate in Panama – i.e., apparently you can buy anything and it’ll turn to profit right before your very eyes.  Well, I’m sorry but that’s about as sensible an assumption as believing the world’s flat!  Sure, there are some who are already profiting significantly from their investment real estate assets in Panama…but don’t be fooled into thinking you can just buy any old condo or house and that you’ll be quids in a few months down the line.

In this report we’re going to be detailing ten Panama investment property buying tips so that you are forewarned, forearmed and going into battle in the Panamanian property boom with your eyes wide open.

1) Tread carefully when selecting an estate agent (or realtor) to facilitate your search for that perfect property.  For one thing, real estate agents in Panama have to be licensed so ensure they have the correct paperwork, and for another thing you need to know how well experienced they are. 

Ask if they can put you in touch with a satisfied client or two so that you can speak to them and gauge how well the estate agent in question helped them.  You need someone aggressive, who knows the market, who is proactive and who will sincerely assist you rather than bully and force you…take recommendations if you can, but also go with your gut feel.

2) Get a broad feel for properties available in the particular property sector you’re interested in.  I.e., if you want centrally located condominiums you need to see at least a handful of developments to get a feel for the differences between developers! 

Some condos are better put up than others, some are finished better, some are better located, some have the best onsite amenities and facilities…compare like for like and see which development comes out the winner.  Do not tie in to one developer on an inspection trip because that is like committing real estate investment suicide! 

3) Be wary of off plan property in Panama – that’s where the hype is at right now – everyone’s selling pre-construction, offering tasty discounts, promising the moon, stars, sun and even earth…but there have been a few horror stories about developers cutting and running with deposits, there have been a few more about developers selling a single unit multiple times and of course there are few real guarantees that what you believe you will get is actually what you will get.

If you do want to buy off plan as opposed to buying something that is completed or close to completion you need to research the pedigree of the developer and you need a watertight contract that holds the developer down to all the essential aspects of the property and your unit in that property that will make it a desirable asset with profit potential.

4) Visit Panama.  Don’t just buy off the internet – come on guys – do you really think arm chair property investing is wise?

5) Don’t touch Right of Possession (ROP) land or real estate – this is property without legal title.  You may one day get title – you may not, yes it’s cheaper (it would need to be!) but it is not a wise investment!

6) Consider taking out Title Insurance on any Panamanian property that you buy.  This is not an insurance many Brits, Irish or European investors are au fait with but it’s big in the US and Canada…basically Title Insurance protects you against mistakes, omissions or defects in the title and the registration of the title of the property you’re about to buy.

7) Location, location, location – Panama is quite a big country you know, there’s more to it than just Panama City and the Canal and there’s more to Panama City than just Punta Pacifica or Balboa Avenue for that matter! 

The one thing you have to do before you buy anything at all is peel away the layers of hype that you will have been reading and been being told by agent after developer after so called property in Panama guru, and get out and about and get a feel for the nation as a whole.

There is so much going on in Panama in terms of property development, some of it is good, some of it is appalling!  Get to Panama, get a feel for the nation, get a feel for where you believe there are profitable pockets of property potential and then and only then consider making a purchase.

8) Don’t believe everything you are told and everything you read – and look for what is not being said about an area or a development you are interested in!  What’s not said can be as telling as what is said. 

For example has anyone mentioned the accessibility of the area, the safety of the local environment, the availability of a social life in the immediate vicinity?  Go and visit an area or a development you’re interested in – look at the demographics of that area, look at the availability of schools, shops, hospitals or anything else you can think of that people who will live in this development will require, look further afield – is it safe, is it accessible and friendly and does the reality of the location tie in with the ‘dream’ that is being sold by the realtor?

9) It isn’t actually easy to get a mortgage in Panama.  It’s true – sorry!  You’ll be told differently by your estate agent, you’ll be told differently by your developer and at the very first meeting with the bank you’ll also be told differently, after all foreign buyers in Panama have the same rights as local Panamanians…Ah ha – whatever!

The reality is this – do not rely on being able to get a mortgage.  Apply, go through the hoops if you have to and when you come out the other end, count your lucky stars if you have any form of offer and then and only then begin taking steps towards buying investment property in Panama because it is only at this point that you will REALLY know how much money you have to play with.

10) Be friendly, be open, be alert and be street wise and savvy because in Panama it ain’t about what you know, it’s really all about WHO you know! 

So don’t be loud, brash and all knowing and get people’s backs up, don’t make enemies…try and watch and learn and determine who the people with influence are and network voraciously! 

There will come a time when you come unstuck and need the assistance of someone in the know or on the inside!  It may just be you know a policeman who can untangle your speeding fine for a few beers or a few dollars – or it may be you get your residency application expedited or your permits and licenses relating to your property passed for a few hundred dollars that grease the right palm…don’t rally against it, you won’t change it.  Instead embrace the feeling!

Special Reports: Property News for Panama

Panama for Real Estate Investors
Investment into real estate in Panama is booming because Panama is growing in popularity as a tourist and retirement hotspot.

Panama Real Estate Investment Potential
The range of opportunity for real estate investors in Panama is broad with potential in the residential and commercial sectors

Panama Real Estate Purchase Process
Purchasing titled real estate in Panama is simple but an investor will require the assistance of a reputable property lawyer