Buying Property in Panama Safely and Securely

Ho him, the highly respected Homes Overseas magazine recently published a piece all about Panama and quoted Amberlamb.  Which was nice. 

The only trouble is, the world and his wife will now be looking at the investment prospects in this country and presenting themselves as prey to some of the less than scrupulous sales agents that exist in Panama.  Not exclusively you understand, they exist everywhere, but in Panama there are a number of scams and tricks that are fairly unique to the country’s property market.  So we thought we’d better add a bit of a addendum to the ‘Where to Lay Your Hat’ piece in Homes Overseas...namely, buying property in Panama safely and securely.

The first thing you need to know is that yes, Panama is a great place for investment property prospects at the moment.  There’s something of a building frenzy going on and prices have been rising fairly rapidly too.  Donald Trump is building a development there and this has added a weight of respectability to the market, and because the Panama Canal expansion project has been given the go ahead, the economic prospects of this nation are predicted to positively explode.

These factors alone have resulted in significant speculative behaviour in the market, particularly among constructors.  And so a would-be buyer has an awful lot of choice in Panama.  Considering the market in Panama City alone for a moment, for this is where the majority of investment focus is at the moment, there is the chance to buy in off plan, flip before completion and take out a nice tidy sum in the form of capital appreciation...there is also the chance to buy as close to the CBD as possible so that you can corporate let and achieve excellent rental yields.  But there is also the prospect of buying something that will never be completed or which will be low grade and impossible to rent or resell.

With choice comes responsibility – i.e., it is your responsibility to ensure that which you are buying will be delivered and that it will meet your expectations for it.  So, this is the first consideration in Panama.  So much construction is under way that when all the units being constructed reach completion, there will be a period of saturation both on the rental and the resale market.  You need to ensure that what you are buying will stand out – so, it needs to be well located, well constructed and well finished.

If you’re buying a resale property ensure you speak to the vendor – even if you have to employ an independent translator for a couple of hours.  This is because there’s a new trick in Panama – the realtor tells you the price, you agree it and it’s actually a greatly inflated price to that which the vendor was asking.  Naturally the realtor pockets the difference – as well as their fee!  Nice!  The estate agents are wise to the fact that British and European buying power in Panama is very strong at the moment you see.  The Panamanian currency is pegged one to one with the US dollar – and so the likes of you and me are arriving and are blown away by just how cheap everything is!  Be careful, be astute, don’t take anything for granted, ask for guarantees and above all else, do your own due diligence, don’t rely on anyone else solely to give you the facts and answers you need.

Look at the rights you’re buying regarding the title deed of any property – seriously consider avoiding anything with ‘possession rights’ only unless you love high risk investment – this is because you may find you own very little in the way of rights to the real estate if you settle on this type of deed.  And finally, and above all else – employ an independent, respected lawyer to assist you!

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