How to Buy Panama Real Estate
This is a brief discourse designed to help you avoid some pitfalls that many before you have encountered:
Panama is a wonderful place especially to the expat or would be expat. It is easy to become taken with the country and start thinking emotionally instead of like a calculating business person - Don't Do this. Getting excited about how great this place is and how happy you will be living here is fine but think hard when buying property.
Consider the future investment potential of the property. Be careful about considering a piece of property when the buy decision is based on future variables like a road to be build some day. What if it never gets built?
If you are retired and able to live a couple of hours from a major hospital fine, but if this is not such a good idea rethink this carefully and try to stay closer to a major city.
Panama is full of vacant land, loads of it. What Panama does not have loads of is Panama City property with an unobstructed water view where there is no possibilty of something being built to obstruct your water view. The same principle applies in other areas. Be careful try to get a unique property in some regards so it will hold it's value well compared to other properties.
Rural areas sometimes have little to no infrastructure. Often a 20 minute or longer drive is required to get groceries. Find out if the cell phones work there, if there is hi-speed internet, can you get cable or satellite TV, where is health care and at what level, if there are dirt roads ask about rainy season. Think things through. If you like to enjoy dining out, seeing movies, malls, etc ask yourself if you are comfortable with the drive times for such things.
Many people build their own house here. Before you do make sure you understand all that is going to happen. Talk to builders asking them about doors, windows, screens, locks on doors, closets, toilets, light fixtures and everything else you can think of taking nothing for granted - nothing, and get it all in writing. Find out who your builder is and what his reputation is. What happens if your builder runs over his time estimate by a few months and you have already sold your home and are basically forced to rent and wait. Remember you are a foreigner in a strange land and can easily be taken advantage of if you are not careful. Yes of course using a lawyer helps. My opinion is to use a large law firm, not a one or two man shop. I believe (my opinion only) that a large law firm will be concerned a lot about the reputation of the firm and for this reason try to make sure you have a good outcome as best as they as lawyers can assure. I personally am uncomfortable using a small one or two lawyer office. First of all they tend to be jack of all trades lawyers, where a large law firm will have one or two real estate specialists which is what you want. If you are a retiree it is most unlikely that you will ever be using that lawyer again and the developer was probably born and raised in the country and you are a foreigner (think Gringo) and the lawyer may consider it offensive to grind a favorable contract out of the developer for a Gringo who is never going to give him any more business, in other words you may get far from the lawyers best. Is this always the case - no. Are all one man lawyer offices bad - no. My advice is stay with the larger law firms. We can refer you to a law firm we use. The advantage here is they want our referrals to keep coming so you sort of have collective bargaining power in a stretched out sense of the term .
Off topic but important- when using a lawyer for immigration visas the same arguments apply. Think large firm with an immigration specialist. Again ask for a referral to the law firm we use.
Make sure the real estate person you use is licensed. There are a bunch of unlicensed ones running around - avoid them, no good reason to use them.
There is no multiple listing service in Panama like there is back home. Why???
Consider as a buyer hiring your own licensed real estate broker to represent you as a buyer. This person should not cost you anything in that the seller pays the 5% commission. If the property is listed with another real estate broker then the two brokers will simply split the commissions. This is an accepted fact of life to them that they will readily accept when confronted with the circumstances. You can always have a lawyer in on the deal as well to go over a contract. The broker listed on our web pages will be happy to represent you. Usually a buyers broker can grind the seller down for you better than you could - remember he or she is a local person not a foreigner. So my take on it is the buyers broker is free to you, you should get a better deal and save time in looking and negotiations. I should point out that the broker that has the listing has an obligation to the seller which is not you. The broker you retain to represent you has an obligation to you. As an additional thought consider using the broker on our web page to bargain with your contractor for improvements to the property or if you are building a home the whole project. Get a quote yourself and offer to pay him a percentage of what he can save you!!!! Need furniture try using the broker he is going to know where to get what you want at a price you probably won't get and this can result in a major savings. Our broker gets involved in furniture more often than you may think.
Watch your title work carefully in the rural areas - use a lawyer to protect you.
Financing a house is fairly easy in Panama. Figure on 15% to 20% down. Show income statements fom home, tax returns, etc.
For more information, please visit:
Related Tags: money, business, panama, panama banking, offshore real estate, offshore banking, legal
The author is a researcher, with years of experience in finances and real estate.
For more information, please visit:
Recent articles in this category:
- The No. 1 Rule For Projecting Confidence - Speak With Authority
One of the most important characteristics a person can project in a business setting - or any situat
- After the Autumn Checkout European Debt Crisis and U.S. Brewing Rebound
In the commotion caused by the Fed on interest rates come to an end, the "disastrous" for the euro a
- Advantages Of Arcade Game Rentals
There are many different advantages to arcade game rentals. Most people need something to release th
- A General Primer on Truck Cargo Nets
In modern highways it is quite rare to see truck cargo nets in action, this is because they are usua
- The United States Will Burst More Severe Financial Crisis
Not long ago, suddenly announced that the central bank to raise interest rates, the interest rate hi
- Niche Marketing Profits - 3 Easy Steps to Finding a Profitable Niche Market Income in 10 Minutes
Like most beginners I was having a very difficult time trying to find a niche market to earn extra m
- The Importance of Hospitality Management Consulting Firms Toronto
Businesses and the managers that help guide any business are in a constant state of improvement and
- New Keynesian Theory Label
2010 winner of the Nobel Prize in Economics three theories have been labeled as "New Keynesian" labe
- Federal Reserve Pouring Money QE2 Unpredictable Fortune
U.S. economist Milton Friedman proposed a "throw the cash from a helicopter" view, while the practic
- Fiscal Consolidation Should no Longer Delay
British Chancellor of the Exchequer George Osborne today announced fiscal consolidation policy, shoc
Most viewed articles in this category:
- Common Financial Problems to Avoid
One must first change their habits and not procrastinate. American Consultants Inc at offers key fi
- How a Bad Hire Can Hurt Your Business
What's worse - hiring the wrong person or not hiring anyone at all? Companies can become almost des
- Joel Comm Is Dr. Adsense
What is Adsense? If you are new to making money online and net marketing, you may not know what Ads
- 5 Steps For A Dynamic Wealth System Online
Recipe: Opportunity + knowledge + Dynamic Wealth System + Your Action = Massive Success!!! Step 1
- How To Stop Foreclosure
Losing your house to a foreclosure can be very scary. There are times when circumstances are ou
- How to Always Pitch A Strike
As business owners, we are always working on new ways to convince people to become customers, client
- Membrane Diffuser Solutions for Wastewater Treatment Systems
In the aeration basin of a typical wastewater treatment plant there are both organic and inorganic m
- Another Year Hating Your Job or Loving Life?
Copyright © 2007 Mary Foley I've come to the conclusion that to be successful - really successf
- Dyestuff Industry In India And China
World demand for dyes and organic pigments to touch $10.6 billion in 2008According to a study on dye
- Cma-cgm Case : the Series of Lawsuits Continues in Syria, Lebanon, Egypt, France, England and the United States
Damietta company case : The series of lawsuits continues in Syria, Lebanon, Egypt, France, England a