Canadian Writer Says Panama is a good buy

A news article at laestrella.com released a story written by a writer from Canada announce that Latin America is a good place to purchase real estate in Panama. Prices will rise when the recession is over. Canada, a country which was not as effected by the current recession and is currently in recovery mode already showing light at the end of the tunnel, announces that Panama is a good place to purchase real estate. It was announced in the Canadian press that the recession is over in Canada. One of the reasons for this is the strength of Canadian banks which were never effected as much as American banks at the beginning of the world wide recession.

"Now is a good time to buy property in Latin American countries such as Panama says a real estate writer in Canada.

Writing in the Vancouver Sun, Tom Kelly, a US-based author of two books on buying real estate in the region, said that Panama "is a bargain right now," although he added that "it costs money to get there".

Mr Kelly was aiming his remarks at Canadian buyers on the basis that the country has been hit less hard by the recession than the US.

However, in comments that may be relevant to UK buyers as well, he suggested that the best time to get bargains is while the US is in the doldrums, as prices in Latin America will rise when it recovers and more people from the country are able to buy overseas.

Earlier this month, founder of US developer Amble Resorts Ben Loomis remarked that the "growth and stability" of Panama makes it attractive for investors. He also noted the country’s strength is due in large part to the canal."

Source:

U.S. Developers Find Haven from Recession in Panama Project

The following is a press release regarding Amble Resorts' new Panama resort project on the Isla Palenque, Panama. Property development in Panama is rising, with many investment companies developing eco-friendly, sustainable resorts and communities.

"During a sluggish economy here in America, real estate developers are finding a growing number of intriguing opportunities overseas. With the Wall Street Journal recently reporting a rise in unemployment in all but two states last month -- and with economists predicting it to increase even further -- the sliding economy continues to severely cripple domestic real estate development.

"The reality of what's going on is that there is no private development going on in the U.S.," says Randy Johnson, AIA, Principal of 4240 Architecture Inc., an award-winning national design firm contracted by Amble Resorts for their new Panama resort project, The Resort at Isla Palenque. "At the same time however there are exciting prospects overseas."

Properties in Panama are emerging to present those prospects to American developers. Panama enjoys one of the fastest-growing and best-managed economies in Latin America. The expansion of the Panama Canal, combined with a blossoming free trade agreement with the United States, is expected to continue to boost economic expansion and real estate development.

Founder and President of Amble Resorts, Ben Loomis, has been well-aware of the growing economy in Panama compared to the slowing economy here at home. That's why in 2007 he selected a Panama real estate project for his newest venture: The Resort at Isla Palenque. The resort will be comprised of an ecologically and culturally sensitive hotel and string of environmentally sustainable vacation homes. Amble will break ground on the eco resort project in early 2010. Loomis said of Amble, "Although the economic climate is not the only reason we chose to build our property in Panama, we were definitely attracted to the growth and stability there."

And Amble Resorts is far from alone in this sentiment. American companies are flocking to Panamanian development projects in droves. Several top-tier U.S. firms have joined forces with Amble on this new eco-tourism-focused Panama resort project. In addition to 4240 Architecture, East Bay Group, Design Workshop, and RCLCO are also among the distinguished firms teaming with Amble to take advantage of Panama real estate.

"In the last couple of years, domestic projects have fallen off dramatically," says Rick Reikenis, P.E., Principal for East Bay Group, a renowned engineering firm. "We are very excited about the possibilities in Panama and our current projects there."

Read more here at the source of this article:

Consider Panama for International Real Estate Investment

If you are seeking international investments and you can to invest for the long term, Panama is a country that is both a high risk/ high returns investment in the long term. Panama’s economy is accelerating and it, is a great place as far as holiday destinations go and it is currently considered a stable investment environment. It’s proximity to North America is also another benefit for the North American investor.

There are several things to consider when it comes to overseas property investment. An investor must consider several factors when deciding on their goals from property investment, the length of time they are willing to wait for returns from the investment, especially when they are considering international investment.

There are several different types of real estate investors. There is the person who is looking for a vacation property where they can spend their vacations and then perhaps rent out the house when they are not there. This type of property is purchased and mortgage payments are assisted by the rental income. The property to be bought must be suitable for the person that buys and also in a destination that they want to spend their vacation and there must also be a strong rental market in the location.

Another type of investors are the long and short term investors. Short term real estate investors are looking for properties that will increase in value quickly. The location must be ideal and there will be many buyers down the road in a couple of years.

Panama does not seem to have shared the same experience as the rest of the world during the current recession. The International Monetary Fund (IMF) has predicted that their economy will increase by 3% this year. This growth is a result of Panama’s service sector, tourism, the banking industry and the Panama Canal expansion project. Because of Panama’s position geographically as a “bridge” between North and South America and the Panama Canal which is the only waterway between two oceans, the country is strategically placed for trade. Many companies can visualize the benefit to setting up offices in Panama. By the time the Panama Canal project is completed in 2014, the Panamanian economy is expected to gain increased momentum.

For Americans, Panama has become a retirement destination in the same way that Spain once was for people from the U.K. It is predicted that Panama real estate property will grow to two to fives times in value in the next five to 15 years. Not bad news for those considering investing in Panama.

A Conflicting View of Panama Real Estate

A report prepared by the Panama Report created to reflect on the current situation of the real estate market in Panama is an attempt to document real estate statistics in Panama. The following is an article from nuwireinvestor.com on the reasons for this document and its necessity in Panama.

"Investors seeking a coherent set of statistics regarding the Panama City, Panama real estate market may find themselves stymied by the 2009 Panama Real Estate Report. The annual report, which is produced by The Panama Report website offers a conflicting set of conclusions as to where one of the major Central American markets is headed.

The report notes that Panama City’s lack of a Multiple Listing System complicates the process of gathering data. “They like it this way,” Costa Rica and Panama real estate professional Casey Halloran says in the report. “There is power in hoarding information and if it were free to everyone, some would stand to lose power.”

To circumvent the lack of an MLS, The Panama Report was produced with the assistance of Reveal Real Estate, a market research firm which specializes in Central American real estate data.

“While it’s been projected now for over a year that Panama’s market is due to bust, there still exists, as of May of 2009, a dimension of incongruity between buyers and sellers: sellers want to sell high, buyers want to buy low, and no one really knows an appropriate price,” the report reads. “Unlike more developed markets where a sense of reality and facts preside, we believe Panama’s disparity between buyers and sellers to be attributed to one main liability and that is the inability to obtain real comparative selling data. In other words, buyers and sellers aren’t on the same page because…well, there’s no same page to be on.”

Sales Down, Listing Prices Up

In one of the Panama City market’s most apparent contradictions, listing prices seem to have increased even in the face of fewer sales. As of May, the average price per square meter was $2,742.07, a 2.88 percent increase from $2,665.25 a year earlier.

“Some experts wager that these numbers represent the maximum peak in a curve that will soon begin its downward slope (as supply continues to increase and demand appears to be tapering off): if true, these would represent the most expensive prices Panama has ever and will ever (at least for a long time) experience,” the report reads. “Others believe that prices have increased due to the draw from Latin Americans who have difficulty entering more northern markets.”

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The Plaza Costa del Este Bailout Plan

In recent Panama Real Estate News, PR Web released the following story:

"On March 2009 International Realty Partners S.A. bailed out A2SN, a Panama Real Estate Developer, from the responsibility of developing the project called The Plaza Costa del Este, located in Costa del Este, Panama City, Republic of Panama. International Realty Partners S.A. along with Rodabi Group (a USA based International Real Estate Sales Group) were the exclusive sales and marketing team for this project.

May 3, 2009 -- On March 2009 International Realty Partners S.A Developer, from the responsibility of developing the project called The Plaza Costa del Este, located in Costa del Este, Panama City, Republic of Panama. International Realty Partners S.A. along with Rodabi Group (a USA based International Real Estate Sales Group) were the exclusive sales and marketing team for this project.

The Plaza Costa del Este Hotel & Residences

The Plaza Costa del Este would be located in Panama's hottest residential district overlooking the Pacific Ocean. Just minutes from downtown Panama and the Tocumen International Airport, residents will enjoy the tranquility and luxury of ultimate living, with access to all of Panama City's finest amenities and the tropical beauty beyond. The project (one of the few mixed-use buildings allowed in this area) will consist of 100 office condos, 153 furnished hotel/condo rooms (of which 50% have already been reserved in the USA) and 19 privately owned residences along with a 2 story Skybar, a pool overlooking the Costa Del Este.

This Hotel Operator is part of Octagon Group, a well known International Hotel Development and Operation Company, which has over 20 years experience in various countries around the world, specialized in High-end Hotels and Resorts (octagoncc.com)."

Read the rest of the story here.