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.”

Read further here

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.