Panamanian banks by law must give favorable mortgage loans for homes under a certain value and the value has increased due to the significant increases in the cost of construction. Although much of this increase can be attribute to materials and labor a large portion is also a result of increased costs of permits and taxes on taxes.
This short article from LA Prensa is about this matter.
Construction registers 37% rise in costs
The top amount of the loans to benefit from the regime of preferential interests had to be increased from 62 thousand 500 dollars to 77 thousand 500 dollars, according to a study elaborated by a commission of the National Council of the Private Enterprise. At that number it has reached because, in opinion of the commission coordinated by the Panamanian Chamber of the Construction (CAPAC), they have seen an increase of 37% the cost of construction of homes, by variation of regulations, proceedings, permissions and rates, valuation of lands, increases of taxes and increases in the manual labor. CAPAC has indicated due to increase in the construction costs the top had to be in favor of 85 thousand 510 dollars. (La Prensa)