Panama Investor Blog

The "world and his wife" have become aware of the investment potential of Panama

This short promo in a British property and investment site caught my eye. I have never heard the expression before, but apparently the Brits see Panama as the next big thing. Come on over, the weather is great and the dollar is weak!

Interest in emerging markets such as Panama among overseas property buyers in on the increase, experts have revealed.

According to research by HiFX, fewer British investors are seeking opportunities in established European markets, including Italy and Spain.

The currency specialist has attributed this trend to a number of factors, such as the strong euro forcing up the cost of living in these countries.

HiFX added that emerging markets across the world are also becoming more popular with investors, as they widely seen to offer better growth potential.

Mark Bodega, director of the organisation, commented: "Investors are always looking for the 'next big thing' to try and tap into undeveloped markets."

Panama was highlighted as one hotspot of actiivity, as the number of enquiries relating to the country has gone up slightly in recent months.

This comes after analysts at Amberlamb stated that the "world and his wife" have become aware of the investment potential in the Central American country.

What Your Dollar is Really Worth -

The Sovereign Society is a part of the Agora group and just completed its conference here in Panama this weekend. Sovereign Society, along with its sister organization International Living, have been instrumental in putting Panama in the mind of the foreign retiree and investor. I know this for certain as I had worked with both organizations in the past when they first came to the country. Fortunately for Panama, they still have a great deal of faith in the future of the country and continue to tout the many benefits of living or investing here. Here is what they had to say about the country as they ended their three day event.

Take a look at it here...

Retirement Bliss Can Be Dear in Developing World

This article about retiring in Costa Rica tells of the pitfalls and costs of doing so. Most of the high costs mentioned do not apply to Panama. Still, it is amazing the number of projects and people flocking to Costa Rica to get a piece of paradise. I am writing this from my hotel room in San Jose and will be attending a tourism trade show here this week. There are gringos everywhere!

     May 12 (Bloomberg) -- With 401(k) balances swooning and home equity squeezed by the U.S. housing crisis, millions are wondering if they will be able to retire comfortably.    

      

What about relocating to a developing country? Wouldn't your money go further? In a tropical locale, that condo near the beach looks awfully alluring. A few sips of a drink with an umbrella in it and you begin to justify the purchase for your golden years.    

      

Yet finding that place in the sun isn't always an inexpensive proposition in developing countries. Such locales may offer lower costs of living initially, but the price tag goes up if you try to duplicate your Western lifestyle there.    

      

After a recent trip to Costa Rica, thoughts of paradise entered my mind like a gentle Pacific breeze. Here is a country 9 degrees from the equator, with political stability, national health care and bountiful eco-reserves.

Read the rest of the story at Bloomberg

Why wouldn't you buy in Panama?

I ran across this press release this morning and thought I would share it with my readers. I would say that for the most part this information is accurate and paints a very healthy investment climate. I am concerned about the future with the rising prices of everything, but when you compare Panama to anywhere else, it is a lot better here. For those who have not heard of many of the benefits, here they are.

From Live PR
Since 2006 the average price was $1780 to 2008 the average price is $2890 pre m2 giving a 25% increase in price per year.

Rental demand continue to increase. Hotels have an 80% occupancy levels and room fees have nearly doubled in the past few years.

Shortage of private rental accommodation for, the majority of new home owners are happy to rent there units out on a monthly basis, the need for apartments to be rented on a short term basis is very high. Short term rentals rental yields are between 10% - 15%.

Ideal place for buyers in Europe with a weak dollar against the British Pound and the Euro. The Panamanian Balboa is tied at $1 to 1 Balboa so the European buyer can take advantage of the weak dollar in Panama.

The Expansion of the canal.
The new canal expansion program is underway. This will allow more ships to travel through the locks brining more money into the country in the form of toll fees.

Read the rest here...

Panama--Still the World´s Number-one Overseas Retirement Option

The Asian perspective of the best places to retire.

The cost of quality retirement living options in the United States has risen well beyond the budget of the average would-be retiree. The current meltdown in U.S. housing costs doesn´t change this fact. Most Americans are worried they´ll never be able to afford to chase their retirement dreams. The answer is to think outside the box--the box being the United States. This isn´t a new idea, but it´s truer and truer, as ever-increasing numbers of Americans consider leaving the States in search of a quality retirement lifestyle they can afford.  the gateway to the Americas.

The Six Best Overseas Retirement Havens For 2008-- Where To Retire Well On Less Than $1,500 A Month.

The cost of quality retirement living options in the United States has risen well beyond the budget of the average would-be retiree. The current meltdown in U.S. housing costs doesn´t change this fact. Most Americans are worried they´ll never be able to afford to chase their retirement dreams.

The answer is to think outside the box--the box being the United States. This isn´t a new idea, but it´s truer and truer, as ever-increasing numbers of Americans consider leaving the States in search of a quality retirement lifestyle they can afford.

Once you expand your retirement options to include those outside this country, you realize you can enjoy a rich and satisfying life even on a modest budget.

Specifically, the editors of Live and Invest Overseas have identified six overseas havens where you could retire and live well on $1,500 a month or less:

Read the rest of the story at Asia property report.

The condo boom moves on to Latin America

This from the Miami Herald.

BY MATTHEW HAGGMAN

mhaggman@MiamiHerald.com

DONNA E. NATALE PLANAS / HERALD STAFF

Edgardo Defortuna , condo developer and head of residential real estate brokerage, is looking to invest in building condos on the Pacific coast of Mexico.

               

What to do when you have a network of real-estate brokers selling new condominiums, but few new condos to sell?

Edgardo Defortuna, who has made millions selling South Florida condos, hopes one answer is found on the Pacific shores of Mexico.

Defortuna, who heads Fortune International, last year agreed to start selling condo units built by Miami's Related Group in Puerto Vallarta. It's part of a plan that he and Related CEO Jorge Perez hope will ultimately include more than a half dozen projects across Latin America and the Caribbean -- and provide a fruitful market until South Florida's formerly hot housing industry recovers from its cold snap.

Panama promoted in Toronto

The show and tell of PanaExpo continue, this time in Toronto. This group are good ambassadors for Panama sharing with various communities in the U.S. and Canada about all the good things Panama has to offer.

Here is their press release.

Groundbreaking world class 3-day trade show exhibits real estate investment and lifestyle opportunities in Panama

TORONTO - Vladimir Reznik, Executive Director of PanaExpo 2008 is pleased to announce that Royal LePage - Your Community Realty is endorsing the upcoming Panama Festival & Expo 2008 to take place at the Toronto Congress Centre on May 2 - 4, 2008.

     Royal LePage - Your Community Realty teams up with Times Realty Group to promote Panama Real Estate at PanaExpo 2008. Mr. Reznik says, this alliance is significant, as Canadians are looking to familiar sources they can trust.

     According to HiFX, one of the largest providers of foreign exchange services, nearly 30 percent of all real estate clients in Central America are Canadian.

     The Expo serves to educate and inspire visitors to become a part of Panama, coined "bridge of the world, heart of the universe". Earning a reputation as the "Hong Kong" or "Dubai" of the Western Hemisphere, Panama is experiencing an unprecedented big-business boom especially in its capital, Panama City, where some of the world's most prominent players, including Versace, Trump, Johns Hopkins Hospital, Scotiabank and Philippe Starck are making waves.

Read the whole Press release here....

Shopping habits of the rich-They still want second homes!

Here comes some welcome news from IHC weblog. Although the super rich are still wanting to buy a second home it is not for the reasons you would think. More in keeping up with the Jone's rather than a desire to own. They look at the current economic situation as an opportunity to get the good deals even though they seem to be rather pessimistic about the economic future. Crazy rich folks!

                   

From Kevin Brass at IHC

Despite the much-chronicled woes of the financial markets, a new report suggests the wealthiest individuals in the United States are eager to buy second homes.

More than 75 percent of the super rich said they believe the current real estate market represents a “real opportunity” and 33 percent plan on buying a second home this year, according to “The Annual Survey of Affluence & Wealth in America,” conducted by the Harrison Group for American Express Publishing.

To the wealthy it’s about peer pressure, as much as investment strategy, the study found. Forty percent said, “Having a second home is almost a requirement for people of my economic means.”

In general, the wealthy are an increasingly cynical bunch, the study found. Only 62 percent are extremely or very optimistic about the future, compared to 93 percent in 2005. And only 24 percent feel good about the future of America, compared to 60 percent in 2005.

But they still feel all warm and fuzzy about buying property, the report found. Forty percent of the wealthiest segment said they plan to buy property this year, which doesn’t sound like a depressed market.

The study queried 1,800 individuals with high amounts of discretionary, representing the richest 10 percent of the American buying public.The report is not available online, but highlights were released to reporters.

A report in the Financial Times focuses on the survey’s findings about the shopping habits of the rich, including their increasing use of the Internet.

                   

The best way to promote your business or service in Chiriqui – Announcing The Republic of Chiriqui.com

With hundreds of miles of pristine coastline, fertile valleys, spectacular mountains vistas and warm and friendly people, the province of Chiriqui has always been one of Panama’s most attractive regions.

Over the past seven years, Chiriqui has also been a Mecca for foreign retirees and second home owners looking for their own little slice of paradise.  As a result, a whole host of new companies and services have been started as the entrepreneurial Chiricanos have taken advantage of the opportunities this wave of new residents has brought.

Even though Chiriqui has been largely responsible for putting Panama on the map as a retirement or second home destination, it has never been received the support it deserves from the country’s tourism authority.  So the challenge for Chiriqui’s business community has been to cost effectively market their services without expecting any funding from the traditional government sources.

This has been a real problem for the hundreds of businesses located throughout the province.  That is, until now.

Panama too Expensive? Complete bull!

After a long absence, International Living is back on the Panama scene with promotion and new experts on Panama real estate. I received two emails today and it is as if they had never left. They had closed their offices in Panama and rumor has it that Kathleen Peddicort and her husband Leif Simon have left the company. Now I am sure if this was idle rumors someone will straighten me out real quick. In any case, were glad their back as they are the master promoters of foreign lands and bring a lot of baggage in the form of people looking for the deals. Welcome back IL.

Here is a link to their seminar website

“You can still find great apartments in Panama City
for less than $70,000 and live well on $1200 per month!”

Thursday, April 10, 2008

Dear International Living Reader,

Dan Prescher

Over the last two years, we've been hearing rumblings that Panama has gotten too expensive … that it's no longer a good deal. And we've heard that not only from readers, but also from a few staff members. 

So here's where we set the record straight.

The Panama that's been our favorite for years deserves a broader approach. A fresh look … a deeper look.

Panama has long been the prime choice for retirees, second-home buyers, and property investors alike. Readers have retired in style, enjoyed terrific vacation homes, and made money. The country deserved the #1 spot on our Global Retirement Index for six straight years. It’s been a winner.

But we decided to dig deeper … to broaden the appeal of this successful destination.

Our work paid off.

Yes, we’re still well-connected to the premium property market that has made Panama a mainstay with property buyers and investors from around the world. The Panama that offers the luxury of Miami at a fraction of the price is still there … and it’s still booming.

But we’ve gone a step further.

We’ve tapped into the local market and found investment and lifestyle properties that are so affordable many people thought they were gone. Properties marketed to the local buyer rather than the foreign buyer, including:

Apartments in Panama City for less than $70,000.
Prime building lots on the edge of town starting at $25,000.
Good rental apartments starting at $350 per month
Beachfront lots on the shimmering Pacific at $125,000 for almost an acre … with small beachfront parcels starting at an amazing $38,000!
A rolling green 10 acre farm in the hills of Chiriquí for just $30,000.
Expensive? No … it’s a bargain.

It’s the hidden, affordable Panama. A place where you can still live on $1200 per month.