Panama Investor Blog

Are you a wolf or sheep-Another choice to make

Hat tip to Richard Hunt for sharing this inspirational post. People contact me all the time wanting my opinion of their ideas. They see me as someone who is innovative and successful and they hope to learn a secret to the success. The fact is there is a secret and it is to ignore everybody. This post bellow is so powerful that I felt compelled to share it with you. Whether it is an idea or a change in your lifestyle, only you can know if it is right. You have to ignore everyone else, even family and friends.

I have taken the liberty to cut out some things that you might want to read so you can always go the links to get the whole story.

Are you a wolf or a sheep-Another choice to make by MAria Brophy

Only you know what’s right for you, so ignore everybody else.  This includes family, friends and the smartest guru in town.
Most of us are unknowingly trained to NOT trust in our own judgment.  Our parents made decisions for us, our teachers told us how things should be done, and society has its own rules on what is right and wrong.
After being beat down by authority for years on end, many people just become one of the sheep.  They follow the status quo.  It’s easier that way.
The wolfs, also known as the stubborn trouble makers (I was one) tend to have their own ideas of how things should be.  They stand away from the crowd, make waves and piss a lot of people off.  But they also find great happiness, because they follow their own dreams and make their own plans. Their lives tend to end up just the way they want them to.
Wolfs trust in their own desires.  They lean towards the professions that they were meant (made) to do.  Wolfs are the innovators, the inventors and artists and writers.  They ignore everybody.  They have to or they’d never get things done.
There’s a price for ignoring everybody:  You’ll become the lonely wolf, separated from the bored sheeples.
But there’s great payment that you’ll receive for trusting in yourself: Success, happiness and sometimes a lot of money.  And you’ll get in the habit of tapping into your intuition, your own brain and your passions, which will lead to more success.
Making sense of modern life, Hugh MacLeod’s cartoon drawings on the back of business cards get to the heart of the truth.  Hugh’s art is simple and often delightfully offensive.
Though his artwork has not been recognized by the New York art gallery mafia (his term), he’s captured the hearts of millions of people with his art and his Best Selling Book IGNORE EVERYBODY.
I’m glad to say that his success has made a mockery of every person who told him that drawing on the back of business cards is meaningless.
Hugh’s book, IGNORE EVERYBODY, will inspire you to be more like a Wolf than a Sheep.  And the world needs less sheep.
Here’s a (shortened) excerpt from the first chapter of IGNORE EVERYBODY:

1. Ignore everybody.

The more original your idea is, the less good advice other people will be able to give you. When I first started with the cartoon-on-back-of-bizcard format, people thought I was nuts…

You don’t know if your idea is any good the moment it’s created. Neither does anyone else. The most you can hope for is a strong gut feeling that it is. And trusting your feelings is not as easy as the optimists say it is. There’s a reason why feelings scare us.

And asking close friends never works quite as well as you hope, either.  It’s not that they deliberately want to be unhelpful. It’s just they don’t know your world one millionth as well as you know your world, no matter how hard they try, no matter how hard you try to explain…

…Good ideas come with a heavy burden. Which is why so few people have them.  So few people can handle it.
If you’re going to get anywhere with your crazy, ass-backwards ideas, you really have to just do things your own way.  That means not caring what anyone else says, and if you do care, ignore them anyway.
This is hard for many humans to digest.  Most people worry incessantly about what others think, and they sadly make their decisions based upon the opinions of losers who haven’t achieved anything for themselves.
Don’t be a SHEEPLE!  (Sheeples follow the herd in a group-think mentality.  Sheeples will make a decision, then change their minds once they hear from other sheeple that their idea is stupid.  They can’t think for themselves.)
You don’t need confirmation from anyone else that you are doing the right thing.
THE PROBLEM WITH ASKING FOR CONFIRMATION THAT YOUR IDEA IS GOOD
Nobody really KNOWS if it’s good.  If Hugh MacLeod would have taken heart to those who laughed off his cartoons on the back of business cards, he wouldn’t be the artist-success story that he is now.
I DON’T KNOW IF IT’S GOOD.  Often, I’ll have artists ask me to look at their artwork and tell them if they have a chance to succeed with it.  Even if I think their art looks like a fourth grader painted it, I won’t tell them.  Because how do I know if it’s going to make it or not?
I’m not going to crush a dream.  When an artist asks if they stand a chance with their art, my standard answer is “It doesn’t matter what I think.  The only thing that matters is how far you want to take it.  It’s your choice.”
The main driving force for success isn’t just the greatness of the idea or the level of talent, it’s the PASSION and COMMITMENT and the TIME YOU PUT INTO IT.  None of the other stuff matters as much.  And no-one’s opinion matters.  Except your own.
IT’S LONELY AT THE TOP:  THE PRICE OF BEING A WOLF
It’s not all that lonely at the top.  The only lonely part is that you alone have to make decisions for yourself.  And that can be scary, but also liberating, because being fully responsible for your own success allows you to have more control over your own life.  You get used to having that control with practice.
Often I dream of finding a wise person who can tell me what my next move should be.  It’s very difficult cutting a new path with very little advice from others.  But that wise person doesn’t exist, so I’ve become used to trusting in myself.

Lonely Wolf - Sir Richard Branson
The founder of Virgin Atlantic, Richard Branson, is a wolf.  But he doesn’t look very lonely.  And trust me, he’s taken his share of criticism and crap from people over the years.  He doesn’t let it stop him – he’s always having fun, embracing life, and laughing at the naysayers.
But Toby Myers is bored.  He’s at home doing the same ‘ol same ‘ol.  Every now and again he comes up with a brilliant idea and runs it by at least 14 friends, 12 of which shut it down.  And so he goes back to watching T.V. and resigns himself to the will of the Sheeples.  (What, you’ve never heard of Toby Myers?!)
Ironically, Hugh MacLeod’s art will not be taken seriously by the Art World anytime soon.  Most critics and professionals aren’t able to recognize the brilliance of new art forms until at least a decade or two after everyone else gets it.  Andy Warhol is a great example of this fact.
That’s why it’s a good thing that Hugh has decided to Ignore Everybody.  Because that’s what it takes to get your nutty idea from no-where to somewhere.  You can’t buy into what everyone else is doing.  Sheeples don’t know what’s cool, they only know what everyone else thinks is cool.

The United States Government Does Not Want You to Move to Panama

My friend and colleague, Paul McBride wrote this piece earlier this week. Paul and I have been watching things pretty closely over the years and it has become clear to us both that the window of opportunity is closing for those who want to get their assets and their asses out of the U.S.. We don't believe the government will stop you from leaving, but they will make it very much more difficult and expensive to do so. I believe Paul's scenario below is very close to the truth.

The United States Government Does Not Want You to Move to Panama

Actually, the U.S. government doesn’t care whether you decide to move to Panama or not, they just don’t want you to take your money.

 

Most of the people I meet who are looking for a home or property in Panama just want to live comfortably in a beautiful environment at a reasonable cost.  For many, Boquete is the perfect choice.  Mild weather, magnificent scenery, great community and most, if not everything, they need to live a cozy day to day existence.  I can safely say that the average couple living in Boquete spends less than $2,000 a month in total living expenses.  That’s everything – car, health and home insurance, food, gas, entertainment (we go out a lot!), utilities, cable TV, Internet.  You name it, the whole enchilada. Did I mention very low or no property taxes?

This simple formula, low living costs and quality lifestyle, was the reason that Boquete became one of the most desirable retirement destinations in Latin America.

But what if I told you that the price of real estate in Boquete was likely to increase as much as 30% in the next two years or so?  A home that costs $250,000 today could be as much as $350,000 in that short period of time. A $150,000 condo could cost $215,000 or more.   In today’s market that sounds absurd.  But this is a real possibility…… if you happen to be a U.S. citizen.

You see, the United States Treasury is concerned about money leaving the country.  Money that they’re going to need to pay their bills.  The Federal government is running an operating budget deficit of over a trillion dollars this year and, by their own admission, this level of deficit spending is projected to continue for several years in the future.  In order to service this unfathomable debt they’re going to need to do one of two things – drastically cut spending on defense and entitlement programs or significantly raise taxes.  Which way do you think they’ll go?

My bet is that they will raise taxes and it’s not unthinkable to believe that the total tax burden for high income workers (the definition of which keeps changing all the time) will reach a combined total of 60% to 70% when you include state, local and federal taxes.  Think about that – 60 to 70 cents of every dollar you earn will go to the government, with much of it being spent to cover the debt.  And the state and local governments are in even worse shape.   I project that will see increases in income taxes, capital gains taxes, payroll taxes, Medicare withholding, property taxes, sales taxes, death taxes, increased fees for services, all types of licenses and taxes we haven’t even heard of yet.  If a state, local or the federal government can squeeze a nickel out of you, they most certainly will.

In an environment like this, more than a few people will stop voting at the ballot box and start voting with their feet.  They will begin leaving the country with as many assets as they can and go somewhere where they can live their lives in comfort without watching everything they’ve worked for, everything they sacrificed for, get taken away in taxes or eaten up by inflation.

The federal government is aware of this real possibility.  So aware, in fact, that they’ve been methodically preparing for this potential exodus of money for the past two years.

On June 17^th, 2008 the Heroes Earnings Assistance and Relief Tax Act of 2008 (H.R. 6081), also known as the Heart Act, was unanimously passed by Congress and signed into law by the President (a Republican no less).  This piece of legislation was very well intended.  It provided much needed tax relief for the men and woman of our military who are sacrificing their time and their lives for our country.  But this bill also contained some language that targeted a very different group – expats who, for whatever reason, decided to give up their U.S. citizenship.  The bill provides for withholding taxes of up to 30% on certain assets held by the expat as well as assessing the value of the property of the expat 24 hours prior to the renouncing of their citizenship.  Keep in mind; only around 600 Americans renounce their citizenship each year, so the expected revenue from this small group is relatively limited.   More important are the procedures and policies established by this bill that can be modeled for future legislation.

Okay, so this bill is not a big deal.  Few people actually give up their U.S. citizenship and it’s not likely to directly affect you.  What’s more, if someone decides to give up their citizenship, who really cares how much they’re taxed?  But it does establish some policies, procedures and tax rates for individuals who decide to live offshore.  Policies, procedures and tax rates that very well could affect you in the future.

As a follow up to the Heart Act of 2008 we have the Hiring Incentives to Restore Employment Act (H.R. 2487) commonly known as the HIRE Act (don’t you just love these names?).  This is the jobs incentive bill that was signed by the President on March 18^th amid little fanfare.  In a congressional bill of 47 pages, presumably written to address the unemployment situation in the U.S., 21 pages are devoted to the treatment of foreign bank accounts and other offshore investment vehicles held or controlled by U.S. citizens.  But I thought U.S. citizens were already required by law to disclose their overseas account to the IRS, so why do we need this legislation?  Well, yes they are.  But this law goes a bit farther in that it requires foreign financial and non-financial firms to report accounts held by American citizens to the U.S. Treasury.  So, in effect, the United States Congress has passed a law that requires a foreign firm, located in a foreign country, to disclose account information held by a U.S. citizen (including name, address, tax ID number, account number, account balance, and flows of funds into and out of the account) to the United States Treasury on their demand.  Now, that takes some nerve.  What if the country where the financial firm is located has laws against disclosing this information?  In that case, the law requires the financial firm to obtain a signed waiver from the account holder authorizing the firm to disclose the information.  If they don’t sign the waiver, the financial firm is required to close the account.  I spoke to an attorney friend of mine who told me that his firm is no longer accepting U.S. clients because they don’t want to be harassed by the IRS.  Because of this law, foreign banks are likely to close accounts held by Americans due to the bookkeeping hassle or the potential liability posed by the U.S. account holder.  The fact that banks and law firms will no longer want to work with U.S. citizens is an unintended consequence of this legislation.   Or was that the real intended purpose?

Despite these two laws, the U.S. Treasury knows that a determined citizen, driven by the fear of increasing taxes and confiscation, will find ways to keep their privacy and their assets away from the long reach of the U.S. government.  In fact, the Hire Act even has a name for these non compliant citizens – recalcitrant tax payers. And this is where I think a third piece of legislation will fill the gap.

It’s my belief, based on the actions already taken by the U.S. government, that an exit tax will be instituted to capture money at the source (your U.S. bank), before it leaves the country.  I believe that this exit tax will apply only to certain specified transaction (since senators, congressmen and their wealthy patrons will still need to get their money out of the country).  Further, I think this tax rate will be in the 30% range (remember the Heart Act and the withholding requirements of the Hire Act?) and will be withheld by your bank and remitted to the U.S. Treasury at the time you make a transfer to a foreign entity.  Like the provisions inserted into the Heart Act and the Hire Act, this exit tax will likely make its way into some well meaning piece of legislation, inconspicuously inserted in the arcane language of the bill and will become the law of the land.  Most Americans will not even know the law exists and many of those that do understand won’t object because it will not have any impact on their lives.

And this, my friends, is how the $250,000 house in Panama suddenly costs $357,000 and the $150,000 condo will take $215,000 of your hard earned cash to buy.

If you are thinking about moving to Panama (or any foreign country) or investing overseas, the window of opportunity is getter smaller and smaller.  Although I don’t believe the U.S. government will ever prohibit you from leaving the country, I’m convinced that they will make it increasingly difficult to get your money out without a punitive tax.

Perhaps I’m wrong.  Maybe I’m misreading the situation and the U.S. government isn’t concerned about the flows of funds overseas for the average citizen.  And maybe this current financial crisis is just a bump in the road and the economy of the United States will start growing enough to cover the debts that are piling up without huge tax increases.  Maybe.

But try this mental exercise – Let’s say you believe the scenario I’ve described is a real possibility and you decide to act by moving some of all of your assets overseas, buying a house and creating a “Plan B” lifestyle for you and your family.  And then, none of the currency restrictions predicted happen, the U.S. economy springs back to life, the government institutes favorable tax policies to encourage investment and growth and money making opportunities abound.  What’s the worse thing that can happen?  You can always move your assets back to the U.S. since you’ll never see restrictions on money moving into the country.

But what if I’m right?  What if the economy continues to sputter?  What if unfunded liabilities like Medicare, Social Security or the new health care plan continue to expand the federal debt causing the economy to stagnate, forcing increases in tax rates and placing restrictions on the flow of capital overseas?  If you’ve chosen not to take action, what options are left for you and your family and at what cost?

Freedom means having the ability to make choices.  I believe there’s still time to make choices but the clock is winding down.

 Good luck and God bless.

 

Paul McBride

 You can email Paul by clicking here.

Linking Compassion with Aggression

My last post "Sad day for America" received a lot of comments and although I do not intend on this blog moving more towards American politics, I feel remiss in not sharing articles that succinctly state this bloggers position. Although some may argue about what this has to do with Panama, I think it does for several reasons. Foreigners come to Panama in many cases because the are fed up with their home countries. Not everyone understands this society and the way it functions and that is what this blog is all about, to help you with some insight. My view on the world greatly affects both what I decide to post and how I frame it. You the reader should know this perspective if you are to gain any real value from my drivel. Here is an excellent article from Robert Ringer. I have not read him before, but he clearly tells it like it is from my point of view and may help you to understand just what we are up against in our eternal battle for freedom and the pursuit of happiness.

Linking Compassion with Aggression

Robert Ringer

Millions of people are convinced that the implementation of Congress's new People-Control Bill (a.k.a. as Obamacare) is, of and by itself, the death of liberty in the United States. There's no question that this draconian measure is the most anti-freedom, unconstitutional, immoral piece of legislation ever ''passed'' by Congress, but it would be a mistake to focus on it to the exclusion of everything else.

In truth, Obamacare is just one part of the tyranny wrecking ball that clobbers Americans on a daily basis. What I am referring to is the ''progressive'' notion that elected politicians - not to mention non-elected bureaucrats - have the authority to grant, as well as take away, individual rights.

Two of Ron Paul's ''Six Forgotten Principles of Freedom'' spell it out clearly:

The justification for the existence of government is to protect the liberty of individuals, not to redistribute wealth or pass out special privileges.

 People's lives and actions are their own responsibility, not the government's.
In plain terms, people have a natural right to be free to make personal choices about their own lives, their own bodies, and their own property.

This simple truth is commonly referred to as ''Natural Law.'' It can also be thought of as the Law of Nonaggression.

If one believes that it is a violation of an individual's natural right to force him to do something that he does not want to do (e.g., give up any part of his wealth or property to others) or prevent him from doing something that he does want to do (so long his actions do not harm anyone else), then government aggression can never be morally justified. In a society of moral people, the Law of Nonaggression would be the only law that would be needed.

Where confusion comes about - and trouble sets in - is in the progressive's perversion of a trait known as compassion. Compassion is a unique human trait. Contrary to what some animal lovers would like to believe, animals, in the strictest sense of the word, do not have the capacity to be compassionate. Only human beings can feel compassion, and they can feel it for both people and animals. Which, of course, is a good thing. It's why private charity thrives in America, notwithstanding the fact that the government forces individuals to hand over a substantial portion of their earnings to fund immoral government activities. Compassion is about charity, and charity is about each individual giving not according to his ability, but according to his desire - to those whom he deems to be in need and worthy of his charity. CC = compassion and charity. Got it?

The progressive, however, does not get it. He severs the relationship between compassion and charity and instead links compassion with aggression - i.e., the use of force. And while it may seem self-evident that compassion and aggression contradict one another, thanks to the emotion of guilt, this combo is an easy sell even to those who possess a basic belief in individual sovereignty. After all, how can a person not be in favor of taking wealth by force when millions are unemployed ... homeless ... in need of medical treatment ... lacking money for education ... the list is endless, because human desires/needs are endless. But a person would have to be omniscient, not to mention divinely moral, to know which needs of which people are superior to the rights of other individuals to keep what is theirs.

The fact that 35 percent of Americans favor government-run health care is irrelevant. Lots of people want lots of free stuff. That's a given. But to take money by force in order to give them the free stuff they desire is unconstitutional - and, more important, immoral. Since the government does not create wealth of its own, the only way it can ''help'' people - whether it be to give them unemployment benefits, health care, or any other commodity - is to commit aggression against others and simply use force to take the resources it needs.

If we are to steer the U.S.A. Titanic away from the gigantic financial iceberg that lies just ahead, the entire concept of entitlements - of any and all kinds - must be rejected by a majority of Americans. The notion that anyone has a right to anything - other that what others are willing to pay him in a free market - is progressive nonsense. That includes such sacred cows as Social Security, Medicare, and unemployment benefits. Liberty-minded folks must not allow themselves to fall into the compassion trap that results in a tied tongue. I have observed a number of conservatives squirming for an answer when asked if they are not concerned about people with pre-existing conditions that have no health care. Of course they are concerned, as am I and most other people. But the solution is not to destroy our current health-care system and make everyone equally miserable.

If insurance companies are forced to insure people with pre-existing conditions, they will have to raise everyone else's rates dramatically, which is the equivalent of a transfer-of-wealth program. If people refuse to pay those increased rates, their insurance companies will go out of business. Presto: Government achieves full control of health care. On the other hand, if the government prevents insurance companies from raising their rates so they can afford to cover people with pre-existing conditions, those companies will go out of business because they will quickly incur unsustainable losses. Presto: Government achieves full control of health care.
Get the picture?

The solution to medical care for people with pre-existing medical conditions - and people who, for one reason or another, can't afford medical insurance - is private charity. Private charity always works; government coercion never works (except for the politicians who increase their power as a result of it).
The irony is that people who are against Obamacare have argued that one of its worst features is that it cuts Medicare by $500 billion. Yet, Medicare is government-run health care, thus it, too, is both unconstitutional and immoral and is outside of government's restricted powers. (As always, I must add that Medicare should be phased out over a period of decades in order to avoid undue pain to elderly folks who have come to depend on it.)

As time goes on, progressives will increasingly argue that if government is forced out of the health-care business, those who can't afford medical insurance will be left to die. No one wants to see anyone die unnecessarily. But if progressives are as concerned about such people as they claim to be, there should be no problem. After all, in a free society they would be free to lead the way when it comes to contributing time and money to set up and fund private charities to provide for those whom they believe are in need of free health care.

Only a Marxist/communist/progressive would even attempt to concoct a justifiable reason why the use of force is morally superior to charity. The idea that compassion justifies aggression is a perversity that must be exposed for what it is: an excuse for government to increase its power over people. Compassion, on the other hand, leads quite naturally to charity, without government involvement. Nothing whatsoever to get tongue-tied about.

A sad day for America is another boon for Panama

Yesterday's unconstitutional shenanigans that have now given the U.S. government control of another 20% of the economy, compel me to share my feeling on this most dark occasion. I knew that with progressives in charge of the U.S. there would be some damage, but I had no idea that they would take over our largest industries (banking, auto, and now health care to name just few) and use every trick in the book to do it. I am not going to get into the details because you, who are a thinking and caring Americans, already know all about it and are as upset as I am. Those who neither care or think beyond pop culture don't and won't get it because they won't take the time away from entertainment and self indulgence to educate themselves on history or the facts.

Those progressives on my subscription list, don't bother writing me to give me a piece of your mind, I have a delete button and am not afraid to use it, liberally! This is a free blog providing what many consider valuable information, and I would just as soon you unsubscribe as my words are just pearls before swine anyway. I am a political, fiscal and moral conservative and I look at my home country as well as Panama from that very perspective. So if you don't like it go find a progressive blog on Panama and cozy up.

America has been brought to this level in one generation. This incredible country that is/was the envy of the entire world has been brought to the very precipice our founders fought so hard to free us from when our country was formed. We have become a European nanny state and all we are missing are some royal asses in guilded robes to lord it over us. Most of us have fathers or grandfathers who fought on foreign soils to keep us free of the very thing we have become. We weren't conquered from without, we have been sucked dry from within! We are no longer independent thinkers and doers, we are nothing more than serfs. Sure will try to vote the bastards out in November, but with so many new "needy's" getting another government handout we may not have the numbers. And guess what, we still have immigration reform coming up to bring a whole bunch more new voters who all want something for nothing.

Why should I complain? This is great for business in Panama. Everyday new faces show up with fear in their eyes moving their families and whatever else they can out of what they believe will soon be a rat hole where if you have anything it must be shared with "fairness and equality". Socialism, Communism, Marxism, I really don't care what you call it, it is definitely tyranny!  I would give up everything here to see America return to a republic of laws and a people who are are self reliant. Home of the brave and land of the free. Nuf said!

There, I feel better.

A Panamanian goes to Washington

This story crossed my radar today and I could not help but post it as it gives me the opportunity to share my opinion on the issue of illegal immigration. It is not because the perpetrator of the crimes is Panamanian that I bring this up, but it shows the lunacy of the U.S. regarding illegal aliens and the stark difference for any foreigner coming to live in Panama.

In 2008, a convicted Panamanian murderer escapes from La Joya Prison and makes his way to Mexico and then  on to Washington D.C.. Last week someone tipped off the FBI that he was going to fire rockets into the metro. He was captured with a number of false ID's, $21,000 in his bank account, 3 cars including a Lexus and he was living on government subsidies. "Barrera reportedly told authorities he used the bogus Social Security card to get the driver's license and secure his U.S. Department of Housing and Urban Development subsidized apartment, court documents said. A property manager for Brookland Manor Apartments told authorities Barrera paid his rent for one year in advance." Read more at the Washington Examiner.

Could an American pull this off in Panama? Not that there aren't American crooks in Panama, but few would be able to enter and stay in the country illegally and get around all of the check points. He could not easily get a bank account, and he certainly could not live on government subsidies.

To come to Panama and live here legally requires a lot of patience and paperwork. To acquire a retiree visa  you must  submit documents to immigration that  proves you are not wanted by the law, show bank accounts from your home country with references and proof that you have adequate income to support yourself and your family. Should you be granted the right to stay and spend money, you are NOT allowed to work (compete) in the Panamanian job market. All of this can take from 5 months to two years depending on the attorney you use and the immigration department doesn't lose your paperwork.

There is no question that America is the land of opportunity and it is no wonder that so many in Latin Americans want to go there any way they can. Who can blame them? It is also true that illegal immigration is one of the reasons many Americans are willing to go through the hassle to live in Panama. They see the immigration issue in the U.S. as just another example of their government run amuck. In my opinion, the U.S. government enables illegal immigration in order to get more voters to vote themselves largess and therefore enlarge the government. Right after supposed health care reform you can bet we will have immigration reform which is "statist speak" for illegal alien amnesty.

If the U.S. controlled its borders and immigration as does Panama, and forced everyone to either be legal or gone, many Americans who are now living here probably would still be living there.

A dose of reality for Panama developers

When I began developing in Panama back in 2000 we marketed  Valle Escondido as "Twice the lifestyle for half the price". We successfully built and sold 175 homes because we focused on value. Although home prices have gone up since then, you can still buy a house with land for under $100 a square foot and have the many amenities of a resort lifestyle.

As Casey Hallaron points out in the blog post below, value branding works and is more important than ever. Panama developers would do well to heed this advice.

Excerpt:

Panama needs to first figure out WHAT it is and where it wants to (and is able) to compete before it can really hope to have any chance at sustainable success.  If I were granted absolute marketing power over Panama, I’d say that it needs to pursue a strategy that isn’t as trendy as selling $6 café lattes: BE A VALUE BRAND!

Value never goes out of style.  Value is instantly understood by consumers, sometimes subconsciously.  Value isn’t easy to deliver.  But ask Wal-Mart or McDonalds how they’re faring in this crisis.   Value SELLS.  Back in 2005, when I first heard Panama had $80k pre-construction condos for sale, I didn’t need to hear anything else.  I understood the inherent value of a roof over my head for under $500 a month.  I didn’t ask about price per meter, didn’t over analyze the neighborhood or materials…I just signed the contract.  Value is not a complicated, glossy or overly complex pitch, but it does require some hard work and HUMILITY.

Unfortunately, faster than a French surrender, Panama went from being a value player with low cost of living, retirement benefits and tax breaks….to a marketplace focused on luxury condos and high flying lifestyles.

Read the post here

Sam's tips on residential project marketing

 This post is part important marketing information and part shameless self promotion, both of my genius at web design, copy-writing and marketing and to get your eyeballs on my projects new website.

I have struggled over the years with getting websites built in a timely and cost effective fashion. I have great guys with talent to do the work, but I still have to provide the content which is a very time consuming job in itself. I then have to contact them for every little change I want to make and it takes them time to get to it and additional costs. I have tried different programs to let me build a website myself, but all were too complicated and the end product never looked very good. Besides, I am usually too busy as a project developer to spend time learning web design.

So, the other day my hosting service sent me an email about a new program that would allow me to Drag and Drop all the elements onto a page while online and publish it with a press of a button, very similar to how I post this blog. I did not have to know HTML or FTP, SWF or anything more than I do when blogging.  It really is web site design for dummies. I built the site in about 12 hours, start to publish! Now, I don't have a dog in this hunt and won't make a dime if you end up using this program, but it is so cool that I wanted to share it with you and get some publicity at the same time.

Now for some helpful info if you have a development project you want to promote.

If you will take the time to look over the site there is a marketing theme that I have used throughout the site that development promoters may want to take notice of. In my first page I am trying to connect with my potential client by conveying specific information about the quality of the project, its amenities and access to THINGS. Access to THINGS is extremely important to WOMEN who plan on living any length of time in the property. And guess what, it is women that you must convince to buy in your project. After over 175 sales I know for a fact that it is usually the men who have done the research and want to move to Panama, but it is the women who makes the final decision on where they will settle. As a side note, there are a number of single or widowed women living in Valle Escondido which greatly surprised and pleased me. For a women to pick up stakes and move to a foreign land tells you something about her and the project. She is extremely independent and the project makes her secure and happy enough to go it alone.

I go on to tell about the people who inhabit our piece of paradise so they can connect and feel that they could fit in. I provide some information on the activities and amenities beyond our gates so they can see that there is more to do than just be in this project. There is a residents testimonial page which is extremely important. Just as TravelAdvisor testimonials can make or break your lodging business, great testimonials can really help people connect with your project.

The second page goes into my story of why I selected and built Valle Escondido. I call it the "safe haven" story. Just about every MAN who comes through our sales doors say they connect with it, because they too are looking for a safe haven. Think of it like this. Men are always seeking safety for their ass and their assets and women are thinking  more about comfort and knowing there are others like them to connect with. Nothing new here, so if you apply that line of thinking into your marketing you may have similar success.

Then there are details on all aspects of the projects amenities such as HEALTH AND BEAUTY SPA, fitness center etc.. Most things catering to women. And then there are lots of photos. Of course I have the benefit of the project being nearly completed and do not have to resort to computer renderings, but also the handicap of little else to sell. But,  I don't really care because I want to retire and enjoy the fruits of my labor and my wife wants to work and run the business as she has for the past 5 years. A happy wife is a busy wife I always say. I will hopefully live my life as do the other 350 or so folks that live in Valle Escondido, enjoying the third age as they now call it.

The site really was built in 12 hours, which I think is very fast when you consider I am the copywriter and had to hunt down all the photos out of the many thousands in my files. Not to mention my first time using the program. You can go here to view my site and here to find out more about the program. They let you use it free to a certain level and then it is $10 a month. Cheap IMO. Please feel free to comment on my work as I can surely use some feedback. Don't worry about hurting my feelings, after cancer treatment I am impervious to pain!

Some advice for Doug Casey on building Utopia

Doug Casey is a well known investor/economist who's predictions regarding the worlds current and future economy have been both accurate and dire. He has written a number of interesting books and is a regular on MSNBC, Fox and CNN as they can always count on him to forecast doom and gloom as a kind of balanced, almost comic relief to their ever glowing predictions for the markets.

I first learned about Casey from a book he wrote back in the 80's titled International Man. I stumbled on it in a garage sale in the early 90's and it set me on the path of becoming the "international man" that I am today. Now it seems, the path I took that led me to build Valle Escondido in Panama is one he is now taking in Argentina with a project he calls La Estancia de Cafayate. The project is near a small town of Cafayete which is about the same size as our town of Boquete. There is an interesting audio interview with him where he talks about the reasons he is building the project, which I can certainly relate to having been there and done that.

Over the past 9 years it has taken me to complete Valle Escondido I have met many men who had the desire to create their own version of a perfect community. There is a strong force in some of us that is not satisfied with the world as it is and we have the vision, drive and stubbornness to try and create our own version of utopia. We usually select out of the way places where civilization is not so advanced and the natural world still plays a very important role in everyday life. These projects are invariably developed in an out of the way agrarian societies where we "feel" we have stepped back in time because of the laid back, down to earth inhabitants. We are reminded of our youth growing up in the 50's or 60's, just after the last world war and before the advent of big government, technology, pop culture, and the growing health issues facing our society today. But along with this vision of a bygone era we want the same amenities and lifestyle we have benefited from in the 21st century. Finding the balance of both of these attractions is extremely challenging, but it can be done. What follows are my ramblings of what I have experienced as one of these development dreamers in hopes it might help Mr. Casey and others in building their Utopia.

Is David ready for international flights?

The government has allocated $43 million dollars to improve the airports in David and Colon according to an article in today's La Prensa. The authorities say it is to make them functional for international flights. In my opinion there is not nearly enough demand to justify airlines providing services to the David area now or in the foreseeable future.

The Liberia airport in Costa Rica, which is used as an example of the benefit of another international airport in a country, was constructed a number of years ago when I was working in Costa Rica. It was built in conjunction and collaboration  with significant investment into resort infrastructure, such as the Hilton Papagayo, Four Seasons, Occidental and a number of other large projects that could justify the airlines providing service. There are several thousand resort beds available within 30-45 minutes from Liberia. Many of these hotels had to make guaranty's to the airlines for a certain number of seats in order to get them to make the flights in the early days of the airports operation.

In this year alone, American airlines and a number of others have cut back considerably on the number of flights to Caribbean destinations because the demand from U.S. customers for vacations has dwindled considerably. To stay in business, Caribbean resorts have been offering super deals, cutting profits to a point where operators are just trying to stay afloat, much less consider investing in new resorts in other areas. Neither the airlines nor the international resort operators are willing to make risky investments in these tight credit times.

The province of Chiriqui has seen significant investment into infrastructure and foreigners moving into the area, but not nearly enough to justify even semi-regular flights to David. There are no 300-500 room hotels in the area and if there were, I question seriously just how successful they would be in the current economic climate.

The authorities need to be realistic and base their decisions on reality rather than what they would like to see happen. The world is awash in underutilized assets that governments wrongly believed if they build it, they will come. As much as I like seeing investment coming back to our province for the tax dollars we submit to the central government, I would rather the money be spent wisely and on things that bring real benefit to the people who live here.

Machine translated from La Presna: Cartagena, Colombia.  Feasibility studies of future airport of central provinces could begin before the end of 2009, as reported by Rafael Barcenas, director of the Civil Aviation Authority (PCA) of Panama.

  The official, who participates in Cartagena, Colombia, at the Forum Leaders' High Airlines, said the beginning of the analysis, which could be developed by the Andean Development Corporation, is pending a proceeding that has to make the Ministry of Economy and Finance.

  For half of next year could be defined the place and the financing of the work.  It would be in 2011 when work would begin.

  In 2010, investments will focus on David and Colon airports, which together receive an injection of $ 43 million to accommodate international airlines. Chiricano airport will be "for tourism and to receive direct flights from the United States", whereas the intention is to make Colon a "cargo terminal with great influx of cruise tourism," said Barcenas

Is North America over populated?

One of the things I like about Panama is the relatively small population of a little over 3.3 million. This rather small population is one of the reasons you don't see such blatant poverty that can be seen throughout most of Central American and Caribbean countries. Costa Rica is the only other country in the area that has been blessed with a rather small population and a manageable growth rate of about 1.3%. That is not to say there is no poverty here. But, even with the reported 40% living below the poverty level you don't see much of it because most are living in the interior on plots of land that provide a subsistence living. Panama also has a large indigenous population who for the most part live in that 40% poverty level and they tend to live in reservations or groups away from populated areas. Of course a city like Panama City which has nearly half of the countries population also has a lot more concentrated poverty, especially on the Colon side of the corridor.

There has been an increase of immigration into Panama over the last few years mostly coming from Colombia and other Latin American countries. Most are seeking better work opportunities or political asylum. According to an article I posted earlier in the year only 26,000 people applied for residency in Panama between January 2007 and March 2009. Of that number there were only about 2500 applications from North America.That is a very small proportion of the population.

With these facts in perspective lets compare this to what is happening in the U.S.. Since 1980 the United States has seen a 33% increase in population and most of it due to both legal and illegal immigration. If you look at the facts of this immigration it becomes obvious that this uncontrolled immigration is one of the reasons they have so many fiscal and growing cultural problems. The U.S. is becoming a very fragmented society because most of these immigrants never become part of the melting pot like they used to during the wave of immigration after the two world wars. Now they don't learn the language and place ever increasing burdens on the health and education systems. I stumbled on a great website that clearly tells the story of American immigration and how it has/is affecting the country. I encourage you to spend some time looking over this data. Unfortunately even if they stopped the huge flow of immigration the country will still grow at unprecedented levels due to what has taken place in the last 30 years.