Thread: Is now the time to buy property or do i wait

It's the ultimate moron's supply and demand model which seems to be determining the prices in many areas (as described by you). Prices are now at 40-50 % of replacement value. If you buy relatively new homes (2003-2007) at $40-50 / sqft the idea would be that they can never build anything again in 10 years. Whenever they build again you doubled up. Going on May 8th - hoping for two units that peaked at around 650,000 for 175,000 or so with 12 % rental returns.

Originally Posted by fleeted

Seems to be a cycle occuring where property values fell and owners walked away. These homes came back on the market as foreclosures and depressed prices causing more people under water to walk away. and so on and so on..... If it is a cycle it is a vicious one.

12% rental return is strong. Barring unforseen expenses you can enjoy nice cash flow.

This property looks interesting
PTY Properties - El Cangrejo Apartamento 194m2 $175,000

Originally Posted by tompoker

This property looks interesting
PTY Properties - El Cangrejo Apartamento 194m2 $175,000

I agree. Looks nice.

It's probably older than 20 years and lack tax exception. Also in Panama they seem to include balcony, parking space in the M2 - also they like to measure the M2 by the outside concrete.

Originally Posted by BalaBeacher

I agree. Looks nice.

It's on Via Argentina. Anyone know the building?

Buy where prices are low, sell or rent where prices are high. I think Panama is more in the second category than the US.

Not sure which building but definitely older. I don't see mention of social area or pool but it does have a balcony (depending upon what size?) it might be a good purchase? Watch for older elevators that like to close while you are still trying to get your groceries into it. Good location and almost 200 meters of space.

After the 20 year tax exemption has expired what are the implications

Hey Tom, That apt. you referenced in Cangrejo has been for sale for at least 6 months. I don't know which building it is in, but the owner seems very motivated to sell. He/she reposts the ad often on various sites.

Originally Posted by AlbyM

Hey Tom, That apt. you referenced in Cangrejo has been for sale for at least 6 months. I don't know which building it is in, but the owner seems very motivated to sell. He/she reposts the ad often on various sites.

Tom's site lists the property at $175,000. It's on the English site www.panamarealtor.com for $185,000. Outdated info or dual pricing? You tell me!

What happens a lot here is that a real estate agent will approach a seller and offer to market the property. Seller will tell real estate agent, "I don't care how much you sell it for as long as I get X amount for it." Thus, it is not uncommon to find the same property listed by numerous agents at different prices. That's why it is always better (if you are in town and have the time) to find a building you like, ask around if any units are for sale, and then deal directly with the owners.

One can only speculate as they change the laws almost every day. You will also be taxed on the land value underneath the house.

The 20 year tax bill on a 200k properly can range from 20,000 to 50,000 dollars.

Originally Posted by tompoker

After the 20 year tax exemption has expired what are the implications

I am sure this has been mentioned before on this site, what happens to the market when all the propertys are coming up to their tax exemption are prices going to lower due to the new tax bill, or will these property be impossible to sell. Its like buy new now but pay later, does anybody think the taxes will be charged in a way that helps the property market.
Does the tax exemption also apply to the locals in their basic accommodation, if so that means the poor are going to hit with a huge bill.
Scratching my mellon on this one

Originally Posted by tompoker

I am sure this has been mentioned before on this site, what happens to the market when all the propertys are coming up to their tax exemption are prices going to lower due to the new tax bill, or will these property be impossible to sell. Its like buy new now but pay later, does anybody think the taxes will be charged in a way that helps the property market.
Does the tax exemption also apply to the locals in their basic accommodation, if so that means the poor are going to hit with a huge bill.
Scratching my mellon on this one

Ed is saying that the annual property tax is between $1,000 and $2,500 a year for a $200,000 condo. Where I'm from in the U.S., annual property taxes would be around $6,000 a year on a $200,000 value real estate. Many areas are less--lots less depending on whether the state imposes an income tax. Unfortunately, expats are accustomed to paying "rent" in the form of taxes to their governments so most would not complain much, IMO, about Panama property taxes.

Originally Posted by tompoker

I am sure this has been mentioned before on this site, what happens to the market when all the propertys are coming up to their tax exemption are prices going to lower due to the new tax bill, or will these property be impossible to sell. Its like buy new now but pay later, does anybody think the taxes will be charged in a way that helps the property market.
Does the tax exemption also apply to the locals in their basic accommodation, if so that means the poor are going to hit with a huge bill.
Scratching my mellon on this one

there is no tax on houses under $30,000 ever , so that takes care of lots of the locals

Ok thanks.

I pay up to 10k a year on 1 of my propertys

Taxes Yuk!!!

Hello please give me a suggestion on this. I want to buy a flat in Sydney and have the option of buying now or saving up for more of a deposit and buying in six months. Do you think the market will go up in that time? Should I just get in now without the extra money or wait?

Originally Posted by Culver

Hello please give me a suggestion on this. I want to buy a flat in Sydney and have the option of buying now or saving up for more of a deposit and buying in six months. Do you think the market will go up in that time? Should I just get in now without the extra money or wait?

Exactly where in Panama is Sydney located?

If anyone here can prognosticate accurately any movement in real estate, they would surely charge for such valuable information. So all anyone can expect for free here are opinions.