Thread: Real Estate in Panama

Originally Posted by GordonS

Some of our friends are investing in a place called Malibu Beach Resort. Its a gated community on the beach. Has anyone heard of this property? We are considering retiring to Panama but don't want to invest in something not yet built. Have any of you purchased something at pre-construction prices and had good experiences?

The website for the beach resort is:Malibu Beach Park & Resort Panama

I appreciate the invite and it is quite possible that I stop by someday. You are absolutely correct about the roads in Coronado. I have driven around the interior allot and the regular roads by multi-million dollar homes were some of the worst.

How is it that you can go to 'lesser' towns of Punta Barco, Gorgona, Chame, San Carlos, etc. and find wonderful roads? It makes no sense. And surely the same house will cost half if you get a tiny bit away!

There's a lovely road almost across from El Rey... maybe a few hundred meters back toward PC that goes through some lovely countryside and eventually up a mountain. No idea what town or road name is. I know the prices there are far, far lower and would be a lovely spot to build the dream house if you find the right lot. Be sure to compare your lot price "apples to apples", in other words find out if there is electric and water at the site, does it have an approved septic plan and well plan if that's needed; can you get cable, wireless, etc, and does the owner actually own the land!!! All features of the land affect the price. And use a lawyer! Biggest mistake ever is doing this without legal advice!

I agree with you that there is no need for most of us to have a big house here. 2 bedrooms, a small pool and a good size terrazo for the barbecues... what else do you need? Americans and Canadians come here and anticipate that all their friends and family will come to visit, but usually they come one family at a time and the visits are few are far between, so why the need for 5 bedrooms and 5 bathrooms? Why be in debt up to your eyeballs as you were at home?

I know that when I build my house however small, I will put a filter on the water supply. There is so much iron in the local wate! And I would use a top-notch plumber as I've seen a lot of substandard work here. There are some things that are more important than having grandiose homes and $5,000 gates!! And hot tubs.... what's with that? Panama is hot all winter!! No one I know that has one actually uses it. When I get wet I want the water a little cooler than my roasting body!!

Keep my posted if you find something!
Sunman

Yes we purchased a condo at Coronado Bay Condominiums, last year at pre-construction pricing. I understand that the groundbreaking ceremony took place this past week. I'm currently selling this condo as pre-built construction. Once this is finished the sale price will disappear.

Kat
coronadovision.com

I'm not sure about Coronado's popularity but it seems like there are allot of expensive homes for sale. It kinda looks like Florida in allot of ways.

If you guys are interested in Malibu Beach Project, contact me, its a friend of mine and his company that is in charge of the project. It looks great and I think it will be a great investment! If I had the possibility I would buy there today!

I am currently in the process of buying 3.45 hecs of ocean view. I like the interior/locals much better than planned communities. That is just me. I have heard allot about Malibu lately.

Anyone have an idea of how much the cheaper areas cost? The ones mentioned here are not that expensive, cheaper than most U.S homes and probably offer a lot more, but they aren't that affordable for the average person.

I'm looking for some cheaper investments (thus lower risk). Perhaps at least the name of some areas where properties tend to be cheaper, but will eventually increase value. As there are some parts that don't seem to go up in value and just stay the same, which is fine if you want to live there, but if you want to resell it, it's not the best place.

This is the challenge we all face in Panama..... to pay a fair price on land or property that will increase in value. You really can't go wrong anywhere except that I think the condo market is overbuilt, oversold and overrated. You need to find the area that you like and then drive around looking for signs, preferably the 'for sale by owner' type. I'm a licensed broker in the states and yet I have done all my searching on my own and wll probably sell the 4 houses I'm building on spec without a realtor. Not that I begrudge them making a living, but you'll pay more when you buy and lose part of you sales profit by using a realtor. But, I repeat, you MUST use a lawyer, and be sure it is a trustworthy one. Talk to everyone you know who has been through things like getting permanent visas, establishing companies (to own the property), buying or selling real estate and perhaps starting a foundation (to protect the property from taxation in the event of your death - a protection for your heirs). If you don't find one that way, go to some expat meetings and ask around. Law is different here than in the states or Canada; be sure you're covered. Don't ask a Panamanian for a reference - you want one experienced in handling 'foreigners' and guiding us through the maze of bureauocracy.

And keep searching for that perfect spot. Keep asking around. For the Coronado area there are many lots available outside the gated community if you don't want to pay the price to be inside. You can choose the mountains, the seashore or being near the highway. Further West I'd say the Penenome area will be a great investment as they're building a connector highway from the West to the East Coast starting there and going to Colon. Great place to start a business, too!

And of course, you're always welcome to come see what we're doing in Punta Barco. We're building a nice 3br, 2 ba on a quarter acre near the beach for around $225! Or, we'll sell one lot for $85 and introduce you to several builders and you can do your own thing.

The further from the beach the lower the lot price, until you get to the high mountain communities of Altos del Maria or El Valle, etc. Be willing to pay a fair price because if you're looking to steal something, it's just not available unless there's a big problem with the land.

Given the increasing crime rate in Coronado, I'd rather be outisde of the gated community anyway, but being near there gives you access to a lot of shops and services so you're not driving an hour to go get milk and bread. So if you're in the country, measure how far everything else is from there.

Good luck! It's a frustrating process but ultimately you'll find what you want. Be prepared when dealing directly with the seller (if a local) that they're not used to our way of doing business, like signing a lot crap and dealing with lawyers. They trust the bankers more so if you have a good relationship with the bank you'll do your loan with, they may help you in dealing with a recalcitrant seller.

Have fun!

I have plans to relocate in Panama after few years and looking for investing there. Its quite cheap, much less than my expectations...anyway thanks for the info..

Originally Posted by GordonS

Some of our friends are investing in a place called Malibu Beach Resort. Its a gated community on the beach. Has anyone heard of this property? We are considering retiring to Panama but don't want to invest in something not yet built. Have any of you purchased something at pre-construction prices and had good experiences?

I am currently building at Malibu Beach Resort. I bought a lot and house in October 2007. Malibu Beach Park & Resort Panama is the website. The company has been in business for 30 years. Approx. 2% of housing projects are started and never finished in Panama. All the failures have been in the city.

I guess something is worth whatever somebody is willing to pay. These planned communities are REALLY, REALLY expensive as far as Latin America goes.

Originally Posted by MRWOOHOO

I guess something is worth whatever somebody is willing to pay. These planned communities are REALLY, REALLY expensive as far as Latin America goes.

Stop by, you may fall in love with Malibu. Of the 25-30 properties that I looked at, Malibu fits into my lifestyle.

I am sure Malibu is very nice and maybe I will swing by sometime? I have driven the country twice though and have looked at real estate from Panama City all the way to Bocas, Volcan, Boquete, Coronado, Las Lajas, Auzero Peninsula and my personal feeling is that it is easy to create whatever lifestyle you want for ALLOT less money. I do appreciate the invite and maybe I could interest you in driving down to Las Tablas sometime?

Cheers

Originally Posted by MRWOOHOO

I am sure Malibu is very nice and maybe I will swing by sometime? I have driven the country twice though and have looked at real estate from Panama City all the way to Bocas, Volcan, Boquete, Coronado, Las Lajas, Auzero Peninsula and my personal feeling is that it is easy to create whatever lifestyle you want for ALLOT less money. I do appreciate the invite and maybe I could interest you in driving down to Las Tablas sometime?

Cheers

I will take you up on that invite when I move to Panama. I could get away with spending much less money. My wife wants to be within driving distance of Panama City. Yes, I have checked out some properties on the internet near Las Tablas. The houses are much less expensive the farther out you go. My mother and I got as far as Nata before we turned around in October. Beautiful country.

I do understand why people do it although it is unfortunate. No rush on visiting me yet, I don't move until the end of Jan myself and I have not built anything.

Cheers

Originally Posted by MRWOOHOO

I do understand why people do it although it is unfortunate. No rush on visiting me yet, I don't move until the end of Jan myself and I have not built anything.

Cheers

It will be longer for me until I move down there. A lot of loose ends here in the USA. My email jwr2001@msn.com

I plan to continue in this forum so also feel free to send me a message.

Cheers

Originally Posted by MRWOOHOO

I plan to continue in this forum so also feel free to send me a message.

Cheers

That is fine

Panama Rocks. I plan on investing in the real estate market soon!

Was just curious if anyone knows if I were to take out a mortgage on a property in Panama if the US government would know about it ? If at a later date this property was sold for a profit, what would be the taxes on the gain be and to whom it would be payable too ? Another thing that comes to mind would a Panamanian mortgage show up on any of the 3 credit bureaus back in the states . Just curious ???

This is the exact same question that I asked my lawyer when I was there in October. If you form a corporation and you do not deduct interest or expenses on your income tax, the IRS will probably not find out about it. I do not think that it will show up on any credit bureau report, not sure about that. You will have a capital gains tax if you declare this on your taxes once you sell the house in the USA. Not sure about Panama taxes.

JIM

Originally Posted by jwr2001

This is the exact same question that I asked my lawyer when I was there in October. If you form a corporation and you do not deduct interest or expenses on your income tax, the IRS will probably not find out about it. I do not think that it will show up on any credit bureau report, not sure about that. You will have a capital gains tax if you declare this on your taxes once you sell the house in the USA. Not sure about Panama taxes.

JIM

Jim ,
If this is your Primary Residence and you live in it for 2 years or more there should be no "Capitol Gains Tax" to pay to the US Government .

Tarzan:

You are correct!!!!! If one has a mortgage though and wants to take the interest deduction on their income tax then the IRS will know. OR if one uses it as a rental and wants to take the income and expenses of owning a home on their income tax, then the IRS will know. But, as you said, if you live in it for 2 years, capital gains does not apply. JIM

I do business in the real estate market in Panama and there is definitely a boom in Boquete for example. Since there is a deflation in the US, it has only encouraged more to get a place in Panama and to secure it. Since the prices are very attractive, the setting beautiful and the quality of living exceptional, it is a very good way to Invest, Retire, or just to spend good Relaxation time or Vacations. Why not enjoy the many facets of Panama?

I just want to announce a new group on Facebook for people invested or anyone interested in "MALIBU BEACH PARK & RESORT" project (Gorgona, Panama).
For information sharing and building a new Neighbourhood.

http://www.facebook.com/group.php?gid=10357383898

Welcome anyone.
There are tones of information, pictures.

I would like to pose a question to everybody out there that knows something about Panama Real Estate. Is it me or has real estate sales in Panama even slowed down because of the liquidity crisis in the rest of the world? I see a ALLOT of pre-construction on sale, condos, communities, etc. I also see ALLOT of land in the interior for sale, but what I am not seeing is ALLOT of "Sold" signs on these properties. When I do it seems to be inexpensive condo's in key neighborhoods. Any opinions??

I think that alot of people from abroad are now having trouble selling there homes, usa, Spain,England, Austrila etc..... and the prices of homes are dropping big time in those countries, which means that there will be less foreighners to buy the expensive houses and lots in Panama, and only the cheaper condo's will sell now.

I would think it is the foreighners that buy most of the higher end homes and lots in Panama, and if housing is falling in there home country, they will have less to spend in Panama...

I live in canada and things are booming here, but I just got back from a trip to California, and things are getting desperate there. some real Estate agents have not make a single sale in the last year..... houses are falling in price.... That would have to effect people from the usa and other countries in buying homes in Panama then as well.

I have to agree with you on the housing situation. Many countries, especially the US, are in DEEP DEEP trouble. Panama has generally been a place to purchase that second home for the retiree's since the late 90's until recently. I think the demographics of real-estate buyers will be changing. People will be younger and looking for primary residence. Probably renting as inexpensive as possible in Panama City.