Thread: Real Estate in Panama

It is possible that Nicaragua is an up and coming country. It is my understanding they have allot of problems (who doesnt?). The only way you are going to know if you go and visit the place. Make sure you do your research on the stability of the government as well. Stability will make or break the real estate market. Panama is "fairly" stable but even a slight visa change can change prices quick. Whatever you do beware of speculation.

Just planning a visit to check it out. I agree that Panama is more stable and perceived as the safer bet. Any investment in Nicaragua to me would probably be considered speculative based on what I ve read. I suppose I am drawn to the contrarian strategy a bit. I will probably go in Feb. and report back to this forum.

Always good to hear about perspectives on other Latin American countries. I have checked out Costa Rica and Ecuador since moving down here and I personally feel Panama is the correct choice. At least for my interests. Look forward to hearing about the Nicaragua experience.

Now that the world economy (especially the USA) seems to be on a downward slope I will be interested in how much longer the real estate market will keep going in Panama. Since the credit market has almost dried up I would guess that the current buyers and primarily cash. Due to inflation in many currencies (especially the USA) gold and silver maybe a better investment?

Hi everybody, my name is Kalli, I'm german and I live since almost twenty years in Panama. My actual job is sales agent in a big real estate company.
Panama still has a big boom in Real Estate and compared to other countries there is still no recesion to expect. In other words, its an excelent place to invest. Feel free to visit our website www.knightsbridgeinvest.com

The investment newsletter I subscribe to has been touting gold for the last several years. It's about the only thing I feel good about. The newsletter is good: "the complete investor" by Steven Leeb.

He wrote a book that said oil prices could easily reach 150 - 200/ bbl within the next five years-- back when oil was around 40 - 50.

I read Richard Daughty (The Mighty Mogambu) frequently as well as several others. I get my economic news primarily from www.atimes.com It is good that you can go back and look at peoples track records when predictions are made. Most of the regular TV news is such absolute lies and garbage. I personally feel that gold, silver, and oil are probably safer bets than anything else including real estate in Panama. The US economy (and rest of the world) is obviously not turning around but actually getting much worse.

I have to agree with MRWOOHOO....

I would not buy real estate right now. I personally just bought silver last week. Before that I was in commodities like oil and steel companies for a year and sold them about 3 months back, I was in cash since, but even cash is dangerous if it is in USA dollars.... Hence my reason for buying the silver.....

I got houses for sale in Canada, and it is slow going in selling, so the real estate is even going down here now, and we are booming with oil revenue....

So no real estate is safe now...

Bel-air, nice move getting out of commodities. I basically stayed in -- hedged a little but not enough. i think i am going to be in it for the long haul when comes to energy & precious metals. I have a duplex and fourplex and my own home in Texas that I will probably wait a couple of years before selling. Have been watching to see if a bailout plan is going to be passed.

The bailout will go ahead.... That is why one should be in silver, since all that money printing is gonna cause inflation.

This is what happens if you print to much money in the end.

http://en.wikipedia.org/wiki/Hyper_inflation

http://en.wikipedia.org/wiki/Weimar_republic

I made alot in steel companies, and got out near the top once they started to go down. It is a tough time to invest to be honest...

The next play is silver and gold.

And if anyone thinks this is the last bailout they are dreaming, it is only just started. Now they want to pass another 150 billion dollar stimulus package [called stimulus package 2]..

Thus far this year the USA have gone 1.5 trillion in the hole, not to mention another 800 billion dollar trade deficit as well. All with printed money. Next year looks the same or worse. And the more money you print the less the currency is worth, just look at Zimbabwe.

http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

If this is not bullish for silver and gold I don't know what is. So if silver does not go up now it never will.

Silver will perform better than gold, but it will take to long to explain why, but always has in the past inflationary times.

Got Silver?????? LOL

I have some gold already (coins). Have considered silver. What do form do you recommend buying silver?

I know this is taking off from the original topic now and I apologize but the interest is here. A friend of mine just sent me this info on a company called Investment Rarities: "Investment Rarities. They are on the Internet and I have bought large amounts of silver from them at times. They deliver silver or gold marked as machine parts fully insured of course. They send all orders via the post office.

I would also check out any local coin dealer who sells gold and silver. Can usually find several dealers in the local phone book. Call and find out what they have in stock and what the load or commission over spot is. Ask what the commission is on the buy and sell side. Compare local dealers and their commissions. Usually they are pretty close to one another. I hear there are physical shortages on silver and it is hard to get from local dealers."

I own an etf called SLV,[Ishares Silver Trust] they store the silver, and the stock price reflects the silver they hold. I don't want to hold silver forever, just long enough to make some money when it goes up..

http://finance.yahoo.com/q?s=SLV

And in case I am wrong on my timing, I can sell it in a heart beat and wait for better timing. Pretty hard to store 4 tons of silver in my closet. How about selling it fast once it hits top?

It is gld for gold
http://finance.yahoo.com/q?s=GLD

CEf is for combo of gold and silver fund.

http://finance.yahoo.com/q?s=CEF


For traders like me, who don't want to take take actual delivery, it is the way to go. All of the +'s of holding silver and gold, without having to store it...

That is great info that allot of people were looking for. I had better get this thread back on track though, lol. Panama will probably still do better than the rest of the world as far as economy goes and as long as you are not expecting to get rich by flipping condo's, this is still a decent place to purchase something. Eventually sale prices will start coming back down and so will rent. There is just a huge inventory of available places. Even though entire buildings are "sold out" at pre-construction, very few people are actually living in them. In my book this means speculation. Another thing to consider. Many people that purchased these condo's during pre-construction had intended to sell their homes back in the US, Canada, Europe, etc., at a good profit and move or figured they could flip. Now their original home is not worth as much and they are desperate. Watch and see the prices for rent and resale fall. This can happen very quickly.

Looks like the "Bailout" hit a snag!!!!! I have to admit I am REALLY AMAZED that the bailout did not go through. I really thought they government was going to bail out all the major corporations that created this mess. Personally I am glad that all that crappy paper has not been dumped on the US Taxpayer. At the same time I say "HOLY CRAP!!!" There goes the over-inflated stock market. Now let's see what happens to precious metals and real estate in Panama.

Why would Americans sell on all the pre-construction or empty apartments they own at this moment in time, as long as they can afford to pay for it? Banks are failing and so better the money is in real estate than in cash.

When Northern Rock failed in the UK, I had an old work mate that took his money out of the bank and bought a house. He said his money was better off in bricks and mortar than cash in a bank.

Maybe gold is a better option than real estate or cash - historically it has been, but how many people still feel that way?

I spoke to my fund manager and all the stocks and shares were shifted into things like mining companies months ago. But even they are falling in price. People need food, shelter and power...

In my personal opinion, many American's cannot afford the pre-construction condos they purchased. Many people took out second mortgages to purchase pre-construction and now their homes in the America's are not worth that much anymore. Many people were planning on selling their home in the US and retiring on the proceeds. It has ALL come to a screeching halt. All of the money that was keeping lending easy is gone and there is nothing but debt left. I have already talked with people from the US currently in Panama that this has happened to. A second home is a foreign country is a luxury, not a necessity.

Originally Posted by MRWOOHOO

From what I have been able to observe watch out for overly expensive homes or apartments/condo's. Same exact thing as Florida, to much speculation. You really dont need to spend $250K on a house or condo. I see beautiful homes in downtown Boquete going for $130-150K and that is about as safe and premier location in the country. If you are a person that is retired from the USA and you want to feel safe, secure, at home, with beautiful views, flowers, fresh coffee, 24/7 grocery store (walking distance), bakery, hospital, etc. You really cannot go wrong for that money. You can do it even cheaper if you want.

I'm quite new here and have been reading your comments with interest.

While it's only natural that Panama be of primary interest to US retirees, I would be interested to hear from any Australians, or other "long-distance" retirees to this beautiful country.

Many thanks.

My wife and I moved in Panama 2 months ago and we are so happy we did it, particularly when we see how the situation in North America and Europe is evolving. The cost of living in Panama is very affordable, I would say about 35% cheaper than Canada where we are from. We decided we'd rent for a year to get a better idea of how the country is. We are renting a beautiful seafront condo we found on www.yourpanamacondo.com and we are close to everything, from supermarkets, malls, hospitals, etc. We haven't bought a vehicle yet but will do so next month (taxi rides are so cheap). We currently live in a part called san Francisco which is close from the airport. We go to the beaches of Coronado and Playa Blanca twice a month and pay golf once a month. I'll be happy to post our experience here in Panama as time goes on.

Hi Jan and welcome to Panama Forum,

We look forward to hearing your experiences of moving to Panama and the things you discovered during your move. Likely there were a lot of surprises, most of them good we hope!

Hi Jan, the more experiences shared the better for this forum. I love the fact that it really is easy to get around this country with or without a car. Personally, this is the first time I have been without a car and I really don't miss it. Eventually I plan to get something but if you live in the city, taxi's and buses do the trick. Paying $4/gal of gas is not something I look forward to.

From what I have heard...

There has been a large slow down in shifting real estate in the last 4 to 6 months. And in the last 2 years prices have gone up between 100-450%. There are around 400 projects targeted at foreigners scheduled for the next 2 years. Developers are struggling to find customers for their projects, and more apartments are coming up from resale.

Most Panamanians cannot afford these apartments and foreign investment is drying up, and those already invested in pre-construction are getting out. So, price falls and project cancellations look to be on the cards...

...maybe a time for cheeky offers for those that want to move and live in Panama? And for those that are investors or speculators: time to move into Platinum, Gold and Silver?

I am starting to meet people that bought pre-construction and wish they hadn't. As Wal-Mart would say "watch out for falling prices". What is going to make things worse is a stronger dollar against the Euro. If the Euro keeps crashing against the dollar living in Europe will become cheaper than Panama. Wouldn't that be messed up?

Originally Posted by MRWOOHOO

I am starting to meet people that bought pre-construction and wish they hadn't. As Wal-Mart would say "watch out for falling prices". What is going to make things worse is a stronger dollar against the Euro. If the Euro keeps crashing against the dollar living in Europe will become cheaper than Panama. Wouldn't that be messed up?

For what it is worth.......As a very small time property developer ( not flipping ) I would strongly advise any prospective purchasers to hold off until the dust settles.
We are currently holding properties we have developed between 2006-2008 that the bank has just devalued by 20% with the promise of more of the same to come. Even at less 20% we haven't had lookers let alone any offers.

It is good to hear a perspective from somebody in the business. I guess it was just a matter of time before world economy started affecting Panama.

I havent seen this before. A sign of the times.

condo rescues

http://panama.en.craigslist.org/reb/869787772.html

I actually know the owners of that company and had drinks with them on Saturday. Their corp name is Flaco & Gordo. Steven is one of the largest men I know (6'9", no kidding). They are good guys and business is doing well for them. You are correct Zog, if real estate was still booming they would not be in business.

Originally Posted by MRWOOHOO

I actually know the owners of that company and had drinks with them on Saturday. Their corp name is Flaco & Gordo. Steven is one of the largest men I know (6'9", no kidding). They are good guys and business is doing well for them. You are correct Zog, if real estate was still booming they would not be in business.

well if the big guy can find me a bargain in Panama city then let me know :-)

and why is the big guy in real estate when he should be playing Basketball in the USA?

I've just read through the entire six pages of comments; very interesting.

Australia is now beginning to feel the financial and real estate sting - particularly in the west of the country, which was sure it would be immune to such things due to the long-term resources boom in the area. We sold one of our properties at the top of the market and did extremely well, but now the Australian dollar has fallen dramatically, thereby reducing our purchasing power. It's down heavily against the US dollar and the Euro in particular.

Cost of living in Australia, particularly the west, is high. We had hoped to begin making plans for retirement to Panama, but from what I've been reading here it seems costs are climbing there, too. That, coupled with the drop in currency value could pose serious problems. What to do?