Panama investment tips

Not every investment is a wise investment

The present attitude of investors is that, no matter what property they buy in Panama, they are not likely to go wrong due to the fact that the future of the country looks very promising, however, let me break the bad news to you, every investment made in the country does not necessarily mean that it will give a profit in the future. Of course, there are people who have made an investment and are already reaping benefits from it but it would be foolish to think that you can go on and buy any real estate property and be in profit within a matter of months.

If you are looking to make an investment in Panama, then be sure to read on, following are a few tips on making a more successful investment in the Panama real estate market.

1. Take extra caution is choosing your Panama real estate agent that will assist you in your search for that ideal property. Ensure that the realtor you choose has all the required paperwork as a realtor in Panama does have to be licensed. You will also need to know the experience level of the realtor you choose and you may go about figuring this out by talking to previous clients they have served, to see, at what level, the realtor has helped the client. Feel free to take suggestions from others when choosing a realtor, but also make sure that you are able to override the suggestion if you feel strong about a different realtor.

2. During your search for property, make sure that you inspect a handful of them before making any decision. By comparing properties developed by different developers, you will find that they all have their own specialties. One property may have a better location, one may be better developed, and one may have better reach of necessary facilities than others. So, compare a handful and then decide on which one is better overall in comparison with the others. Making an investment after looking at only one development is nothing but making a fool of oneself.

3. There is a trend going on in Panama, that, many developers are selling pre-constructed units to the people at discounted prices. However, be very cautious, if you are looking to make an investment as such. Incidents have been rumored as to when developers have sold the same unit multiple times. Also, when you buy a pre-constructed unit, you cannot really be sure that you will get what you are promised, as it is likely that the developer will boast about what they are selling to you, so that they can make a sale. But, in some cases, there are honest developers who do not tend to exaggerate, so, in such cases, your job would be look up on the reputation of the developer to ascertain that the investment you are making will indeed prove to be a fruitful investment. A good agent with experience will advise you in the good developers with proven track recoreds.

4. The best advice of all is probably, “Do not make an investment from the internet.” Ever shopped online? If not, do yourself a favor and do, to gain experience and then you will realize that what you see is not always what you get. Hence, get off the chair and visit Panama for yourself!

5. A property without a Right of Possession is a property without a title. While such properties have low prices, they are definitely a bad investment as you will always have the risk of not getting a title of the property later on.

6. Title Insurance safeguards an owner from faults or mistakes in the title of a property. This is not something the British, Irish or Europeans are very familiar with but it is of great importance in the United States and Canada. When buying a property, do put a second thought on getting a Title Insurance.

7. Panama is a varied country. An investment you make in the country necessarily does not need to be in Panama City or the canal area. As an investor, a wise decision would be to roam around the country and look at other places that may hold similar potential. The country, as a whole, is developing, along with that the real estate market all over the country is developing. Hence, there is no limitation that real estate within a few selected places is the right choice. Even if you find it hard, try to avoid comments made by agents and developers who consider themselves experts, and judge the real estate market of the country as a whole. By doing so, you will find both, properties that have good potential and those that are not so promising and ultimately, you will be able to develop an opinion of your own on what may be the perfect deal.

8. When buying a property, do not take word for word seriously that is said by the realtor. Leave some of the opinion for yourself to develop. When buying a property, try to read between the lines. Something that is not being said is more likely to tell you more about a property than what is being said. When buying a property, look up the statistics of the area, such as the population, past events and organizations that are located in the area to determine facts such as, if the area harbors good social life, if it is a safe place to live in and if it has good education and health facility. Only then can you confirm that your investment is the right one.

9. A bitter truth is that, it is not easy to get a mortgage in Panama. Your realtor, developer and the bank even may disagree, because basically, foreigners and locals have the same mortgage rights. But, take my word for it, when I say that, getting a mortgage is not easy. Apply for one at first and fulfill all the necessary formalities. If you get accepted with a favorable amount, then consider yourself lucky. Otherwise, you will come to realize what amount you will actually need to come up in cash to make the investment. Hence, before confirming on any investment, apply for a mortgage first, and then determine if you will be able to afford it. If your credit is good and you can prove your income then you should be able to get finance. The paperwork can be a bit of a drag though. This is dependent on which bank you use. Some banks are very quick to approve loans but some can drag there heels for some time. Again a good realtor will help put you in the right direction.

10. In Panama, you have to be very social because in order to succeed in the country, your knowledge is simply not enough, it is also about what sort of contacts you have. When you are in trouble, it is probably someone with influence that can help you get out of it, hence, in such cases, being friendly with others and building up contacts is a good idea. It is contacts that will help you with matters such as getting property licenses dealt with for a few hundred dollars. Even if you are not in favor of the system, you have to learn to accept it to make progress. As the saying goes, “When in Rome, do as the Romans do.”