Anyone have any questions about investing in Panama? I can help.

[Pantelis]

My name is Pantelis, I have been living in Panama city for almost 3 years now. My first 2 where spent in Chiriqui, but now i live in the city. I have family who have resided here for well over 40 years and i can help anyone who has any questions about investing in Panama.

 

[Nicholas Wallwork]

Hi @Pantelis welcome to the Property Forum and I'm interested to hear more about buying property in Panama for sure!

What is the market like there in terms of tenant demand? What would a common property investment look like in Panama?

Keen to learn as it's not an area I'm familiar with at all...

 

[KGeeson]

Welcome to the forum @Pantelis What type of property investments do you have there yourself? be great to get your expertise on this area

 

[nmb]

@Pantelis I would be interested to learn what the expat market is like in Panama and whether there is demand for real estate from overseas investors? We often hear of restrictions on overseas investors across some areas of Latin America, is this the case with Panama?

 

[Pantelis]

Yes it is possible to invest as a foreigner. No one is restricted from buying anything. We have people buy here from all parts of the world.
The highest demand is in 1 and 2 bedrooms as most of everyone who comes here are business men, executives etc.
Most property's here, the newer ones, have tax exemption for 20 years from the day they were finished building.
Which makes it attractive for buyers.
A bedroom can cost you anywhere from 160k to 300k depending on location,size,floor etc.

 

[Pantelis]

@nmb @KGeeson @Nicholas Wallwork

 

[nmb]

It will be interesting to see whether the “warmer” US relationship with Cuba opens up income flows to Latin America?

 

[Pantelis]

@nmb i dont know about cuba but there are many investors from all parts of the world investing in Panama. We have a steady GDP. People are seeing their investments increase in value yearly by about 4 to 5 percent and in some cases more.

 

[nmb]

Economic growth in Panama is expected to hit around 6.1% in 2016 (or as high as 7% depending who you talk to). Digging deeper and I had expected high inflation eating into real returns but inflation is expected to be around 1.6% during 2016. These are commendable figures in a traditional economic environment but impressive when bearing in mind the current worldwide economic challenges. How long can economic growth continue at this level?

 

[lookinginvest]

Having taken a look at Panama in all seems a little too good to be true with steady economic growth for many years now. Even the often downbeat IMF is very positive about Panama. What is the easiest way to gain exposure to the Panama real estate market for those who have little in the way of capital?

 

[Pantelis]

Well i dont have a degree in economics but there are 2 big factors from which i believe play a roll.

1- We do not print money. we so use the U.S currency however we basically use what comes in and then thats what circulates in the country.
2- Banks here do not just give loans freely. Like take as much as you want and pay little to no interest.

Its not easy to get a loan here, so most of the money that is used is real money and not money created out of thin air.

The way i learned the market here was easy. Look for propertys in diffrent areas and make appointments.
It doesnt matter if you are not buying, you get to see what you get for your money.
You get to understand why in some areas people pay more and less in others.

I for one offer to show people around all the time, most people dont want to but other do.

 

[nmb]

Will the so-called Panama papers leak have an impact upon investment business within Panama itself? Much of the focus has been on shell companies used to acquire properties around the world which could make many investors cautious in the short term.

 

[Pantelis]

Why do you think it will affect the Market?

 

[nmb]

Does it not undermine confidence in Panama investment/tax regulations? What would happen if overseas governments introduced sanctions? Surely this would impact the flow of overseas money into Panama?

 

[Pantelis]

I dont think its necesary to attack an entire country. The banks here are very strict about money coming in and loans.

I think, and of course this is my opinion, Mossack and Fonseca should be persecuted, for failure to "verify" where this money came from.

But thats just me

 

[nmb]

It is disappointing that the greed of a few people/companies would seem to have put the Panama investment arena in the spotlight when perhaps this is unfair. The bottom line is that it is up to the individuals and companies involved to declare their income/assets to the relevant tax authorities.

 

[Panama Realtor]

How profitable is it to invest in panama and what are the best locations to invest in panama?