This is a brief discourse designed to help you avoid some pitfalls that many before you have encountered:
Panama is a wonderful place especially to the expat or would be expat. It is easy to become taken with the country and start thinking emotionally instead of like a calculating business person - Don't Do this. Getting excited about how great this place is and how happy you will be living here is fine but think hard when buying property.
Consider the future investment potential of the property. Be careful about considering a piece of property when the buy decision is based on future variables like a road to be build some day. What if it never gets built?
If you are retired and able to live a couple of hours from a major hospital fine, but if this is not such a good idea rethink this carefully and try to stay closer to a major city.
Panama is full of vacant land, loads of it. What Panama does not have loads of is Panama City property with an unobstructed water view where there is no possibilty of something being built to obstruct your water view. The same principle applies in other areas. Be careful try to get a unique property in some regards so it will hold it's value well compared to other properties.
Rural areas sometimes have little to no infrastructure. Often a 20 minute or longer drive is required to get groceries. Find out if the cell phones work there, if there is hi-speed internet, can you get cable or satellite TV, where is health care and at what level, if there are dirt roads ask about rainy season. Think things through. If you like to enjoy dining out, seeing movies, malls, etc ask yourself if you are comfortable with the drive times for such things.
Many people build their own house here. Before you do make sure you understand all that is going to happen. Talk to builders asking them about doors, windows, screens, locks on doors, closets, toilets, light fixtures and everything else you can think of taking nothing for granted - nothing, and get it all in writing. Find out who your builder is and what his reputation is. What happens if your builder runs over his time estimate by a few months and you have already sold your home and are basically forced to rent and wait. Remember you are a foreigner in a strange land and can easily be taken advantage of if you are not careful. Yes of course using a lawyer helps. My opinion is to use a large law firm, not a one or two man shop. I believe (my opinion only) that a large law firm will be concerned a lot about the reputation of the firm and for this reason try to make sure you have a good outcome as best as they as lawyers can assure. I personally am uncomfortable using a small one or two lawyer office. First of all they tend to be jack of all trades lawyers, where a large law firm will have one or two real estate specialists which is what you want. If you are a retiree it is most unlikely that you will ever be using that lawyer again and the developer was probably born and raised in the country and you are a foreigner (think Gringo) and the lawyer may consider it offensive to grind a favorable contract out of the developer for a Gringo who is never going to give him any more business, in other words you may get far from the lawyers best. Is this always the case - no. Are all one man lawyer offices bad - no. My advice is stay with the larger law firms. We can refer you to a law firm we use. The advantage here is they want our referrals to keep coming so you sort of have collective bargaining power in a stretched out sense of the term .
Off topic but important- when using a lawyer for immigration visas the same arguments apply. Think large firm with an immigration specialist. Again ask for a referral to the law firm we use.
Make sure the real estate person you use is licensed. There are a bunch of unlicensed ones running around - avoid them, no good reason to use them.
There is no multiple listing service in Panama like there is back home. Why???
Consider as a buyer hiring your own licensed real estate broker to represent you as a buyer. This person should not cost you anything in that the seller pays the 5% commission. If the property is listed with another real estate broker then the two brokers will simply split the commissions. This is an accepted fact of life to them that they will readily accept when confronted with the circumstances. You can always have a lawyer in on the deal as well to go over a contract. The broker listed on our web pages will be happy to represent you. Usually a buyers broker can grind the seller down for you better than you could - remember he or she is a local person not a foreigner. So my take on it is the buyers broker is free to you, you should get a better deal and save time in looking and negotiations. I should point out that the broker that has the listing has an obligation to the seller which is not you. The broker you retain to represent you has an obligation to you. As an additional thought consider using the broker on our web page to bargain with your contractor for improvements to the property or if you are building a home the whole project. Get a quote yourself and offer to pay him a percentage of what he can save you!!!! Need furniture try using the broker he is going to know where to get what you want at a price you probably won't get and this can result in a major savings. Our broker gets involved in furniture more often than you may think.
Watch your title work carefully in the rural areas - use a lawyer to protect you.
Financing a house is fairly easy in Panama. Figure on 15% to 20% down. Show income statements fom home, tax returns, etc.
For more information, please visit:
http://www.panamaexpertos.com
http://www.panamaexpertos.com/info.php?page=content/how_to_buy_panama_real_estate
http://www.panamaexpertos.com/info.php?page=content/real_estate_overview
Related Articles
Panama as an Asset Haven
By: Jean Bouttet | 25/01/2007 | Business
Panama has been long known for its investor friendly tax policies with many tax exemptions given to lure foreign business men, retirees etc. to invest in the country. It has a strong financial network with over 80 national and international banks operating there. It has strict banking secrecy laws which keep the investment details of individuals out of purview of public scrutiny.
A Tourist’s First Impression of Panama City
By: Jean Bouttet | 25/01/2007 | Business
When a tourist first visits Panama City, he or she would be anxious to know what is in store as the plane lands in the tarmac of the city’s airport. Lot would have been read and heard about the place that would arouse the curiosity of a visitor about the country in general and the city in particular.
Affordable Living in Panama
By: Jean Bouttet | 25/01/2007 | Business
Panama is a democratic country and has a growing economy. The inflation is a modest 2% and the government provides statutory financial privacy and banking secrecy to investors. The income earned abroad is non-taxable. There are also special benefits for retirees like discounts while buying airplane tickets to groceries and more.
Amazing Places Around Panama City
By: Jean Bouttet | 25/01/2007 | Business
Just 40 minutes drive from Panama City is the Chagres River National Park containing some of the most pristine rain forests in the world. One has to travel by canoe along the Chagres River to meet the Emberas community.
Panama Internet, TV and Phones
By: Jean Bouttet | 25/01/2007 | Business
You can buy airtime cards all over and they seem to have constant specials giving you triple and quadruple minutes for your money thus reducing the cost of the calls drastically.
Buying Property in Panama
By: Jean Bouttet | 25/01/2007 | Business
Weather is an important consideration while choosing a place to settle down and Bocas del Toro has typical Carribean tropical weather. It is warm and humid in summer with sea breeze and light rains from August through January. Volcan is in an elevated location and the weather is usually cool with a prolonged rainy season.
Panama Banking
By: Jean Bouttet | 25/01/2007 | Business
There are about 150 banks in Panama and they come in several flavors. One is the offshore bank that can only do business with entities not in Panama. There are banks that can only do business with entities in Panama and then there are banks that can do business with those offshore as well as those entities within Panama.
Panama Health Tourism
By: Jean Bouttet | 25/01/2007 | Business
Health or medical tourism is a recently coined phrase that denotes tourists visiting other countries not only for sightseeing but also for medical treatment, taking advantage of the low costs prevailing in those countries. It is gaining in popularity as the medical costs in developed countries are becoming exorbitant. Patients can save as much as 50% and more on medical costs depending on the destination.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Am calling a company on phone for the first time ...
By: robkatch | 19-11-2007
Am calling a company on phone for the first time,how do i talk to the secretary and ask her to forward me to the main person am looking forsay maybe the procurement guy?
Stock exchange
By: ofzer | 19-11-2007
which stock will bring me the most profit
Soccer and Mercedes??
By: muscleguy | 18-11-2007
Omer Golan who scored the match winner is set to receive English millionaire Fred Done's £50,000 Mercedes as a reward for his winning goal against team Russia. On Friday (Nov. 16, 2007), Done, founder of BetFred.com, offered his prized possession to any Israel player who scored the winner in the game. Will Golan be able to accept the Mercedes? What does this mean now for team England? With Israel winning, does this mean England will for sure make it to the next round?
How many companies are there in the US ?
By: misha | 18-11-2007
how many companies are there in the US ?
"short tail" long tail"
By: tammyk | 18-11-2007
what are "long tail" and "short tail" as inThe telecom industry is a prime example of how intelligently serving the long tail ismade unappealing by "short tail" successes
Speed to scale
By: tammyk | 18-11-2007
what does the term "speed to scale" mean ?
Q&A Powered by:
Latest Business Articles
Develop a Better Business Model Faster by Analyzing Past Performance as Though These Were New Tests
By: Donald Mitchell | 21/08/2008
Past successes and failures show clues concerning opportunities and hurdles for creating superior business models. Learn from those experiences.
Secret Wholesale List Suppliers: Exposed!
By: Joaquin Reveron | 20/08/2008
You have a business. You need a wholesale list source to expand your product line and surely for possibilities of profiting more from the acquirement of wholesale products from such suppliers. Precisely, one of the easiest ways to get a source contact list of distributors and wholesalers is by hitting...
Wholesale Video Games: Extreme Infamous Tactics!
By: Joaquin Reveron | 20/08/2008
Let say that you have a successful wholesale video games accessory and your back up is your affiliated company that offers DVDs. Pay attention, this is one of the tools many of us on the top use to beat many competitors, make competitors paralyzed and not even make them think...
6 Reasons to Start a Drop Ship Baby Gift Ecommerce Business
By: Stuart Sherm | 20/08/2008
Starting any Ecommerce business is a daunting task, but here are some ideas where you can make money, have virtually no overhead and never leave your home. What you need is to join a great drop ship gift program.
Essentially you are aware that when you buy certain gifts online they...
Why Not to Start a Wholesale Video Games Business!
By: Joaquin Reveron | 20/08/2008
Many people tell you how lovely it is to start a home business, how magnificent it really of having more time with their family, kids, friends and plainly and enjoying what life has to offer with the extra time from a home office. It is true, it is fascinating,...
Do You Really Need a Job or Feel Maximum Incommodity?
By: Joaquin Reveron | 20/08/2008
Noting that many of our culture and society dislikes incommodity, incommodity according to most dictionaries is defined as inconvenient. Generally incommodity is logically and truly defined as something that causes that causes difficulty, trouble, or lack of ease. Society is indeed correct when it comes to its definition, however, you...
Top 10 List of Wholesale Business Tools For Success
By: Joaquin Reveron | 20/08/2008
What tools to succeed with an online business? Before you start with the list of wholesale business tools that you will need for starting your business online, know what kind of business you are getting into. Before thinking of the list of wholesale materials that you should get, one of...
Bankruptcy Leads-How to Get the Best Leads For Affordable Prices
By: Andrew Mason | 20/08/2008
In order for your bankruptcy business to thrive, getting good bankruptcy leads is essential. Obviously, the success of any business is finding good customers, and before they become customers, you have to market to them properly in order to get them in the door and doing business with you.
This whole...
More from Jean Bouttet
Buying Property in Panama
By: Jean Bouttet | 25/01/2007 | Business
Weather is an important consideration while choosing a place to settle down and Bocas del Toro has typical Carribean tropical weather. It is warm and humid in summer with sea breeze and light rains from August through January. Volcan is in an elevated location and the weather is usually cool with a prolonged rainy season.
Amazing Places Around Panama City
By: Jean Bouttet | 25/01/2007 | Business
Just 40 minutes drive from Panama City is the Chagres River National Park containing some of the most pristine rain forests in the world. One has to travel by canoe along the Chagres River to meet the Emberas community.
Affordable Living in Panama
By: Jean Bouttet | 25/01/2007 | Business
Panama is a democratic country and has a growing economy. The inflation is a modest 2% and the government provides statutory financial privacy and banking secrecy to investors. The income earned abroad is non-taxable. There are also special benefits for retirees like discounts while buying airplane tickets to groceries and more.
A Tourist’s First Impression of Panama City
By: Jean Bouttet | 25/01/2007 | Business
When a tourist first visits Panama City, he or she would be anxious to know what is in store as the plane lands in the tarmac of the city’s airport. Lot would have been read and heard about the place that would arouse the curiosity of a visitor about the country in general and the city in particular.
Panama as an Asset Haven
By: Jean Bouttet | 25/01/2007 | Business
Panama has been long known for its investor friendly tax policies with many tax exemptions given to lure foreign business men, retirees etc. to invest in the country. It has a strong financial network with over 80 national and international banks operating there. It has strict banking secrecy laws which keep the investment details of individuals out of purview of public scrutiny.
Panama’s Transportation System
By: Jean Bouttet | 25/01/2007 | Business
If you intend to explore Panama from its Colombian tip to the Costa Rican tip, you would need to know how to do so. Even were you visiting for just a few days with no intention to do some extensive exploring, it is just common sense to investigate how to get around and about in any place that is not your home.
Tips to Buying a Home in Panama
By: Jean Bouttet | 25/01/2007 | Business
Panama is a popular tourist destination. Some people, once they have been to Panama cannot get it out of their system. They are so amazed at the wonder of Panama’s sights that they wish to be back again to this country. Some people have even gone so far as to decide that the only solution would be to buy a vacation home in Panama.
The Undiscovered Beauty of Panama
By: Jean Bouttet | 25/01/2007 | Business
The thought of the Caribbean automatically brings to mind wonderful and fabulous beaches. And true to form, people flock to the proven tourist destinations in the area. Lying in obscurity is Panama, mainly known for its noteworthy Panama Canal but not for its attributes that would make a great tourist destination.
Business 
