Edition 3, Year 1, April 29, 2008

Pulse of the Economy in Panama

• Gas Prices today: 91: $3.71, 95: $3.90, Diesel: $3.72
• New Car sales for January 08 are up in reference to 2007: sold over 4,241 New cars,1,000 units more than in 2007. Toyota is no. 1 in sales with 1,297 sold. Nissan is no. 2 with 720 sold. BMW: 59, Mercedes: 30, Porsche: 15, Hummer: 4
• La Prensa newspaper reports that salaries in Panama have doubled and tripled over the last year. The high demand for construction workers and technical staff with the boom in the construction sector has tripled salaries in Panama.
• The Panama Canal Expansion phase 1 excavation of 7.4 million metric tons is moving fast forward. The contract for phase 1 was for $41 million, the total est. cost is $5billion.

Editors Investment Choice:

The Plaza Condo Hotel in Costa de Este.

30% down payment and you own a luxury condo hotel unit in one of Panama’s most Exclusive communities Costa del Este.
Special Unit Price $190,600, $3,000 below market.

Construction has not begun, So you can expect at least two price increases of 10% each. Each price increase will raise the value of your unit by est. $20,000.By the delivery date of your unit in 2010, At the current property value trends your unit will be valued, market price of at least, minimum $50,000 above what you paid, so you can Flip the unit for a $50,000 26% profit in 24 months, or keep the unit and keep 75% of the Rental Income, projected to be $23,000 per year for the owner of the unit , after all expenses, at 75% occupancy, rate of $225 per night. Thus providing you with Titled Property Value equity, and
A annual income of $23,000 or more on the rental of your unit, Plus you can use your unit FREE for two weeks every year. Oh! And did I mention that Enrique Iglesias would be one of you celebrity neighbors! For more Information on THE PLAZA Condo Hotel investment

My Blog is designed to be an Investment tool for Real Estate Investors, on Ways of Making Money in Panama’s Real Estate Boom.

I will continue to focus on Condo Hotels since in my opinion this represents the Best form of Investment Opportunity in Panama. It is based on the basic economic principals of Supply & Demand. Currently, there is a shortage of hotel rooms in Panama City, Pacific beaches, and throughout the country based on Tourism demand. The Panamanian Ministry of Tourism reported that there is a deficit of over 20,000 hotel rooms for the projection of tourism visitors in 2008, 1.5 million. Panama has the second highest percentage of hotel occupancy rate in the World- Today, the occupancy level of hotels in Panama is over 90%. The global average in hotels of 100 and more rooms is 84.7%, Panama is ranked no. 2 in hotel occupancy out of 165 cities from around the World according to Global Ranking Index (GRI), second only to Perth Australia with 85.1% avg. annual hotel occupancy level. These figures were audited and published recently by Deloitte Touche Tohmatsu accounting firm.

We have run the numbers on condo hotel costs, and this investment provides triple profit to investors: first on the sales of the individual units, second on annual Rental net Income profit (after expenses), and third on the Value of the Land and the Profitable Business.

Since my Blog is designed to be an Investment tool for Real Estate Investors,– let’s get busy!

Today I will present to you an; A+ Investment Options in Panama.

Invest $200,000 and Make Your Money Back plus 100% return $200k in 12 months.

We found a Spectacular Lot, 990 square meters, 10,652 square feet, RM 3 High Density Residential Zoning, and CM 2, high density commercial zoning. The lot is in San Francisco on a main avenue artery on Via Israel just block from Punta Pacifica, the ultra modern Multi-Plaza Mall, minutes centrally located just minutes from the commercial areas, restaurants, banks, the Atlapa Convention Center, the Sheraton Hotel and the Tocumen International Airport. Lot has two access roads, from Via Israel and from a side entrance that is behind the lot.

All units will have Pacific Ocean views.

A Preview edited version of the Business Plan: SKY ONE CONDO HOTEL TOWER

• Cost of Land and Approvals from MIVI for construction: $1,800,000.00
  Turn-Key ready to Build. All approvals & construction plans done.
• Total Construction of the Building, Architectural Plans,
  Furniture packages, Air conditioning, renders:$8,700,000.00
  Including Marketing, Construction Engineer project supervisor.
• Total Cost: $10,500,000
• SALES of Units, 72 units: $21,353,400.00
  Note: All 30% down on sales go to Escrow
• GROSS PROFIT: $10,853,400.00
• Annual Net Income on Unit Rentals, yearly profit: $1,000,000.00

Note: at 60% occupancy level, rate of $275 x night,
Net Profit After all expenses: administration, marketing, owners keep 70%.

CALL for up to 10 Investors. At $200,000 each.
Total: $2,000,000.00

This will allow for Land Acquisition and all government Approvals process: Surveying, Environmental Impact study, Construction Plans, and Development & presenting to MIVI (Panama Housing Ministry the master Plan) for all government Green Lighting & approvals. In approximately, 90 – 120 days after capital is raised, we can have phase 1 approval to proceed into Sales phase, and begin Pre-Selling the units. It takes approx. 90 – 120 days for phase 1 approvals.

Phase 1: Round 1: Turn-Key Package: 12 months

After we have achieved Land Acquisition, and Government approvals, we will have a Developers TURN-KEY package:

• Lot Title – ownership.
• Survey Study
• Environmental Impact Study
• Demolitions
• Fence up bordering lot. Billboard promoting condo hotel.
• Master Plan design
• Master Plan (Ante-Proyecto) approved by MIVI.
• Constructions designs.
• Water, Sewage, Electrical, Telecommunications, Access roads, All Plans
• Architectural design of Building.
• Floor plans design
• Costing of Construction quotes
• Budgets of costs
• Sales & Profit projections.

Note: One option is to SELL this as a Developers TurnKEY package: $3,800,000.00

TL Expenses Incurred: $1,800,000.

Profit: $2,000,000.00

Split Between 10 Investors: $200,000 each Cash out.

*100% ROI return in less than 12 – 14 months.

This Investment Plan will have a phase 2, BUILD-OUT.

Preview Investment

Phase 2: Round 2: CALL FOR UP TO 10 INVESTORS $500,000 each.

From 120 days after we have Phase 1 Master plan approvals SALES can start 36 months (3 years): Sales & Construction: Sky One Tower Condo Hotel:

• 72 – 96 unit modern condo hotel rooms
• Sky Restaurants
• Sky Spa
• Sky Pool
• Sky Bar & Lounge
• Commercial Space
• Sky Gym
• Under Ground Parking

PRE-SELLING the condo Hotel units 30% down payments from Buyers. Down Payments will go to Escrow account. We have a total of 72 – 96 units, prices vary depending on floor level, The Rental Income business plan for unit owners: they get to keep 70% is $42,000 - $52,000 per unit , per year. The hotel will be managed by an experienced flag ship global brand of Hotel condo management.

The detailed construction costs and return on Investment will be provided to approved Qualified Investors. The projection ROI on unit sales ROI is projected to be $1,000,000.00 in 36 months. The Investment amount per investor is $500,000.

Plus an additional est. $100,000 per year in Rental Profit of the Hotel.

More specifics & details on this investment in future Blog editions and our upcoming…

FREE Investment Seminar in Panama City on Tuesday, May 13, at the Miramar Inter-Continental Hotel

.

I will be posting more information on www.ThinkPanama.com and more details in reference to this and all investment opportunities that I feature. Go to the “Business Panama” vertical.

In my next Blog edition:

Did you know that for the first time the Panamanian government Ministry of Economy & Finance (MEF) is preparing to auction off government owned real estate property?

At our April 17th Think Panama Investment Seminar, the Director of the Real Estate Promotions division of MEF, Mr. Ricardo Icaza came to present several buildings and lots that they are preparing to auction on May 14, 2008. We were previewed on some of the upcoming government property that includes Islands, Beach front property, and the beach house of Ex Panama Strongman General Manuel Antonio Noriega at Playa Blanca.

A remodel high rise building one block off of Avenida Balboa. Bid starts at $2.3 million. Auction is on May 14, 2008. To Preview go to www.ThinkPanama.com. I will be releasing more information in the editions to come.

Contact me to sign up to the Weekly Panama Real Estate & Investments blog: dchoy@ThinkPanama.com

About the editor: Douglas McArthur Choy Franco is a licensed by the Panama Ministry of Commerce, technical Real Estate Board as a Real Estate Broker, license no. 1930. Ranked as an Expert in Latin America by Latin Trade magazine he possesses keen expertise in International Business. He is the President & Chairman of the Board of Global Branding Group an International Marketing firm. He is also the President & Chairman of the Board of ThinkPanama.com a .com. He is an active member of the Panamanian Chamber of Industries & Commerce, The American Chamber of Commerce AMCHAM, and ACOBIR the Panama Real Estate Professionals Organization affiliated with the National Association of Realtors in the U.S. He is the editor & Chief of Panama Real Estate & Investments weekly dchoy@thinkPanama.com or Call U.S. Direct (407) 641-5747.