Panama is a Sellers Market & Gringo’s Pay More than locals.

It is traditional in Panamanian’s mind set and culture that when they are negotiating with a white Anglo male i.e. Gringo (term for United States white looking male), the price automatically jumps up…doubles. This behavior dates back to when American Military personnel used to rent apartments in Panama City, and the price of a “normal” apartment that rented for $600 to a local, jumped up to $2,000 per month if it was for a U.S. military person.

These days, now that everyone even cab drivers know the term “baby boomer” and use the term “boom” as in Real Estate Boom - everyone thinks their property is worth Millions. The story you hear is “my neighbor sold for X millions” therefore, my price is in the “X millions”. Panamanians do not know about “10% Cap Rates” and the diverse investment formula are used by sophisticated Investors. They go by “word of mouth” or by how you look. Expect that when trying to negotiate on your own you WILL pay more.

My recommended solution: Work with a local licensed real estate professional.  Let the natives negotiate with the natives without stating who the investment is destined for; It should not matter.

I am not a career real estate agent. I do possess the Panama Real Estate License necessary to engage legally in the real estate business and to transact in favor of my clients which as I see it is the foreign Investor. My responsibility is to make sure that my clients “Buyers or Investors” do not pay more than what is fair price, and that the entire purchasing experience flows positively and is done with proper legal representation and maximum respect towards all parties involved.

Real Estate prices have tripled over the last year and the price HYPE or BUBBLE as we call it is all based on Speculation and a false wave hype that has creating a DEMAND that is not there yet. Most prices you will come across are Inflated and BLOWN UP by 30% - 40% and developers are masters at selling under the suspense of “there’s only one unit left”, when in fact there are probably at least a dozen units left and a long line of FLIPPERS waiting to FLIP the units they bought a year ago and now “their situation has changed” (when referring to their buying power negatively affected by the U.S. economic slump).

So what is the Solution?  And is there a Real Investment Opportunity in Panama?

Answer is YES!  However, today- to fully take advantage of the current real estate investment opportunity you must be informed and have access to recent pricing trends for analysis of actual accurate pricing, going back to January 08 or even further back 12 – 14 months. Research what’s developments are on the drawing board that may affect your investment?

Inform yourself with recent laws proposed that may affect your pocket, for example a recent law proposed by the government to have property owners in the Avenida Balboa area pay an additional tax for funding of the construction of the new highway (cinta costera) currently under construction.

To take full advantage as an investor you have to be exposed to “the next phase” or “future growth areas” in Panama.  And you have to be shown ground floor opportunities so that you can buy- in low (at the first initial offering price) and possibly flip at the high end of the price curve. At the current trends you can make thousands of dollars or millions of dollars depending on your investment scope budget on ground floor opportunities.

Tips to pay less: Buy low!

1. Work only with licensed real estate professionals.  Require to see credentials ID.
2. Let a local licensed expert that you feel you can trust negotiate on your best interest.
3. Request data on pricing in the specific area?  And rents in the area?
4. Request to know about future developments, projects in the area?
5. Get Info on other projects in the area; their sales performance?
6. Ask about ground floor opportunities or first price, Pre-Sale pricing?
7. If buying commercial property request past income and expenses reports.
8. Work with a company (www.ThinkPanama.com ) that has experience working with foreign investors and that can provide references and positive experiences from past clients.
9. Work with a local licensed broker that has the local market knowledge and leverage to negotiate for you directly with owner of the property or development.
10. Work with a local licensed broker that can show you ground floor opportunities.

ThinkPanama.com holds monthly “Invest In Panama” workshops with round table of local experts that provide FREE:  legal expertise, tax expertise, investor immigration visa options expertise, offshore investment expertise, relocation expertise, and a host of other topics in the interest of providing Local Expert Solutions to Investors. As a part of these workshops ThinkPanama.com licensed real estate expert Douglas McArthur Choy presents a PREVIEW of several Ground floor investment opportunities options in the Panama market. The next Invest in Panama workshop is on September 19, 2008, for information or to Register FREE contact Douglas Choy.

Other Related Articles:

Ground Floor Investment Opportunities…Going Up!

Invest Now! Reasons to Invest in Panama

Opportunity Knocks Business HQ in Panama

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Building on Via Argentina – Prime Intersection
791.91 m2 , RM3, C2, High Density Zoning
4 units per floor + Parking spaces + Commercial Space
Asking Price: $3Million

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Lot in Rio Abajo, 100 yards from Via Espana

1760 m2, 18,937 sq, ft., RM3, C2, High Density Zoning
Ideal for WAREHOUSE, or LOW INCOME condo units.

Walking distance to Do IT CENTER, Schools, Banks
Asking Price: $250,000

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Building on Via Argentina – Prime High Traffic location
842 m2, RM3 , C2 High density Zoning: Option to Build More
Asking Price: $1.5 Million

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10,652 sq. Ft., 990 m2, RM3, C2.

• OCEANVIEW from third floor & up
• VIA ISRAEL – Main St. off Punta Pacifica
• Blocks from Hotel, Atlapa, Airport Ramps
• Blocks from Punta Pacifica, Multi-Plaza Mall
• Blocks from Johns Hopkins Hospital
• IDEAL for CONDO HOTEL, or
• Highrise Condo’s

Asking Price: $1,400,000

______________________________________________________

Family & Friends Referral Program
Pagamos CASH por Referir Compradores
No necesitas Licencia de Bienes Raíces

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Panama has the best Foreign Direct Investment (FDI) ratio in all of Latin America. Your investment dollar is safe, secure. Entering into the Panama real estate market you need to be prepared armed with the latest information will help you through the buying process. ThinkPanama has assembled the industry experts and brought them together for an informal but high informative workshop one that you get to participate ask questions network with others.

Sign up for your spot to get free information that could save your investment dollars.

Sign up for your spot to get free information that could save your investment dollars.

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I have lived here in Panama for the last 9 years (since August 1999) and I have owned my Consulting firm since December 1999. I am a licensed Real Estate Broker.  My whole purpose is to offer solid, sound Investment advice  to Investors and then I get involved in making sure they are dealt with legally, honestly, and in a straight forward manner. My expertise is working with Foreign Developers in the entire process of creating their Residential projects, Branding & Marketing.

Back in my April 29, 2008 issue I wrote about CONDO HOTELS. This is a sound Investment opportunity.

Why? Here’s 10 Good Reasons:

1. Panama’s tourism is growing on average 12% per year. The projection of tourism visitors in 2008, 1.5 million.
2. Panama has a Hotel room shortage or deficit of close to 20,000 hotel rooms.  According to the Ministry of Tourism recent report. There is an immediate DEMAND/ NEED for Hotel rooms. The Tourism Ministry recently approved 27 NEW Hotel Developments, and there are 22 more in the drawing board, totaling $931.2 million in Hotel & Tourism Developments.
3. Panama is one of the Latin American countries with the most Foreign Investment. Foreign capital is pouring – into the country. Panama leads Latin America for second consecutive year in Foreign Investment with $825 million in 2007 which represents 10.5% of the Countries GDP. Higher than Brazil, Mexico, and Chile in relation to GDP. Panama came in overall 8th place in total foreign investment for Latin America.
4. Huge Projects like the 400 hectare development in Howard  called “Panama Pacifico” a favorable non tax Industrial zone for foreign investment, along with the Panama Canal expansion, Ports terminals expansion, and the real estate and financial markets boom fueling the continued growth of the economy. The Tourism Ministry recently approved 27 NEW Hotel Developments, and there are 22 more in the drawing board, totaling $931.2 million in Hotel & Tourism Developments.
5. Panama  is the BANKING & FINANCIAL capital of Latin America.  The Panama Superintendent of Banks reported a $306.9 million + GAIN in profits for first trimester 2008, Panama Banks reported a + 33.6% GROWTH in deposits. While the rest of the World banking sectors are struggling, Panama banks are benefiting with Growth. This is a major reason for a solid forecast in continued growth in Business Travel.
6. Panama is living what can be described as the “Golden Decadent Decade”, Economic growth for Panama  2007 was +11.2%, highest in the region. Experts are projecting 4.5% in the region for 2008, While Panama is projecting 8% growth in 2008. In comparison U.S. had 2.2 in 2007, and is projected at +1.9% in 2008.
7. PANAMA’S GROWTH is consistent for last 23 trimesters consecutively. Panamas GDP has grown for 23 trimesters according to the countries accounting & treasury ministry records. In the last 5 years the GDP has shown an average of 7.8% growth annually. The Construction & Real Estate sectors Boom, and the Panama Canal expansion have contributed as a cushion to compensate for current U.S. and Global economic slow down.
8. According to the National Competitiveness Council (CNC)- The projection is for a continued 5% to 8% annual Growth for the next 10 Years.
9. The Real Estate Boom currently underway in Panama is still in initial stages, experts predict 10 more years of economic boom which will continue to fuel demand for Real Estate.
10. Condo Hotel provide DOUBLE profit for Investors:  1) Property Value , and 2) Rental Income.   We have discussed in past issues two condo hotel properties recommendations for our Investors, “THE ORCHID” which we launched a few months ago, at special discounted Think Panama price of $190,000, is now selling for $247,700 and higher, depending on the unit, some are $249,800.  The Plaza which we offered to our readers back in April for a special Think Panama discount of $3,000 below market price was $193, 600, we were offering at $190,600 is NOW selling for $236,192 -  You missed out on making $45,592 on the property VALUE increase.

But, who’s keeping track? I am!

Our foresight can make you $42,592 PROFIT  NOW!!!  Limited time offer.

THE PLAZA, Costa del Este

This is a very upscale 5 Star ocean view 150 room condo hotel & 44 Exclusive Residences located in a Panama City, in Costa del Este, just 15 minutes from the International airport, 45 minutes to Pacific coast beaches, 20 minutes to Johns Hopkins Punta Pacifica Hospital, and the ultra hip Multi Plaza Mega Mall with the World’s top fashion specialty boutique brand stores like Cartier, Hugo Boss, Fendi, Carolina Herrera, Lacoste, Mont Blanc, supermarket, and restaurants.

The Plaza is Residence and Condo Hotel with contemporary design. The development will offer state of the art technology, wireless internet, interactive intelligent lobby with online concierge service, health center, Business center, Infinity pools, waterfalls, International restaurants, sky lounge, and exotic amenities such as a Luxury 100 foot yacht that takes condo owners and guests to the beautiful Pearl Islands Contadora island every day, seven times per week.

Famous celebrities like Enrique Iglesias, Justin Pasek (Miss Universe 2003), Salsa super star: Gilberto Santa Rosa, and the lead singer for MANA, one of Latin Americas favorite rock band.  One of the features of this condo hotel & residences is the SKY-BEACH at the roof top with view to the Pacific Ocean.  The current Price on the 577 sq. ft. Plaza Condo Hotel unit is $236,192.
Through our relationships with Developers we have grandfathered a few 577 sq. ft. Hotel units at THE PLAZA under the original PRE-SALE price of $193,600. This is a $42,592 PROFIT from the Get Go!  YOU SAVE $42,592 on your unit, thus PROFIT on the Property VALUE.
And I can dare to forecast that these units will continue to GO UP in prices/ VALUE,  based on the trends I am seeing with THE ORCHID.

My Recommendation:  Buy NOW!  At $193,600.  FLIP it before you have to TAKE DELIVERY in 2010 for at Least $80,000 PROFIT above what you paid.  Or Keep it and Enjoy a 24% Rental return Income on a Luxurious Hotel unit that pays for itself and that you can use for yourself & Your Family for two weeks every year FREE.

This Special ThinkPanama.com Offer is Valid for ONE WEEK,  You can RESERVE and Lock- in at the $193,600 price with a $10,000 RESERVATION. I need copy of Passport Photo ID, and I proceed to send you a receipt and a Promise to Purchase Agreement,  the total Deposit is 30% down payment: $58,080,  which  you can pay up to 30 days after signing the promise to Purchase agreement, the rest can be paid in $10,000 monthly payments until you take delivery of the unit in 2010.

Note:  Only Two (2) “THE PLAZA” units left at this Bargain Price.

TOP 4  REAL ESTATE Recommendations:

$50,000 Beach lots in Pedasi, Playa la Garita, 10,000 sq. ft. lots,  2 years financing, 2 years no Interests.

Noriegas Beach Complex is on the Auction block, 10 hectares, with Beachfront Paradise and a Beach View worthy of a 5 Star General. Treasure map a plus.  Bid starts at $3.5 Million.  Excellent for Beach Resort Development.

Island Titled 9 hectares $1Million, Titled Caribbean Island, Excellent for Resort Development.

RM3, C2 , 18,832 sq. ft. , 1,760 sq. mts, lot in Panama City, for WAREHOUSE or low Income Housing Development.  Only $250,000.  Lock – In with $1,000.

Contact me directly at dchoy@ThinkPanama.com
+ 507.260-4000,  + 507. 6676-8904.

Douglas M. Choy
Chief Executive Officer & Chief Editor
ThinkPanama.com

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LIQUIDATION SALE:

• General Manuel Antonio Noriega, ex Strong Man Beach House in Farallon, Playa Blanca.
• Titled 10 hectares with 40 meters of PACIFIC OCEAN BEACHFRONT
• Farallon, Playa Blanca Tourist HOT BEACH Resort Area: Pacific Coast
• Pacific Coast, next to Decameron Beach Resorts, & Nikki Beach Playa Blanca
• 90 minutes from Panama City & Intl. Airport
• ALL Utilities Included: Light, water, Sewage, all Utilities Ready
• 40 meters of Pacific Ocean & Beach FRONT
• Three Titled Properties (fincas) sold together, 10 hectares, to one Highest Bidder
• Excellent Investment for BEACH RESORT HOTEL Multi-Million Residential Gated DEVELOPMENT
• Government Bids starts at:  $3.5 million

More Information on Noriegas Beach House and the Panama Government Auctions.

Think Panama as a licensed Real Estate company (lic. 1930), We can represent YOU and act IN YOUR BEST INTEREST in this GOVERNMENT  AUCTION:  Think Panama has all legal documents CLEARED with the Panamanian government to Participate and enter the bidding process on your behalf. We do require the 10% security deposit required by MEF, plus a 5% commission if we win bid and close the purchase for you, this includes all administrative management for participation in bidding and handling all the legal docs and closing activities on your behalf. Contact me at dchoy@ThinkPanama.com, U.S. (407) 641-5747, Panama + 507- 260-4000.

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Las Tablas became the capital of the province when the old Azuero province became two “Herrera” and “Los Santos” in 1915. Much has been said of the famous Carnival that takes place here but when the festivities die down with the passing of Carnival the community becomes the quiet, peaceful town.

After the burning and sacking of old Panama by the pirate “Henry Morgan” some of the people fled in ships  and arrived in the province of Los Santos at the place to be known as Las Tablas or in English “the Boards”, because they dismantled the ship and used the boards to build the first church called the “Santa Libertad” or the “Holy Freedom” church.

Santa Libertad Church

It is one of the oldest churches in the country. The records are unclear as to the correct date of the church but some historians state that the construction started in 1671 and ended in 1725. It is now declared a national monument because it dates back to the Spanish colonial days.

Beaches of Las Tablas

Las Comadres Beach

It is a very pretty beach. It has a place where there is some rock formations, clay color, which strongly contrasts with the expansive beach and its clear sand.

La Colarada Beach

En route to the Las Comadres, you will find an intersection. Take the road to the left and continue for 4.6kms. You will find a desert landscape but will be impressed with the blue color of the water and the clean beach.

El Uverito Beach

This is the beach with the most touristic value with plenty of people and facilities. The place has a great number of vacation homes as well a s ranchos to protect you form the sun. It is a pretty imressive beach with the strikingly blue color of the water.

ThinkPanama has properties in this very affordable corner of Panama. Prices are climbing all around Panama prudent investors need to take a serious look at this area of Panama. Investing in Panama is easy especially those that have retirement plans can purchase all or part of your Panama property investment with your retirement assets.

Contact us direct with any question that you may have!

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Guarare bears it’s name to an Indian chief who ruled the area in 1516 and means “stingray fish”. This area is known for its handcrafts some of the finest examples of Panamanian embroidery and weaving works. Each year they celebrate  the famous “Festival de la Mejorana” with music and presentations, competitions, folkloric dances and Panama style bullfights (the bulls don’t die).

Beaches of Guarare

El Puerto Beach

It is a beautiful beach located right next to the moth of the Guarare river. Do you want to have a fresh fish dinner for $2.50? Here is the place for economic Panama living. If you need some solitude check this out.

Bella Vista Beach

It is a virgin beach in the middle of nature. It does not have much in the way of facilities but it does honor its name “Beautiful View Beach“.

ThinkPanama has properties in this very affordable corner of Panama. Prices are climbing all around Panama prudent investors need to take a serious look at this area of Panama. Investing in Panama is easy especially those that have retirement plans can purchase all or part of your Panama property investment with your retirement assets.

Contact us direct with any question that you may have!

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Nationality Museum

This historic dwelling dates back to the 18th century. In its’ interior you will find information and objects depicting the regional history, the evolution of ceramics, Colonial religious art, the main council room, a typical kitchen used in ancient times and a beautiful stone patio colonial style surrounded by lush gardens and ornamental plants. The museum opens from Tuesdays to Saturdays from 9:00am until 4:00pm.

Beaches of La Villa de Los Santos

The district of La Villa de Los Santos has many beaches with clean sand, crystal clear waters and beautiful scenery. They are long and flat and safe for children. The roads leading to the beaches are in perfect condition. The beaches are very close to one another Monagre, Los Guayaberos, and El Rompio are all pristine, accessible and very private. Nothing could be finer than taking a stroll with a loved one, eating a fine seafood dinner in such a relaxed setting as this.

How to Get Here

The Villa de Los Santos is located at the exit of Chitre, after you cross the La Villa river at only 41 kms. from Divisa. The entrance to tthe beaches are located 6kms. ater you cross the bridge over the La Villa river. When you have driven for 6.7kms. you will find an intersection in a “Y” shape. If you turn left you will arrive at “Monagre Beach” in 2.2 kms. If you turn right in 2 kms. you will reach “El Rompio Beach“. On the other side of this beach is .5 kms. is the “Los Guayaberos Beach“. All three beaches have restaurants that specialize in seafood at excellent prices.

ThinkPanama has properties in this very affordable corner of Panama. Prices are climbing all around Panama prudent investors need to take a serious look at this area of Panama. Investing in Panama is easy especially those that have retirement plans can purchase all or part of your Panama property investment with your retirement assets.

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The temperature is warm during the day cooling off at night due to the tropical sea breezes. The people of Los Santos work in agriculture activites among them coffee and sugar cane plantations and cattle ranching. This is the land of folklore. It’s people are friendly, hard workers very proud of their history and traditions. If you want to get to the heart of Panama and discover a Panama you will never forget Los Santos province is a must to visit.

In the coming posts the ThinkPanama Panama Weekly will explore this gem of Panama. Owning a piece of this beauty is possible the prices in the region are very affordable and attenable contact us for more information.

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With difficulty, until I discovered a great Panama weekly newspaper that is published in English. It has been around for sometime now with thirty issues behind it suggests it is not going away and rightly so. Reading this once a week is truly a lazy man’s way to keep informed.

Here is an example of what you can expect each issue:

• Finance Report
• Business
• Panama Review
• Escape (travel)
• Canal in Brief
• Panama Living

Pick yourself up a copy and you too will agree this weekly is a great way to keeping informed and freeing up your time to do what is important and that is to enjoy the life you have chosen here in Panama.

Panama Post is distributed internationally, for your free international delivery go to the Panama Post web site.

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