Panama is a small Central American country that sits just above South America as the narrowest country in the Americas, with only fifty miles of land between both the Pacific and Atlantic oceans. Panama has always been known as a tropical paradise, but it’s also the transportation hub for the Americas, and it’s right at the beginning of an economic boom.
Commercial real estate in Panama and housing in Panama is heavily tied to foreign investment, which increased immensely when the United States turned over the Panama Canal to Panama in 1999. Low prices for real estate in Panama have drawn a large number of North Americans retirees to this country as well as the easy residency requirements.
With incredible coastlines on both the Pacific Ocean and the Caribbean Sea, Panama has an ideal location for the development of marinas, hotels, resorts, and residential gated communities. Real estate in Panama is still very inexpensive in beautiful places like along the coast of the Colon Province, with its great landscape and large tracts of land.
The process of financing real estate in Panama to be developed starts when the owner/developer has a clear title to the Panama real estate in question. The bank will want to see plans and title, then they will want a mortgage on the entire property and development so that it can pay back the loan if the project goes under. Since real estate in Panama values have escalated, developers have started projects and failed to finish them, so Panamanian banks have taken the necessary precautions by asking for a number of unites to be “presold” before the start of construction. Also, the bank will only finance the project in stages with the expectation that the project will begin to earn money with units sold or rented before the rest of the financing will continue for the project from the bank. This is usually the process associated with large developments of real estate in Panama.
In today’s economy, it might be a good idea to find one of those developments in trouble and to buy them out rather than start one fresh. Not only is it a sound investment because the ball is already rolling, but you also help a dying project from becoming extinct, and turning into an eyesore amongst the community or on the countryside.
As anything, it’s important to do your research when thinking about investing in real estate in Panama, especially to get you financing in order. This is a great opportunity to invest and create something magnificent, and it’s just a matter of time before the secret of real estate in Panama gets out to the whole world.