|
Increases in tourism and Panama as a destination for trade and commerce will also lead to increasing tenancy rates and rental values. What makes real estate in Panama so interesting at the moment is that it has yet to reach mass market appeal, making this the ideal time to invest while prices are low. The construction industry is just at the beginning of a long boom, as Panama expands its skyline with some of the most architecturally interesting buildings in the world with luxurious amenities. These residences are located in prime locations with ocean front views or surrounded by acres of parkland. Part of the reason why prices are so good at the moment is because building has happened so fast and the international market has yet to catch up.
Investing in Panama now practically guarantees a substantial capital gain on property investment, especially considering everything that the Panamanian government is doing to improve infrastructure and attract the foreign market. You can purchase prime property from as little as $100/ft2 and from $170/ft2 for the ultimate bay-front properties in the City. In other second-home markets, such as Florida, similar properties are in the range of $500-$1,000/ft2!
Those who are interested in investing outside Panama City have an array of breath-taking highland real estate in the region of Chiriqui to choose from. The highlands experience fresh cooler climates than the rest of Panama, offering magnificent mountain views, exciting nature trails and a slower paced lifestyle – altogether creating an ideal retirement hotspot.
Additionally, one cannot ignore the beautiful beachfront and waterfront real estate properties available on the Pacific and Caribbean coasts of Panama. World-class architects are building many master-planned communities such as Coronado and Punta Barco with European-style beach-side villas and condominiums. These and similar paradise beach resorts come equipped with 18-hole golf courses, elegant beach and equestrian clubs ready to offer something special for everyone.
But it’s not only the low costs that make Panama’s real estate market attractive. Panama is a banking metropolis with a solid economy, modern skyscrapers, a good night life and great shopping. The government is planning to invest $5.25 billion into the expansion of the Panama Canal to allow for supertanker access and Panama’s currency is the US dollar, eliminating any currency risk. Over 100 international banks allow for a great number of borrowing options. Most banks offer up to 30 year maximum mortgages and up to 80% financing to foreigners while interest rates are currently hovering at around 6.5%.
There are also numerous tax incentives for real estate investment, such as a maximum of 20 year property tax exoneration on all newly purchased properties. Foreign income is not taxable in Panama and capital gains tax is very low at only 10%.
Whether you want to be surrounded by the peaceful countryside, breathtaking ocean views or the bustling city life, there is a something for everyone looking to invest in Panama’s real estate. The suburbs are also increasing in popularity due to their even more reasonable prices.
MORTGAGE PRE-APPROVAL
Panama is one o the most secure offshore enters in the world. With over 100 banks from all over the world, financing your recent real estate purchase can be successfully achieved through banks with departments that specialize in providing mortgages to foreign investors. Loans are typically issued at 70% of the cost of the property and can range from 10 to 30 years. Interest rates vary between 6%-7% plus 1% FECI tax.
For mortgage pre-approval, the following documents are required:
- Copy of signed purchase and sale agreement
- Copy of passport
- Copy of past two year's income tax receipts
- Two bank reference letters
|
