Panama Realtor's Location Picks for 2012
With the steady growth of the real estate market in Panama, there are certain locations that are showing extra promise for growth and appreciation. We've outlined a number of these locations along with details on why they are in a prime position to pull ahead of the pack.
Punta Chame
The road 23 km road to Punta Chame has been resurfaced, making what used to take at least 45 minutes by car, now less than 20 minutes. As a result there has been a surge in construction and interest in the area. Most notably are Punta Chame Villas and Nitro City, Action Sports Resort. Their hotel and restaurants are fully operational and such extreme sports as windsurfing, wake boarding (on their artificial lagoon with motorized cable system), and other water sports are being offered. Currently under construction, and well underway are their motocross track and skate park.
One of the most attractive features of Punta Chame however, is the prices. There are serviced bay-front lots starting and 80 USD per m2. The lots on larger beached open ocean side of Punta Chame average about 200 USD per m2. Compared to neighboring by beaches such as Gorgona and Coronado, the price per m2 starts at 350 USD and can have asking prices as high as 600 USD per m2 depending on location.
Punta Chame is on a great trajectory, and the good news is that there is still room for development. Unlike many of the other beach towns of Panama's Pacific, Punta Chame still has land available to develop. Beachfront parcels of land for development with as much as 1 km of linear beach-frontage are currently starting at less than 30 USD per m2.
Majagual
Majagual is the small rural residential area located just past the fishing village of Veracruz. Its a very commutable, 30 minute drive from down town Panama City and boasts some of the most stunning ocean views in Panama. Compared to land in the reverted areas (former canal zone) which starts at 220 USD per m2, land in Majagual can still be obtained for about 50 USD per m2. The area is very promising as far as appreciation and development are concerned. Both the Canal expansion and Panama Pacifico, which is the 2nd largest development in Panama next to the Canal expansion itself, are located within a 10 minute drive of Majagual. Other notable landmarks for the area include the Playa Bonita Intercontinental Hotel as well as a Westin Hotel which is expected to be completed by the end of 2011.
Development parcels with impressive ocean views can be obtained for about 15-20 USD per m2, and there is also land for development on the ocean for about 75 USD per m2.
Costa Abajo
Costa Abajo, which translated literally means down coast, is the coastal area west of the Gatun locks of the Panama Canal. It was announced earlier this year that the 3rd bridge over the Panama Canal is to be constructed in Colon. Currently the only way to get to Costa Abajo by car is by taking the swinging bridge across the Gatun locks in-between ship transits. Waits of 30 minutes or more are not uncommon in order to cross the swinging bridge. The new bridge and its corresponding road systems will make the area of Coast Abajo much more accessible. There are a number of important tourism attractions, both natural and man-made including the Achiote Road, Bird Haven, The San Lorenzo National Park, and the Gatun locks, that will help put Costa Abajo on the map and a world class tourism destination.
We currently have development parcels with significant amounts of ocean and beach frontages starting for as little as 16 USD per m2 which breaks down to approximately 1.60 per square foot.
Residential Developments to keep an eye on:
Hacienda Pacifica
Hacienda Pacifica is located just over one hour west of Panama City and within 5 km of the beach resort town of Coronado. Hacienda Pacifica is a gated residential community with approximately 40 homes either delivered or under construction and an established and growing number of full time residents. It's located within 10 minutes drive of the nearest full scale grocery stores, shopping plazas, healthcare facilities, golf courses and beaches.
There are new homes available within the development for less than 215,000 USD. The lot sizes and quality of the homes are a very fair value and the monthly maintenance fees are also very reasonable at an average of 75 USD per home. Hacienda Pacifica includes two club houses, one on a river with a very nice natural swimming pool, the main club house with a swimming pool, social area and tennis courts. The roads are wide and well maintained and the grounds immaculately maintained and full of fruiting and flowering trees. Hacienda Pacifica is a very realistically and fairly priced development within reach of many expats looking to retire and live in Panama.
Additionally, the beach areas west of Panama City are quite ideal as far as integrating to life in Panama. These areas are comprised of a good mix of both expats and locals alike. The quality of life, infrastructure and available amenities as well as the cost of living in these parts of Panama are still very reasonable. Banks will generally finance up to 70% for foreigners and the homes in Hacienda Pacifica are prime candidates to be approved for bank financing.
Viveros Resort
Viveros is a luxury island resort located just 15 minutes by plane from Panama City. The development is well underway and has several luxury homes already delivered. Viveros will feature a Jack Nicklaus signature golf course, and a full service marina as well as at-least 2 hotels. The prices are very reasonable considering what you get, and beach front lots average about 200 USD per m2 or 20 USD per square foot. Compared to other beach resorts of Panama's Pacific who offer similar amenities, the prices per m2 in Viveros are about ¼ the price of comparable resorts. Additionally, Viveros Resort has signed an agreement with the Trump Ocean Plaza and will serve as the Beach Club for the Trump Ocean Club residents and guests.
Altos del Maria
If you are looking for a mountain community then you must consider Altos del Maria. It enjoys spring like weather year round and is located just 1.5 hours from Panama City. The maintenance fees of this resort are unbeatable at just 40 USD per month per lot or home. This fee includes a portion of the water consumption as well as maintenance of the roads and security. There are a plethora of nature trails and green belts, and the development lives up to its motto of living with nature. Prices in Altos del Maria start for as little as 30 USD per m2 for land.
Panamanian visa through economic self-solvency
By Panama Offshore
Since 1960 Panama offers international investors the opportunity to obtain residency, citizenship and a Panama passport by making investments. This is called the Panama Self Economic Solvency Visa and it offers three different investment options to qualify for Panama residency.
Option #1
Invest a minimum of $300,000 USD in a three year time deposit (or “certificate of deposit” or “CD”) at any Panama bank.
Conditions: (1) The Panama bank time deposit (CD) account must be in the personal name of the primary applicant (it may not be in the name of a Panama corporation, Panama foundation, or trust). The interest earned from the Panama bank time deposit (CD), will be deposited monthly into any savings account at the Panama bank that is designated (the Panama savings account may be a personal account, or a corporate account). The interest income is not taxed by the Panamanian government, nor is it subject to any tax reporting requirements in Panama.
Option #2
Invest a minimum of $300,000 USD in titled Panama real property. This must be equity, as mortgages will not count.
Conditions: (1) The titled Panama real property can either be in the personal name of the primary applicant or in the name of a Panama Private Interest Foundation; as long as the primary applicant is either the Founder or a Beneficiary (it may not be in the name of a Panama corporation or trust). (2) The primary applicant must also prove that he or she has sufficient income to support him or herself.
Option #3
The third option is a combination of a 3-year Panama bank CD with Panama real estate purchases equity (excluding mortgages) with both totaling a minimum of $300,000.
All three options requires for each additional dependent that applies for residency, the primary applicant must prove that he or she has sufficient income to support the general costs of living of each dependent. In addition, if the foreigner has dependents, the applicant needs to invest an additional $2,000 for each dependent.
Other countries have Investor’s Visas, but most require a minimum of $1 million investment. This makes Panama one of the least expensive countries to invest in and become a permanent resident leading to citizenship. By law, the applicant must use a Panama lawyer to apply for immigration visas. Choose a law firm whose lawyers speak English and are experienced with immigration laws.
A Little Surf Town in Panama That Was Once a Well-Guarded Secret
By Jessica Ramesch - International Living
“It’s my favorite wave on earth,” says Jon Hanna, a championship surfer who’s seen more than a few waves in his travels around the world. He’s talking about Santa Catalina, a little surf town in Panama that was once a well-guarded secret.
The point break wave Jon is describing to me was discovered by chance, by some Panamanian surfers who were actually there to hunt deer with their father. “They returned to surf what they soon discovered was a world class wave,” he says. The lucky surfers managed to keep their secret for a few years, but word began to trickle out.
Though still remote, the sleepy town of Santa Catalina is well known in the surfing world today. It’s arguably Panama’s number one surf destination, and it was the site of the 2010 ISA World Masters Surfing Championship.
Jon and longtime friend Kenny Myers own Hotel Santa Catalina. It’s a small, welcoming inn right on the water. They finished building just last year, but it’s already getting rave reviews on hospitality industry sites like Trip Advisor.
“The hotel is ideal,” says Jon, who splits his time between Panama City and Santa Catalina, when he’s not traveling. “It pays for itself…and I don’t have to work when I stay there.”
He says he’s found excellent staff and is able to leave the business of managing the place in their capable hands.
For Jon, the whole process was relatively easy. “It was very quick, getting set up to do business in Santa Catalina. The municipality is very helpful, as they want the business.”
The cost of setting up a corporation, he adds, is low—about $1,000 plus $500 for the business license. He also paid $200 for the municipal permit. “So, for about $2,000, you’re in business,” he says.
Land prices were also good. “You can buy beachfront land here for $100 to $150 per square meter, depending on the beach and location.” That’s about $9 to $14 per square foot. Properties that are not beachfront sell for much less…as little as ten times less.
“In some cases you can find deals on distressed properties,” says Jon, who’s always on the lookout. “And since Panama is an ‘emerging market,’ there are so many opportunities here to bring in new ideas, services, products, and more. Anyone can set up a business here fairly easily. And with tourism-related businesses like hotels, under ‘Law 8’, you can get tax exemptions by registering the business with the tourism authority,” says Jon.
For him, the decision to do business here, instead of the U.S., was a no brainer. “The U.S. market is saturated and extremely competitive…plus, labor’s expensive.” In Panama, he says, doing business is cheaper and easier. An entrepreneur might need to spend extra time on things like training, he says, but it’s a trade-off he’s happy to make.
And there are plenty of other opportunities for entrepreneurs nearby: “Just off the coast of Santa Catalina is Coiba Island and national park,” he says. “It’s drawing nature lovers, bird watchers, scuba divers, and more.”
Anyone wanting to get in on the tourism action would find many niches to fill. For example, Jon thinks stand-up paddle board tours would be a good fit…and easy to run with a minimal investment.
24 hour help for tourists and Panamanians
By The Visitor Panama
Since its introduction in late 2010, the toll-free Citizen Service Center 3-1-1, has processed up to 71,661 complaints, which demonstrates the confidence that both tourists and residents in Panama have shown in this form of complaint against public administrations.
The Citizen's Service Center operates 24 hours a day, 365 days a year, and is not limited to reporting on an irregular situation like political corruption or any offense related to a public service. Many tourists use it to request information regarding a hotel address or phone number while they are staying in the country.
One of the most reported cases, however, has to do with restrictions on water, broken pipes or standing water, but the list could be endless: power lines loosening, sewers uncovered, holes on the road, over-charging of taxis, and much more.
The Citizen's Service Center, part of the National Authority for Government Innovation (AlG), is responsible for processing complaints to the relevant agencies which have to comply with deadlines to correct the problem. In cases related to water and power lines, for example, this period is 30 days. If the problem persists after this time, the applicant must call again to 3-1-1, where after verifying their ID card or passport number, they will raise the case to higher authorities.
The website of the Citizen's Service Center is www.311.gob.pa to make a report any time of day, any day of the year.
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