Buying Real estate in Panama

As we alluded to in Where to Live in Panama Article, there is a variety real estate for everyone’s taste. You will have the choice of many different housing options in Panama City; mountain areas like El Valle and Boquete; numerous beaches and island areas like Bocas del Toro and Contadora. Once you decide on the area you want you will be pleased to know that as a foreigner you are afforded the same protection as a Panamanian land owner.

Now is a good time to invest in Panamanian real estate for a variety of reasons. Panama has had a stable democratic government for over ten years. The country has excellent infrastructure and communications systems and boasts one of the wonders of the world, the Panama Canal which is an economic mainstay and constant source of revenue.

The Canal and its importance to world trade make Panama one of the most solid economies in the world. The country also boasts a thriving Free Trade Zone, a bustling modern city of over 1.5 million people, the dollar as the official currency and a first world banking system. In addition, non-citizens may purchase property and have the same rights as Panamanians. The country has a variety of real estate for the retiree, investor and entrepreneur. Easy residency requirements and attractive tax advantages for investors and businessmen add to the country’s appeal.

It's easier to get a mortgage in Panama than anywhere else in Latin America. Other than Puerto Rico, Panama is the only Latin American country where private lenders are willing to make 30-year, fixed-rate mortgages. Why? Because the economy is stable, there is little chance of default, and the banks know they will get their money back even if someone cannot pay back a loan. This is not the case anywhere else in this part of the world.

Panama has some of the most inexpensive real estate bargains found in Latin America. As we mention in Chapter 1 many investors are interested in the old section of Panama City or Casco Viejo. The gentrification process is already under way. Furthermore, the government provides incentives for investors in this unique area of the city. Whether you are a real estate investor or someone just looking for an interesting place to live or retire, Casco Viejo might just be the place you are seeking.

Because military and canal personnel have left the country, there are hundreds if not thousands of apartments and houses available. Some of the best deals can be found in and around the Fort Clayton area. In Where to Live in Panama Article we mentioned other suitable areas for living such as San Francisco, Marbella and El Dorado, among others.

Cerro Azul and Altos de María are desirable places near Panama City where affordable real estate may be found. We have already alluded to the real estate bargains that may be found in the Boquete and Bocas del Toro areas of northern Panama.

If you cannot afford to buy a house in the U.S. or Canada, prices of decent homes in Panama will seem like a bargain. However, like anyplace in the world, you will end up paying more for a house in an upscale neighborhood. If you wish to live outside the city in a rural setting, then check out Chirique. Panama is not a densely populated country, so there is a great deal of raw land in the countryside.

As you already know foreigners are entitled to the same ownership rights as citizens of Panama. This means your purchase here can be fully secured and safe. To find property look in local newspapers, contact a broker, try by word of mouth, from friends or pound the pavement in the area of your choice looking for ‘For Sale” signs. If you decide to buy real estate, an attorney is absolutely necessary to do the legal work for purchasing property.

We strongly recommend that your lawyer do a thorough search of all records before you make your purchase, and make sure there are no encumbrances (gravámenes) on it. You can obtain information about property at the Registro de Propiedades (like our land title office). You can obtain information from the Registro at www.registro-publico.gob.pa. You can visit them in person at: Vía España Calle 67A, frente a la Clínica Hospital San Fernando, Tel: 278 6000, Fax: 278 1014.

You can also find the status and ownership of a piece of property and get any title documents and surveys you may need at this office. If the property is registered in the name of a corporation, the legal representatives must be verified, since they have power of attorney to make the sale.

Title verification should be done for any property especially outside of Panama City. If your property is free and clear it will have a título de propiedad. If not, stay clear of the property. It is best to own property through a Panamanian Corporation to limit your liability in case of legal disputes. Buying and registering a property in a corporation has many advantages, mainly, asset protection in the event of a divorce or a lawsuit, which could result in you losing the property.

The final advice is do not hire the same lawyer used by the seller of the property. Also, do not forget to check that you are buying the land from its rightful owner. There are some people who will try to sell you property to which they do not have title. Some owners have sold their land to several buyers. You can protect your real estate investment further if you talk with neighbors about water shortages, safety and burglaries in the area.

Remember, never buy a property sight unseen. Do not forget to see if you need special permits to build. Be sure to check the comparative land values in your area to see if you are getting a good deal. If you are thinking of living in a remote area, check to be sure that roads, electricity and telephone service are available. When buying rural or farm land, be careful of squatters.

They can gain title to the land if they have lived on the property for a number of years. If you cannot live on your property yearround, then you will have to hire a guard, caretaker or a reliable house sitter to watch it for you. Make sure boundary fences and limit signs are well maintained and visible.

We suggest that in some cases, you rent for at least six months. However, whether you rent or buy first really depends on your comfort level. Make sure to buy where it’s easy to rent or sell your home or condominium in case you change your plans or in the event of a personal emergency. To find a house or land, first find a realtor with a good reputation. Your real estate agent should be able to identify true market value of any property.

In order to get a good buy you should study the market. Do not depend so much on the newspaper. Talk to as many people as you can. Nothing works better than word of mouth for finding good deals. Since Latinos love to haggle, practice your negotiating skills. You may be better off having a trustworthy, bilingual Panamanian search for you and do your negotiating. Your realtor or lawyer should also be able to assist you.

If you are seriously interested in exploring the country for living and retirement, we suggest you read Living and Investing in Panama guidebook, then contact us to show the areas where you think you may want to live.