Tips for buying real estate in Panama
Sep 25th, 2008 by admin
Panama is located strategically with respect to world commerce, in the middle of North and South America. The country has a pleasant tropical climate where the average temperature ranges between 22 to 27 degrees centigrade through out the year and has only two seasons - dry season and rainy season.
The presence of the Panama Canal, the colon free zone and the processing zones has contributed a lot to the economy of Panama. Hence, people of all parts of the globe are interested in investing in the real estate sector in Panama, either as a holiday destination or to settle in Panama permanently.
Another good thing about Panama is, the government offers tax incentives to people who invest in the real estate sector. For instance, in case you construct any building in Panama, you need not to pay any tax for 20 years! This means, you can sell your property within this period of 20 years with a good profit margin and without paying any taxes to the government. Moreover, you need not be a citizen of Panama to buy or own any property. There are no restrictions what so ever.
Here are some tips on buying real estate properties in Panama:
1. Rates of real estate properties of Panama differ substantially even if the properties are situated adjacently. Since it is difficult for the local people as well as for the foreigners to know the exact value of the property, which is to be purchased, they should get an appraisal of the property. There are many companies who will do it for you in exchange of small fees.
Another way where you can get actual price for your property is to approach to the banks which will finance your property at the end. The bank will be able to give you an idea about the right price of the property. Though the bank procedure and paperwork is very tedious and time consuming, you can be assured that the bank will do its best to finance for the exact worth of the property. The banks also cover or reimburse the cost of appraisal.
2. Once you have chosen your dream property, it is best to appoint a lawyer and check that all the documents are okay. Make sure the property does not have any liabilities and all titles related with the property are clear.
3. You should appoint a licensed real estate broker. The broker should have the license from Junta Tecnica de Bienes raices, otherwise known as the Real Estate Technical Board of Panama.
4. Negotiate well. If you do a research first and then go to the negotiation table, you will surely be able to sign a good deal. The more prepared you are, more you will save from the deal.
Nevertheless, it could be difficult to select the region in which you would like to purchase a property in Panama, as there are many options available. You can choose a high rise condo in the city or a small farm house in the county side. You could choose a home in the mountains or a beach home near the Caribbean coast as well - there is an abundant of choices available.
