Real estate advice: purchasing a property in Panama

This week, I shared on Facebook some tips and real estate advice: what, where & how?

Real estate advice – 3 things to consider
What should you think about?

As I addressed in this video, I would expect that any client that is looking to purchase a property in Panama is thinking about:

1. conveniences
   1. noise
   2. amenities & activities
   3. traffic
   4. infrastructure – particularly internet coverage (for example, which sectors have fiber optics)
2. climate – beach / mountain / humidity or dryness / temperature / how often does it rain?
3. lifestyle
4. neighbours & neighbourhood
5. City / Beach / Mountains
6. commute (if working or kids to school)

Where should you purchase?

That is going to depend on what your priorities and you plans are.  Why are you purchasing?

1. retirement – starting to live there now
2. investment & rental property
3. holiday home
4. 2nd home
5. business or job in Panama

If you are going to work in Panama City, then you need to choose a neighbour that is convenient according to:

• where you are going to work
• where you kids go to school

Ask in groups like Expats in Panama – what are their experiences in Panama City with getting around.

If you are retiring or not tied to Panama City, then you need to go back to section one and look at “what are the essentials — what do I need?”

How should you go about doing this?

First rule of thumb – get a great realtor!  Make sure that you are clear with the realtor beforehand what they will (or will not) do to close the deal — some realtors will literally “show” you the property and with doing that think that their job is done!  Other realtors will assist you with contacting a mortgage broker and walk you through applying for the mortgage, etc.  Clarify your expectations before you get started!

Clarify how communication will be undertaken – because most Panamanians will say “yes” to whatever you ask.  So it’s better to ask “how is the best way to contact you?” rather than “Can we communicate by email/phone?”.  They will simply say “yes” to question number two and then may disappoint you when that is not really their preferred method of communication.

Make sure you know what the annual property taxes will be before you sign anything – what exemptions does the property have (or not) and if it has any exemptions – until what date.  There have been terrible surprises for some purchasers when they get to the lawyers office, AFTER they signed already the promise to purchase agreement.  You should have the lawyer before you sign the promise to purchase, not just for the closing.

For more information, please contact Joan Villanueva.