Buying Real Estate In Panama | Panama Relocation Tours

Moving to a foreign country is a whole new experience for many people. Living in Panama is not like living in the United States, Canada or Europe. Some things are similar but many things are done in a very different way. For a smooth transition to your new life in Panama, learn the 9 biggest mistakes new expats make when moving to, or planning to move to, Panama. If you avoid these mistakes, you will have a pleasant experience in Panama.

1.Relying on people in expat forums for advice on moving: TripAdvisor is great for looking for hotels when on vacation, but when moving to a foreign country it can be dangerous to rely on information on expat forums. You really don’t know who the person posting really is or if they even live, or have ever lived, in Panama. Many of the people who post on expat forums are new to Panama too so they are not your best source for information. You’ll get a lot of conflicting information which can cause confusion. Some people who post on expat forums have a hidden agenda to sell you real estate, illegal financial services, or something else. You should never, ever discuss your financial situation on forums.

2. Becoming too friendly with the locals too fast: Panamanians are genuinely friendly people. Expats are friendly too. It’s great to visit with locals at a restaurant, bar or charity events, but don’t tell people where you live or invite them to your home until you get to know them well. Don’t tell anyone how much money you have or what your monthly pension is. It’s best not to flash fancy jewelry. Sadly, even at church, you can’t trust everyone because some people go to church just so they can make friends with people they think have money then they turn on their sob stories to extract as much of your money from you as they can. Avoid people who claim to have a special way you can hide money from your government.

3. Don’t rush to buying real estate: I tell everyone on Panama Relocation Tours that they should rent for at least 6-12 months before they even think about buying real estate. There are several reasons for this. You need to make sure you like living in Panama and the Panamanian culture before you buy real estate. Also, Panama has a lot of different micro-climates. The weather can be completely different just a few kilometers away. Some areas get more rain or cloud cover than others. Some areas have more water problems than the rest of Panama. Some areas cannot get reliable or fast internet service. Friends who rented a condo by the beach were shocked to find out that many of the units are rented by the night so it felt like living in a hotel with a constant stream of strangers coming and going. Before you jump in to buying in a certain area, you need to make sure you like that area. Rent for 1-2 months to give each area a test drive before you sign a long term lease or buy. Also, keep in mind that rents are super cheap compared to buying so it may make more sense to just rent while you live in Panama. You can get out of a rental a lot faster than you can sell a property you buy. If you do decide to buy, always, use your attorney to do a title search and create the purchase contract with your best interest in mind. Understand that not all properties are titled in Panama. Some properties are ROP (right of possession) which has no title and could be disputed which would result in your losing the money you paid for the property.

4. Don’t move to Panama without visiting first: This is a biggie! People who just move to Panama without visiting first, almost always end of leaving within 6 months. They had no clue what they were getting in to. If you’re married, both of you need to check out various areas of Panama before you make the move. We designed Panama Relocation Tours to give you a good overview of the kind of lifestyle Panama has to offer in a variety of different places. So, we think the tour is the ideal way to discover if Panama is right for you. You’ll also learn about Residency Visa options, bringing your pet in to the country, renting a house, buying a car, and much more. Sure, you could fly to Panama, rent a car, then explore Panama on your own. Either way, come see many different areas of Panama before you decide to make the move.

5. Don’t get too involved with too many different things: When you move to Panama, it is tempting to get involved with every charity, card game, painting class, cooking class, and hiking group you can find. This is a great way to meet fellow expats and Panamanians too. But you may find that by the end of the week you are exhausted. It is better to pace yourself. Give yourself time to get settled in to your new home and town before you get involved in too many activities. Sometimes it’s nice to just sit on the porch sipping coffee (or wine) and taking in the amazing views. It’s time to relax. You don’t need to be busy every minute!

6. Don’t sit at home watching TV: Politics have made some people so furious that they stayed glued to the TV to see what’s going to happen next. There’s nothing you can do about it when you live in Panama. So turn off the tv, especially the news, and get out to meet people in your new town. Get involved in some of the local activities (not too many). You’ll enjoy your life in Panama much more if you get out of the house, meet people, and get involved in some of the local activities like live music at local restaurants or volunteering.

7. Don’t expect Panamanians to speak English: Some do speak fluent English, but others don’t. Don’t get frustrated with Panamanians who don’t speak English. It’s not their fault. You’re living in “their” country so it is your job to learn at least some of their language. DuoLingo.com will teach you a few words every day.. for free. There are also Spanish classes and private tutors. I have to admit that I don’t speak much Spanish but I know enough to get by just fine. A little Spanish and a big smile go a long way in Panama. If necessary, you can hire a translator to go with you to help with some things.

8. Don’t get the wrong Visa or plan to do border hops: If you’re going to live in Panama, get a residency Visa. The Pensionado Visa is ideal if you plan to be retired. With a Pensionado Visa you cannot sell a product or any service in Panama, not even part time. If you want to work, the Friendly Nations Visa is ideal for you. Panama makes it easy to get a residency Visa so there is no reason to live in Panama without getting a Visa. Nothing upsets Panamanians more than seeing “gringos” working who are not legally allowed to work or seeing expats living in Panama full time who don’t have a residency Visa.

9. Don’t start a business too soon: Instead of starting a business right away, it is better to move to Panama then do a lot of market research to determine if the product or service or restaurant you want to open is even needed – and what your pricing structure should be. The business you have in your country may not work well in Panama. Some “gringos” open a restaurant a few months after they move to Panama charging twice what other restaurants charge then wonder why they don’t have any business. You need to consult with an attorney to make sure you can legally run the business you have in mind. Get the appropriate Residency Visa with a Work Permit (you cannot work in Panama without a Work Permit). You’ll need to set up a corporation, get a RUC number (tax id number), hire an accountant, set up a business bank account, get a merchant account so you can accept credit cards, and perhaps other licenses or certificates depending on your business. Foreigners are not allowed to operate some businesses.

Panama Relocation Tours is the expert when it comes to helping people relocate to Panama. We’ve helped hundreds of people make a smooth and easy transition to life in Panama. We feel that educating people about the pros and cons of each area in Panama helps them make a decision about which area is best for their personal needs and lifestyle. During the tours, we reveal exactly what you need to do before you make the move and once you arrive in Panama. This takes the stress away.

Because of this education, 37% of the people who come on a Panama Relocation Tour move to Panama within 3-6 months. Another 10% move within a year. And another 10% of tour attendees move to Panama within 2 years. Yes, 57% of people who come on a Panama Relocation Tour move to Panama!
Let us help you take the guess work and confusion out of relocating to Panama, join us for a Panama Relocation Tour this year.

Just about every week I get an email from someone who is considering a move to Panama but they are concerned that real estate prices have gone up so much that they cannot afford to buy in Panama. It is true that some real estate prices, in certain areas, are high. Panama City is expensive but even there, you can find some great deals.

There are many really affordable real estate opportunites in Panama for both an owner occupant and for investors. The best way to find the best prices is to ask people who live in that area if they know anyone who needs to sell. You usually won’t find great deals listed with a real estate agent.. especially not an expat real estate agent.

Because there is no widely used MLS system in Panama, there is not an accurate way to determine what a property should be listed at. Therefore, some sellers price their properties way too high. A good example is a neighbor on the road where I live. It’s on a steep slope with ocean views and mountain views. His house is priced at $800,000. Realistically, it is worth $400,000 based on what other similar homes sold for on the same street.

You also have to take in to consideration the neighborhood. Some houses are in communities where all the houses are similar style and price ranges. It is easier to determine an accurate price for those houses.

Other nice houses are built in an area surrounded by cheap little indigeous houses or shacks. This makes it much harder to determine the correct price because the price of the less expensive homes drives down the price of other nicer homes on the same street. The same thing happens in the US and Canada when you spend $500,000 to build a house on a street with $40,000 houses.

In addition, you can’t really go by what it would cost to rebuild the house today because often it is much cheaper to buy an existing property than to build a new house. And building costs are so subjective depending on the costs of the land and how the house is built. There is a huge difference in price of land in Panama just a few miles apart.

If you are buying from the owner directly, you will usually get a much better price. But if the owner is Panamanian and you don’t speak Spanish, there will be a language barrior so it is best to use a Panamanian real estate agent to assist with the negotiations.

SMALL COFFEE FARM IN BOQUETE FOR $125,000

I purchased my 2 bedroom 2 bath house on a 1/2 an acre coffee farm for $125,000. It has an open floor plan with vaulted ceilings and lots of windows for natural light.

This is a house I had previously rented for $600 a month (fully furnished).

It’s just right for my needs and only a 5 minute drive to downtown Boquete.

Sorry… it is not for sale!

I did a quick search on several websites and Craigslist Panama to see what kind of real estate opportunities are out there. There are MANY! Here’s an example of one mountain property and one beach property.

ONE ACRE PACIFIC VIEW LANDSCAPED GARDEN HOME – $169,500

One Acre Pacific View, Garden Home

This immaculate, beautifully landscaped, former coffee farm, has views clear to the Bay of Chiriqui on the Pacific Ocean and to eastern hills of Costa Rica. This one acre, former coffee plantation has approximately 2,000 square feet, of under-roof living space.

The house comes with 2 bedrooms, one and a half bathrooms, a dining/lounge area and a living room. The kitchen is centrally located so food can be served through an arch into the living room or via the breakfast nook into the lounge.

see more photos and details here

19th FLOOR CONDO IN CORONADO WITH OCEAN VIEWS – $249,000

This condo is not right on the ocean but it does have incredible ocean views. Condos on the ocean will cost about $50,000 to $150,000 more and be half as big! A friend is renting a similar unit for $950 a month with a one year lease. Short term leases always cost much more.

Sometimes it’s hard to know where to look. I mean, you’ve got the ocean. And the mountains. And residential Coronado. Plus the golf course. All of that from pretty much any point in your new 19th-floor Coronado Golf condo.And it is now being offered for the reduced price of $249,000!The open living/dining/kitchen area features floor to ceiling windows, so whether you’re having lunch or lounging on the couch, you’re going to have that “what should I gaze at?” dilemma. It draws you right out onto the balcony via double-paned sliding doors.It doesn’t get any easier in the master bedroom, where you’ll have that same view and a second private balcony.There’s also a large walk-in closet and en suite bathroom with a whirlpool bathtub. (If you need a sleep-in, there are blackout curtains.)

The kitchen comes with all appliances: LG refrigerator with ice maker, stove, microwave, and dishwasher, as well as small appliances like the blender, toaster oven, popcorn maker, and an ice cream maker — perfect for those warm tropical days! There are granite counters, a breakfast bar, lots of cabinetry with lighting underneath, and stacked stone backsplash. It’s further equipped with cookware, glassware, dishes, and tools. In fact, it would be hard to think of anything else this kitchen might need! Save the room in your suitcase for flip flops, swimsuits, and your golf clubs.There is a separate laundry room with a stackable washer/dryer.

The office space (whether you need to do a little work or just send an email to all the people who wish they were you) is complete with a bent-wood/glass desk, printer, and bookcase.The place comes fully furnished with high-quality furniture and accessories, as well as split air conditioning in each room. You’ll have two televisions and a sound system. The condo is decorated with local artwork and custom-framed photos of the area, all displayed against a custom paint job. There is a built-in safe, and whole-house surge protection for those electrical mishaps.

This Coronado Golf condo is a great place to call home, at least in part because it’s in the Coronado Golf residential tower. This popular residence, built by Empresas Bern, features 24-hour security, a stunning ground pool and social area with a kid’s playground as well as a rooftop pool, social area, and game room. There’s a rooftop gym and three high-speed elevators (unless you want to add to your workout and take the stairs!).Of course, you’ve also got immediate access to the Tom Fazio-designed golf course.

The condo comes with a transferable membership which grants you access to the course, the golf and beach clubs, the equestrian club, restaurants, bars, an Olympic-sized swimming pool, a spa, and another gym which regularly hosts pilates and yoga classes. The condo comes with one garage parking spot. There is also plenty of guest parking.With 16 years left on the property tax exemption and low monthly maintenance fees of $165, the time is NOW to give your friends an awesome place to visit — and to give yourself an awesome place to live. Call My Panama Real Estate and let us take you up to the 19th floor. When you get caught up in the view, you might not want to leave.

BOCA CHICA ISLAND OCEAN FRONT HOME ON 1/2 ACRE

2 BEDROOM 1 BATH $199,000 WITH OWNER FINANCING

2 bed, 1 bath home with pool.

Furnishings

Custom designed furniture, barbecue area, standard appliances, pool equipment, and more.

Off-Grid

A very slick design. Power is generated by solar panels with a back up generator that runs on propane. Generating your own power is easy and affordable. Water is provided by a well and treated by the included 3 part purification system.

Boat Access

You don’t need your own boat, but the Parcel 6 home enjoys the use of the dock just steps down the beach.

Owner Financing

Buy the Parcel 6 home for $20,000 down & $2,171/month.

In Panama, the BEST deals (realistic prices) are usually in Spanish… not English! That’s why it is better to work with a Panamanian Real Estate Agent. I know a guy who bought a nice house in Caldera for $35,000 working with a Panamanian real estate agent.

Here’s an example of a property just outside of Boquete. YES, there are affordable houses near Boquete too! The sytle may not be what you are familiar with but it comfortable and it is very easy and affordable to make modifications to any property. KEEP AN OPEN MIND!

CONCLUSION

In Panama, you cannot walk in to a real estate office to find out about ALL the properties for sale in an area. Many real esate agents will ONLY show their listings and many do not share commissions so they won’t allow other agents to show their listings.

It has been my experience, that many properties are for sale and for rent with no sign out front. Panamanian real estate agents know about these “off market” opportunities more than expat agents. Many Panamanian real estate agents where born and raised in the town and know everyone and everyone knows and trusts them.

If a property is advertised, there is rarely an exclusive listing. The seller has agreed to pay a commission to who ever finds a buyer. So, it is common to see the same house listed on multiple real estate agent websites and all at different prices.

ALWAYS go see the property before you agree to buy. Never sign anything until YOUR attorney has done a complete title search to make sure the person selling the property is the owner. Have your attorney create the purchase agreement.

You can get a mortgage in Panama but it will require 20-30% down. And you will be required to get life insuranace naming the mortgage company as beneficiary. The mortgage will need to be paid off by the time you are 70 years old.

I don’t recommend building anything in Panama unless you are here every day during the building process so you can keep an eye on everything.