When I first arrived in Panama in 2006, I looked out the window of the airplane as we approached Panama City at a sea of red roofs in numerous projects in the suburbs.  These were  housing units that were initially proposed to be affordable at just $35,000 to $45,000 and with government subsidized loan programs were available to anyone who held a permanent job and had a few hundred dollars for a down payment.  As the lower and middle class moved up, so did the prices but the occupancy cost were still in line with rental homes.  We even have a great little project in Boquete that is the first of it’s kind and it is doing well.

On the broader scope, housing in general still needs to be addressed in Latin America and while not stellar, Panama has a good record of improving the picture here. The Inter – American Development Bank reports that the percentage of the population living in substandard homes or those who do not have adequate housing, reaches 78% in Nicaragua, 67% in Guatemala, 58% in El Salvador, 57% in Honduras, 39% in Panama and 18% in Costa Rica.

An IDB study indicates that over two thirds of households in Nicaragua, Guatemala, Bolivia and Peru live in poor housing. Brazil and Mexico are the countries which have the largest deficits.

From a statement by the IDB:

IDB STUDY: LATIN AMERICA AND THE CARIBBEAN FACE GROWING HOUSING DEFICIT

In order to increase the supply of adequate and affordable housing, countries need to improve land tenure legislation, expand financing methods and mobilize private financing

Latin America and the Caribbean are facing a significant and growing housing shortage that can only be dealt with if their governments promote greater investment by the private sector in order to increase the supply of adequate and affordable housing, according to a new study by the Inter American Development Bank (IDB).

Today, one in three families in Latin America and the Caribbean, a total of 59 million people, live in inadequate housing or in houses built with flimsy materials or lacking basic services. Nearly two million of the three million households that are formed each year in Latin American cities are forced to settle in informal housing, and in marginal areas, because of an insufficient supply of adequate and affordable housing, according to the study entitled “A space for development: housing markets in Latin America and the Caribbean”.

]]> http://panamaadvisoryinternationalgroup.com/blog/news-from-panama/central-americas-housing-shortage/feed/ 0 http://panamaadvisoryinternationalgroup.com/blog/news-from-panama/vw-passat-78-5-mpg-in-the-uk/ http://panamaadvisoryinternationalgroup.com/blog/news-from-panama/vw-passat-78-5-mpg-in-the-uk/#comments Tue, 15 May 2012 20:53:10 +0000 Tom http://panamaadvisoryinternationalgroup.com/blog/?p=4972

The VW Passat just set the world record for the most fuel efficient car in the world at 78.5 miles per gallon.  Sorry but it is not available in the US, some believe because the gas companies do not want to sell less gas and the US government does not want to see the gas tax revenue diminish.  The irony of it is that the engine that powers the Passat and is so efficient, is made in the US at the VW plants but shipped to Latin America as it is not allowed in the US.

Many of us, yours included have 4 cylinder turbo charged diesel powered SUVs that get in excess of 30 MPG.  The new VW truck down here is also very fuel efficient.

Here is a link to one side of the story

Here is the story of the record  1,527 miles on one tank: Passat BlueMotion sets new world record

This article in Wikipedia  describes the inventory of tall skyscrapers here in Panama, home  most of the tallest buildings in Central America.  While some top out at 80 stories, ambitious plans call for 90 stories in the future.  Trump Tower currently holds the record at 68 stories and 961 feet or 293 meters in height.

Here is the link

In Brazil, groups of armed agents fly around the country by helicopter, pounding on doors and instilling fear in the hearts of those who break the law.  They’re not the police – they’re from the tax agency.

Recent operations have had names like “Black Panther” and “Delta” that are usually more associated with army special forces. The agency even uses helicopters to size up millionaires’ homes and make sure they are consistent with their tax returns.  Read the entire article in The Christian Science Monitor

My friends have a farm up in the cloud forests in Jaramillo and their story was recently published in the Visitor.

Many a cure for common ailments and illnesses – and even beauty secrets – have been discovered in the verdant mountains around the world. Cloud Forest Botanicals (CFB), in the mountains above Boquete, Chiriquí, bottles up the cures that the forest provides. This company began on Finca Luz, a small organic eco-farm near Boquete. Within the rolling borders of Finca Luz there are multiple micro-ecosystems, accessible via a new Medicinal Plant Trail that has just opened at Finca Luz.

Cloud Forest Botanical products are available in several locations throughout Panama, can be purchased at Finca Luz, or can be ordered and shipped. Visit the website for information . For those interested in touring the Medicine Trail go to here .

More….

If you have not read this book, I would encourage you to buy a copy and check it out.  A friend of mine wrote this and it is an eye opener for many who did not know how Panama was created.  I copy the Preface as it starts the whole story well.

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Here is a link to order the book

This property consists of two parcels of land, one with 21 hectares and one with 112 hectares.   98 hectares is titled land and the rest is non contested rights of possession like most of the Island property on Boca Brava Island.  The owner is motivated to sell this property as he is returning to Europe.   We are asking $1.5 per square meter which is by far the best deal that I have seen for property like this on Boca Brava Island.  Click on the aerial below for an aerial tour

The property has 360 degree vistas on the ridge and you can see mountains, estuaries, beaches and the Pacific Ocean.  The property can be accessed by boat and traversed by horseback.  There are cleared areas for a helicopter to land as well.

The inland areas are still virgin forests with wildlife and nature trails to explore.

The offshore waters are emerald and filled with fish and other wildlife.  The property is at the entrance to a safe harbor with calm water with one spot perfect for a small marina as it has no current due to a back flow current.

Some of the land has higher elevations for breathtaking views and ocean breezes

Boca Brava is an island directly off of the Boca Chica harbor and the property is a 15 minute ride by small boat from Boca Chica’s public ramp.  It is also accessible by boat from other mainland marinas as well

See more photos here

I knew that someone would eventually get smart and start a huge greenhouse operation and produce bell peppers and other veggies for the US market.  Well that has now happened and I wish the investors well in their endeavors.

The company Veggie Fresh will plant peppers for export to the U.S. in the province of Chiriqui, Panama, from October.

The Veggie Fresh agricultural export company will invest $13 million in the hydroponic production of peppers for export to the United States, using an inorganic substrate called perlite.

The growing area is in the community of Potrerillos, district of Dolega, Chiriqui.

“The project will have a fully computerized system, since it will use automated systems for spray irrigation, fertilization, water management, crop management, and it will have an electric train system, which will guarantee the necessary safety process for exporting,” reported Laestrella.com.pa.

Guillermo Villarreal, from the agro-export company Veggie Fresh, said the peppers are destined for the U.S. market, and they expect to start with planting in June, followed by transplantation and in export in October .

Source: laestrella.com.pa

We are pleased to announce the formal association of Panama Advisory International Group (PAIG) and the expansion of our ability to offer clients a full spectrum of services in Panama.  Rolando Miranda and Thomas Brymer have been together for the last few years in real estate and agriculture businesses.  Rolando has now joined PAIG as President and brings strength to the company with an impressive background both in education, business and real world experience.  PAIG is a fully licensed real estate brokerage company and business consultancy here in Panama.

Opportunity identification and success in local representation is the heart of our business. Our group puts clients in the right place, with the right people, at the right time.

We are a commercial advisory for select clients requiring real estate services including acquisition and disposition, real estate and business development and the placement of equity and debt.  We invite you to visit our country and learn how Panama has developed the base from which to take a quantum leap in the near future when the next wave begins. Please contact us to discuss opportunities we feel are of merit.

Growing by 10% a year, what Panama is currently doing is energy intensive, meaning that the demand for rental generators is constantly growing. This is another business opportunity here in Panama.

Project developers, subcontractors and promoters of artistic events require power permanently and this is where companies that rent electricity generators come in, providing a compliment to the traditional distribution system.

One of the international companies operating in this sector is the Scottish firm Aggreko, which established its regional headquarters in Panama as well as its hub (operations center). It began operations in 2005 providing power to Bocas Fruit Company and in 2009, the government hired 100 MW to cope with possible energy shortages , reported Capital.com.pa.

Aggreko is building its new regional hub and training center in Howard, in the Panama-Pacific Special Zone with an investment between $2 million to $3 million. It will have an approximate area of 11,000 m2 and will be completed by the end of the year.

Source: Capital.com.pa