WHY
I am often asked what to invest in here in Panama but first I am always asked WHY should I invest in Panama.
I first studied the benefits of subsidies and government programs available to investors and started learning more about the provinces in Panama after my first visit in 2006. I applied what I had learned when I first invested here in 2007 and as I continue to look for more opportunities, I remember the basics when I look at any deal. A big reason WHY I invested in Panama was to secure assets outside the United States as I felt that the deteriorating factors that contributed to the meltdown in 2008 would weigh heavily on properties and equities there. Furthermore, having been around for a number of past recessions, I knew that this one was different and it was time to get moving before I lost more of my wealth. Good time to sit things out in Panama though I do hear that they have spotted some light at the end of the tunnel back in the US. Or is that someone with a flashlight lost looking for a way out? I still love the US but I love Panama a lot more for a whole lot of reasons, first off and foremost because we have a better quality if life. Might not be rich but we are rich in spirit here.
WHERE
The next question that I am always asked is WHERE should I invest. The best thing that I can recommend is diversification and that includes product type and regions as well.
Follow us on a journey to places we like. These markets are serviced by both the Panamerican Highway and or major coastal highways as well as by air within an hour from Panama City and each location is less than an hour and a half from an airport, all important when considering a near term investment here in Panama.
Panama City is the epicenter of the financial and business world in Panama as well as the region. People in North, Central and South America travel to and through Panama as do the goods coming from China and Europe transit the Canal. That is why Panama has the second largest Free Trade Zone in the World. Therefore, Panama City is an important region for part of your portfolio of property in Panama. I like the City and specifically Casco Viejo for boutique hotel. night club bar properties. I also like the office condominium market in Costa del Este where I just finished looking at some net leased properties that are for sale. There is a new industrial, flex building market opening up around Tocumen and I see opportunities to invest in that market as well.
The next market that I like is on the “gold coast” and specifically Coronado. My friend Michael Vuytowecz who runs Inside Panama has some great deals for income producing vacation rentals in Coronado Golf. He is the expert on this market and I refer clients to him all the time without hesitation. Here you can buy into the lifestyle of a gated golf course community with a full membership for around $250,000. Rent seasonally until you are ready to live full time and in the meantime make money to pay off your purchase!!
The Coronado Golf Community is one of the best locations in Panama to build lasting connections with family and friends alike. It is a stunning project set in the heart of the prestigious Coronado Golf Club with facilities such as restaurants, bars, fitness center, beach club, equestrian club, tennis courts and health and beauty parlor.
Live a superior lifestyle with something for every one of your moods. Your active side keeps busy at the rooftop pool or with friends. Your easy side is happy relaxing at home or playing a round of golf. Coronado Golf reflects this same commitment to quality and provides the rich community life you’ve been looking forward to.
Coronado Golf offers a life you will be proud of, one that settles for everything.Typically the sale price includes all the furnishings. The condo also includes lifetime membership to the Coronado Resort (valued at $15,000) with one of the best professional 18 hole golf courses in Latin America (designed by Tom Fazio), bars, restaurants, lap pool, games room. All within a short golf buggy ride or drive from the condominiums. The membership usually also includes access into the prestigious Coronado Beach Club and the Equestrian Club.
The next province that I would look at is the province of Los Santos, specifically the southern part of the Azuero peninsula near the town of Pedasi. Pedasi had a huge growth spurt in the 2004 to 2007 period and fell back some in 2008 along with the rest of the world. However, we are talking about an area that is still in it’s infancy and has a lot of room to grow. I specifically like the Venao Beach area as it has one of Panama’s finest beaches but with just the beginnings of real concrete developments and a few surfer camps which is what preceded the boom markets in Costa Rica. I like the idea of buying land for near term development of residential and resort community geared more to the middle market. While there is already a luxury presence in the area like the Azueros Project, I prefer to cater to the value oriented market that is much larger yet still be in the best location. My friend Tedd Tennis has a few of these opportunities in Pedasi including by example a loft in Azueros that is very well priced. These make excellent vacation rentals for income purposes as well.
For Sale
Pedasi
$225000
1979.5 Sq Ft
The Azueros Ocean Lofts are 20 beautiful duplex units (10 buildings) spread along one of Pedasi’s best beaches. The community features several incredible homes. Tedd also has some beautiful luxury beach homes as well if you are looking for something special. I deal with Tedd because he is a straight shooter and I know that I can safely refer clients to him so drop me a line if you are interested in learning more about this market.
Another province that I would consider and a must for any well balanced portfolio is Chiriqui. The coastal area of Chiriqui begins as you pass through the mountains of Tole and approach a checkpoint on the Panamercian Highway. Just before this you pass by a nondescript road the leads to the coast. This is the Antigua Panamericana or old Panamerican Highway. I once took a trip through the region when I headed back to Santiago and saw a land that was lost in time when the new highway was created. Just ten minutes down the newly paved road off of the Panamerican highway, you begin to see mountains that drop down to the coast and have a westerly facing vantage point making for some spectacular views and incredible sunsets. There are a number of investors who visited this area long before me and are heavily invested in the area. This is one of the best kept secrets in Panama and an area where you can capitalize on its near term growth. Just an hour and a half from the international airport in David and accessible to a well protected marine waterway this area has the closest access to Coiba Island . Unesco declared the entire Coiba National Park a “World Heritage Site” in July 2005. Then there is Hannibal Bank and Isla Montuosa where record Marlin and Tuna are caught not to mention the many other species that we fish for on a regular basis. We have a number of opportunities to discuss with you should you wish to get in on the low basis still available there. An example is a property we recently sold for $280,000 where the owner sliced off a small piece selling it for $150,000 while retaining 85% of the master property. Here is a post that I did on this market and the changes since the new highway has been paved that take you from Quebrada de Piedra all the way to Santa Catalina. Roadway Connectivity Opening New Markets
Here is an aerial shot looking east at the mountains on the coast from a vantage point above a private ranch and playa.
And here we go looking back at the beach and ocean from a secret place in these coastal hills and mountains that we just visited again this past month.
The view is from Paradise Fishing , an appropriate name for an incredible spot on earth.
After a tough day battling huge fish, you can sip a cocktail at sunset from the lagoon pool!!
We then continue westward down the coast to Las Lajas beach and beyond to Boca Chica. We are currently working on a number of opportunities along the coast and we can suggest a few pieces of property there as well. Theses are “Off Market” opportunities for residential development projects where the builders have decided to move on and are willing to negotiate very favorable deals with developer terms. They are well located, have most of the initial infrastructure in place and would make an excellent project for the builder/investor.
As you may know, we made our home in the Chiriqui highlands in the town of Boquete where we live and we have a few opportunities there as well. While a lot of land has been developed, much of it is poorer quality with small projects that lack the economies of scale to provide the best of services that the communities like Valle Escondido offer.
I recently completed the sale of a nice duplex villa here in Valle Escondido then rented it for a year where the new owner is getting an 8% return on investment. We are about to close on a another deal in Valle that will also make an excellent investment opportunity. We are now offering a condominium unit for $249,000 that can also be easily rented on an annual basis. An article by the AARP ranked Panama high as well because of world-class infrastructure of roads, business services, exceptional medical care, and state-of-the-art telecommunications services. The number one haven for retirees and those preparing for retirement is the beautiful town of Boquete located in the highlands near Costa Rica. The coffee-growing area has been transformed in recent years, and some of the most sought after real estate of all. Baby boomers are retiring earlier than the previous generation, and the affordable luxury of Boquete is attracting them because it offers luxury Panama real estate at economic prices. Boquete is rapidly replacing Costa Rica, and other popular Central American destinations for fun in the sun and luxury retirement, according to a recent news article in “USA Today.” With 60 million baby boomers entering their retirement age, Boquete will be huge and is a good place to invest in today.
Contact us to discuss these opportunities. We would appreciate the opportunity to help you develop a well thought out acquisition plan and invest in a diverse portfolio of properties here in Panama.
Very truly yours,
Tom Brymer
In the US call 305-448-1003
In Panama call 507-6810-1074