A bill was presented to the National Assembly to regulate the leasing of real estate, so that the client who rents a property has the option to buy it.
In order to regulate the financial leasing of real estate known as real estate leasing or housing leasing, the Minister of Housing and Land Management (Miviot), Rogelio Paredes, was the official the Executive who presented the bill to the Assembly.
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According to Paredes, the “… legislation would turn a rental strategy into a leasing situation with an option to buy, since this legislation has the potential to reactivate the housing market, so its dynamism could reach projects throughout the territory.”
This formula will allow many young people and newly married couples to have a different option to purchase. The “millennials“, for example, are those who are not buying homes to settle down, which has become the new trend, said the head of the Miviot.
Learn more about the “Feasibility studies of real estate projects” that we carry out in CentralAmericaData.
According to the Assembly’s statement dated October 22nd, in order to promote practical results this financial instrument incorporates a package of incentives that seek to make the operation attractive to the financial sector and investors by concentrating them mainly on the exoneration from the payment of real estate taxes on the first purchase-sale operation, and the exoneration from the payment of ITBMS and the Special Interest Compensation Fund (FECI) on some transactions.
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Really the wrong approach other then for low income housing or social housing. On the high income housing Panama has a lot of supply and the building of more does not need to be stimulated at all. People often think to stimulate housing to stimulate the economy which is not clear thinking. Housing should be stimulated to have ample housing for people to live in, Which is the high end Panama has a lot of in the social housing they have very good programs in place now and there is a lot of construction going on now.
To stimulate the economy you have to increase the productivity of the country. The agriculture programs help with that as Panama still has a lot of potential growth in agriculture out put and could easily be a net producer of agriculture. They do have pretty good programs for that but should still keep putting energy in that, education is a big factor in all areas of Panama which they tend to ignore. Stupid people are just not that productive so Panama needs to have a much better educated population, and they do not even let teachers come to Panama so have programs that enforce stupidity, which is really stupid. Stimulating manufacturing would be a great thing but again modern manufacturing has high tech equipment and engineers are not allowed in Panama so they keep the country too stupid to do what needs to be done. Low end manual work factories help to give the uneducated people jobs but are low paying. They need to look at how to lift up the productivity of the people and the primary way to do that is education. Then increase productivity of things that can be exported or used locally thus reducing the need to import.