Panama Real Estate Blog

Americans are driving the second home market, and redefining it in the process. Baby-boomers contin­ue to expand the market with their increased buying power. And they have begun to turn their attention more serious­ly to locales outside the U.S.

The move toward international second homes comes as no surprise to the analysts who have tracked boomers for decades. Globalization and the internet have made it easy for these adventuresome Americans to look beyond U.S. borders for investment and recreation. Boomers are being romanced by international hot spots, and they’re looking to invest in the attractive global real estate markets.

The National Association of Realtors® (NAR) confirms the phenomena. “We have seen this trend in Americans buying vacation homes abroad,” says Jeff Hornberger, International Market Development Manager for the NAR.

Hornberger says Read more

The international second home market is booming. Over four million Americans currently live abroad, with that number expected to grow significantly as more baby boomers reach retirement age. At current rates, more than 13,000 people retire every day in the U.S. Many of these retiring boomers are considering moving abroad.

If you are one of those looking for the ideal retirement spot, you might like to take a long look at Panama.

Compared to other traditional retirement spots such as Mexico and Costa Rica, Panama is gaining in popularity as a second home or retirement destination. For many, inexpensive real estate, low cost of living, beautiful scenery, fabulous climate and a relaxed pace put Panama at the top of the list of tropical getaways.

Along with all the other incentives, Panama offers one of the world’s broadest discount programs for retirees, with up to 50 percent off everything from airfares to movies, public transportation, mortgage rates, doctor’s visits, electricity, and restaurants.

The country is also known for its low tax burden. If you qualify for Panama’s pensionado (retiree) program, you are entitled to Read more

DONALD TRUMP can’t be wrong, can he? Trump has fallen so much in love with Panama that he is building a $220 Million, 65 story (2.4 Million square foot) hotel/condo monoliths called the Trump Ocean Club International Hotel & Tower in a posh Panama City neighborhood. Trump will build 500 luxury condominium units along with a 312-room hotel. This complex will include a casino, private beach club and a marina. Groundbreaking is scheduled around this Christmas with a completion date in 2009.

Why is Trump doing this in Panama of all places? In an April 24, 2006 press conference in New York, Donald Trump said his interest in Panama was sparked three years ago when his “Miss Universe” pageant was held in Panama. He saw that Panama city was “beautiful” and vowed he would develop there if the right opportunity came up. His project was “easily funded”, noting that as many as seven “major financial institutions were fighting to put up money.” He agreed that “Americans are coming in droves to Panama,” due to it’s political stability, low cost of living, low interest rates, and being located outside of any hurricane path. “It’s great for baby boomers.” Trump said, although the project will be marketed worldwide. The condominium units will start at $180,000 with unobstructed ocean views.

Panama is just beginning to realize a real estate boom!

Besides Trump, many international real estate investors are also discovering Panama.
For example:

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This program allows foreigners to obtain legal residency in Panama under the condition that they are retired or pensioned. According to the Immigration Department of Panama, there is no minimum age required to qualify. Yes, that means even an 18 year old can qualify! Here’s the only requirement: The applicants’ retirement income (or pension income) must be at least a lifetime US$500 per month. For each dependent, the retirement income (or pension income) amount must be increased by US$100. The applicants’ income must be proven by providing documentation such as a letter from the institution or corporation that pays the retirement or pension income. This certification must be notarized and authenticated by the Panamanian Consulate nearest you (or by apostil). Permanent Residency obtained through the Pensioned Visa Program provides the holder with a Permanent Residency Card for certain discounts and exonerations of certain taxes.Pensioned Visa holders do not qualify for Naturalization (Citizenship). If Client wishes to obtain Naturalization (Citizenship / passport), which can be obtained
after five (5) years of being a Permanent Resident, Client would have to apply for a different type of Visa, such as Self Economic Solvency Visa, Reforestation Investor Visa, etc.

Procedures for Applying for Residency:
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Buying a home is, for many of us, the most substantial, single investment we’ll ever make. Knowing this, most homeowners provide for the security and safekeeping of their homes by insuring them against hazards such as fire, theft and weather damage. Yet, another hazard can pose an even greater risk to home ownership: defects in the title.

Title defects can cause a homeowner to lose part or all of the investments in real property. Fortunately, you can protect your investment from these title defects, by purchasing title insurance.

Here are some frequently asked questions and answers regarding title insurance and its importance in your real estate investment.

What is title?

Title is a collective term that makes up your legal rights to own, possess, use, control and dispose of land. Title takes into account all previous ownership, uses and transfers. In order to legally transfer real estate property, a title search must be performed, and in most cases, the title must be determined as clear or free of defects or encumbrances.

What is a title defect or encumbrance?

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FIRST (Finding a Property): Contact us to let us know what type of property you are looking to rent. iRi Group will help you narrow your search in finding quality real estate investments. If you have any questions about any particular listing, please feel free to contact us

SECOND (Negotiation): Once you find a property that you wish to rent, we will assist you to negotiate the price and terms. Once we have negotiated and agreed to the terms (rental price, lease terms, payment form, Broker’s commission, etc.), then all of these details are inserted by the broker on a property transaction form.

THIRD (Rental Contract): The information from the property transaction form is provided by the broker to the attorney, who drafts the Rental Contract, which is signed by both parties. A deposit, equal to the first months rent, is provided to the Broker, for payment to the MIVI (Ministerio de Vivienda/ Ministry of Housing). The first months rent (or in some cases two months rent, depending on the agreed terms) is paid to the land lord.

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