Understanding Carrying Costs for Owning a Panama Property

Owning a property, whether it's an oceanfront condo in Panama or a beachfront property in Miami, comes with various ongoing expenses beyond the initial purchase price. In this blog, we'll explore the carrying costs associated with owning a Panama property, using a $450,000 oceanfront condo in Panama City as an example, and compare it to a similar property in Miami and San Diego. Let's break down the expenses and determine the monthly and yearly carrying costs for each.

First, I wanted to find apples-to-apples property comparison. I chose one of the more expensive properties that we have for sale in Casa Bonita, my favorite beachfront community located just outside of Panama City. You can see the property here.

Then, to find the right comparison, I went to Realtor.com and typed in the size with an ocean view view in Miami. I narrowed the field by adding just a few amenities--a swimming pool, 24-hour security, a gym, secure parking and a building under 20 years old. Amazingly, I got just a few options, even though my search included all of Miami.

I then repeated this process in San Diego. I wasn't able to get all the amenities that were more abundant in Miami, but I was doing my best to be the most fair on the choices. I've included the screenshot of each listing as I don't know how long the listing itself will be up.

The Panama Property

Panama Property - Details:

• Oceanfront Condo in Playa Bonita, just outside of Panama City
• Price: $550,000
• Size: 1450 square feet
• View: Full Panoramic Ocean View
• Building Age: 2012
• Property Tax Exoneration Until 2032

Panama Property - Monthly Carrying Costs:

1. HOA Fee: $250
2. Electricity: $150
3. Cable and Internet: $80
4. Insurance: $46
5. Property Land taxes: $42
6. Total Monthly Carrying Cost: $568
7. ​Total Yearly Carrying Cost: $6816

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The Miami Property

Miami Property - Details:

• Collins Ave in Miami
• Price: $2,095,000
• Size: 1525 square feet
• View: Direct Ocean View
• Building Age: 2006

​Miami Property - Monthly Carrying Costs:

1. HOA Fee: $2,722
2. Electricity: $230
3. Cable and Internet: $217
4. Insurance: $786
5. Property Tax: $2,091
6. Total Monthly Carrying Cost: $6,046
7. Total Yearly Carrying Cost: $72,552

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The San Diego Property

San Diego Property - Details:

• San Diego Bay area
• Price: $1,499,000
• Size: 1456 square feet
• View: Ocean View with a few buildings in front 
• Building Age: 2007

San Diego Property - Monthly Carrying Costs:

1. HOA Fee: $1,572
2. Electricity: $313
3. Cable and Internet: $217
4. Insurance: $375
5. Property Tax: $1,561
6. Total Monthly Carrying Cost: $4,038
7. Total Yearly Carrying Cost: $48,456

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Key Takeaways:

• Oceanfront property in Panama costs exponentially less than a similar property in either Miami or San Diego.
• You can pay the carrying costs of the Panama property for an ENTIRE YEAR for what you have to pay in just one month in Miami.
• Although the carrying costs of the condo in San Diego are about one-third less than that of one in Miami, it is still many times higher than Panama.
  
  

Conclusion:
When considering the ongoing expenses associated with owning a property, it's evident that Panama offers a more affordable option compared to Miami. With lower HOA fees, property taxes, and insurance premiums, owning an oceanfront condo in Panama presents a financially attractive opportunity for investors seeking value and ease of ownership. Whether you're looking for a vacation home or a long-term investment, understanding carrying costs is essential for making informed decisions in the real estate market.