Before you think you have to wait another decade, let me tantalize your brain with logical reasons to buy a retirement property in Panama before you retire for good.
- Increased Demand for Panama. Panama has changed from a third world country to a leader in Latin America. Because Panama is so progressive, more and more expats are “discovering” Panama and buying vacation properties. Increased demand means property values have increased. In fact, some condos near the beach have almost doubled in price.
- Pre-Construction Pricing. Developers give great pricing to those who are willing to wait a few years for their slice of paradise to be built. Although you have to be selective in which projects to trust, there are some rock-solid developers. When working with a top-tier developer, your money is safe and secure. But don’t believe me. Look at their history of on-time delivery and their portfolio of properties.
- Rental Income. The same ocean view condos that have the ability to increase in value are also highly desirable as rentals. There is a formula we have learned over the past five years that lets us know which condos will make the best rental properties. If you follow this formula, you can use rental income to pay all of your vacation property expenses, vacation for free, and often times turn a profit.
- Financing. If you need to finance your vacation property, there are several options. Developer financing is easy-breezy and doesn’t require tax returns, W2 forms, fingerprints in blood, or your first born child put up as collateral. You simply give a copy of your passport and sign a finance agreement. Bank mortgages are a bit more complicated and require a pair of ruby slippers and a wizard behind the curtains to figure out. Thankfully, I have a mortgage broker who is the Wizard of Panama-Oz and can give you the secret handshake necessary to get a traditional bank loan. In a nutshell, your rate will vary based on your age, your residency status, and where you’re buying the property. If you’re interested in learning more about financing, contact me and let’s setup a phone call to go over your options. Then I’ll connect you with the Wiz.
- Baby Boomers Are Starting to Retire. The Baby Boomers make up a large chunk of the population. The oldest Boomers are already retiring, which means there is a lot of demand in popular retirement destinations such as Panama for retirement properties. Increased global demand means higher prices. The great news for Panama is that we are at the beginning of this upward swing. If you buy now, chances are good that your property will increase in value. Of course, where you buy and what you buy are extremely important… which is where I come up. I know which areas are HOT and which properties will probably increase in value.
- Property Tax Exemption. Panama has a program to encourage people to invest in Panama. It's a tax exoneration based on when the occupancy permit of the building was issued. For example, the occupancy permit for my building was issued December 31, 2012. That means every condo in my building doesn't pay property taxes until January of 2033. New construction has a 5-10 year tax exoneration. Buying while this program is still in place can literally save you thousands of dollars each year.
There are many reasons to pre-retire in Panama. Taking regular vacations here before you move for good makes sense. But it also makes financial sense.