How to Make a Property Investment in Panama
If you are thinking of buying as first, second home or investment property, should consider the following factors before making the first move: Location: Always consider carefully select the location of your property investment.
This ensures a good Valuation and salability.
There are many factors to consider.
It is not the same a commercial real estate, that a luxury penthouse.
But not the same a penthouse in middle zone that the same penthouse in a high or medium high.
Mortgage: In Panama it is possible to get a mortgage for a national or non-national.
Banks provide financing to non-nationals between 50% to 70% of the sale value of the "venta rapida", quick sale, made by a recognized appraisal company in the country.
Check with your bank which appraisal companies are accepted before to make an appraisal by your own.
Also for some nationals of countries with unstable currencies and economies need to show an account in dollars.
The bank seeks to verify their ability to cover the obligation in the event of political or economic instability.
The banks accept a debt ratio to 30% of income (the) or debtors.
The term bank financing is different for domestic and foreign.
For a citizen the term can be up to 30 years depending on age.
For a foreigner the credit can reach 20 years.
The credit term is directly proportional to the years of coverage that gives you life insurance.
Appraisal: The Appraisal is a reference to the value of the property at a given time that can vary over time, but it is not the last word.
There are properties that can be sold above market value because the property has tremendous potential, or can have and even demand.
If you plan to finance your Real estate investment with local bank, the bank takes as a benchmark for the financing of its property, known locally as quick sale ranging between 10 and 15% below market value.
Life Insurance and Fire Insurance: all the credits mortgage in Panama are covered by life insurance.
The maximum age to be eligible to take a life insurance policy depend of the insurance company but is more than less until the 69 years old.
Depending on your Broker relationships and physical condition may make some exceptions.
Some companies are more flexible than others with expats.
The Fire insurance in Panama includes other coverages such as lightning, earthquake, vendabal, air impact.
The cost of a fire insurance per thousand of sum insured is between 7 and 8 cents annually.
In the case of a commercial real estate, the value is subject to a prior inspection and has strongly influences in the cost of the fire insurance many factors as: the location of the property and the prevention measures have the property.
Taxes: There are 2 things we can not avoid in life, death and taxes.
When buying a property in Panama You should consider two types of taxes.
1.
The tax on property improvements and the tax on the ground.
Subject to certain conditions some properties in Panama are exempt from tax on the improvements for periods ranging from 5 to 20 years.
On the other hand generally pays property tax field.
Your estate broker and your attorney can jointly advising you on that topic.
On the other hand if you want to sell a property, should consider in the value of sale the following taxes: 2% known as "alienation" and 3% on the sale value of the windfall.
Maintenance: Most condos (PH) pay a monthly fee to help cover the main common expenses that has a set of apartments, houses, offices, warehouses or commercial real estate built to condo law.
Act 31 of 2010.
When purchasing a property you need to consider that the property maintenance is a charge additional in your budget and affects the profitability of your investment.
Lawyer: It is vital to have a good lawyer who has experience in building contracts, buy and sell and extensive knowledge of the commercial code, also a plus is tax knowledge.
Licensed Real Estate Broker: something no less important is to have a good real estate broker.
It should be your right hand and take an active part throughout the operation.
It is very important that he must be licensed.
This assures you that the professional has a minimum of knowledge of land use, zoning rules, laws and incentives.
Also, being a qualified professional you are covered by a performance bond of US$10,000 for negligence or mismanagement.
The license is issued by the Technical Board of Real Estate and Panama, attached to the Ministry of Commerce and Industries.
You can file complaints or claims the Technical Board and Real Estate.
This ensures a good Valuation and salability.
There are many factors to consider.
It is not the same a commercial real estate, that a luxury penthouse.
But not the same a penthouse in middle zone that the same penthouse in a high or medium high.
Mortgage: In Panama it is possible to get a mortgage for a national or non-national.
Banks provide financing to non-nationals between 50% to 70% of the sale value of the "venta rapida", quick sale, made by a recognized appraisal company in the country.
Check with your bank which appraisal companies are accepted before to make an appraisal by your own.
Also for some nationals of countries with unstable currencies and economies need to show an account in dollars.
The bank seeks to verify their ability to cover the obligation in the event of political or economic instability.
The banks accept a debt ratio to 30% of income (the) or debtors.
The term bank financing is different for domestic and foreign.
For a citizen the term can be up to 30 years depending on age.
For a foreigner the credit can reach 20 years.
The credit term is directly proportional to the years of coverage that gives you life insurance.
Appraisal: The Appraisal is a reference to the value of the property at a given time that can vary over time, but it is not the last word.
There are properties that can be sold above market value because the property has tremendous potential, or can have and even demand.
If you plan to finance your Real estate investment with local bank, the bank takes as a benchmark for the financing of its property, known locally as quick sale ranging between 10 and 15% below market value.
Life Insurance and Fire Insurance: all the credits mortgage in Panama are covered by life insurance.
The maximum age to be eligible to take a life insurance policy depend of the insurance company but is more than less until the 69 years old.
Depending on your Broker relationships and physical condition may make some exceptions.
Some companies are more flexible than others with expats.
The Fire insurance in Panama includes other coverages such as lightning, earthquake, vendabal, air impact.
The cost of a fire insurance per thousand of sum insured is between 7 and 8 cents annually.
In the case of a commercial real estate, the value is subject to a prior inspection and has strongly influences in the cost of the fire insurance many factors as: the location of the property and the prevention measures have the property.
Taxes: There are 2 things we can not avoid in life, death and taxes.
When buying a property in Panama You should consider two types of taxes.
1.
The tax on property improvements and the tax on the ground.
Subject to certain conditions some properties in Panama are exempt from tax on the improvements for periods ranging from 5 to 20 years.
On the other hand generally pays property tax field.
Your estate broker and your attorney can jointly advising you on that topic.
On the other hand if you want to sell a property, should consider in the value of sale the following taxes: 2% known as "alienation" and 3% on the sale value of the windfall.
Maintenance: Most condos (PH) pay a monthly fee to help cover the main common expenses that has a set of apartments, houses, offices, warehouses or commercial real estate built to condo law.
Act 31 of 2010.
When purchasing a property you need to consider that the property maintenance is a charge additional in your budget and affects the profitability of your investment.
Lawyer: It is vital to have a good lawyer who has experience in building contracts, buy and sell and extensive knowledge of the commercial code, also a plus is tax knowledge.
Licensed Real Estate Broker: something no less important is to have a good real estate broker.
It should be your right hand and take an active part throughout the operation.
It is very important that he must be licensed.
This assures you that the professional has a minimum of knowledge of land use, zoning rules, laws and incentives.
Also, being a qualified professional you are covered by a performance bond of US$10,000 for negligence or mismanagement.
The license is issued by the Technical Board of Real Estate and Panama, attached to the Ministry of Commerce and Industries.
You can file complaints or claims the Technical Board and Real Estate.
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