The Case For Investing In Panama Houses
December 16, 2015
As recently as 2012 Panama enjoyed a higher GDP than China with an attendant growth in the quality of its citizens and an increase in disposable income meaning that both domestic and international investors were becoming interested in an increasingly attractive property market.
However, are houses in Panama still a great invest as we prepare to enter 2016?
Firstly Panama has a well earned reputation among those looking for financial privacy and an extremely low low individual tax burden. In fact the country allows the individual to enjoy a zero tax rate – and business also enjoys the same sort of tax rate. For those who want access to neighboring South American markets buying a house in Panama, either as corporate headquarters or an individual investment may be a stroke of financial genius.
As far as property is concerned Panama has seen a resurgence in 2015. In the really desirable neighborhoods of Panama property values are shooting up at double digit rates – and area outside of these area the returns are becoming more and more robust.
For those in search of rental returns it’s worth noting that tourism numbers are on the increase. Although the country went through a bad time during the global recession visitors are beginning to return to the shores of Panama in greater and greater numbers. 2016 should see these numbers increase even further.
The rental market is also influenced by the relative proximity to the American mainland. There has been a steady increase in the numbers of American tourists – although the tourism market is still dominated by visitors from South America.
The question around what sort of property is the best investment in Panama is one easily answered.
For those who want to enter into the property market at a low barrier then apartments represent excellent value. Beachfront apartments sell at a significant discount to comparable units in the United States. The fact that construction in these sorts of these areas is proceeding at an ever accelerating pace should encourage investors to investigate opportunities in this South American country.
The generally pro landlord legislation is also a great reason for savvy property investors to look along the Panama canal for houses and apartments. For those in search of great rental returns Panama City remains full of possibility, especially for those with deep pockets. The number of luxury apartments under construction promise exceptional returns at the top end of the market.
For those in search of landed houses the market may be slightly less attractive – especially in Panama City where expats are more likely to lease apartments.
All in all Panama has emerged from the global economic crisis relatively unscathed. The canal which is the lifeblood of this country’s economy continues to allow it to weather the worst storms of an increasingly volatile South American region. The reputation of the country as a crossroad of commercial enterprise and stunning views from Panama City will keep the country on the radar of property investors for the foreseeable future.
This post is also available in: Spanish