Top 5 Reasons To Invest In Real Estate In Panama

Have you ever wanted to purchase a vacation property? It can be nice to know that when it is the dead of winter in your home town that you own property somewhere else in the world that you can visit at your leisure! But vacations aren’t the only reason you should consider owning property abroad, and there are several reasons to purchase property as an investment in a country like Panama.

Whether you are new to the real estate world, or simply looking to expand your portfolio, Panama can be a great place to purchase property. Below are some of the top reasons you should consider purchasing a property within the country of Panama.

#1 Panama Is Affordable

Those looking for an investment, as well as those looking for a vacation home, will love the fact that Panama is extremely affordable. You can buy a home that is already constructed for fairly cheap, whether it is in a big city or a quaint beach side village. And if you decide that you want to buy land and build your own place, this is also inexpensive and a possibility on almost any budget.

Besides just acquiring your place, living in Panama is affordable too. So if you vacation in your property, or move into it full time at some point, you will reap the benefits of the low costs of food and public transport. It’s also important to note, however, that Panama, while cheap, it’s actually financially safer than most other tropical countries in the region. This is because their local currency is tied to the US dollar, granting you the same price security and preventing the Panamanian government from printing more money.

#2 Panama is a Safe Investment

Beyond the affordability, investing in property in Panama is much safer than in other countries in the area. This is because the government has several laws in place that protect foreign investors that neighboring countries don’t have. Plus there are laws within their constitution that guarantee that the property you purchase will be yours to privately own. You will also be granted the exact same legal rights as Panama citizens when it comes to your property. This is something that Americans don’t often think of, but it can be a huge problem in lesser developed countries around the world.

When you look at the safety of a country, you also need to look beyond financial safety and also consider your personal safety when it comes to crime rates. The good news is, Panama is a relatively safe country with much lower crime rates than its neighbors Costa Rica and Mexico. This also means that more people are likely to visit the country, making it easier to rent out your property to tourists if that’s what you plan to do.

#3 It is Very Easy to Move to Panama

Regardless on if you plan to live in your rental, or if you plan to rent it out to others, it’s important to take a look at how easy it is to visit and move to the country you plan to buy in. This is because if it’s difficult to visit and move there, then it will probably be difficult for you to find enough tourists to rent out your property as well.

The relocation and immigration laws in Panama are some of the easiest to navigate in the western hemisphere. There are several programs that can help you relocate and gain residency just by setting up a business within the country. You can also apply to work for a Panama country if you wish, rather than starting your own business.

#4 The Weather is Beautiful

As people get older and near retirement age, they often want to move to a location because of the warm and sunny weather rather than because of a job. This works in your favor in one of two ways, either it is easier to rent out your property because retirees are wishing to move to Panama, or it is a great option for you to retire there when you get older.

When buying in a tropical area, you also need to consider the possibility of bad weather—as this can destroy your investment. Panama is deep inside the Gulf of Mexico, meaning it is rarely hit by hurricanes, and other tropical storms that plague the Caribbean islands and Florida. Thus it is much less likely that a property built or purchased in Panama would be damaged by storms than those you may be considering elsewhere.

#5 Panama is Growing—Fast

One aspect you absolutely must consider when purchasing or investing in a property is what your expected return is going to be. And in Panama, it is currently a real estate and economic boom. This means several things. First and foremost, Panama is growing, and it was one of the few countries that was not affected by the financial crisis in 2008. This means it is unlikely that Panama will be affected by future crashes that may hit other markets around the world. Panama actually has one of the strongest economies in Latin America.

Panama is continuously building—meaning you will have quite a selection of properties to choose from, this isn’t the case in other parts of the world! But even though they are continuously building, there is actually a shortage of hotel rooms within the country because tourism is increasing at a rate of 10% per year, meaning there will likely never be a problem renting your vacation home out to visitors! Also, Panama is currently building state of the art public transport. This means that getting around within the country will soon be easier than ever—so you don’t have to worry about choosing a good location when selecting your investment property!

Conclusion

No matter what your reasons for investing in a property in Panama are, go for it! Panama is one of the most affordable and safest investments in real estate you can make, especially if you are interested in Latin America. Plus then you will have an awesome vacation home to show off, or a cushy place to retire someday when you are ready!