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A recent on line article in the South Bend, Indiana Tribune reminisces about layaway plans. The author writes about cost saving measures during economic hard times and how her parents always bought the kids’ clothes on layaway.  She notes that K-Mart has a layaway program and that layaway programs might be making a comeback in the USA.

Layaway programs never left Panama. You probably will not see them in the upscale malls but along Via España in Calidonia (Panama City) everything from home appliances and furniture to clothes are available for half down and payments over the next three months.

Several of the department stores also have “clubs” where patrons pay $5 a week for 26 weeks. During the 26 weeks there is a weekly lottery for a $100 prize. At the end of the 26 weeks you go shopping, usually for Christmas, and apply the 5 x 26 = $130 to your purchases. Ask at Picadilly or Oca Loca (Crazy Goose) about their “cloob” or club. Of course that means you will be in their store looking and buying every week for half the year. That is probably part of the rational behind layaway plans too. More visits mean more sales.

An interesting part of layaway plans in the USA versus Panama is that Panama will probably survive the economic downturn a lot better than the North America or Europe. Business is still humming in Panama City and the construction projects are still manned. Part of this is Panama’s conservative nature to pay cash and stay solvent.

Panama’s conservative banks seem not to have gotten into sub prime mortgages and still have money to lend. Panama also has the advantage of being a Central American Switzerland. Panama City’s bancaria (banking district) is as heavily populated with banks as the bank areas in Switzerland. The very wealthy have been putting money in Panama banks for years because of banking privacy in Panama.

Thus Panama business and real estate investment is still well financed in Panama. Because Panama’s Balboa is tied one to one to the dollar Panama has not seen its currency fall since the global credit crisis. The fact that there is typically a flight to the dollar during economic crisis is helping Panama’s cost of living.

Real estate investment projects are going to save on structural steel and the ingredients for cement, both imported. Panama labor is still low priced and people typically work six day weeks.

Panama real estate investment has done well for a decade. The high end of the real estate market is flattening out as North America home owners deal with credit issues back home. Now, in fact, is a great time to buy residential real estate in Panama.

Panama commercial real estate remains a good idea, both in the short and long term. Panama is expanding its trade relationships, more than doubling the Panama Canal’s capacity with an expansion project, and continually improving its road, ports, airports and communications. This activity not only provides jobs for now but more importantly provides the basis for successful investment in business and commercial real estate in Panama for years to come.

If you have in interest in living in Panama or an interest in commercial real estate in Panama come to see us at AB Panama Real Estate . We have over 23 years experience managing real estate portfolios.