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Another burden has been added on top of the global credit crisis for the people of Colombia, Panama’s neighbor to the South. A gigantic pyramid scheme defrauded up to 500,000 people in Panama’s next door neighbor. According to Colombia television returns of up to 200 percent were promised to “investors.” The mastermind of the pyramid scheme fled to Panama where he was arrested and awaits extradition.

According to Colombia’s finance minister the losses from the pyramid or Ponsi scheme were sufficient to warrant a reduction of interest rates from Colombia’s central bank to help economic growth already imperiled by the global credit crisis. Colombia has been embroiled in a forty year long civil war which Colombia is finally winning. However, part of the government’s success has been because of an improving economy and the strengthening of the middle class. The more prosperity to more people makes the arguments of the leftist rebels less attractive. This pyramid scheme comes at a bad time on top of the world wide financial mess and looming recession.

Panama, Pyramid Schemes, and Investment in Real Estate

Panama’s involvement in this matter is probably limited to arresting David Murcia Guzmán, the self styled Robin Hood who ran the operation. Panama is preparing to extradite Mr. Mucia but is also looking to see if any Panamanians were defrauded in the pyramid scheme.

Panama Commercial Real Estate Investment instead of Pyramid Schemes

Otherwise, Panama is doing pretty well. The skyscrapers are still going up in Panama City. Employment is still up and, finally, there is hope that inflation is on the wane. Because of the attraction of Panama’s banking laws and the conservatism of Panama’s banks Panama has a lot of money and Panama did not give away its money with sub prime mortgages.

Panama real estate investment is still a great deal, especially commercial real estate investment. The flood of North American retirees may well be replaced by British and Europeans visiting and moving to Panama. With the credit crisis in the USA reducing American demand for high end housing in Panama the market (on the high end) is in a pause. This is, in fact a great time to buy a home in Panama. However, the better long term prospect is commercial real estate.

Panama broke free of the perception that it was a colony of the USA with the handover of the Panama Canal to Panama. Foreign investment in Panama is the highest per capita in all of Latin America. Panama is not just building high rises on its real estate. Panama is improving its already best in Latin America infrastructure. Road improvements, port improvements, and the Panama Canal Expansion megaproject are employing workers and laying the groundwork for Panama’s future success.

Commercial real estate investment ties into Panama’s ten percent per year domestic growth rate. Commercial real estate investment allows you to receive monthly lease payments in a thriving business environment, watch the value of your real estate investment appreciate, avoid the rent controls of the housing rental market, and avoid the headaches of running your own business in a foreign country.

If you are interest in investment in commercial real estate in Panama and avoiding pyramid schemes come to see ABPanama for trustworthy and competent advice regarding the commercial real estate investment market. And by the way, if your real estate investment desires run to condos on the Bay of Panama we can find you a deal before prices start moving up again.