You are here :: Panama Real Estate » Panama-real-estate » Panama-real-estate-fund

The word is out. There are great deals in Panama real estate! Not only are individuals looking for great bargains in real estate in Panama but real estate investment funds are targeting Panama too. The recent real estate booms in Panama and elsewhere not only attracted retirees and expatriates looking for great real estate at great prices. The recent real estate booms attracted speculators too. Now, with the current pause in the high end of the Panama real estate market, speculators are getting out, often at a loss. Wise investors are looking for property in Panama now, before prices start on their way up again.

Real Estate Funds and High End Panama Real Estate

In a recent Google search for Panama real estate we ran across a real estate investment fund which is seeking to raise nearly $200 million to target bargain properties in the Caribbean and Central America. Panama is prominent in this company’s plans.

From the viewpoint of ABPanama there are great deals to be had today in high end Panama real estate. Although the bulk of Panama property is sold to expatriate and retirees who come to live here in Panama there has been a substantial amount of property bought at pre-construction by speculators who intended to flip their investment prior to the finish of construction. This strategy worked well for several years as Panama real estate prices climbed yearly. Now the high end of Panama’s real estate market is in a pause.

There are still buyers from North America, Great Britain, Continental Europe, Latin America, and Asia. Many international companies are establishing a presence in Panama and many expatriates are still attracted by Panama’s pro business environment, low cost of doing business, and low real estate prices when compared to elsewhere. However, there has been a reduction in the number of buyers as North Americans and others deal with credit problems back home. It is this temporary reduction in buyers that has speculators caught up short. It is this temporary reduction in high end property buyers in Panama that presents an opportunity for individuals as well as real estate funds.

Real Estate Funds versus Private Investment

A problem with real estate fund investment is that every country in the Caribbean and throughout Central America is different. In many cases property values may still decrease. In Costa Rica, for example, it was hard to get bank financing for North Americans who wanted to purchase Pacific beach front property in Guanacaste Province. Thus many took out second mortgages on their property back home.

When housing values in the United States dropped many had to sell their homes in Costa Rica at a loss in order to cover their US mortgage. It is unclear as to whether or not this problem has been remedied in Costa Rica. On the other hand Panama has provided home loans to foreigners and Panama banks are still solvent. No one with a Panama mortgage has to sell Panama property at a loss to cover their home mortgage in the USA or Canada.

If you are looking for Panama real estate strictly for investment our suggestion at ABPanama is to invest by yourself. Panama’s high end properties are a good deal now and are likely not going to drop substantially in the next year or two before the world’s financial mess begins to correct itself. Investing by yourself in Panama you will not see your investment diluted by the profits going to the owners of a real estate fund nor will you see profits diluted by the further decrease in value of properties outside of Panama.

If you are looking for a home here in Panama or commercial real estate to lease to one of Panama’s thriving businesses come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and we do business throughout Panama.