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With the recession starting to show signs of recovery the newspapers are true to form. They are reporting more doom and gloom. Car sales are down and so are Panama home prices. That means, of course, that if you are shopping for a car or real estate for your home in Panama you will find some great deals!

The country of Panama is stable and a good place to call home. Panama is a democracy with a free market economy. Panama has the canal which generates more than half a billion dollars a year for the treasury. Panama City real estate is currently the best bargain it has been for years.

Cash Flow in Panama

Panama still has jobs and still is building. Folks are still getting paid although from what you read in the papers everything is going down hill. The rule of thumb for the stock market is that half way through the recession, stocks start to rise. That has been going on for a month. Because of a drop in discretionary spending there are some great deals in real estate, cars, and sales in the department stores.

The Panama Canal Authority (ACP) reports only a 3% drop in tonnage over a year ago. Thus the monthly checks to the treasury will continue. Regarding the Panama Canal, ACP, the folks who have run the Panama Canal since the American left are budgeting payments of $748.8 million to the national treasury this year. That works out to $1 per ton of cargo that passes through the canal.

The ongoing debate is how the money from the canal gets spent as it is meant to help with social causes. From the viewpoint of Panama real estate, investment, and business it is sufficient to see that the canal is still doing well, employing people and contributing to the national well being.

In general ACP has done very well since taking over as evidenced by an improved credit rating last year and the two and a half. In its first years of operation ACP improved canal transit times and has come to be seen as a competent, reliable, world-class organization.

For someone looking for a home in Panama the overall stability and competence of business here as well as the democratic government provide reassurance as the security of ones investment in this tropical paradise.

Regarding Panama real estate ABPanama believes that the current pause in the high end for the market for Panama homes will last a few months until the best deals are gobbled up. Somewhere in the next year or so the upward climb of property values in Panama will resume.

If you have questions about Panama’s real estate market, are looking to invest in real estate or just want to buy a home in Panama come to see us. We have over 23 years experience managing real estate portfolios, are bilingual, and do business throughout Panama.