News

Is now a good time to buy Panama property?

admin — Mon, 30 Jan 2012 13:34:00 GMT

The latter part of 2012 could be the right time to invest in real estate in Panama, with one expert in the country expecting property prices to begin to rise from 2013.

In an article for The Panama Report, Kent Davis, from Panama Equity Real Estate, explained that values are likely to fall by between 10 and 20 per cent in Panama City this year, largely as a result of the number of construction projects coming to an end.

However, he went on to predict that prices will pick up again in 2013, and this will happen "in a manner never seen before due in part to a completely modernised transport system and increased revenue from an expanded Panama Canal".

Source: PropertyShowrooms.com

Panama 'a top destination for retirees'

admin — Fri, 13 Jan 2012 06:34:00 GMT

Panama has been named among the most desirable destinations for people to retire to by a new study.

Reuters reported on the Retirement Index 2012 released by International Living magazine, which cited the South American nation among the top three places in the world to live after retirement.

One of the reasons why buying a property in Panama may be an attractive prospect is the low cost of living in the country, one expert claimed.

Speaking to the news provider, special projects editor for International Living magazine Dan Prescher commented: "The proposition is that you can live better for less, and not sacrifice anything, if at all, in quality of life and still live on half or less of what your cost of living would be in the US or Canada."

Source: PropertyShowrooms.com

Trump opens 70-story luxury hotel in Panama

admin — Fri, 08 Jul 2011 07:34:00 GMT

The sail-shaped structure, soaring 284 meters into the sky, is a resort and residential complex that joins the real estate boom in Panama City. Panamanian president Ricardo Martinelli and top officials were present at the ceremony.

“I want to thank Donald Trump for coming to Panama to invest in Panama and Panamanians for this opportunity to host one of the most important and beautiful buildings,” said President Ricardo Martinelli, adding that “I'm sure it's going to be on many postcards.”

The Trump Ocean Club reflects “the modern sensibility of the new generation of luxury travel,” the company said in an invitation to the inauguration of the resort, where the cheapest room costs 300 USD per night and homes sell for 250,000 to 1 million USD.

With an investment of 430 million USD, the resort designed by Colombian architecture firm Arias Serna Saravia is home to 47 suites, 37 elevators, a spa, marina, casino and an island with a private beach. It also boasts a 900-square-meter terrace with an oceanfront pool, personalized butler service and a convention centre stretched across 4,200 square meters.

Source: MercoPress.com

Trump to open Panama City hotel July 6; others to follow

admin — Mon, 06 Jun 2011 11:56:00 GMT

The Trump Hotel Collection will open its sixth hotel in Panama City on July 6, possibly giving the growing hotel chain a jump on its bigger rivals in this growing business destination. I

ntroductory rates start at $279 a night for all bookings made through July 31; the deal includes complimentary breakfast and a 20% bar discount. After that, expect rates to start at $349.

Once the 369-room hotel's been operating a while and, like any new hotel, works out any kinks it might have, Trump Hotel Collection chief Jim Petrus said he expects the hotel rates to average, $400 a night. If true, it would make it one of Panama City's priciest hotels. (The developer posted images of the building's progress from a webcam on the hotel-condominium's website.)

With its unmistakable, sail-like shape that's easy to spot on the skyline, the tower also highlights a city that's becoming an increasingly popular destination especially with Americans. Petrus is counting on Americans to fill roughly 50% of the hotel's rooms.

Source: USA Today

Hard Rock to open first Hotel in Panama

admin — Thu, 26 May 2011 07:12:00 GMT

Marking its 16th property, and its first in Latin America, Hard Rock International today announced that the Hard Rock Hotel Panama Megapolis is expected to open in December 2011. The 66-story hotel, located in Panama City just a few miles from one of the Seven Wonders of the Modern World, the Panama Canal, will offer stunning panoramic views of the city and Panama Bay, with its yachts and sailboats. Hard Rock Hotel Panama Megapolis, which brings the acclaimed "Hard Rock Hotel experience" to an ever-popular global tourist destination, is developed and owned by Megapolis Investment Group and will be managed locally by Decameron Hotels & Resorts.

Located on Balboa Avenue, and connected by bridgeway to the cross-street Multicentro Mall and the Megapolis Convention Center, currently under construction, Hard Rock Hotel Panama Megapolis is situated on more than three-quarters of an acre, with lush landscaping and an oversized, free-form infinity pool with private cabanas. The hotel will have 1,499 rooms, including 796 suites, ranging in size from 462 square feet to 2,659-sq. ft. Rock Star Suites, a signature of the Hard Rock brand.

In addition to the existing Hard Rock Cafe in the attached Multicentro Mall, the hotel will offer eight food & beverage outlets, including an indoor/outdoor bar & club on the 62nd floor – an exclusive place to be seen, and to enjoy a bird's-eye view of the city and distant mountains – as well as a breakfast, lunch & dinner buffet. For those seeking relaxation, there will be a 7,800-sq. ft. Rock Spa® featuring 14 luxurious treatment rooms, and a Rock Shop® store for guest necessities and souvenirs. The hotel will also offer business travelers and special event patrons 24,250 square feet of flexible meeting space to accommodate gatherings large and small.

Throughout the hotel, guests will be able to see and experience an abundance of authentic rock memorabilia and state-of-the-art technology, including Hard Rock Hotel's popular amenity program The Sound of Your Stay®, which lets guests download complimentary music from distinct curated playlists.

Source: PRNewswire.com

Americans flock to Panama for next to no living costs

Sarah Kendell — Tue, 26 Apr 2011 11:33:00 GMT

If France represents the ideal retirement destination for Britons, where living costs are cheaper, friends and family just a few hours away and technology sophisticated enough to be able to keep the business ticking over remotely, then Panama is fast becoming a similar possibility for Americans and Canadians. The tax-free status on goods within the ‘Special Economic Area’ of Panama Pacifico has already made it an important place for many international businesses to set up shop, but the nation’s fantastically low cost of living, great scenery and attractive national benefit schemes are now making it an equally desirable destination for residential homebuyers.

“We have been here almost four months now, and we plan to stay for 10”, Canadian Susan Roussel, who decided to try out living in the beachside town of Gorgona earlier this year with her husband and young son, told International Living. The family have found living costs to be around 50% of that in their native city of Alberta. “Even a steak dinner is at least half the price”, Roussel said.

Panama’s Pensionato program also boasts amazing benefits for retirees who settle in the country. Those who sign up for the scheme can import their household goods and cars free of duty tax, while also receiving up to 50% discounts on local living expenses, including 50% off closing costs on home loans. The country is now moving to further relax immigration laws to make relocation to Panama more attractive across the board, local attorney Rainelda Mata-Kelly told International Living’s Live & Invest in Panama Seminar earlier this week. “The current government is interested in making the immigration law more accessible”, she said. “The president wants to encourage retirees and medium- to high-net-worth individuals to come and live in Panama.”

With business expansion occurring at a rapid rate in the commercial hub of Panama City, but little accommodation or infrastructure there to cater to the growing workers, buy-to-let investors should also see fantastic returns. The country’s banking sector grew by 11.4% in 2010 according to the Panama Bank, and it has just been chosen to be the headquarters of the Central American Council of Superintendents of Banks, proving its status as the region’s financial core.

Interested in property in Panama?
Browse our listings of apartments, houses and other property for sale in Panama here: http://panama.themovechannel.com/property/all/

Panama to become financial hub for Central America

admin — Wed, 06 Apr 2011 11:39:00 GMT

Panama is well on the way to becoming the financial hub for Central America, as it has just been chosen to be the site of the Central American Council of Superintendents of Banks permanent headquarters.

The aims of this agency are to ensure close corporation between member countries. These member countries currently consist of the Dominican Republic, El Salvador, Guatemala, Costa Rica, Honduras, Nicaragua, and of course Panama.

Alberto Diamond, Panama Bank superintendent has said that the country's financial hub grew by around 11.4% in 2010 and has consolidated assets totalling $71.3 billion. Net revenue was $1.67 billion which is 16.1% more than 2009, and much of this came from foreign exchange transactions and commissions and dividends.

The banking industry here is quite conservatively managed which led to Panama banks achieving just over 65.7% asset liquidity in 2010 which is more than twice the required 30%.

Source: Property Abroad

New international airport planned for Panama

admin — Thu, 24 Mar 2011 11:52:00 GMT

Houston we have a location: Panama President Ricardo Martinelli says the site of Panama’s new international airport will be the beach town of Rio Hato.

The government has long been studying the viability of a new international airport in the Pacific coast region. Panama is known as the Hub of the Americas, but the only major airport is Tocumen International. Airports in cities like Colon and David offer primarily domestic flights. An international airport on Panama’s Pacific coast would make it easier for travelers to head straight to the beach without having to go through Panama City.

Now, most beach-goers fly into Tocumen International. Late arrivals tend to spend a night in Panama City before getting ground transportation up the Pacific coast. Thus, visitors often “lose” a day they’d rather spend at the beach.

Rio Hato is approximately two hours by car from Panama City, and the district is home to many resorts and beach communities. According to Martinelli, the government selected Rio Hato because it was the cheapest place in the area to build. An airport anywhere else would cost an estimated $1 billion, while the government estimates it can build one at Rio Hato for $33 million, thanks to the existing airport infrastructure.

Auxiliary construction, including an access tunnel from the PanAmerican Highway, will cost another $50 million.

Located in the province of Cocle, Rio Hato is known for it beaches and its car races…it is even known as a good place to skydive . White sand beaches in the district, from Punta Chame to Farallon, are often referred to as the “pearls of the Pacific.” Here you’ll find popular resorts like the Royal Decameron , Playa Blanca, Breezes, and Buenaventura.

Source: NuWire Investor

Panama rolls out Central America's first subway

admin — Wed, 16 Feb 2011 11:26:00 GMT

Construction on the first metro in Central America began in Panama City Monday, a 1.6 billion dollar project that will open to riders in 2014.

"Today we are beginning construction of line one of the Panama metro," Metro General Secretary Roberto Roy told AFP.

The subway - the ninth in Latin America but the first in Central America - is being built by an international consortium that includes France's Alstom, Brazil's Norberto Odebrecht and Spain's Fomento de Construcciones y Contratas. Alstom will design and build the trains and electro-mechanical systems for the metro.

Roy said the system will open with an initial capacity of 15,000 passengers an hour in each direction with more being added over a period of years to peak at 40,000 passengers.

The dig begins in Panama City's historic Cinco de Mayo Plaza where the first station will be built. Pipes, posts and other obstacles were being removed to clear the ground for the station, Roy said.

Source: The Independent

Tax benefits drive tourism investment in Panama

admin — Thu, 10 Feb 2011 11:01:00 GMT

There isn’t a single business person in Panama who hasn’t heard of Panama Pacifico. One of the world’s largest mixed-development projects, it is poised to become a city within a city.

Close to the Pacific entrance of the Panama Canal, just over Panama City ’s Bridge of the Americas, this area used to be an Air Force base called Howard. But today, a special arrangement offers business and tax benefits to certain types of businesses in this area. For example, set up shop here and you could pay no taxes for the transfer of goods and services to ships, passengers, or any of Panama’s mega-ports.

The Panama Pacifico “Special Economic Area,” as it’s called, has lured plenty of big business, from giants like 3M to Mailboxes, Etc. (the UPS Store). But little businesses have yet to take hold in the former Howard…and so much is needed.

There is a daycare, a single gas station, and little else. There are already hundreds of people living here and some 2,500 employees work here every day. The poor souls have nowhere to go for a latte or even a nice business luncheon…yet.

Many of the people who live and work here are foreign, and new transplants continue to arrive. Start a business here now, and you’d be the first in with a major head-start. You could start with something like offering city shopping tours.

Source: NuWire Investor

Panama City: introducing an Apart-Hotel where your money will never sleep!

Catherine Deshayes — Fri, 03 Dec 2010 11:20:00 GMT

The BestWestern Panama Centro - the new Apart-Hotel in Panama City, Panama will offer you the safest and highest return on your investment for the next 10 years...

Other attractions include:

. Exit strategy already in place

. Completing refitting, opening May 1st 2011

. Experienced developer with two Best Western Hotels already open and returning over 10% yield in first three months

. 4% guaranteed return once contract is recorded and during building period

. 4% guaranteed interest plus capital payment every month for 10 years

. Plus 50 per cent of room rental after expenses as soon as hotel opens

. Only 6 fractional units left at $80,000

. Walk away in 10 years with your original capital plus $17,000 interest...

...Plus a monthly return on your unit estimated at 18% yield as soon as hotel opens

. No closing costs, no reselling problems.

Twin bedroom

Kitchen

BestWestern Panama Centro - For more information, please contact Brigitte@bridgemon.com or Bhunt31@aol.com

How to...protect Panama investments from problems

Catherine Deshayes — Sun, 07 Nov 2010 17:34:00 GMT

Following some simple rules can prevent you from making costly mistakes down the line - read our guide to doing business in Panama with your eyes open...

Panama is a great place to live and work. In recent years Panama has been growing in popularity among investors, expatriates and retirees alike.

Recently popular online publication "International Living" rated it as the No. 1 place to retire in the world, and for good reasons. Panama's prospects for economic growth are strong amidst global economic meltdown, showing positive growth of 2.3% in 2009 and this economic expansion is expected to continue in 2010 and beyond.

This is mainly due to substantial growth in the financial and construction sectors, tourism and the commercial expectations placed on the ongoing expansion of the Canal, which connects the Pacific and Atlantic Oceans creating a natural hub for business between North and South America as well as between Asia and Europe with direct maritime access to over 80 countries and 3.5 billion people.

Panama's dollar-based economy offers low inflation and zero foreign exchange risk. Its legal and regulatory regimes are business friendly. Its government is stable, democratic, and reform minded and actively seeks foreign investment in all sectors, especially services, tourism and retirement properties.

Panama's current and planned public investment in productive infrastructure is one of the highest in the region and is on par with East Asian economies, including the planned construction of a subway in Panama City. These factors are expected to contribute to lowering unemployment rates to 4.8% and 4.6% in 2011 and 2012 respectively.

Its banking sector currently comprises of more than 80 foreign banks, providing full banking services through ATM cards, Visa credit cards, cheque books, Internet banking and Visa debit cards.

The first two banks opened its doors in 1904, one was called the International Bank Corporation is today's Citibank, part of Citigroup, the biggest financial conglomerate in the world and the second one was the Banco Nacional de Panama. The banks of Panama are strictly supervised and licensed by the Superintendency of Banks (Superintendencia de Bancos de Panamá), Panama's regulatory authority. At present, Panama is reported to have the most upgraded banking system in the world.

Panama offers a higher quality of living at a lower cost and with less crime than typical Central American destinations, although Panama City is rapidly getting to world pricing. Panama has a wealth of variety to offer whether it is beaches, lakes, mountains or the countryside and prices for real estate purchases with a range of choices for practically any budget.

The Colon Free Zone, the second largest in the world after Hong Kong, is a vital trading and transshipment center serving the region and the world. Panama has no restrictions on the outflow of capital or outward direct investment. Its accession to the World Trade Organization in mid-1997 opened up trade and lowered tariffs.

According to Panama's constitution, nationals and foreigners are treated equally under the law. Both Panamanian and foreign companies must fulfill the same basic requirements to organize and operate most types of business activities in Panama. There are restrictions on foreigners participating in retail trade and practicing certain professions. In practice, however, there are legal ways to overcome these restrictions. Panama has one of the most modern and flexible corporate law frameworks in Latin America.

Panama is an interesting and potentially profitable jurisdiction for licensing agreements and joint ventures as well as routine commercial operations for international companies.

Having listed all the good reasons to invest in Panama, the caveat is - you must be careful, so to paraphrase the famous line from the Wizard of Oz: "This ain't exactly Delaware, Dorothy!"

Foreign investors, especially from the US and Canada, routinely drop their guard in a deceptively familiar legal environment of Panama, which is based on the Delaware Corporations Law and similar to the Wyoming Limited Liability Company Law, but allows bearer shares and untitled real estate sales.

Panama has a court and judicial system built around a civil code, rather than the Anglo-American system of reliance upon case law and judicial precedent. Fundamental procedural rights in civil cases are broadly similar to those available in U.S. civil courts; however, the system can be inefficient and prone to abuse. Though the system is improving, many in the business community, both Panamanian and foreign, lack confidence in the Panamanian judicial system as an objective, independent arbiter in legal or commercial disputes, especially when the case involves powerful local figures with political influence.

In a few cases the appearance of corruption has been so widely accepted as to constitute conventional wisdom. Arbitration is always a better choice at the Center for Mediation and Arbitration established by the Panamanian Chamber of Commerce or at various European or American arbitration centers and courts.

Since Spanish is the official language in Panama, always make sure the request your transactional documents in English as translations of the Spanish documents and never sign any agreements in Spanish if you do not speak and read the language! Legal documents are not interesting reading, but it is a must for a successful investment.

The Public Register of Panama provides much transparency to the company registrations, recordings of mortgages and liens and for transfer of title to properties, however, it also prone to misuse by unscrupulous parties.

Lastly, but just as importantly, Panama has many experienced attorneys and established laws firms; however, the conflicts of interest rules and ethical standards followed by the Panama Bar are not as stringent as those in the US. Hence again, caution must be exercised. At the very least, ask the partner of the firm to warrant to you that other members of the firm are not involved in representing parties adverse to your interests and transactions and do not use affiliated entities as trustees, if the firm is representing the seller in your purchase transaction. A good local bank can be easily hired as a trustee.

Use your common sense to build a team of advisors you can trust and you will do very well in beautiful Republica de Panamá!

Written by http://www.nuwireinvestor.com/

Check out homes for sale all across Panama at http://panama.themovechannel.com/

Picture by Barely Fitz

Panama 'leading the way,' says IMF

Catherine Deshayes — Sun, 31 Oct 2010 21:46:00 GMT

According to the International Monetary Fund (IMF), Panama is leading the way in terms of economic growth in Central America...

Indeed, the IMF claims that the nation will be at the forefront of Latin American growth through until 2015.  

The strengthening of its economy comes as a result of ambitious investment in the country's infrastructure and development as well as plans to expand the Panama Canal.  Panama's economic activity rose 6.24 per cent in July, well above the expected five per cent and has posted growth for the past 11 months.  

This strong growth has meant that the emerging country is fast becoming a haven for multinational corporations, real estate developers and travellers, IMF added.  And the Panama Guide backed this up with reports that, according to the Ministry of Commerce and Industry, direct foreign investment grew 26 per cent in the first part of this year.  

"Between the expansion of the Canal and the continuing double-digit increases in tourism, it's hard to see how Panama won't become Latin America's greatest success story," says Benjamin Loomis, developer of a new Panama real estate project.

Source: www.propertyshowrooms.com

Panama: The business hotspot in Latin America

Steph Engall — Tue, 28 Sep 2010 15:32:00 GMT

Annual Latin Business Index - Latin Business Chronicle - announced this week that Panama is the number one country in the region for doing business...

Panama gained the top spot thanks to improvements in a variety of categories, including: doing business, economic freedom, competitiveness and technology. The improvements helped offset Panama's lower GDP score compared to last year.

A recent LBC article detailing the report says: "Panama is now the only country that is among the top five in all our five main categories." In addition to this ranking, Panama continues to be the most globalized country in the region, as per the LBC's Latin Globalization Index.

Factors contributing to economic growth in Panama include the $5.2 billion Panama Canal expansion mega-project and Panama's fast-growing shipping sector. Panama Pacifico, one of the largest real estate projects in the world today, is luring multinationals like Dell and Caterpillar into setting up regional headquarters in Panama. The tiny Central American nation also boasts the City of Knowledge, where NGOs such as UNICEF have regional headquarters, as well as the world's top shipping registry, the world's second-largest free zone (after Hong Kong), and the region's largest international banking district.

Source: International Living

Winner Takes All: Panama vs Ecuador

Catherine Deshayes — Fri, 30 Jul 2010 11:26:00 GMT

Pathfinder scout Margaret Summerfield compares the property markets of Panama and Ecuador, looking at what each can offer serious investors and holiday home buyers alike...

"I get a lot of inquiries asking me to compare different countries that people are looking to buy property in. These types of comparisons help a lot when you're down to a shortlist of two countries, trying to figure which one to prioritize, and visit, before you buy.

The most popular countries readers ask about are Panama and Ecuador. So I'm going to take a good look at the real estate picture in both countries, touching on the most important attributes:

Price. Ecuador wins this hands-down. Prime beachfront condos run from £480-640 a square meter on average. That's less than half the average in Panama (£960-1600). And mountain properties in culturally rich Cuenca or hip Cotacachi cost as little as £320 a meter. Similar expat havens in Panama's highlands easily cost 2-3 times that price.

Construction Quality. Both countries tie for this when it comes to pre-construction condos (build quality can vary hugely from developer to developer, though, so it is worth checking out a developer's previous projects in either country). Ecuador edges ahead when it comes to the standard of finishes. They're usually better quality, cleanly installed, and not as mass-market as those in Panama.

Topography. Panama offers a choice of coasts, Pacific and Caribbean. On the more developed Pacific coastline a string of hotels, golf courses, resorts and small residential communities dots the beach. Ecuador's coast doesn't have the golf courses, and only a couple of all-inclusive hotels...but it boasts four cities (Salinas, Manta Bahia de Caraquez, and Atacames).

While the coasts in both countries offer a tropical climate, some parts of Ecuador's coast are cloudy and overcast for much of the year.

If you want a mountain property though, you can't beat Ecuador. The mountain peaks are higher, and the snow-capped volcanoes more dramatic, than anything on offer in Panama.

So, for cool highlands living, look to Ecuador. But Panama's wide, light-sand beaches and sunny skies top those in Ecuador, giving us a tie.

Ease of Buying. Panama easily wins this. Years of dealing with Americans...and a real estate market that boomed between 2004 and 2008...means that local brokers, developers and sales staff often speak English. Many homes and condos reflect the taste of foreign buyers, with large open-plan kitchens (and no separate living quarters for a live-in maid).

Banks like HSBC and Scotiabank offer financing to foreign non-residents (up to 70% LTV).

Some broker regulation exists. Brokers must be Panamanian citizens, and they have to pass an exam. You'll still come across bad-apple brokers...but it's not a free-for-all, as it is in Ecuador. The seller pays the broker commission in Panama, and the norm is 5%. In Ecuador both the buyer and the seller can pay (the norm is the seller pays, but it varies from broker to broker...there is no hard and fast rule), around 2-3% each.

Property for Residency. Ecuador comes out ahead on this. An investment of just $25,000 (£16,000) qualifies you for residency, compared to $300,000 (£192,091) in Panama.

Holding Costs. I've split this into capital gains, annual property tax, and transaction costs. Remember, you may still have tax obligations in your home country.

Capital Gains: In Panama, you'll pay 10%. In Ecuador, 0.5%. Guess who wins this one...

Annual Property Tax: Taxes in Ecuador are paid on the assessed (municipal) value of the property rather than the sales price, as they generally are in the US. In the coastal city of Manta, you'll pay 0.015% of the property's assessed value...but this will vary from one municipality to the next. In some municipalities, you can have an assessed value that's far below the sales price, which reduces your annual taxes. In others, the assessed value can be nearer the sales price.

In Panama, some properties have tax exemption of up to 20 years. Condos with property tax exemption must still pay property tax on their share of the land that the condo building sits on at a rate of 1%, though. Properties without an exemption pay tax on a sliding scale. For a £64,000 property, you're looking at around £875 a year.

Remember that for property in Ecuador, you'll pay considerably less than you will for a similar property in Panama...which means lower annual taxes. But if your Panama home falls into the tax-exempt category, you're sitting pretty.

In both countries, I'd strongly advise you not to under-report the sale in order to reduce your tax burden. While this is not uncommon, it could result in legal penalties and will almost certainly raise your capital gain liability when you sell.

Transaction costs: In Panama, closing costs average 1% of the purchase price, and transfer taxes 2%. Legal fees run to 1-3% of the sale price. In Ecuador (again in Manta) purchase tax is 1.6% of the sale price. Legal fees average 1% of the sale price.

Overall, Ecuador wins the holding costs round.

Property Management. This is easier in Panama...period. Panama offers a wider choice of rental management companies, and more rental potential, than Ecuador. You'll likely have better occupancy, and higher rental rates, in Panama. Ecuador's market for short-term rentals is in its fledgling stage.

Investment Potential. Panama's real estate market boomed from 2004-2008. An influx of foreign buyers pushed property prices upwards rapidly. Since 2008 though, the market slowed. Today, it suffers from over supply, and lack of demand. It's not an investor's market.

Ecuador isn't an investor's market, either, strictly speaking. That influx of foreign buyers hasn't happened-yet. More foreign buyers are waking up to this country's potential, though...and its highly affordable property prices. It'll take a while, but Ecuador's low starting prices means it offers more potential for appreciation.

Ecuador emerges as the clear winner in four categories, and ties in another two. Two of its winning categories carry more weight in my book (Price, and Investment Potential). Of course you'll need to evaluate other things like climate, health care, and residency. But from a real estate perspective, Ecuador takes the honours as a second-home destination, whether you're looking for the beach house of your dreams, or a highlands hideaway."

Check out homes for sale across Panama at http://panama.themovechannel.com/

Picture of a painting of Ecuadorian folk village by quil

Panama City: the reality

Catherine Deshayes — Wed, 07 Jul 2010 07:23:00 GMT

Before you consider investing in Panama, follow these tips from Pathfinder's Margaret Summerfield, who has lived in the country for the last three and a half years...

Margaret says, "I've lived in Panama City for the last three and a half years. And I started studying the real estate market here four and a half years ago. I love living in Panama City, but I still haven't bought a property here.

And you shouldn't either-until you read this.

Sure, you'll see those headlines about Panama's strong economy (forecast growth this year: 5%). And you'll hear the talk about all those multinational companies relocating their regional headquarters here (Caterpillar, Proctor & Gamble), and the properties their workers will need. Next it's the mega-projects...the new Metro, port expansions, and the granddaddy of them all, the Canal Expansion.

The argument goes like this. A country with all these positive factors must have a strong real estate market. Therefore buying property for investment here makes sense.

But that's simply not the case.

Back in late 2004 and early 2005, prime city waterfront condos in Panama were selling for £668 a square meter pre-construction. Fast forward to 2008, and those now-completed condos had price tags of £1671 a square meter. Then the cracks started to show. And I'm not talking about shoddy construction...

The asking price for new pre-construction condo projects on Avenida Balboa reached £2340 a square meter in 2008...but they were alongside those brand-new, finished units for £1671 a square meter. Built by the same developer, with the same amenities, finish quality, and views (and located only yards apart)-it didn't add up.

Why would anyone pay £2340 a meter...taking a calculated risk and waiting three years for delivery...when they could buy the same unit, finished, for £669 a meter less?

The answer is, they didn't.

That price differential flagged up a market anomaly...a sign that something wasn't right. The city condo market was saturated...over-supplied.

Then the economic slowdown in the US hit. Americans comprised up to half the buyers of prime city condos at the height of the boom. That pool of buyers dried up. Coupled with that, banks here tightened their already conservative lending policies, leaving buyers without the funds for purchasing property.

So the market slowed.

It hasn't crashed Florida-style, though. You don't see foreclosure auctions (the banks handle foreclosed properties so discreetly, you're unlikely to know that your neighbour's in foreclosure, unless he chooses to tell you). You don't see properties advertised at 50 cents on the dollar, either. A chunk of property owners (Venezuelans and Colombians) don't want or need to sell. They see their Panama property as a safe haven for parking money...a better bet than banking in their home countries.

What you do see are fire sales, from owners (usually American) who bought preconstruction 3-4 years back, and now can't afford to close. Their circumstances changed...or the banks' tightened lending means they can't get financing now. They stand to lose the 30% of the purchase price they've paid to date if they don't close, and they're looking to claw some of that back. And to do that, they're offering properties in some cases for less than they agreed to pay 3-4 years ago for pre-construction. Yet their units are now finished and ready to move into...

So, my advice is this:

Don't buy here for investment right now.

Don't buy pre-construction (it always carries a risk...which is not worth taking in a stagnant market).

Don't buy for flipping, or short-term capital appreciation.

Don't expect the double-digit short-term rental yields we saw in previous years. More completed condos come on the market daily. Their owners can't sell, so they decide to rent. Many property managers won't take on new condos. They're trying to shore up occupancy rates for existing owners. Hotel occupancy is down around the 50-60% mark (from a high of 84.7% in 2007). The hotel lobby wants short-term condos (which they see as unfair competition) registered with the tourism authority, and paying the 10% a night tourism tax. Worse than that, they want a minimum 45-day stay in short-term rentals. We're still waiting for a decision on this.

Having said all that, buying in Panama may still be right for you.

If your plan is relocating to Panama, or spending a chunk of the year here for the longer-term, then buying here makes sense. But look around, and find yourself a fire sale-a property at an unbeatable price. There is no MLS (Multiple Listing Service) here, so you'll have to contact different real estate agents to see what they have.

P.S. Don't get me wrong. Panama is by far the best country in the region for living, setting up a business, or moving with a young family. It boasts the only truly cosmopolitan capital city, the best infrastructure and medical facilities in Central America...all with a very exotic Latin flair. I love living here...but Panama's not an investor's market right now.

Written by Margaret Summerfield for TheMoveChannel.com

Picture by carlosv

Four premier beach house locations

Catherine Deshayes — Wed, 14 Apr 2010 10:44:00 GMT

It's not difficult at this time of year to see why so many of us want warmth and sunshine - winters spent shovelling snow or stuck indoors while it's pouring rain outside make choosing an overseas destination more of a priority than ever, so let's check out four of the world's best second-home destinations for beach-lovers...

It's easy to find year-round sunshine. What's harder is finding warmth without excessive heat or high humidity, or the threat of hurricanes.

The key to avoiding excessive heat is elevation close to the coast, or a location favoured by sea breezes. Let's take a look at a few warm locations that tend to remain comfortable all year.

The landscape in Costa Rica's Southern Zone is dramatic. Lush, tree-covered slopes, ridges, and mountain spines, with clouds drifting past the peaks. The roadsides are thick with hot tropical-orange bird-of-paradise flowers. The emerald-green hillsides slope down to deserted beaches, and the afternoon sun glimmering through the lush vegetation creates a magical show of light and shadow.

The mountains meet the sea in the Southern Zone, and the area benefits from a combination of ocean breezes and cooler mountain air. The average temperature is 82F/28C. Many homeowners still have air conditioning, mainly to remove humidity. The average rainfall is 150 inches yearly, falling in heavy tropical downpours that only last a few hours in rainy season.

Property prices stayed low here because it's been difficult to get to (serviced half-Acre home sites in a private community start from £26,229). Now, the coastal road resurfacing has finished, and plans are afoot for a new international airport. As soon as word gets out that this area is now quickly and comfortably accessible, property prices will rise.

Nicaragua has majestic mountain peaks and cliffs, secluded coves and inlets, and a variety of beaches (white sand, black sand, pink sand; take your pick). Inland are volcanoes, crater lakes, and the colonial cities of Leon and Granada. The south Pacific Coast is one of the most stunning seacoasts in the region, with high cliffs that fall straight to the sea.

Temperatures in the south Pacific coast are 80-90F/26-32C all year, but can go higher in dry season. The rainfall is much less than that in Costa Rica's Southern Zone, at only 45 inches a year. In dry season (December-April), the landscape looks parched, crisp, and brown, but the foliage becomes luxuriantly rich within weeks of rainy season starting. This is prime surf territory, too, and the best time for surfing is in the wet season. That means you'll have potential renters year-round. Better yet, property prices here are a fraction of what you'd pay across the border in northern Costa Rica, where a half-acre ocean view lot can cost £393,471, compared to less than £32,789 in Nicaragua.

The Panama coastline is fairly flat, and can be oppressively hot and humid. Leave Panama City, however, and you wave goodbye to the stifling humidity. Travel west along the Pacific Coast and you're in the Arco Seco, or Dry Arc. This zone has the average 80F/27C heat you find in the city, but much lower humidity. It's still very warm-but it's a more comfortable, bearable heat that doesn't leave your shirt sticking to your back.

Within Arco Seco lies, the Azuero peninsula, steeped in history. You'll see Spanish colonial-style buildings with red-tile roofs, elaborate ironwork, and ornate wooden window and doorframes in the tiny villages. Secluded beaches ribbon into the distance. This is not frothy all-inclusive resort territory though, but has a deeper grounded feel that will appeal to those looking for a hidden, more real, Panama. You can still find affordable properties too-if you know where to look.

Properties in Azuero currently for sale include a 1296 square foot house for £42,628. A new country home of just under 2500 square feet, on an acre of land, is £114,769. The interior of this home has nice finishes, with hardwood, Spanish tiles and granite countertops. A half-acre ocean-view lot will set you back £13,116; it's a five minute drive to beautiful, deserted beaches and three minutes from a charming village.

But my top pick for beach-style weather has got to be Brazil's northeast coast. The difference here is cooling ocean breezes (without elevation)...and they really make a difference. All three locations below have average daytime temperatures in the 80s Fahrenheit/20s Celsius, but the breeze makes it feel cooler. You won't normally need air conditioning if you're close to the beach or on a higher floor of a condo building.

You get an average eight hours of sunshine daily, too...ideal for sun-lovers. And property prices in Brazil's northeast are highly affordable, particularly when you factor in that many developers offer developer financing and affordable monthly payments.

Cumbuco, thirty minutes west of Fortaleza, has a dazzling-white sand beach with a curve of coconut palms hugging the bay. Off shore, the brilliant blue sky meets the deep blue of the ocean. Fishermen cast their nets from their little jangadas (boats), and the beachside bars serve up the day's catch-you don't get much fresher than that. Rainfall here is only around 50 inches annually.

Many wealthy Brazilian families have traditionally owned large homes in Cumbuco. But recently, it's caught the attention of developers as well. The first golf course in the area is due to start, as part of a major development by a Portuguese group. The first high-end boutique condo-hotel is due to open soon. This is a major upgrade in the village, as this luxury hotel will be in a class of its own in Cumbuco. Once the new residential developments and golf course are complete, this village will have a market for the chic restaurants and cafes that will surely follow.

Lots in a gated community close to the beach in Cumbuco are available. Averaging 400 square meters, the start price is R$70,000 reals (£25,739). For something right on the sand, R$250,728 reals (£92,202) buys you a 75 square meter (807 square feet) condo, currently under construction.

João Pessoa is the capital of the state of Paraíba. It's one of the oldest cities in Brazil's northeast, and home to 700,000 inhabitants. It's the most easterly point in Brazil, known as "The City Where the Sun Rises First".

The city has 1,730 acres of forest (7 square km), providing a green backdrop to almost 25 miles of beach (40 km). João Pessoa has some of the best city beaches I've seen. Moreover, beachfront properties are still affordable.

A pre-construction development in Bessa offers beachside apartments from R$230,000 reals (£84,572) for a 65 square meter (699 square feet) unit. These are true beachfront properties-there is no boardwalk, and you walk straight from the building onto the sand. A 650 square foot apartment, directly on the boardwalk in a prime area, is R$170,000 reals (£62,510). A beachfront apartment boasting nearly 2000 square feet of living space is also on the market for R$300,000 reals (£110,319).

You should always visit your chosen destination, when the weather is worst...rainy season...dry season...when you may have difficulties adjusting to heat or humidity levels. It's amazing how different 80F can feel in two different places, even when they are close to each other. A little elevation, or the position of a house relative to the sun or wind, makes a huge difference in a warm-weather location.

Picture of Cumbuco

Written by Pathfinder's Margaret Summerfield for TheMoveChannel.com

Growing pains evident in Panama

Catherine Deshayes — Wed, 25 Nov 2009 11:39:00 GMT

It's early Saturday evening and new customers arrive at Panama City's Porsche dealership every twenty minutes in name-brand polo shirts and pressed linen whilst fifteen miles to the East, flights at Tocumen International Airport unload tourists into the roped-off maze of immigration - these are all signs of a country experiencing extraordinary growth...

On their way into the city, visitors will pass a 500 year-old bell tower, a neighbourhood of rundown fishermen shacks, billboards for luxury watches, and the 70-story Trump Ocean Club still under construction.

Outside the Marriott Hotel in Panama City's banking district, buses pick up and drop off tourists amidst a glimmering strip of casinos, restaurants, bars, and a cigar parlour known better for its wide selection of prostitutes. "We're still busy all the time," says Mr. Clark, the shop's cashier and unofficial talisman. We're walking through the lounge's grotto-like passageways passing a sea of googly-eyed Colombians as he explains business, amidst the recession otherwise hurting Panama, is still good. "The American men come down for girls and booze just like they always did. Recession don't change that. No sir it don't."

Despite the global crunch, the tiny Republic of Panama will still finish the year as one of the fastest-growing economies in Latin America. On paper, the majority of this decade has been remarkable: real estate sales through the roof, hotel occupancy brimming, plans for expansion ubiquitous. Optimism for a bigger, better, and more developed Panama has been the name of the game and some ten years after shedding its status as a vestige of US power, Panama has indeed been winning big.

Growth in Panama spawned via an unusual relationship between business and politics. On one hand, the country's elite - retail giants, shipping heirs, politicos - dared not relinquish their home-grown power. On the other hand, possessing a regional juggernaut served all their development goals. And so it was born several years into the new millennium when Panama's attention turned to quick-cash condo towers, nightly hotel booms, and a spree of overnight land-grabbing that saw cattle farms sold for many times their initial worth. This movement for foreign direct investment came escorted by a notable dose of protectionist laws: a network of contingencies and "if" clauses designed by and for Panama's upper class to maintain control on a rising tide.

It's a delightful near-summer day on Panama City's newly constructed coastal highway. Eerily, the vast majority of visible construction sites sit idle, though it's hard to know just why. Desperate selling techniques are being employed with unrealistic rental guarantees, discounts, and freebies as developers try anything to shift units. While no one knows when or if the cycle will suddenly restart, it's clear that the big profits have passed. It could be interpreted as the beginning of a bust - but no one in Panama wants to call it that.

Within a two-mile radius, one can count three of the nation's largest hotel groups expanding with one, the Decameron Group-owned Megapolis adding more than 850 hotel/condo units to its downtown fleet. Tourism, one of Panama's newest fads, is still largely unproven due in part to the time and expertise it takes to develop as an industry. So much has happened so fast in Panama - and with the recent slow-down, the integrity of Panama's long-term vision is in question. Would it be possible for the Panama model of success to move past day-tripping and into sustainability? A destination that attracts sophisticated travellers and rewards dynamic entrepreneurs?

One crux of this argument is quite straightforward. Panama as a nation has always welcomed foreigners. Legacy of its diverse ethnic past is everywhere: Yugoslavian architecture in Chiriqui, French cornerstones in Casco Antiguo, Spanish plazas in Los Santos. But with the blueprints for mega resorts, demolition of historic architecture, and blind eye to the country's national parks, many worry that the fate of Panama's patrimony is being distorted amidst its gold rush. This concern has been accentuated by a meltdown in foreign direct investment and in tourism where May of 2009 saw nearly 20% less tourists than May of 2008.

A second factor is Ricardo Martinelli, supermarket tycoon turned President on July 1st, 2009. Martinelli's gun-slinging crusade against corruption in the first months of his term have been unprecedented, declaring that if Panama wants foreign money, business expertise, and venture capital, than it must clean up its act. Opposite him are former aristocrats as well as experts who argue Panama's corruption is simply too intrinsic to its society - that in the same manner democracy cannot work in the Middle East, corruption cannot be eradicated from the isthmus. Forever, corruption was the lubrication that made Panama tick and now, it's one of the country's greatest obstacles to success. Under the Martinelli administration, Panama's clandestine support structures could be sent tumbling down.

Not everyone's happy about Panama's transformation. Says Adolfo Diaz, a 40-year-old banker who's lived in Panama all his life: "I used to be able to see the ocean from my apartment. Now all I see is noise, traffic, and others peoples' living rooms." Water shortages in the country's interior, increasing crime rates, and pollution concerns around the glamorous Panama Canal Expansion are budding issues as well.

Foreign investment has defined the face of Panamanian life and while many claim such a dependence can be damaging, Bob Adams, CEO of New Global Initiatives and an expert on emerging markets, believes absorbing money isn't necessarily a bad thing. "How many nations collapse because of too much money?" he provokes. "Even the weakest - Nigeria comes to mind - somehow manage to carry on. Panama is in much better shape than Nigeria and that is an understatement. This is a human society. It will grow in human fashion, with all its fits and starts, just like every nation that has had to deal with success."

Perhaps it's inherent and inevitable - the process of progress in the developing world. The rich get richer, and the poor get poorer. Currently presiding over the second most unequal income distribution in Latin America, Panama's people are becoming increasingly aware of the costs of poor management and corruption. Can the large-scale model of global stardom be tailored to a country like Panama? Or are there intrinsically treacherous roadblocks, ones barely yet discovered, that could be standing in the way?

Written by Matt Landau, founder of The Panama Report, a travel and investment portal

www.nuwireinvestor.com

Picture of Panama Canal by lyng883

October Investment Property Watch

Catherine Deshayes — Fri, 13 Nov 2009 11:48:00 GMT

Portugal reigned supreme in October's Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site - so lets take a closer look at what the country has to offer both investors and holidaymakers...

Portugal

Unlike neighboring Spain - which experienced a major property boom, and resulting bust - Portugal's property market has risen slowly and steadily for the past decade.

There is a strong market in Portugal for buy-to-let property. It is the third most popular European country after Spain and France for this kind of investment and the southern coastline of the Algarve is especially popular, attracting buyers from all over Europe.

The average (sq. m.) price of an apartment in The Algarve is €1,925. Villas average €2,581

The Estoril/Cascais area, the coast near Oporto and the west coast close to Obidos lagoon are also becoming more sought after by buy-to-letters.

Let's take a look at Lisbon. Apartments in Lisbon are relatively inexpensive by European standards at €2,393, and villas are even more attractively priced, with average per square metre (sq. m.) prices of €1,825.

But, as a buy to let destination, Lisbon has its problems. On average, an investment apartment here will bring a gross rental yield of 4.8 per cent, which is ok, but certainly nothing to write home about.

Foreign buyers must obtain a Portuguese tax number, which costs around £14, as well as setting aside an additional 7 per cent for purchase-side costs. These include a transfer tax - six per cent, for properties costing more than 534,700 euros, and a 0.8 per cent stamp tax, as well as registration and notary fees.

Panama

A spotlight is currently being shone on Panama due to the publicity surrounding the trial of the ‘missing' canoeist John Darwin who faked his own death and secretly emigrated to Panama.

As a result of this global news story, alongside the current expansion of the Panama Canal, the country has been pushed onto the world stage in terms of investment potential.

It is currently one of the hottest places in the world for investment of all kinds, particularly property. The expansion of the Panama Canal, one of the Southern Hemisphere's most important waterways, is slated for completion in 2014 and this will boost the country's economic growth massively.

The expansion of the Canal is going to triple its capacity, meaning that the revenues from free trade and exports are also likely to triple, sending GDP skyrocketing.

The International Monetary Fund has already predicted that the economy is going to boom, which in turn will lead to an increased demand for homes and holiday properties from both locals and foreigners.

American retirees are extremely keen on Panama and are snapping up second homes in the country, leading to a rise in overall property prices.

Other movers and shakers

Snapping at Portugal's heels was the mighty USA in second place, swiftly followed by Panama. The Ukraine made a solid appearance on October's chart in fourth place, another triumph after its appearance in September.

Italy took fifth place with Case Serafini- I've been to the development - it's beautiful - like a more affordable Tuscany with rolling hills and olive groves.

The USA was back again in sixth place, followed by South Africa in seventh. The final three places were snapped by up Turkey in eighth, far-flung paradise Thailand in ninth and - for its third appearance on October's chart - the USA took tenth place.

Table showing October's top investment properties

Rank	Property	Country	Company
1	Vilamoura Resort	Portugal	Armchair and Co
2	Grande Oasis, Tampa, Florida	USA	Property Frontiers
3	Timber investment	Panama	Silva Tree SA
4	Ukraine farmland	Ukraine	Dream Resorts
5	Casa Serafini - new home	Italy	Property Frontiers
6	Orland property	USA	American Dream Investments
7	McLoughlin Spa and Reserve	South Africa	Key Universal
8	Augustus Country Club	Turkey	Property Sun Turkey
9	Bamboo	Thailand	Property Frontiers
10	Investment property	USA	American Dream Investments

Follow the lead of our readers and get excited about Portugal - check out some Portugal properties for sale at http://portugal.themovechannel.com/

Picture of Portugal's coastline by Portuguese_eyes

How to...Choose a new residential development in Central America

Catherine Deshayes — Fri, 13 Mar 2009 10:53:00 GMT

Picture this: you're considering an investment property or a second house in a Central American residential development-in Costa Rica, Panama, Nicaragua or elsewhere. The shiny brochure is impressive, the website looked great, the pictures blew you away, the marketing representative of the development says all the right things and you're dead set on getting that beachfront lot with the great view...

Just a second. It's time to interrogate. It's time to assess whether the development really is right for you, and whether the development will develop as planned.

You want to buy into a dynamic community-not an empty shell that will turn out to be little more than its marketing.

Below is a set of ten important questions to ask of a developer to ensure that you're getting what you're paying for and that the development is on solid ground.

A dishonest developer will shy away, while a good developer will respect your attention to these details, so don't be afraid to ask every last one of these even if it seems overly cautious. It can mean the difference between achieving your dream and being cheated out of your investment.

Property Title

Land ownership and title issues are common problems when buying foreign property. Ask these questions to ensure that you won't be thrown off the land after you have made the deal.

If possible, follow up and make sure that the developer has answered truthfully and get the important points in writing. Ask the developer:

Do you or the landowner have full title to the property in question?

What kind of title is it? (fee-simple, concession, indigenous?)

Is title insurance available?

Have you obtained it?

If you have, what are the policy exclusions?

Does a buyer receive title insurance for the particular piece of the project he or she is buying, or is the policy written for the entire property only?

If title insurance isn't available, how long has the developer owned the property?

Who did he buy it from and how long did they own it?

Do you guarantee title in the contract?

Master Plan

If the land is part of a larger community, make sure that it is well-planned. You could be left to fend for yourself for utilities or stuck with neighbors whose style and habits could make your dream home a nightmare to live in. Ask the developer:

Has the property been properly subdivided and have the plans for development been approved by all relevant authorities?

Have the appropriate environmental impact reports been submitted and approved?

Has the lot plan been submitted and approved?

Will there be a home owner's association?

Has it been registered?

Are the terms and restrictions of homeownership in the development available?

Will these terms, restrictions and association by-laws be incorporated into all lot titles?

Are there any remaining government departments that need to approve the project?

What infrastructure is already in place?

What is the infrastructure plan and timeline?

For additional infrastructure and services needed or promised, are those promises available in writing, by contract, to prospective buyers?

Does your company have the capital to keep the project moving forward on its own, or are you relying on sales revenue to be able to make progress on the infrastructure?

Water

Water is essential to life, but that doesn't mean that a safe source of it will be provided by a developer. Ask the developer:

What is the source of potable water?

Is it being supplied by the developer, or is it up to buyers to provide their own?

Is there enough water for the entire project?

If there's a well involved? How high is the water table?

How quickly does the water table replenish itself?

If buyers have to source their own water supply, i.e. drill a well or install a rain collection system, is a feasibility study available?

Has the water been tested?

Is it free of contaminants?

Sewage

Here's another part of life that you may assume to be a given in any development, but you can't assume anything when creating your dream home in a foreign land...or even domestically. Ask the developer:

How will waste disposal be handled?

Septic of sewage?

Is it up to buyers to install a septic system?

Is the piece of property large enough to allow buyers to build what you're intending to build?

Compliance with local sewage disposal requirements?

Electricity

Rights to connect to the grids can be tricky in South America. Some are public, and some are private. Ask the developer:

Where is the nearest electricity?

Is there electricity already run to the project?

If not, when will the power lines be installed?

Will they be overground or underground?

Who will run the lines: the developer or the government?

Who will be responsible for their maintenance?

Experience

Developers who have great ideas are not always capable of seeing them through to completion, especially if they lack experience. Ask the developer:

For how long have you been a real estate developer?

For how long have you been a residential real estate developer?

How many projects has your company worked with in the past?

What Is "Plan B"?

The best-laid plans of mice and men often go awry. Investors need an exit strategy and developers need "Plan B". Ask the developer:

What happens if the project fails?

What if sales never come in as you expect?

What if you're forced to abandon his project?

Will buyers still have the full use of the property?

Financing

When you put your savings on the line, you need to know the risks and have means of protecting it. This is especially crucial when dealing with foreign real estate. Ask the developer:

What are the details of financing and installment payments?

If the developer is financing, will the buyer receive property title with a mortgage or does the property not transfer until the final payment has been made?

And for both projects will a deposit be held in escrow?

Are deposits and other monies held separately or together?

What is the first installment you require and when must the property be fully paid in the case of these two specific projects?

Closing

If everything goes according to plan, great! But then what happens? Ask the developer:

Will we be allowed to handle the closing?

What is the developer's law firm?

What is its reputation?

Is it recommended by the relevant embassy (U.S., Canada, European, etc.)?

Who else will be involved in the transfer of legal documents?

References

Does the developer have satisfied customer letters that can be reviewed?

Can you put us in touch with past buyers-ideally at least five English-speaking buyers-especially foreigners, especially any from the US, Canada, UK, Ireland or Australia?

Has anyone started building on their lots?

By the time all of those questions are answered, you should have a clear idea of whether the development will blossom or wither.

Take special note of any development you might consider that doesn't answer these questions directly and promptly. The best of them will have most of the answers ready at hand with supporting independent documentation.

Written by Perry Despeignes for www.nuwireinvestor.com

Picture by wakalani

10 tips for investing in emerging property markets

Jaimie Kanwar — Fri, 27 Feb 2009 10:00:00 GMT

Overseas property can bring high capital returns, but the key is being able to identify the next property hotspot and ensure that returns are maximised.

To that end, here are 10 tips on how to successfully identify an emerging market

1. Research, research, research

Do not judge a place on face value. It is essential that buyers conduct full and thorough research into the markets they are planning on buying; how far it is from the airport? How close are the local shops, restaurants, the beach and hospitals?

2. Consult the experts

Purchasing in an emerging market can mean that there is a lack of information available regarding investing in the country. As such, it is essential that buyers consult those who specialise in investing in the region.

3. Planned EU membership

EU membership brings inward investment and the easing of restrictions on the movement of capital and trade. Many new EU states, such as Poland, have seen property prices soar following their joining.

4. Leisure facilities

Large scale facilities such as ski runs, golf courses, hotels, spas and diving centres, increase the demand for holiday homes and boosts property values. These facilities will also attract tourism, and as such rental yields will increase.

5. Government and private investment

Investment encourages improvements in the local infrastructure and amenities, bringing money into the area, strengthening the economy and pushing house prices upwards.

6. Up and coming events

Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

7. The law

Keep abreast of legal issues surrounding foreigners' access to the housing market, as well as any changes to purchasing restrictions for foreign investors, this is particularly important in emerging markets, as the situation can change quickly.

8. Tax

Check the inheritance and capital gains taxes in the country you are purchasing in. It is extremely unlikely that taxation laws will be the same as in the UK. In some areas, such as North Cyprus, you may be exempt from inheritance tax, however, in others, buyers may have to pay tax on pensions, or even tax in both the UK and the country of purchase.

9. Arranging finance

In some emerging markets you may not be able to get a mortgage in the country of purchase and will have to get one in the UK. However, if your mortgage is in the local currency then you must consider the impact of fluctuations in exchange rates.

10. Read the contract

If you are given a contract in a foreign language then ask for a copy in English. Ensure that you read it carefully and are clear on everything, especially the deposit, completion date, what's included in the property price and whether there are any additional charges.

Dermot O'Kane, Director of Property International, offered the following guidance for emerging market hunters: "Identifying and investing in emerging markets requires a lot of market knowledge, particularly as in these ‘hotspots' property prices are governed more by the local buyer than by the overseas one.

"Never assume anything. The key to success in an emerging market is research; look into everything, from finance and taxation to local restaurants and flights.

"When armed with a full knowledge of the area, and you have established what type of property you are after, it is essential to act fast to keep ahead of the game and really capitalise on the country's status as an emerging hotspot."

To find exciting properties in emerging markets, visit our investment property portal: http://investment-property.themovechannel.com/

Picture: Greenwichmeantime.co.uk

5 reasons to buy property in Panama

Jaimie Kanwar — Thu, 26 Feb 2009 11:55:00 GMT

Panama is still a great place to invest, whether you're an investor or a new home seeker, claims one company...

The world is in financial crisis, globally speaking real estate markets are in decline, no banks are lending money for consumers to buy houses with, and chances are there has never been a worse time in our recorded history to buy property - and yet, in our opinion there are still at least 5 good reasons to buy property in Panama!

You may have read the hype that the boom is continuing and that every property that's for sale in Panama is a sound investment bet - well, that's not entirely true. But neither is the negative hype about the market being saturated with greedy speculators and that Panama is heading for an almighty crash.

So, according to Shelter Offshore, there are 5 very sound and solid reasons why property in this stunning Central American nation is a good bet for long-term investors, holiday home seekers or even retirees and early retirees...

1) Tourism is Increasing in Panama

Panama is a first world nation offering the associated comforts, and at the same time it is an ‘undiscovered' gem of a nation where it's possible to get truly away from the madding crowd and discover hidden coves and beaches, stunning rainforests, amazing flora and fauna, unaffected people and communities steeped in history and culture.

In other words, Panama has something for everyone - and it's cheap too, relatively speaking! All of these are reasons why the country has been welcoming increased numbers of tourists year on year - in fact, it has welcomed a 12% increase annually since 2004.

Hotel occupancy rates are exceptionally high, new airline routes are opening up bringing travellers direct from nations such as Italy and the Netherlands for example, and the government in Panama is continuing to plough substantial funds into the promotion of the nation internationally.

All this bodes very well for anyone who is interested in buying property in a country with a healthy and affluent outlook for the long-term. It means that desirable homes will make good rental properties, and that as more people arrive and learn about the delights of Panama, so more people will think over the long-term about relocating to live there - thus giving a property owner an exit strategy.

2) Desirability of Panama and its Property Product

Panama has it all - from a bustling and cosmopolitan capital city to tiny rural enclaves, from high rise luxurious real estate, to beach huts and fabulous fincas. Therefore, yet again there is something of appeal to everyone.

So whether you want to live on the coast and be a beach-bum or you want to live the high life in Panama City, you can when you choose the right type of home for you in Panama.

This makes the nation a great choice for anyone thinking about moving abroad - because you can likely find your perfect home in this one nation - no matter what it is you're looking for in a property!

3) property in Panama Can be Competitively Priced

Because the really booming times in Panama's recent history are currently over, there are many speculators keen to exit the market and consolidate their debts, there are developers doing their best to off-load already constructed stock, and there are private vendors willing to accept below asking price offers for property.

What's more, away from the glitzy, modern high-rise property market in Panama City, most real estate in Panama is sold on a more personal basis. You'll find that those who are selling a family home for example, are far less likely to want to sell to an anonymous buyer from abroad and far happier to sell to you if you befriend them, enter into direct negotiations with them and remain calm, open and friendly throughout.

These sorts of vendors would rather sell to you for a lower sum if you take this approach, than they would to an overseas buyer they have never met who is dealing with a slick real estate agent and offering them their asking price!

In other words, Panama is a market where there is a lot of room for movement when it comes to asking prices - no matter which approach you take and which properties you're looking at. And it's also a market with some exceptional bargains.

4) Long-term Potential for Profit

Panama's canal extension project is on track, tourism numbers are consistently rising well, the government and business environment are stable, fiscally speaking Panama is affluent and successful, the ‘pensionado' scheme attracts more wealthy ‘retirees' annually and the real estate market's transparency is improving.

These are all very good reasons why Panama has exceptionally good long-term potential in terms of its property investment prospects. Whilst things are looking less favourable at the moment due to the current state of the global financial market, those who look to the long-term and take anything but a speculators approach to the market stand to reap the rewards eventually.

5) Lifestyle

The final reason why we feel that property in Panama is a good bet is simply because the lifestyle available in Panama is fabulous! It's once again the case where you can get what you want from life - so, if your idea of heaven is shopping in glitzy boutiques, working in the City, dining out in posh restaurants and living in luxury - you can have that lifestyle in Panama City.

Or, if you prefer the thought of living in a friendly expat community close to the sea and with wonderful views and a very laid back pace of life, this type of lifestyle is also possible.

Alternatively, those who want to get away from it all or who want to live on the beach, in the mountains or perhaps in the local community can also find a property that will give them the lifestyle they want.

Source: www.Shelteroffshore.com

Panama prime plummets

Jaimie Kanwar — Wed, 25 Feb 2009 10:21:00 GMT

Property development in Panama is being affected by the global economic downturn with projects being scaled down and some halted, one official has revealed...

A lack of buyers, especially at the luxury end of the real estate market, is affecting both developers and construction as it hits their spending power. But there is also support for a crackdown on corruption to make Panama more attractive to foreign investors.

Luxury downturn

According to housing Minister Gabriel Diez the luxury condominium market has been affected the most because it relies more on foreign property investors than other parts of the real estate sector.

He is urging developers to switch to low cost housing which the native population can afford and if this trend is adopted he believes that the property market in Panama will weather the credit crunch better than many other countries in South America.

He confirmed that the government is looking into 'cleaning up' the property buying process to inject more confidence into the market. Foreign buyers often complain about developers not sticking to deadlines and keeping properties if investors are late with payments.

Modernisation needed

It is expected that the Consumer Protection Authority ACODECO (Autoridad para la Protección al Consumidor y Defensa de la Competencia) is to be beefed up. At present it has limited resources to deal with complaints.

A crackdown on corruption is also expected. A new inquiry could be set up to look into bribe taking in the property industry and the courts. Property rights also need to be modernised.

According to Jesse Levin from Archers Group Investment an interesting phenomenon happened in Panama when the real estate boom exploded three years ago. 'Many foreign speculators came to the country and bought on pre-sales several luxury units with the idea of selling them at a profit before they have to pay the rest of the money, but after the financial global crisis, they were unable to settle their debts or get rid of their properties at a profit,' he explained.

Source: Propertywire.com

Plucky Panama stays strong

Jaimie Kanwar — Wed, 11 Feb 2009 11:08:00 GMT

Despite the ongoing global slowdown, Panama's property sector continues to be one of the world's most resilient marketplaces...

With the massive canal expansion plan well under way and projects like Trump towers and other massive sky-scraping developments, being built and dominating the skyline, Panama is performing well amid the global downturn.

But one overseas property expert sees a massive boost for Panama's economy in 2009, which in turn would help the property market stay resistant. Les Calvert, director of overseas property portal Property Abroad explains:

"Panama's economy stayed strong throughout 2008 and it is widely expected to stay the same for 2009 -- the Trade Promotion Agreement would help massively in this aim."

"The TPA between Panama and the US still hasn't been ratified by the US Congress. It is widely thought that the Panama TPA won't be passed before the Colombia TPA, which is now causing the delays. However, most analysts see both being ratified in 2009."

Picture - Doug Goudie

Picture perfect Panama

Catherine Deshayes — Mon, 26 Jan 2009 12:30:00 GMT

With the extension of the Panama Canal, Panama is set to grow from strength to strength and can already lay claim to being Latin America's fastest growing economy...

Last year, visitor numbers increased by an impressive 27 per cent and tourism is already the country's biggest contributor to gross national product.

Few locations can stack up as well as the fast growing hub of Panama City with its low levels of consumer debt, a GDP growth expected to exceed 8.7 per cent this year and the world's second highest rate of hotel occupancy in the world.

With current hotel occupancy running at 84.7 per cent, second in the world only to Perth and a rapidly increasing influx of flights and employment comparable to Dubai five years ago, the demand for hotel accommodation in Panama City is at a premium.

Nations Hotel

Nations Hotel is located in the key financial district of Panama City - Bella Vista - a hotspot for nightlife, shopping and restaurants. This five star hotel is a short walk from the ocean and harbour and is ideal for both international holidaymakers and the business community.

Nations Hotel will offer a range of rooms throughout its impressive 26 storey structure designed by renowned national Architect Musa Asvat Kasu.

Investors can choose between varying sizes of one bedroom hotel rooms and also one and two bedroom apartment units. Each room and unit comes with a unique furniture package while all rooms have ceilings of 10 foot in height ensuring a feeling of space.

The hotel boasts a restaurant, bar and lounge, business centre, conference space and parking garage. You can also enjoy a pool deck, fitness centre and spa, flat screen TVs, outdoor terraces, 24 hour security, valet parking, laundry service and high speed Internet access.

One bedroom hotel rooms, (from 34 square metres) start at £95,245; one bedroom apartments (from 52 square metres) start at £142,865 and two bedroom apartments (from 86 square metres) start from £357,972.

Investments start from just £37,801 with a 60 per cent LTV mortgage and the expected net yields are in excess of 12 per cent.

The payment schedule starts with a £5000 reservation fee and then a payment of 15 per cent on the signing of the sale and purchase agreement, minus the reservation fee.

Panama looks like such a solid bet as staggering tourism growth looks set to increase demand further and the rental potential looks extremely strong for the future.

Ben Jefferis, Sourcing Manager at Property Frontiers, said, "We have always believed that South America will escape the wider reaches of the global credit crisis.

"Due to its very low level of consumer debt, Panama, along with Brazil, offers the greatest long term potential for growth and security.

"Panama has very few rivals in its potential for economic expansion. A combination of infrastructure, finance, tourism, taxation and the second highest hotel occupancy rate in the world make this a country worth serious consideration," added Mr Jefferis.

To find out more about the Nations Hotel in Panama, contact one of Property Frontiers' investment advisors on 01865 202 700 or visit www.propertyfrontiers.com

Global phenomenon

Catherine Deshayes — Tue, 11 Nov 2008 10:45:00 GMT

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

Mad for Panama

Catherine Deshayes — Fri, 07 Nov 2008 09:17:00 GMT

According to figures released by the Tourism Authority of Panama (PTA), over one million tourists have visited Panama so far this year, breaking the year-on-year record by 13.1 per cent...

The PTA also found that the most popular tourist groups heading to Panama were from the USA, Mexico, Central America, Europe and Asia.

Ana Royo, President of the Association of Tour Operators of Panama, says, "The interest in Panama is emerging. Tourists already requested in combination with other destinations such as Mexico, Guatemala and Central America."

Explaining the rise in tourist numbers from Europe, Carl-Fredrik Nordstrom, administrator in charge of the PTA, said the increase in passenger numbers is a result of a "steady and sustained advocacy having been done for the last two years".

Source: www.homesoverseas.co.uk

And the world's best building is...

Catherine Deshayes — Mon, 27 Oct 2008 12:38:00 GMT

The first ever World Building of the Year Award winner has been announced, beating off more than 700 other entries from 63 countries...

You may well wonder what a Spanish rubbish dump, the Royal Danish Yacht Club and a Japanese Dental Clinic have in common.

I'll put you out of your misery- they were all shortlisted for the first ever World Building of the Year Award, which celebrates architectural prowess.

Entries consisted of buildings that were new, restored, rehabilitated or converted and completed between January 1st, 2007 and June 20th, 2008.

Paul Finch, Editor of The Architectural Review and Programme Director of the World Architecture Festival (WAF) Awards, said that the most significant building in the world in any given year was not necessarily one of the most high-profile.

"It could be that a primary school in Glasgow or a small church in Peru is actually the building doing most to alter the way we think about the building type," he said.

In the end, Dublin based Grafton Architects' new faculty building at Milan's Luigi Bocconi Free University grabbed gold at the awards in Barcelona.

The University dates back from 1902 and has grown in the past 100 years from a privately funded institution to an international university for business, economics and law.

The campus now comprises an entire neighbourhood within a residential and commercial district.

The winning faculty building contains new conference and lecture rooms, auditorium and research offices for 1000 professors and postgraduate students.

Pic: Bocconi Free University's new faculty building

The 722 entries were split into different categories according to the building's purpose, ranging from learning, civic, culture, shopping, sport and pleasure. The winning building fell into the ‘learning' category.

Each of the categories chose a winner, and then the overall winner was deemed the ‘World's Best Building for 2008.'

The aforementioned Spanish rubbish dump, (which had been transformed into a green terraced agricultural landscape) won the Energy, Waste and Recycling category.

The judging panel, which was headed up by Robert Stern, who replaced Sir Norman Foster at the last minute after one of his designs made it to the final, was looking for ‘architecture that thought about complex issues in an imaginative way.'

The ‘totally 3D' building was chosen as the overall winner as it ‘fitted within the urban landscape but still stood out.'

Mr Stern said, "The use of space, light and local materials captured the essence of the city and the desire of the university to be connected with its surroundings.

"We were impressed by the building's physical and conceptual density," he added.

The new faculty building will have its official opening later this week.

Picture by pontuse

Stop searching! New SEO service is here!

Catherine Deshayes — Mon, 27 Oct 2008 11:19:00 GMT

Now is the time to get your website ready for the New Year revival, with TheMoveChannel.com offering an SEO service designed to help you plan and implement the right strategy to attract more buyers when the market bounces...

We all know that things are quiet right now and it's tough to justify dipping into the pockets to spend money.

But once Christmas is out of the way, interest levels will surge - they always do.

The chart above shows search volume trends for property terms over the last three years.

It's clear that the overseas property market is highly seasonal and tails off during the final quarter, with activity jumping sharply as January gets out of the way.

Act Now or Miss Out

Investment returns from SEO are probably the highest of all marketing activities right now - pound for pound, euro for euro, or dollar for dollar, nothing else can deliver you leads as cheaply as ranking number one for a relevant term.

But achieving those results takes an initial investment and results don't happen overnight, so it's no use waiting until the New Year to make sure your SEO strategy is in place.

The Solution

Good SEO companies are hard to find, particularly with knowledge of the property sector.

The SEO service from TheMoveChannel.com is a strategic solution that builds on nearly 10 years of Internet market experience in the international property industry.

Thus, it delivers genuine insight and real long term value.

For a fixed fee of £2950, we will conduct a 5-stage Review plan, which covers the following:

Property Product Review

Website SWOT Analysis

Keyword Universe Creation

Optimal Phrase Selection

Competition Assessment

This would lead to a series of recommendations and an SEO Implementation Plan, which covers:

On Site Recommendations

Link Building Strategies & Tactics

At this point, you can then either commission us to put the plan into action, or implement it internally.

Depending on the scope and extent of work to be done, we work to budgets of £500, £1000, £2000, or £5000 for the initial implementation plan, with the same figures for ongoing work if this is also required.

Call Us Now to Book the Service

If you'd like to take advantage of this offer, please call TheMoveChannel.com on +44 (0)207 952 7658 or contact Marketing Manager Jon Moore on j.moore@themovechannel.com

New property sites launched

Catherine Deshayes — Fri, 10 Oct 2008 09:49:00 GMT

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Latin America: Panama - Worth a Gamble?

Jude Buttle — Thu, 09 Oct 2008 10:06:00 GMT

In our fifth instalment on Latin America we sneak a peek at Panama. Most famous for its Canal, the country also has a spectacular coastline of palm fringed beaches and an astounding selection of tropical birds.

Country Overview

Panama is the southernmost country of Central America, situated on an isthmus and sometimes referred to as a transcontinental nation connecting the north and south part of America.

The real estate frenzy in Panama rages on. The expansion of the canal, a free-trade agreement with the US in 2006 and the rise of a service-based economy that provides administration back-up to American companies, has unleashed a building surge.

There are more than 35 towers going up, including the Trump Ocean Club, which is now under construction in Panama City. With another 300 towers in the planning process, it is estimated that there will be in excess of 40,000 flats on the market by 2010.

More condominiums are being built and major developments are underway as Panama starts to re-market itself as Latin America's regional logistics and services hub.

The county's GDP growth rate has been rising rapidly over the last four years. In 2007 GDP growth was 9.2 per cent, which followed on from 8.7 per cent growth in 2006, although in the first quarter of 2008, the increase was less impressive, due to the current concerns over the global credit crunch.

Surprisingly, Panama's growth has been achieved with relatively low inflation - in 2007 it was only 2.6 per cent. Panamanian inflation is usually between one and three points lower than US inflation and the country has a Hong Kong-like system without a central bank.

The price of property and land in the country is soaring, but so is the cost of construction, with raw materials and labour charges rising.

Foreigners can purchase properties in Panama, with the exception of islands and properties located 10 km from the frontiers - according to the Panamanian Tax Code article 121. It is advisable to buy titled properties, which can be mortgaged, instead of properties with possession rights only, which cannot.

The country's capital, Panama City, has yields on apartments and condominiums reaching up to 11.23 per cent, for 190-sq. m. units. As the size increases, yields decline by 7.15 per cent, which is still a healthy figure.

Condominiums in Panama City are priced at an average of £955 per sq. m. This is slightly more expensive than houses located in coastal areas, which are selling for £795 per sq. m.

But Panama is still a country in transition, with poverty at just under 40 per cent, the continuing concern of corruption and the government debt increasing due to the Canal expansion project. Thus, there are still a number of uncertainties to put off prospective purchasers.

Problems in the US also appear to be moving southwards. Panama's economy decelerated sharply during the first quarter of 2008 to 6.9 per cent growth (annualized), a sharp downward turn on the 10.41 per cent economic growth during the same period of 2007.

Although still an emerging market, Panama continues to flourish as Latin America's call-centre capital, and with affordable prices, a sympathetic tax system and an increase in popularity, a shrewd investor could bag a bargain or two.

Property Info

Entry level - Construction has just started on this resort located near one of the most beautiful beaches along Panama's Caribbean coast, an hour's drive from Panama City. The development's apartments will range from studios to three bedrooms, each offering views of the ocean and mountain landscape. Prices start at £41,000.

Mainstream - A planned luxury ocean front development located in Santa Catalina, in Panama's Veraugas region. It is the first such development in the area and offers investors a laid back lifestyle surrounded by a pristine coastline and endless opportunities for outdoor adventure. The project boasts 220 upscale villas with spectacular views of islands, beaches, and the Pacific Ocean. Prices start from £139,873.

Top of the range - Custom built just one year ago in Cardenas Village, this striking three level home has fantastic architecture and is adjacent to the neighbourhood's exclusive park. It boasts a spacious living-room with balcony and open island kitchen. Cardenas Village is a secluded quiet neighbourhood located in the refurbished area between Albrook and Clayton, near the Panama Canal. Price £393,940.

Search for property in Panama

Browse for property for sale in Panama

Photo by Steve Conover

Latin America: Worth a Gamble?

Jude Buttle — Mon, 01 Sep 2008 00:06:00 GMT

In these times of property concern, buyers are more cautious than ever before shelling out on an investment. However, Latin America, an area known for wars, coups and government corruption, is now attracting a number of shrewd investors. In a new series we look at some of the countries being considered and ask... is it worth a flutter in Latin America, or when the chips are down are the odds too great?

Photo by Phil Romans

Cause for Concern

Real estate investors seeking safer property havens for their capital in these troubled times, may not have contemplated Latin America - until now.

With a history of hyper-inflation, coups, dictatorships, corruption, drug lords, kidnapping and social disparity, it has not always been the most suitable area of the world in which to purchase property.

Latin Lovers

But the region's growing economies, recent political stability and an increase in tourism, mean that savvy investors are snapping up homes there, from holiday villas on Uruguay's beaches to high-rise flats in Panama and Mexico.

Latin America is high on glamour but low on costs - a luxurious lifestyle at half the price - the perfect cocktail for any would-be investor.

There are definitely bargains to be had; for just £27,000 you can buy a stylish flat near the beach in Brazil or an apartment in central Buenos Aires. Yet concerns exist that over development and unrealistic sales targets can often lead to poor-quality construction and a surplus of unsold property.

Growing Pains

Globalization is lifting Latin America to lofty heights and the reward for sound economic policies is evident.

The devaluation of the local currency for countries such as Argentina and Uruguay forced them to have an economic overhaul, which ultimately gave them a more stable economy. Peru has generated 9% growth at least partly by imitating Chile's budget restraint and free-market reforms. Colombia's success on terror and sound macro-management has bought huge pay-offs in company profitability, capital investment, and exports. In Panama, the government is enlarging the canal and creating a Dubai-like off-shore-centre.

A Place to Rest

There is an increase in the amount of retirees that head towards Latin American destinations, particularly from the US, where many look to retire to Mexico, Costa Rica, Belize, and Panama.

Be Wary of False Profits

But be cautious of the possibility of some inexperienced developers looking to entice foreign investors with portentous promises and inverted incentives. Potential buyers need to be cautious and research the sites and companies they could be dealing with.

So, with that in mind, in the next instalment we will take a look at one of the countries in Latin America and assess if it is worth a wager or best avoided.

Search for property for sale in Latin America

Property for sale in Brazil

Property for sale in Argentina

Property for sale in Panama

The Hollywood effect

Catherine Deshayes — Tue, 26 Aug 2008 12:51:00 GMT

Everyone wants their fifteen minutes of fame, and overseas property markets are now being boosted by the locations chosen by Hollywood filmmakers.

According to the Property Investor Show, which is being held on the 19^th to the 21^st September at ExCel, London, idyllic scenery featured in films is attracting interest from UK buyers, looking to secure a property in blockbuster locations.

The top three areas tipped to do well as they hit the big screen in the coming months are Spain, Panama and Australia.

The film Vicky Cristina Barcelona - filmed in Spain

Starring Scarlet Johansson and Penelope Cruz, Woody Allen's newest film is set in Spain. Filmed in Avilés, Barcelona and Oviedo the love-triangle story of a Spanish painter and two American tourists showcases the country's traditional and often overlooked beauty.

The Spanish property market has seen some turbulence, yet it is still the most popular country for UK investors and with prices around 30% lower than a year ago, the country offers real opportunities to buyers - it is just a case of finding the best ones.

The film Quantum of Solace - filmed in Panama

Action-hero Daniel Craig will return to cinemas as 007 in the newest Bond film, ‘Quantum of Solace.' Last year, the Homebuyer Show reported that Montenegro, where James Bond played a famous high-stakes game of poker in ‘Casino Royale', was set to see some of the greatest house price rises.

Investors who took a chance on the country have seen strong returns, with prices set to increase by 15-20% per year.

Montenegro is now a spill-over destination for investment capital in booming property markets elsewhere in Western and Eastern Europe, as a result rental yields could reach as much as 24% in Podgoritsa, where Craig's first Bond was filmed.

Now, Bond is set to hit Panama, where much of the new movie has been filmed, featuring scenes in Panama City and Colōn on the Caribbean coast.

Investment in Panama is already growing, as a result of a stable economy, estimated to have grown 8.1%² in 2007, and increasing property prices, which are expected to rise by over 12% next year.

The film Australia - filmed in...you guessed it...Australia

Period film ‘Australia' stars Nicole Kidman as an English aristocrat in the Outback at the start of World War Two.

In conjunction with the film's release, Tourism Australia will launch an international campaign ‘See the Movie, See the Country,' which is set to boost the number of visitors to Australia, as well as rental demand and property prices.

Australia has a strong rental market, representing 29% of dwellings, with the buy-to-let sector offering 9% rental returns and capital appreciation averaging 10%, in 2007.

Nick Clark, Managing Director of the Property Investor Show, says, "Films really bring places to the attention of the general public, capturing their imagination, and allowing them to view countries in a different light.

"Whether it's the stunning scenery, or a certain lifestyle that people are attracted to, countries and cities featured on the big screen, which many would not have considered investing in before, draw in both tourists and investors thus boosting house prices and rental yields," Mr Clark added.

To browse properties for sale in Spain, Panama and Australia, log onto www.themovechannel.com

Panama: A perfect investment?

Jaimie Kanwar — Fri, 01 Aug 2008 00:02:00 GMT

Those thinking of investing in Panama have had two pieces of encouraging news recently.

Influential international auditors, Deloitte Touche Tohmatus, published a report which predicted that the Panamanian economy will experience strong growth in 2008, the highest of all the Latin American countries.

In addition, the Panamanian government has reinstated the 20-year tax exemption for foreign property buyers in Panama, which expired last year.

The report predicts healthy GDP growth for Panama in 2008 with the economy expected to increase by between 7% and 8%. Analysts believe that the dynamic economy, with its range of important private and public investment projects planned for 2008, will help to offset the negative ripples from the U.S. economy.

The biggest plus for the Panamanian economy is the massive expansion of the Panama Canal, approved in a referendum in 2006 and due for completion in 2014.

The Panama government has decided to restore the property tax exemption on all new construction with building permits issued before December 31st 2009.

The decision was made to encourage Panamas booming property market to continue in the same vein. James Gonzalez, Market Analyst at Obelisk, says, Panama is a stable environment and it is perennially popular with retirees from the U.S. who are attracted by the mild climate and low cost of living.

Now that the government has reinstated the 20 year tax exemption for foreign buyers, the market will continue to boom.

Resale properties are also exempt from property tax, with the 20 year exemption starting in the year the property was built.

This means real savings for those buying off-plan or resale property or building their own property in Panama and is proof that the government is keen to encourage foreign investment with tax incentives.

The Heritage Foundation supports this in its Index of Economic Freedom, noting that Panamas investment climate is superior to those of its neighbours, with most sectors open to foreign investment.

A spokesperson for Obelisk International commented: "Panama's property market has been booming for around 5 years and this looks set to continue thanks to huge investor interest from the U.S.

"Rental yields are impressive, especially in Panama City where they reach just over 11% on small units of 190 square metres, according to Global Property Guide.

"With a favourable investment climate, tax breaks for foreign buyers, a booming economy and property market, Panama has the perfect property investment climate".

‘Painless Panama’ reigns supreme

Jaimie Kanwar — Tue, 29 Jul 2008 07:00:00 GMT

Panama is the fastest growing tourism market in Latin America, according to the World Tourism Organization.

Panama has been the winner of International Living magazine's Annual Global Retirement Index for six years in a row, and is listed by Global Property Guide as the location offering the 4th best rental returns in the world.

Aside from a varied climate, ranging from hot, sunny beaches to cool, beautiful mountains, Panama offers low cost living and very high quality of life.

Not only does the country boast a state-of-the-art infrastructure with excellent health care, advanced telecommunications systems and roads, but locals are accustomed to foreigners and, as is typical in Latin cultures, they are very welcoming.

English is widely spoken, making Panama very comfortable for buyers from abroad who wish to live and work in the country.

Exceptional benefits

Financially, the country offers exceptional benefits to all those who retire to Panama under its Pensionado Programme which allows:

- Import tax exemption on household goods and/or cars;
- No property taxes for up to 15 years depending on the property;
- Up to 20% off health care services
- Discounts on airfares, restaurants, fast food and movie theatres;
- Discounted closing costs for personal loans and utility bills;
- An amazing 50% off public transport (air, ground and sea).

In addition, regardless of the visa you request, there is no income tax charged on incomes generated outside Panama.

IPIN's Head of Operations, Gareth Milton, commented: "Panama now offers unrestricted freehold property ownership to foreigners, and currently attracts15-20% per annum capital appreciation, in conjunction with exceptional rental yields of 11% per annum, along with a swift, safe and painless buying process".

Forget Me Not: 5 Reasons to Remember Panama City

Jude Buttle — Mon, 28 Jul 2008 10:10:00 GMT

Known for having one of the seven wonders of the modern world, Panama City has so much more to offer than just a canal, there's fine food, stunning skyscrapers and an old town that is straight out of a Graham Greene novel.

Panama Canal - photo by lyng883

1. Food

Panama City reflects the rich tradition that the country has in the culinary arts and has a vast array of fresh and tasty fruits, herbs and vegetables. Combine this with influences from the Europeans, Native Indians and other Latin American countries and you have a selection of some great and varied cuisine.

Popular dishes include Ceviche, which is a very common appetizer found throughout the country. Typically lemon juice and spices are added to corvina (sea bass), which actually cooks in the acidic content of the lemon, creating a nice, fresh tangy taste.

Arroz Con Guandu is probably the most common side dish seen in Panama, where rice is cooked with beans and other spices to create a simple meal that is full of fabulous flavour.

If you're hungry for a typical local dish then Sancocho is the solution. Found everywhere in Panama, Sancocho is a type of chicken soup.

Hojaldras are commonly referred to as Panamanian Doughnuts. Essentially dough is deep-fried and topped with sugar, a simple sweetener to start the day.

2. Casco Viejo

Casco Viejo - also known as San Felipe or Casco Antiguo - is the historic centre of Panama City. It's an area of decaying colonial grandeur, striking architecture, peeling paint and decrepit, flower bedecked balconies.

UNESCO declared Casco Viejo a World Heritage Site in 1997. It's a city within a city and one from a different age, offering an unusual blend of architectural styles, most notably ornate French and Spanish influenced buildings.

At its tip lies the French Park, a monument to the French builders who began constructing the Panama Canal in the 19^th century.

On the walkway around the monument, visitors have a panoramic view of the Amador Causeway, the Bridge of the Americas and of Panama City's skyscraper skyline to the east. A plaque on the walkway commemorates the firing of canon shots to drive away a Colombian warship and consolidate Panama's independence from Colombia in 1903.

Casco Viejo has some excellent museums, including the Interoceanic Canal Museum, which traces Panama's history from pre-Hispanic to modern times and the amazing story of how the canal was constructed.

3. Panama Canal

This man-made phenomenon is one of the seven wonders of the modern world and joins the Pacific and Atlantic oceans.

One of the largest and most difficult engineering projects ever undertaken, the canal has had an enormous impact on shipping between the two oceans, replacing the long and treacherous route via the Drake Passage and Cape Horn at the southernmost tip of South America.

The concept of a canal in Panama dates back to the early 16th century, but the first attempt to construct one began in 1880 under French direction. After this attempt failed and saw more than 20,000 workers lose their lives, the responsibility of building it was taken over and completed by the United States in the early 1900s, with the canal finally opening in 1914.

The building of the canal was plagued by problems, including disease (particularly malaria and yellow fever) and a number of landslides. By the time the canal was completed, nearly 30,000 workmen were estimated to have died during the labour put in by the French and the Americans.

The length of the Panama Canal is approximately 51 miles and since its opening, the canal has been enormously successful and continues to be a key conduit for international naval trade. The canal can accommodate vessels from small private yachts up to large commercial vessels.

4. Metropolitan Nature Park

The Parque Natural Metropolitano (Metropolitan Nature Park) is situated just outside of downtown Panama City and stretches along the Panama Canal.

The park has several unique bird species and other animals such as tapir, puma, alligators and Titi monkeys. There is also a collection of native orchids, some of which continually bloom throughout the year.

5. Skyscrapers

The Panama City skyline is pierced by numerous spectacular skyscrapers. With more than 110 high-rise projects being constructed and 127 already built, Panama City is placed 65^th in the world for the amount of tall buildings it contains.

The tallest completed building in Panama City is Torre (Tower) Aqualina, which stands 210 m (689 ft) tall.

For several years, Panama City's skyline remained the same, with only a handful of buildings exceeding 150 m (492 feet). At the beginning of the new Millennia the city experienced a large construction boom, with new buildings rising up all over the place.

In 2009, Panama City will have two super-tall skyscrapers when the Torre Planetarium and the Torre Central are completed.

Conclusion

So with stunning skyscrapers, a historic centre full of character and a man-made wonder, it's easy to see why Panama City is so popular as a place to visit, reside or basically just experience.

Search for property in Panama

Property for sale in Panama City

Top of the Props – April 2008

Jaimie Kanwar — Fri, 09 May 2008 00:00:00 GMT

Interest in the United Arab Emirates from visitors to TheMoveChannel.com has soared over the last month, with the progressive Federation breaking into the top ten of our ‘Top of the Props’ chart for the first time…

Never content to rest on its laurels, the UAE’s defining characteristic seems to be its unshakeable quest for continuous improvement – something that has underpinned the success of States like Dubai and Abu Dhabi. And with major infrastructure investment occurring across the Emirates, it’s an exciting time for prospective investors.

Elsewhere, the titanic struggle at the top of chart between Europe’s heavyweights continued, with Italy, France and Spain shuffling places once again, and a new number 1 taking over. Far flung destinations continued their march up the chart, with two exciting emerging markets consolidating their positions in the top 10.

To view the complete chart, along with analysis and expert comment, please visit: http://www.themovechannel.com/articles/viewpoints/108-5-1.asp

You can also view the very latest global investment opportunities on our Property Investment Portal

Panama's 'Peerless' property prices

Jaimie Kanwar — Thu, 08 May 2008 00:00:00 GMT

Property prices in Panama have been growing exponentially over the last 2 years…

According to a detailed study into the Panama property market, conducted by International Research department David Stanley Redfern Ltd, property prices in Panama City have been growing at an average 25% per year for the last two years.

The average per square meter price now in Panama City has gone up by 50% in just under 2 years, and the economy is currently seeing major growth in tourism and real-estate sectors, with GDP growth reaching 9.4% in the first three months of 2007.

Furthermore, the recently signed Trade Promotion Act (TPA ) will increase the economy's stability and make it a safe country to invest in.

Increased stability in a time of such massive growth is the best thing an economy can hope for, and even better for Panama when viewed in the context of the canal expansion to be completed in 2014, which is likely to see GDP growth in Panama increase by 25% -- maybe more.

Panama ‘firing on all cylinders’

Jaimie Kanwar — Tue, 29 Apr 2008 00:00:00 GMT

Panama continues to be one of the hottest markets in Latin America, argues one expert…

Paul McBride, CEO of Prima Panama, a leading consultancy and company promoting real estate projects in the country, explained: “Despite the cancellation of high-profile projects like the Ice Tower and the Palacio de la Bahía, which were competing to be the highest tower in Latin America, the sector is still firing on all cylinders.

"Clearly, the real estate market has changed the last year. In addition to the U.S. slowdown affecting sales in Panama, many Panamanians are increasingly heading north to Florida to buy property to take advantage of falling prices in the United States.

”Despite this, there is still reason to be optimistic about Panama as a real estate investment. The lower taxes, the U.S. dollar, the great climate - all those things remain in place”.

Panama a 'real estate star'

Jaimie Kanwar — Thu, 24 Apr 2008 00:00:00 GMT

Panama and Peru are the ‘economic stars’ of Latin America, according to the IMF…

In its latest World Economic Outlook, the IMF revealed that Panama will continue to have Latin America's highest economic growth, while Mexico will have the lowest.

A spokesperson for the Fund said: “All in all, Latin America is expected to increase its GDP this year by 4.4 percent. That's a slight revision upwards from the 4.3 percent GDP we had forecast earlier.

“It's also better than our forecast for global growth (3.7 percent) and economic growth in the United States (0.5 percent), the European Union (1.8 percent) and newly industrialized Asian economies (3.9 percent).

“However, Latin America will lag areas like developing Asia, Africa, the Middle East and the Commonwealth of Independent States when it comes to GDP growth this year.

”Next year, Latin America's economy should grow by 3.6 percent. That will be higher than the forecasted growth in the United States and the European Union, but will lag all other areas and be slightly less than the expected global average of 3.8 percent.

Panama set for TPA boost?

Jaimie Kanwar — Tue, 08 Apr 2008 00:00:00 GMT

Investors are keeping a keen eye on the TPA spat between Panama and the USA...…

Over the last few months, the Bush Administration has been applying pressure on Congress to approve free trade agreements with Panama, Peru, Columbia and South Korea. The U.S. and Panama signed the Trade Promotion Act (TPA) in June last year and it was ratified by Panama in July 2007.

Despite the current pressure on Congress from the Bush Administration it is unlikely the agreement will be signed before September, as there is a major stall: The President of Panama's Legislative branch the National Assembly is wanted by the U.S. in relation with the death of a U.S. soldier in 1992, and it is highly unlikely that Congress will ratify the TPA until his term ends in September this year.

However as that is the only thing stalling the agreement it is likely that the agreement will be ratified in or shortly after September. America is so keen to open up its trading channels with the world's emerging markets, as America's continually expanding export industry has offset the housing market correction. Continued export growth is highly necessary to avert fears of a U.S. recession.

Increased stability

The agreement will do no end of good to Panama's emergence as a property investment hot-spot. Liam Bailey of David Stanley Redfern, commented: “Property prices in Panama City have gone up by 50% in just under 2 years, putting capital appreciation at a strong 25% for the past two years.

“The economy is currently seeing major growth in tourism and real-estate sectors, with GDP growth reaching 9.4% in the first three months of 2007. The TPA will increase the economy's stability and make it a safe country to invest in”.

“Increased stability in a time of such massive growth is the best thing an economy can hope for, and even better for Panama when viewed in the context of the canal expansion to be completed in 2014, which is likely to see GDP growth in Panama increase by 25% - maybe more.

Panama ‘equivalent to Spain’

Mr Bailey added: ”Panama currently has the highest GDP per capita in South America, but the wealth is very poorly distributed in the country, and there are high levels of unemployment and poverty. Nonetheless and even without the agreement, for American's Panama is the equivalent to Spain, and more U.S. residents are buying their second homes, holiday homes and retirement homes in Panama than any other country in the world.

”Hilton Hotels and Donald trump have both built sky-scraping hotel complexes in Panama City, and rental yields are among the highest in the world: 10% average and reaching 18% on smaller properties.

”If the TPA is approved by Congress in September, and the canal expansion goes to plan, Panama could be well on the way to becoming one of the world's strongest economies.

Panama’s ‘peerless’ property prices

Jaimie Kanwar — Tue, 01 Apr 2008 00:00:00 GMT

Property prices in Panama have been growing exponentially over the last 2 years…

Investors raise their hats to Panama

Jaimie Kanwar — Wed, 19 Mar 2008 00:00:00 GMT

Panama is set to become one of the top places to retire in 2008...

Already well established in the USA as one of the most popular retirement destinations, its benefits are now being highlighted to the UK retirement market both in terms of its investment potential and lifestyle.

Panama’s position as a world trade centre is well established but now, according to experts from the Homebuyer Show (7-9 March 2008, ExCeL London), it is its property investment opportunities that are attracting interest with enquiries increasing by 17% over the past month. With demand in the country set to increase, exhibitors at the show believe prices are set to rise by 20% over the next few years.

Investment in Panama whether for retirement or as part of a property portfolio is growing in demand, as a result of a stable economy, and increasing property prices, which are expected to grow by over 12% next year. Panama’s attraction to UK investors is easy to see; not only is English widely spoken but European mortgages are also available. Foreigners benefit from all the same rights and securities offered to nationals. In addition, Panama offers a low cost of living and is one of the safest countries for tourists and residents.

Beneficial tax situation

Peter Akinrinlola, Sales Director of Eden Overseas, which specialises in property investment in Central and Southern America and will be exhibiting at The Homebuyer Show, commented: “Panama has a lot to offer investors and has been on the radar of American property investors for sometime. Now UK investors are becoming aware of what it has to offer and in the past few weeks we have seen a sharp increase in enquiries, largely as a result of its beneficial tax situation.”

One of the main reasons Panama attracts so many retirees is due to its Pensionado - a fiscal incentive plan and pensioners programmes. Retired citizens and pensioners benefit from a wide range of discounts on services including hospitals, medicines, public transport, flights and electricity.

Foreigners can also apply for permanent residency only one year after obtaining a resident’s visa, and may apply for Panamanian nationality five years later, provided they have acquired a property in their name valued at a minimum of two hundred thousand US dollars and can prove economic solvency. Residents can also benefit from excellent tax breaks and incentives and do not have to pay tax on income earned in a foreign country. All new property built in Panama also benefits from being exempt from real estate tax charges on a sliding time scale and according to value.

Latin America’s best

Panama’s economy is estimated to have seen a growth rate of 8.1% in 2007 and is set to be the best performing Latin American country next year. Panama’s economic growth is a result of a stable democratic Government, its position as the world’s second largest free trade zone and its growing tourism. It also has the lowest inflation rate in the hemisphere for the past 50 years and uses the American Dollar as its currency.

Alistair Powell, CEO of Seven Continent Investment, commented: “With land and real estate prices rising, and good rental property in high demand as a result of an increase in tourism and more people permanently residing in Panama, there is now a shortage of accommodation, making new units highly sought after.

These combined factors have helped to make the real estate market more solid and put Panama right at the top of the emerging property markets in 2008. However, property in Panama is like anywhere in the world, it must be researched properly, as not every investment is a good one.”

Panama: Key facts

Property prices to rise by 15-20%
Panama has a growing economy and a stable government
Panama’s retiree incentive programme the Pensionado is the best in the world with many benefits and is not necessarily age related you can retire at 25
Panama has a stable economy that has been based on the US dollar since 1904. The legal tender is the US Dollar
Foreigners can buy and own property in Panama with the same rights and protections as Panamanian citizens
Residents do not pay tax on income earned in a foreign country
Property tax exemptions apply to all new constructions on a sliding scale according to value
English is widely spoken
Direct flights to the UK
Average temperature of 30^oC all year round
One of the safest countries for tourists and residents

Tax joy for Panama investors

Jaimie Kanwar — Wed, 12 Mar 2008 00:00:00 GMT

Property investment in Panama is set to become even more attractive for overseas buyers…

Housing Minister, Balbina Herrera, recently announced that the country will be extending its 20 year property tax exemption for foreign investors. Those who purchase property developments with building permits issued prior to 31st December 2009 will be exempt from paying any taxes on property transactions carried out in Panama until 2030.

According to Jose Boyd, president of the Panamanian Real Estate Association, (Asociación de Corredores de Bienes Raíces - ACOBIR), "What this does for the industry is fantastic. This does not just apply to new buildings and covers existing colonial style structures as well and will appeal to lifestyle, retiree and the pure investment buyer.

Panama in a 'privileged position'

He added: "This puts Panama in a privileged position in the Central American real estate community as our neighbours are having a hard time in the current economic climate and this is creative and shows the world that we are a happening and serious location for international property investment."

Propertyshowrooms.com analyst, Sara Romera, concludes: “Panama City centre property performs immaculately in the investment scale - property appreciates well as in other quality negatively geared investments yet cash flow income returns are apparent.”

“The country boasts increasing visitor numbers, 85% of which remain in the city centre during their visit. The strong influence of the Canal is apparent, accentuating the city's status as a commercial hub, offering a gateway between the Atlantic and Pacific Oceans.”

Tax joy for Panama investors

Jaimie Kanwar — Wed, 27 Feb 2008 00:00:00 GMT

Panama is set to extend its 20-year property tax exemption for foreign investors, according to the country’s housing minister Balbina Herrera.

The measure applies to projects whose building permits are issued before Dec. 31, 2009 and frees international investors from paying any taxes on property transactions carried out in the country until 2030.

Fantastic for the industry

Jose Boyd, president of the Asociación de Corredores de Bienes Raíces (ACOBIR), the Panamanian Real Estate Association, commented: “What this does for the industry is fantastic. This does not just apply to new buildings and covers existing colonial style structures as well and will appeal to both lifestyle, retiree and the pure investment buyer.

“This puts Panama in a privileged position in the Central American real estate community as our neighbours are having a hard time in the current economic climate and this is creative and shoes the world that we are a happening and serious location for international property investment.”

South America ‘on fire’ in 2008

Jaimie Kanwar — Mon, 18 Feb 2008 00:00:00 GMT

Brazil, Panama and Argentina could be the hottest property hotspots this year, claim BuyAssociation magazine...

The property investment experts recommend some of the key economies on the continent for their investment potential, suggesting they could prove "interesting" in 2008. "From an investment point of view there are a few areas next year. When you look at Latin America there's Panama, which is still quite exciting," said Paul Collins overseas property editor of BuyAssociation.

Foreign source income is not taxable in Panama, which has been attracting high wealth individuals and retirees recently, who also enjoy excellent incentives. "There is also Belize, where there are a lot of retirement developments. It is also good in terms of having tax advantages," continued Mr Collins.

"The other one that looks very interesting for next year is Argentina. They have just had a change of government, which could bode well too."

Such destinations are also becoming increasingly accessible. "With South America there are more and more direct flights going there all the time anyway and you also have the US market, which you can rent to, particularly with places like Brazil," continued Mr Collins.

However, established destinations closer to home could also prove alluring in the near future. "Places like Morocco and some places in central and Eastern Europe will continue to attract investment, particularly because of the holiday market," said Mr Collins.

Investors seek 'far flung profits'

Jaimie Kanwar — Thu, 14 Feb 2008 00:00:00 GMT

Investors should look outside Europe to make profits in 2008, claims David Stanley Redfern Ltd…

Overseas property investment specialists David Stanley Redfern Ltd have compiled an overall review from the flurry of assessments, expectations and promises held for 2008, which reveals that the Americas and emerging European and Asian markets are amongst the most opportune focal points.

The 5 most talked about investment hot-spots on the marketplace today are Albania, Panama, Canada, Thailand and India. So, just why are assertive investors focusing their sights on these locations? David Stanley Redfern relayed some key points for consideration regarding each location.

Albania: “When you combine the benefits of no capital gains tax, transfer tax or VAT with escalating tourism and rental yields that are sure to become more far more attractive when Albania joins NATO this year, and soon the EU too, it’s clear why Albania’s causing quite a commotion amongst investors”.

Panama: “Panama holds similar appeal to that of Albania. Its strong and stable economy is noteworthy, but perhaps more eye-catching is the escalating property pricing that’s come along with the expansion of the Panama Canal. Now is certainly the right time to buy into the Panama property market in order to reap its full rewards, before they diminish and become somewhat defunct as investment increases”.

Canada: “Like property in Canada, the typical Canadian lifestyle is not only attractive but affordable too. Last year, Canada saw foreign investment rocket and in light of the continuing interest in the region, it’s set to go from strength to strength. Our current portfolio offers some prime, fast selling Canadian property in Rouge River”.

Thailand:” The thing I like about Thailand is the sheer class and ever escalating value of the property on offer there. There’s little taxation on property purchases too and it’s pleasing to hear from our clients who buy into Thailand and thank us for all we’ve done. But its there for the taking for anybody, so we’re thankful for those people who commit and go on to reap their own rewards”.

India: “India saw high property value appreciation a couple of years ago, something like 30% I believe, and it still proves itself in today’s market where its rising retail and IT profile are helping to attract investors from all around the world”

Brits in ‘exodus’ to France and Cyprus

Jaimie Kanwar — Mon, 11 Feb 2008 00:00:00 GMT

British people are abandoning their native shores in droves according to figures from the Office for National Statistics, with some 200,000 people leaving for good last year, most of whom were retirees...

A recent report in The Times rated the best places in the world to retire based on eight key financial categories – income tax, inheritance tax, property tax, property costs, ease of gaining residency, healthcare, climate and culture.

The comprehensive research, conducted by the Homebuyer and Property Investor Show, gave the 10 most popular retirement countries a mark out of 10 in each category, to come up with an overall score out of 80.

While Cyprus and Panama topped the list, France also put in a good showing in third place, having been judged to offer a good quality of life for migrating Brits.

The following extracts from the report show exactly why British retirees prefer heading across the channel to staying at home.

Tax

While it is true that the top rate of income tax in France is 49.8% – against 40% in Britain – retired couples with income of €70,000 or less would still be better off making the move because in France there are lower rates the lower your income.

Emma Lawrence of Key 4 International said: “In France you can have a joint income between you as pensioners of almost €50,000 and your top rate of income tax would be 14 per cent – whereas in the UK it would be 22 per cent. Thus being a pensioner in France is pretty tax efficient.”

Property costs

The average price paid for a typical property in France is £140,000 – double that in 1997 – and prices show only modest signs of slowing, so it is one of the most expensive destinations in our survey.

Anne-Marie Garcin of Côte D’Azur estate agent Michael Zin-graf, said: “Prices are still rising in the luxury market, but have stagnated somewhat in the residential sector.”

Buying costs stand at about 7% for older properties and 3% for new-builds, and the price you pay typically includes agency fees of about 6%.

Ease of gaining residency

Retired EU nationals do not require a visa to move to France. In fact, if you spend longer in France than in any other tax jurisdiction during the space of one year, you will automatically be considered a resident for tax purposes.

Bill Blevins of Blevins Franks, a specialist financial adviser, said: “You are also considered a tax resident if your spouse is a French resident.”

Healthcare

As a British citizen, you are automatically entitled to free basic healthcare in France as long as you have a European health insurance card.

However, any EU expatriate not officially retired and not working will have their right to French state healthcare taken away unless they have lived in the country for at least five years, under new rules introduced at the start of the year.

This has caused consternation among the British expat community, some of whom have been forced to get private medical insurance, which can be prohibitively expensive.

Panama City is the 'new Miami'

Jaimie Kanwar — Thu, 07 Feb 2008 00:00:00 GMT

International property investors are fuelling a real estate boom in Panama City…

The city, located on the Pacific Coast of this Central American country, is seen as one of the hottest places for property in all of Latin America. There are currently more than 35 high rise buildings under construction and more than 300 additional projects in the planning stages. If all the buildings are completed, more than 40,000 units will come on line in the next 5-10 years.

Last year, foreign investment in this tropical city grew nearly 20% in the first half of the year alone. The Panama Canal, which has its western terminus here, is being expanded to handle larger ships and increased traffic. This project will also lead to more people moving here over the next few years. According to a recent article in the International Herald Tribune, many people are referring to Panama City as the next Miami.

Hurricane-free attraction

The city is home to many international companies’ regional headquarters, and has become popular with retirees and second home buyers. The tropical climate makes it nice place to visit, particularly in the winter. The location on the southwestern edge of the Caribbean makes the country virtually hurricane free, an attraction for some who might otherwise buy in Florida or a Caribbean island. Plus, the prices tend to be much less than many other locations.

One new project that was recently financed is the 69-floor Trump Ocean Club. This new building is scheduled for completion in 2010 and will include more than 600 luxury residential condominiums priced from $500,000 to $12 million. This project has helped to increase the average property price in the city. Over the past two years, the average high rise apartment price has risen to $3,000 a square meter, or $280 a square foot.

With so much going on, a great climate and stable government, Panama City has drawn the world’s interest.

IMF: World economy in 'turmoil'

Jaimie Kanwar — Mon, 04 Feb 2008 00:00:00 GMT

The International Monetary Fund (IMF) has warned of impending ‘global economic slowdown’…

But the revised predictions are still well short of being a global recession. The IMF's chief economist calls it a significant global slowdown. For the major developed economies, the IMF predicts continued, but much weaker, growth this year.

The new forecast for global economic growth this year is 4.1%, after nearly 5% last year. There is a very sluggish period ahead for the main rich countries. By the final quarter of this year, annual growth in the US will be below 1%, according to the IMF.

Developing economies are predicted to grow more slowly than last year, though still quite robustly in many cases. The report also warns of risks from financial market turmoil, which could mean 2008 turns out worse than its main forecast.

Those problems could affect spending in the rich countries and make for more significant spillovers to developing countries. In any event, the IMF's economists said that talk of de-coupling - the idea that the world is independent of what happens in the US - was "greatly exaggerated".

One exception to the pattern of slowing growth in the forecast is Africa. IMF economists say that reflects high prices for many of the commodities exported by African countries, improved economic polices and the fact that the continent is less exposed than Asia, for example, to problems in international financial markets.

Tax joy for Panama investors

Jaimie Kanwar — Fri, 25 Jan 2008 00:00:00 GMT

A new tax law will make investing in Panama property an even more attractive option...

The Consejo de Gabinete has approved an extension of the 20-year property tax exemption for apartments and houses, according to minister of Housing Balbina Herrera. The measure applies to projects whose building permits are issued before Dec. 31, 2009. Herrera explained that the measure extends the property tax exemption that expired in August.

Iván Carlucci, president of the Asociación de Corredores de Bienes Raíces (Acobir), said that "this change is healthy, and it is a sign that the sector will continue to grow dynamically."

Carlucci said that the waiver, which will benefit all types of buyers, gives Panama a competitive edge over other countries in marketing real estate projects.

Removing barriers

This is great news for the real estate industry in Panama since it extends the 20-year property tax exemption for all projects whose building permits are issued before December 31^st, 2009.

Combined with the reinstatement the 90-day tourist visa for U.S. citizens and these two decisions restore some of the key competitive advantages that Panama has offered in recent years.

More than that, however, is the very powerful message that these decisions send to the international market. It is clear that the government of Panama has given great thought to these two issues and has responded appropriately.

The government is once again removing barriers to investment, providing economic incentives and is encouraging the international community to come to Panama.

Traditional markets ‘in decline’

Jaimie Kanwar — Thu, 17 Jan 2008 00:00:00 GMT

Established property markets continue to be ignored in favour of emerging nations…

In its second annual Global Property Hot Spots roundup, currency specialist HiFX reveals an increase in enquiries over the past 3 years regarding less traditional overseas property destinations like Bulgaria and China, while interest in old favourites such as France and Spain has declined.

The report, based on an analysis of enquiries received by the firm, has found France and Spain to be consistently at the top of popular destinations for Brits buying abroad in recent years. However, the lead of these traditional holiday home countries is being lessened by new emerging markets where investors are vying for properties that will deliver quick growth.

Bulgaria interest doubles

Interest in Bulgaria in 2007 was double what it was in 2005, while enquiries relating to property in China increased from zero in 2005 to 3% in 2007, which is more than were received for more traditional destinations such as Portugal and Cyprus.

Over the last 10 years the Western world has enjoyed the biggest property boom in its history, creating a whole generation of potential property investors. Indeed, house prices have boomed in almost every developed market with the exception of Germany and Japan.

But with developed economy markets at their current high, investors are increasingly turning their attention away from the traditional markets like Spain and to the emerging markets, such as Eastern Europe and (new for 2008) even farther flung destinations such as Brazil, Egypt and, the canoeist's favourite, Panama!

Investors shunning Spain

According to the report, interest in Spain has decreased by 2% since 2006 and is 10% lower than in 2005. Interest in France remained steady from 2006 to 2007; however enquiries last year were down 7% compared to 2005.

Mark Bodega, Director at HiFX, says: "It's easy to see why investors in particular are turning their backs on Spain and examining new markets at an earlier stage in their growth cycle. In August 2007, the national median price for property sold to overseas buyers in Spain was approximately 250,000 euros. In Bulgaria the average price was closer to 60,000 euros.

"With an abundance of low cost airline routes, short flight times and the great weather, both countries will always be a favourite with British buyers and we expect them to remain so in 2008. However, overall, their lead is closing as the investor population continues to turn its attention to emerging markets in 2008."

Panama property market 'exploding'

Jaimie Kanwar — Wed, 09 Jan 2008 00:00:00 GMT

The property boom in Panama is ‘incredible’, according to Liam Bailey, Media Relations Executive for overseas property specialist David Stanley Redfern Ltd...

About 30,000 units were built between July 2006 and July 2007, another 40,000 announced and/or being built, and rental yields are going through the roof. Tourism and business are equally attracted. Global corporations like Hilton are building skyscraping hotel complexes and giving Panama City a skyline to rival any of the world's greatest cities. This may go some of the way to explain the influx of American retirees chasing cheap living in the sun. But where has it all came from, and why now?

In the case of property booms in Eastern Europe, it was easy to see where they came from: breakup of the Soviet Union and entrance into the European Union. But in the case of Panama, it is really more to do with what Panama hasn't done and what the U.S. wants to try and stop them doing: joining forces with Hugo Chavez's Venezuela in his socialist war of rhetoric with the U.S. and the West.

The closest thing to a trigger for the boom arising from this U.S. policy track is handing over control of Panama's canal. The Panama Canal is one of the most important in the history of international freighting, because it runs right through Panama to connect the Atlantic and Pacific oceans. This meant ships no longer had to take the treacherous routes of Drake Passage around Cape Horn at the southernmost tip of South America.

Canal boost for the economy

Handing over the Canal has been a massive boost to the Panamanian economy. But more than that, the U.S. is putting money into the Panamanian economy in the hope that the boom will set an example for other states that either already are, or are considering joining or forming an alliance against Western interests.

This U.S. policy actually seems to be working. More U.S. retirees are buying their retirement homes in Panama than anywhere else, and the country that has secured its place as the fastest growing Latin American economy is lining up to take its place as one of the hottest property investment destinations of 2008. Here's why:

A very conservative estimate on capital appreciation is 15-20%. Rental yields in the big cities are an astonishing 11.23% on a property of 190 sq.m, amazing for a property of such a size; another plus is the pro-landlord rental laws.

The buying process for foreign investors is also incredibly simple, with only 7 stages that can be completed in around 44 days. There are no restrictions on foreign ownership - according to the salespeople I have spoken to, those are two of the key issues people look for when buying an overseas property: an easy buying process and freehold rights.

Low capital gains tax

Other reasons are the low roundtrip transaction costs of around 7-9% including agent's fees of 3-5% and no inheritance tax, all things buyers look for in overseas purchases. Another plus point for an investment in Panama is the low capital gains tax. Foreign owners can choose to be taxed on their gain in two ways:

5% of the sum of the following, 10% of the property's cadastral value for every year the property has been held, plus the cost of any improvements, plus the property's cadastral value at time of sale. This option consolidates transfer tax and capital gains tax, and means the final sum for the above calculation is all that a foreigner pays upon selling a Panama property.

The second option is: 2% of the higher value between the sales price, and the sum of the property's cadastral value at time of acquisition, improvement costs during ownership, and 5% of the property's cadastral value, (including improvement costs) for each year the property has been held. The second option incurs a further taxation on the selling or transfer price, less transfer costs, the acquisition cost or cadastral value, and 10% of acquisition costs for each year the property has been held, the sum of which is then taxed at standard income tax rates.

In my humble opinion, the first option is best, but advice from a financial advisor and solicitor should go hand-in-hand with any property transaction, buying and selling. Their advice on which option is best for you is far more valuable than mine. Before that, though, you have to actually buy a property; and the volume of new properties coming onto the Panama market will have you spoilt for choices.