12 Blunders in Panama Real Estate

Matt Landau has a good read on his blog about the 12 blunders of investing in Panama. I would agree with everything on this list and could add a few more when time allows.

1.    Believing someone when they tell you, you can sell a property no problem:
2.    Buying a property solely from photos or hearsay:
3.    Investing on a piece of real estate with a partner you don't know extremely well:
4.    Expecting to get good service from an agency/developer after you've made a purchase:
5.    Assuming a project will be ready by the time it is originally projected:
6.    Investing big money with a first-time developer:
7.    Trying to build or do construction on your own:
8.    Waiting too long to invest:
9.    Trying to go around an agent or middleman to get a better deal:
10.    Seeing one property and falling in love:
11.    Becoming obsessed with beachfront:
12. Choosing a big shot lawyer:

If any of these titles apply to you then maybe you should read this first.

Comments

[Scott]

Thank you for this posting. Matt is right on and his #1 comment foreshadows what I have believed for some time; that there is virtually no resale market for City condos and that a significant market correction is at hand.

Investors in City condos have been told for years that they could flip these units for big profits the day the building was done, if not before. Investors were also promised other things like permanent ocean views, the amenities pictured in the sexy brochures, delivery at a certain time, etc. It was all a bag of wind.

I perceive that the lack of cooperation within the real estate industry will severely exasperate the problem of selling a condo in this severely saturated market. Investors at time of contract were likely not informed that real estate agents in Panama prefer not to co-broke on listings, that there is nothing like a Multiple Listing Service found in North America, and that nearly all the emphasis of the last five years has been geared toward selling developer units to trusting international buyers. No thought has been given as to what to do with tens of thousands of unoccupied units purchased by speculators.

I find it very sad that there is such lack of disclosure in Panama's real estate industry. However, I do believe that there is at least some amount of justice in this world and that the City developers, agents, real estate conference promoters, and lenders will soon face the consequences of their actions.

[frits bos]

No question Matt is right. But why did I think that Matt was an expert on the Panama night life? Maybe he wants to drown his daytime real estate experiences? Just kidding Matt. And when you see me in the gutter in Calle Uruguay pretend you don't know me.

[Ed]

I disagree with his #7 "IF" you have construction knowledge and have lived in Panama long enough to know where to buy your materials. I have been in Panama going on 37 years now and have been building, for myself, for the past nine years. If you're not in a hurry, know how to build, are willing to supervise the project (that includes keeping up with all the material you'll need, in some cases going and getting it, hire a good welder and several good workers, pay them a decent salary, you'll come out thousands ahead of contracting out and have better results. I'm just about to finish a project I've been working on for the past sixteen months and believe me I have saved a bunch by doing it myself. God bless Ed