Introduction
You have saved 200 thousand US dollars and now you are trying to figure out where to invest the funds. Leaving money in a savings account may seem like the best thing to do, however, banks today are paying little or no interest on your savings. In fact, some banks have started CHARGING CUSTOMERS INTEREST to hold their money. You've worked hard to save your money, now it's time to let money work hard for you.
Why invest in real estate in Panama?
200 thousand dollars may seem like a lot of money, however, that money can be spent frivolously and quickly in a short time. The goal is to invest the funds and get them out of reach so they are not wasted. Panama has a growing real estate market where you can invest your money safely and receive a healthy return on your investment.
Of all the sectors of the Panamanian economy, the real estate sector is one of the most promising. With all the people coming to Panama either for multi-year employment contracts, immigrating from their countries out of necessity, or simply attracted by Panama's high quality of life, the real estate market is booming.
According to Investopedia, real estate ROI can vary depending on the method you use to calculate it, too: “Calculating real estate ROI can be simple or complex, depending on all of the variables mentioned above. In a robust economy, real estate investments, both residential and commercial, have proven to be very profitable. Even in a recessionary economy, when prices fall and cash is scarce, many real estate bargains are available to investors with the money to invest. When the economy recovers, as it inevitably does, many investors will make a considerable profit.
Reasons to invest in real estate in Panama
According to the World Bank, over the past 10 years, Panama has been one of the fastest growing economies in the world. Annual growth was 7.2% between 2001 and 2013, more than double the average for the region, growing by 6.1% in 2014 with a slight decrease of 5.8% and 4.8% in 2015 and 2016 respectively. For 2017 and 2018 it is forecast to remain at 5.4%, the highest in Latin America.
There are many good reasons to expect Panama's growth to remain among the highest in the world, such as:
- Continued investment in infrastructure such as second and third metro lines, new roads and water treatment plants.
- The real estate market in Panama is characterized by producing large capital flows in rentals and increases in the price of real estate over time.
- The official currency of Panama is the Balboa; However, the US dollar is the actual currency in circulation and is used by all people in the country.
- Panama has been listed in 2016 as one of the best retirement destinations in the world.
- High demand for rental properties. More than 10 multinational companies per year are moving their Latin American headquarters to Panama, bringing with them highly qualified workers and executives from abroad. All of these employees need a place to rent while living in Panama.
- Panama promotes foreign investment in the country. An example is the new free trade agreement with China that brings thousands of people per year to live and work in Panama.
Investing your 200k in Panama should start to make more sense now…
Starting with 200k, you can buy a beautiful new apartment in Panama City in some of the most sought-after neighborhoods including San Francisco, Bella Vista, Punta Paitilla, Balboa, Avenida, and Marbella. You can buy an apartment for 200k without financing, or use the 200k as a down payment to buy a larger apartment with local financing from one of the 100 banks based in Panama. Either way, there are an abundance of renters in Panama looking for furnished apartments to occupy regardless of the type of unit you have purchased. Once you have taken possession of the property, hire a licensed property manager like House Hunters Panama to locate and place a qualified tenant in the unit.
There is no doubt that this is the right time to invest in real estate. Because? It is completely safe to buy real estate for foreigners in Panama as there are more than a dozen laws in Panama specifically established to protect foreigners' investments, in addition to private property in Panama being protected by the Constitution. Many thousands of foreigners own property in Panama, in fact, much of the country's growth can be attributed to foreign investment. Take advantage of tax incentives. Many new construction buildings have a 20-year tax exemption on real estate taxes!
Visit our blog to stay up to date with the latest news on the real estate market: https://investinglatam.com/blog/
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