Buying rental property in Panama is not a passive investment. The biggest challenge is buying the right property, so follow eight simple steps.
1. Always purchase below market values
Lowest price purchase on wordpress.com generates profit. Income from tenants must be greater than expenditure, like mortgage payments, repairs, etc. If property values drop, you can continue charging tenants enough to cover mortgage cost.
2. Pick the right neighborhood
Panama City has a broad market with rental properties on beaches, islands and mountains, the highest demand in rental properties, but the most expensive real estate nationwide on adrianjosevelasquezfigueroa.webs.com. High-end condos target foreign tourists, immigrants, executives and entrepreneurs seeking short term accommodation, especially in Punta Patilla, Punta Pacifica, Casco Viejo, Avenida Balboa and El Cangrejo.
Long-term rentals still exists, but tenants are limited to neighborhoods in the mid-range like The Crab, Bella Vista, El Dorado, and parts of San Francisco.
3. Know rental laws
To become familiar with relevant regulations, read the article “Rental Laws in Panama.”
4. Make sure all services are available
Parking is a predicament sometimes. Without a private space, make sure street parking is available. Newest condominiums in Panama City also offer pools, gyms, private parking, social areas, and 24 hours a day security.
5. Inspect quality of construction
Even in newer condominiums, developers may skimp on production. Talk to other owners of that building, talk to the developer’s past clients, and communicate with brokers familiar with the work of that company.
Check for simplicity, easy access to plumbing, air conditioning units and electrical systems. Hire a professional for landscaping and potential maintenance problems.
6. Managing rental property
Absentee homeowners face problems that could have been mitigated or prevented had they lived closer or frequently communicated with tenants but property management companies in Panama provide full services.
7. Big is not always better
More important than the square footage of an apartment is the number of rooms, restrooms, kitchen appliances, whether you’ll rent it furnished or not, and what kind of services are provided.
8. Value of public services can increase
Costs, like with energy, can fluctuate. Register services in tenants’ names.If costs increase, or tenants fail to pay, you are not responsible.
About Adrian Jose Velasquez Figueroa
Since winter of 2011, Adrian Jose Velasquez Figueroa, a professional executive from Venezuela, has held (and currently holds) three different positions which include, treasurer, director and president of five companies in Panama. Mr. Figueroa is a power house in the business community in Panama, propelling businesses growth, motivating and inspiring young leaders and uplifting general economic conditions.
Mr. Adrian Jose Velasquez Figueroa authored several articles, of paramount significance to national and internal investors, about doing business in Panama.
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