Opportunity Strikes in Panama
(articlesland.com) - New Opportunities for Panama Real Estate Cash Buyers
It seems as though a silver lining has appeared for some over Panama’s uncertain real estate market. For those with cash on hand, you might want to consider Panama for your next work/vacation destination.
It is common knowledge that due to the global financial crisis, bank financing for mortgages has become more complicated. Foreigners who bought two to four years ago planning to seek financing in presale projects in Panama have come to a crossroad making the difficult decision whether to move forward on their commitments.
By the time these pre-construction sales blossom buyers have already paid 30% of the sales price. When the occupancy permit is issued, these buyers must pay the 70% balance.
Here is where the crossroad becomes critical. The current global economic crisis leaves many buyers with insufficient cash or no financing to pay the 70% balance.
This re-evaluation has driven some buyers to shift their priorities, changing plans for investment, retirement, relocation or has simply scared them into a temporary freeze of their assets.
The current banking reality in Panama is that many banks that previously touted seventy percent financing to foreigners at six percent interest are now maxing out at fifty percent financing, if they are still providing mortgages foreigners. In many cases, banks are maxing out the price per square meter that they are willing to loan for new construction up to ,500 USD per square meter.
Where is the opportunity in all of this?
Whether it is because of less available cash, inability to acquire a mortgage or no intention of living there in the first place; the question remains as to what they plan on doing with their contractual commitment.
Considering this, buyers will be rushing to let go of the properties that they purchased in presale through assignment of contract and in many cases far below market values.
Cash buyers will be able to pick up distressed contracts for ocean front properties at twenty-five percent below the true market value. Most original buyers will be happy to recover their initial 30% deposit. In many cases, the original buyer is willing to take a loss.
This paints a favorable outlook for Panama City’s mid to long-term real estate market. There is an ample supply with cash buyers replacing speculators at a discount causing prices to stabilize.
About the Author:
This article has been written by Esteban Arosemena for Panama Real Estate Group. The company offers experienced, English speaking Panama real estate brokers who can understand the problems and answer the queries of foreign clients who want to invest in real estate in Panama. The services of the company are reliable & qualitative, with affordable commission structure, escrow fees, closing fees and incorporation fees.
Contact Details:
Steven Rich
Marketing Director
Panama Real Estate Group, INC.
IPASA Building, 3rd Floor,
41st Street of Balbona Avenue,
near the Universidad del Istmo,
Panama City, Republic of Panama.
Phone: ++ (507) 227.6645
Fax: ++ (507) 227.7485
Email: marketing@pos-inc.com
Website: http://www.panama-real-estate.com/
Resource Box: Panama Real Estate Group, INC.
