Time Changes Values in Panama City
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(rosemanblog.sovereignsociety.com) I always enjoy returning to Panama. It’s a beautiful country, the people are kind and the weather is much better than in Canada!
When I started coming to Panama in 2000, real estate prices were among the most distressed south of the Rio Grande. The city’s skyline was littered with beautiful buildings, mostly high-rise condominiums that sold for a song compared to similar properties in Miami or Los Angeles. I surveyed more than a dozen condos in the early 2000s and now regret not speculating because prices have risen quite sharply over the last five years.
Panama was making a comeback. The airport was expanding, the canal was seeking its own expansion plans, following its reversion back to the Panamanians, and tourism was booming, as Americans were seeking more affordable primary residences or vacation homes following a real estate boom in the United States.
Panama City was dirt cheap in 2003…
But that’s not the case any more; following Donald Trump’s announcement in 2006 of a new 60 story hotel/condo resort complex, prices literally climbed 50% in Panama City within days. Developers immediately boosted prices.
Panama is still an affordable destination for a vacation home or a primary residence. Over 250 islands sit off the Panamanian coast – most also attractively priced. You can still find good deals. The best bargains, however, are long gone.
A good friend of mine purchased a prestigious high-rise condo unit in 2004 for $600,000. The unit has a spectacular view of the Pacific Ocean, high ceilings and first-class building materials, including marble in all three bathrooms. He’s now looking to sell that condo for $1.4 million dollars – a pretty steep increase. That’s an extreme example, but nevertheless indicative of how the top-end of the market is priced.
If I was looking to buy a house or condo today, I’d be looking very carefully at U.S. real estate, especially in Miami, Tampa, San Diego, Las Vegas and Phoenix. All five cities are much cheaper compared to only 36 months ago.
Aside from affordable real estate, Panama offers other benefits, including second citizenship and a much less taxing lifestyle. But it’s fair to say that after a housing bust since 2006, bargain hunters will now find very exciting deals across the United States – and prices are heading even lower over the next 12 months.
Five years ago, real estate for most couples or individuals was largely unavailable as smart speculators or prospective homeowners didn’t bite off more than they could chew. Prices were just too expensive.
A bear market or deflation in U.S. residential housing is still in progress. If you plan on staying in the United States and want to avoid the travails of moving and the language barriers, I suggest distressed property investing in America. The Europeans are all over New York City since 2007 amid a sky-high euro. Maybe it’s time Canadians and Americans do the same as prices get even cheaper. If you want a second home, it’s time to look at the distressed Sun Belt in the United States
