Single Best Piece of Panama Real Estate Advice

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( http://www.thepanamareport.com/ ) There are many advantages in arriving to a new real estate market before the proverbial hoards. The following though, is the best one piece of advice we can give to people looking to invest in Panama and strike it rich.

Like just about any other good, real estate prices are derived from supply and demand. It is for this reason that in the early days of the Panama City boom, buyers could flip their condos (before the building was even built) for double the money: purely because there was a demand for condos in the burgeoning Panama City and the supply for said condos was significantly less.

Back in this Panama City boom period, buyers were snatching up anything and everything they could. These lucky (smart) buyers owned properties that were unique, inimitable, and truly one of a kind: and more importantly, ones that were very easy to sell to similarly grabby investors.

But now, as supply has vastly increased, new buyers are being more patient and searching for the real estate that's 100% right for them, meaning today's sellers are getting antsy and frustrated. All sellers have a very generous idea of what they can get for their real estate, but a saturated market quickly slaps them in the face.

Unless you're looking to spend the rest of your days living in/on your investment, we always advise investors to only buy something that they would feel confident putting on the market. This may apply to commercial space, farm land, condos, or historic real estate: only purchase real estate that, when ready to sell, will be unique and stand apart from the rest.

Buy on the basis of a definite and impending increase in demand. Further, ensure that this increase in demand will far surpass supply. Considering these two factors will ensure that prices rise and you enjoy a lucrative investment.

Supply and demand in Panama real estate can be difficult to balance, seeing as though real estate is a manufactured and finite commodity meaning it takes time to produce and once it is produced, it's (generally) stuck where you produce it. Unlike toys for toddlers or steel for construction, you cannot move real estate to where the buyers are. Which means that in order to guarantee our advice, considering or predicting the future is imperative.

Analyzing the future supply is relatively simple: look at the amount of projects in an area both just getting started, near completion, and currently inhabited. This ratio should show you the direction in which a regions real estate supply is heading to determine whether or not new projects will continue to surface.

Analyzing the future demand is a bit more soothsayer-ish. A great way to gauge where demand for real estate in Panama is heading, is by looking at the local economy seeing as though a strong economy leads to more jobs which lead to higher demand for real estate. Both experts and statistics agree that in Panama the economy is surging ahead, meaning demand for real estate will be on the rise as well. With the Canal expansion, various oil refineries, and mining projects, demand is sure to increase: it just depends at what rate.

The good news for real estate in Panama is that the Panamanian economy is just starting to truly flourish. But lastly, you must use some common sense to balance your statistical prediction out. If a region appears to be blossoming, use your gut instinct and apply this advice. If a region appears to be down and out, except for some overly optimistic developers or promoters, take heed. Panama has so many niche markets and regions that are just begging for investor interest so don't be drawn only to the famous areas.

When the time is right, exercise this calculated risk and be one of the first to buy in a condo project or mountain development or beach retreat. That way, whether you end up liking your investment or not, you'll be in a terrific position to sell your property for significantly more than you paid.

And that's how it's done.