Due Diligence in the Panama real estate market has become an increasingly important factor in the investment process. Real estate investment has boomed in Panama in the recent years thanks to many factors, including tax incentives for foreign property investment, convenient living, remarkable tourism services, stunning locations and interesting activities and culture. While investing in Panamanian real estate is getting easier, competition in real estate development has risen because of increasing demand. Because of such competition, locations are well chosen by the developers, prices are affordable and customer service has improved. But investors still must do their due diligence.
Though investing in Panama real estate has become easy and convenient, there are certain precautions that investors should take to avoid costly mistakes. Usually, these mistakes are not immediately noticed. It is not uncommon for investors to notice that at the start of the investment process, as soon as documents of agreements are available, many of their expectations or requests are not written in the contract.
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Here are some tips to ensure that your investment is secure and your due diligence is done:
- First, get a reputable and reliable broker. You need to be sure that you are dealing with the right real estate agency. Check their licenses and backgrounds for you to evaluate if they have been dealing with their clients reliably.
- The best thing to do if you are to get the best broker or agency that you need for investing in Panama real estate is to establish contacts in Panama. If necessary, you have to visit the place several times before you settle for investing in Panama real estate.
- Do not be easily swayed by advertisements, bank offers, and statistics and paper promotions. For you to get the right investment, you need to scout and visit the prospective property for investment.
- Get as many choices as possible and visit the location at anytime of the year, in different seasons, and occasions. It may be costly to frequently visit several prospective locations but it would be more costly to invest in property that you may find inconvenient at later time. You need to compare and contrast properties and scrutinize the characteristics or features of such property apart from convincing recommendations.
- If possible, do not let the real estate broker tell you what you want and need. You need to do the research yourself to get the information for the real estate that you want. After all, it’s your money going through the property and not the money of the broker.
As much as possible, you want your experience in investing in Panama real estate to be smoothly executed. By following the tips listed, you’ll not only be able to get to know the process better on your own, but you’ll establish contacts in the process, which will be of great benefit to you in future investments.