Panama, with its picturesque landscapes and bustling resort towns on the shores of the Pacific Ocean and the Caribbean Sea, recently entered the international real estate market, but immediately won the hearts of American investors.
"Thanks to political stability and a low level of criminality, Panama is one of the most stable democratic republics in America," says Sergey Bulavin, executive director of Cosmopolite Realty, "The country's economic success is largely due to its favorable geographical location and the presence of the Panama Canal connecting the Pacific and Atlantic Oceans. In addition, the second largest free economic zone in the world is located at the entrance to the Panama Canal from the Atlantic Ocean, where you can buy goods from all over the world at low prices and virtually tax-free. There is also an International Banking Center in Panama."
The impressive growth in the cost of housing over the past few years has led some analysts to make optimistic forecasts, while others, on the contrary, are concerned about the likelihood of a credit crisis, especially given the strong dependence of the market on buyers from the United States.
Liam Bailey of David Stanley Redfern notes: "Judging by the fact that the boom in the real estate market in Panama began quite recently, it is difficult to make predictions about the increase in the value of real estate. On the other hand, land prices have tripled in a short period of time, and the rapid expansion of foreign investors has led to an increase in prices for everything, including construction materials."
"The situation in Panama resembles Costa Rica 15-20 years ago or Florida 30 years ago," says Sergey Bulavin. – An additional motive for investing in real estate is preferential taxation – acquired real estate is exempt from tax for a certain period."
Panama is extremely popular among American pensioners, and it is no coincidence that such large corporations as Hilton and Donald Trump are going to build their hotel complexes here. "Panama is not called a paradise for pensioners for nothing," adds Sergey Bulavin. – The Government of the country provides a program of discounts and tax benefits for pensioners. In addition, the country has a well-developed medical care system. There is a network of private and public clinics, and the private health insurance system in Panama is more affordable than in the United States and most European countries. Drug prices are also low."
At the same time, Dan Johnson from The Move Channel company is confident that prices will not rise for all objects, and advises buyers to carefully consider the conditions and goals of the purchase so that it does not turn out to be obviously unprofitable. He considers investments in Panama City to be the most reliable, especially its historical center - Casco Viejo: "This area has wonderful prospects. The spirit of the first settlements is alive here, and the government wants to recreate the atmosphere of a Spanish colony. The prices are high, of course, but the costs will be justified." In addition, the expert draws attention to the green suburbs of the capital with low building density, such as Clayton and Albrook, where employees of American missions traditionally live.
The tourist season in Panama lasts all year round due to the mild tropical climate. The average annual temperature is about +28 °C, the water temperature off the coast is about +24 °C all year round. Most vacationers come from November to April, as the rainy season lasts from May to September. The income from renting two-bedroom apartments in Panama City is about $600-800, and the demand is almost year-round, although the rates are slightly lower in summer.
According to Liam Bailey, making a purchase takes about 45 days. The only restriction when buying real estate by foreign citizens is that they cannot buy objects less than 10 km from the state border.
Costa Rica
According to the data posted on the website of Rightmove Overseas, the number of applications for the purchase of real estate in Costa Rica has increased by almost 50% over the past year. Among the fans of the country was Hollywood actor Mel Gibson, who bought a 160-hectare ranch here for just $23.5 million.
Costa Rica, bordering Panama and Nicaragua, is also gaining popularity among Europeans. First of all, they are interested in the northern coast of the country – an area that is located near the international airport and is famous for the beauty of Pacific beaches. The cities of Playa del Coco, Playa Hermosa and Papagayo are located here.
According to Sergey Galkin, a representative of Costa Rica Properties, there is a good future off the coast of the Nicoya Peninsula with the cities of Playa Samara and Playa Nosara. After the jump in real estate prices by the sea, buyers began to be interested in land plots and protected complexes within the country, from where it is easy to get to the ocean by car.
In a small Costa Rica, investors are attracted not only by the relative affordability of housing, but also by the security of living (unlike neighboring countries). The climate here is the same as in Panama: during the year the temperature does not fall below +22 ° C.
Costa Rica is a successful country by the standards of Central America. From the end of the XIX century to the present day, only twice, and even then for a very short time, the democratic development of the state was under threat. Despite the fact that agriculture remains the main branch of the economy (coffee and fruit are exported), tourism is actively developing here. The crime rate in Costa Rica is significantly lower than in other Central and Latin American countries. The state provides free medical care, and treatment in private clinics will cost twice as much as in the United States, while the level of public health is quite high.
It is quite simple to make a deal here, since there are no legal restrictions on the purchase of property by foreign citizens, but, as in any other country in the world, buying real estate in Costa Rica, one should not forget about common sense.
According to Sergey Galkin, it is easiest for investors to buy real estate on the primary market. However, developers often have to wait a long time for permission from SETENA (the local environmental protection agency), so the buyer of an object under construction needs to make sure that all the necessary permits have already been received before signing the contract.
Legal problems are more likely when buying a land plot or a house on the secondary market. An investor should remember that Tico ("Costa Rican" in Spanish) is not averse to selling someone else's property to foreigners - therefore, if the price is too good, it should arouse suspicion. Special attention should be paid to a comprehensive study of real estate, which should be conducted by the buyer's lawyer. In addition, it is recommended to take out title insurance, which will cost about 1.5% of the transaction value.
Mexico
Amazing climate, monuments of ancient civilizations, luxury resorts, many beautiful beaches, snow–capped volcanoes and endless deserts - all this can be found in Mexico. It is not surprising that tourism has become the country's main source of income – over 21 million people visit it every year, primarily from the USA and Canada. In 2006, Mexico ranked eighth in the world among the most visited countries, and the average employment of local hotels was 83%. The Mexican economy is among the largest in the world, in terms of gross domestic product (GDP) It stands next to countries such as Spain and Canada, while the inflow of foreign investment continues to increase, and inflation continues to fall (from 18.6% in 1998 to 4.32% in 2005).
This is what Ian Cunningham from the company tells Escapes2.com : "For many years, Mexico has maintained a strong position in the tourism industry, which provides approximately 9% of its GDP. The result is a huge number of real estate rental transactions and significant foreign investment. The most actively bought objects in tourist centers such as Cancun and Acapulco. Proximity to the USA, South America and the Caribbean is another important factor influencing price growth.
" "According to our data, interest in Mexican real estate has grown by about 70% over the past year, mainly due to the Yucatan Peninsula and surrounding areas," says Justin Figgins from Rightmove Overseas. flourishing, and, according to forecasts, by 2040 its economy will take the fifth place in the world."
In Yucatan, as Ian Cunningham notes, the average increase in real estate prices is about 25% per year. Currently, a major program is being implemented in the region aimed at increasing the investment flow, developing the local tourism industry and infrastructure. The first major project is already being implemented, including residential facilities that are being built on a 400 km long coastal strip near the Bay of Campeche. The Campeche Playa resort will have an 18-hole golf course from Jack Nicklaus, a 150-seat marina, a five-star hotel and a spa complex.
According to Rebecca Jacques from Future Properties, the number of residential facilities within the project will be limited in order not to turn Campeche into another concrete jungle, as happened with Cancun. Indeed, the building density in the new project will be less than 3%. According to Rebecca Jacques, property prices in Campeche Playa start at $265,000.
There is a great demand for real estate on the west coast, primarily on the Baja Peninsula, including in the cities of Cabo San Lucas (in the resort area of Los Cabos), and Puerto Valarta. The local tourist market is also actively developingmarket. Apartments with two bedrooms and a view of the beach are sometimes valued here at more than $ 1 million. In the low-cost housing sector, Future Properties offers new apartments in a condominium priced from $290,000.
A special feature of the process of buying real estate by a foreigner is the trust system (the system of trust management of real estate). "The Foreign Investment Act of 1973 lifted almost all restrictions on foreigners purchasing housing in Mexico," notes Garrett Milton, "except for several areas, in particular those located 100 km from the Mexican border or 50 km from the coast. At the same time, the system of trusts introduced in 1993 allows foreigners to circumvent these laws and acquire real estate in these regions without restrictions." The asset trust management system includes obtaining a license from the Mexican government to finalize the purchase, while the authorized bank acts as the trustee of the object, which, in fact, becomes its nominal owner. In any case, the buyer acquires all the rights to dispose of the property and fully fulfills the obligations related to the status of the owner.
