Panama is the Place to Be
Panama is a country situated in Central America bordered by the Caribbean Sea and Pacific Ocean. It is between Costa Rica and Colombia. The location alone makes it one of the most sought after Caribbean vacation tourist spots around. In addition to that, it is a great place for people interested in investing on real estate. It is a haven like no other especially in the Mainland.
Panama boasts of being the top choice for retirement with the best tax laws around the globe, both for onshore and offshore businesses. Next to Hong Kong, it has the largest duty free zone all over the globe. Statistics show that there are more than 100 real estate projects under way with 50 more coming up in the years to come. Plans of expanding the Panama Canal are also being considered. With all these things going on, it is plain to see that a boom in real estate business is about to occur with prices going up quickly. Here is an investment one should not let pass easily.
Returns in Real Estate Investments
The trend in real estate industries all point to a return that one will surely consider worth the effort. The appreciation in real estate has been moving up for the past two years and investment future looks rosy to say the least.
A modest approximate of the rate of returns is at 1.5% when one is looking at a 5 year rate in any Panamanian Bank. Most of the time, rate may remain fixed but variable rates are negotiable depending on the agreement with the borrower. Loan terms can range from a minimum of 5 years to a maximum of 15 years, although the former is more common in the market nowadays.
The 5 year loan works on 60 monthly payments with the first 59 months used to pay off the interest rates and the last payment for the principal. So instead of paying the usual equal monthly installments throughout the term of the loan, the borrower pays off the entire loaned amount at the end of the term. Otherwise, they could ask for a renegotiation to get refinancing or roll over the mortgage. For most 15 year mortgages, prepayment may result in penalties for the borrower. Borrowers are required to get property insurance in favor of the company who owns the property. Most borrowers will be foreigners who have resided in different cities and are used to traveling a lot.