Renting versus Buying in Panama


Renting versus Buying in Panama

(2 votes)

Written by Matt Landau

Wednesday, April 04 2007

I meandered down the aisle of a popular sporting good store in Panama City, eyeing the type of running shoes that would undoubtedly make me faster. I had heard, not long before from a friend, about a new pair which were supposedly designed by the same aerodynamics team that makes parts for NASA spaceships. I envisioned flying past fellow runners in what would look to them simply like a blur. After briefly trying the shoes on, I purchased them, and drove home with a warm feeling in my heart.

A few weeks later however, my bubble burst. The shoes had already started to show signs of wear and after losing several races, I became of the firm belief that they were not making me aeronautically fast, but rather perilously slow. In then asking around as topping on the cake, I found out that I overpaid almost $50 for the defunct sneakers and that they had recently been recalled from the shelves, for safety purposes never to be sold again! So here I am, stuck with dangerous NASA shoes, the result of a bad decision on my part. The result a poorly researched impulse buy.

To begin, let me suggest that you not purchase the NASA shoes even if desperate. In applying this lesson to Panama real estate though, it can be helpful to realize that buying on impulse is about as bad as throwing away good schnapps. I like to remind buyers over and over again that it's easy to get sucked into the gold rush, more or less making your investment on the basis of other peoples' lucrative claims. But in truth it is imperative, whether a small condo or a large piece of land, that you test out the waters before you make your move.

Visit Panama more than once!

This may sound remedial, but it's essential to visit Panama several times first. It takes a couple visits to really understand the areas, to get in enough travel, and to be around the culture enough so that you can really get a feel for yourself. After all, guidebooks and silly reports like these can only go so far. If you think you're interested in beach areas close to Panama City, go out to Coronado or Gorgona or Santa Clara on several different occasions at different times of the year. Stay in different hotels, explore different beaches, expand out to similar towns. This is necessary in order to really get a thorough feel for the country: it will also be perhaps the most pleasurable research you've ever done in your life!

Numerous times, I get emails from people just like the following one that came in December of 2006.

Dear Matt,
I am visiting Panama in one month and wanted to see what you thought about Avenida Balboa in Panama City. I love the beach and cannot wait to sit out on the weekends. I just bought a penthouse there and am very excited but just wanted to get your input before I arrive.
- Evelyn from Miami, FL

Evelyn here is clueless. Without as so much as having ever been to Panama, she had no idea about the traffic that builds up on the avenue around midday. She had no clue that the bay below her soon-to-be apartment emits an odor strong enough to knock over a bowling pin or the fact that much of Avenida Balboa is a landfill and that several projects have been stalled for that reason alone. Evelyn even thought that there was a beach in Panama City! This is not to pick on Evelyn though, as there are many people who ask similar questions every day. If you were buying a pair of innovative running shoes, wouldn't you want to try them on a couple times first?

Rule 1: Research the product

Because Panama is so new to the tourism and real estate bugs, it can be unfair to expect the same dream property that you might in, say, Florida or Costa Rica: simply because it may not exist. Investment opportunities...

*****THE REMAINDER OF THIS REPORT, AS WELL AS SEVERAL OTHERS, WILL BE AVAILABLE IN THE PANAMA REAL ESTATE REPORT, THE MOST RELIABLE INVESTMENT TOOL IN PANAMA, COMING OUT LATER THIS YEAR*****