by Andrew Cowan
Living in Panama, you run into a lot of Americans. We seem to frequent the same restaurants, live in the same neighborhoods and seem to find second homes at the one or two "gringo" bars that Panama City hosts. In meeting all of these ex-pats you start to see patterns. The biggest one I've noticed is a reoccurring trend of the same vague occupation. It usually surfaces along these lines:
"What are you doing down here?"
"I work in real estate."
Really? Are you a developer? An agent? Do you own your own real estate? Do you like to look at picture of real estate? Are you a buyer? Do you have buyers in the States?
"What does that mean?"
"Oh, I do various things related to the real estate industry here in Panama."
I've learned to nod my head and mumble something along the lines of "that's nice". Is there a need for all of these Americans down here working in "real estate?" Looking around, I would say yes.
Panama City right now looks like the floor of a child's room Christmas morning after he just got twenty Erector Sets. I can't wait to meet the American who answers my question with, "I'm a self erecting crane salesman." Ka'ching! That guy can buy the bar a round.
These half completed apartment and condominium projects are everywhere. Thanks to the lax zoning laws here in Panama, or their lack altogether, you'll find cement trucks cruising down residential streets, headed to the new development next to the Panamanian equivalent to Home Depot.
Pick up any real estate magazine here and you will find ads for more real estate projects than anything else. I sat down and counted 56 ads for real estate companies and associated services, many of them full page, in a 98 page Panama lifestyle and travel magazine. The ads are all in English, targeting Americans, and for companies that are run by or employ the real estate professionals I seem to meet everywhere I go.
But why Panama?
Panama is a real estate paradise for the savvy investor. With many Americans looking offshore for investments, a country that is a 3 hour flight from Miami, stable, uses American currency, and along with beautiful tropical beaches and untouched coastlines, contains the only real first world city in Central America, looks great. Developers see it. Investors see it. Panamanian real estate is booming.
The number one clients for these realtors are Baby Boomers. They are starting to retire, the kids are out of the house and they are looking at buying a second home or moving out of the country. That pension check goes a lot farther when a nice sit-down lunch will run you $5.00 and your local bar is selling fifty cent beers.
The Panamanian government is doing their part to entice foreign investors. Tax breaks can be found for houses, condos and land. Most recently built houses and apartments qualify for a 19 year tax exemption and if you are looking at purchasing land, plant some teak trees on it and benefit from a reforestation exemption.
You may be wondering what all that nonsense you just read was. Who wrote this? What does he do? And I'll tell you,
"I work in real estate."
About the Author
Andrew Cowan works in Panama with a Panama Real Estate Company as well as Panama Travel a lot.
Friday, March 23, 2007
Friday, March 9, 2007
Real Estate Exchange Tips
Exchange is a program that allows the owner of a certain property that is used for investment to be exchanged with another property and defer paying the taxes. If the like-kind property is purchased, the rules and regulations of the Internal Revenue Code should be followed and observed. This will allow the investors to gain more assets, have a large control over real estates and expand into other properties. The like-kind property is only recognized if the exchange is for the purpose of productive use like in the business or trade industry and investment. The like-kind property can consider these for investment:
- Duplex- Commercial Property
- Single Family Rental
- Apartment
- Raw Land
1. Understanding Exchange
There are some points to understand regarding exchange. Here are some tips to guide you with the exchange process. It is important to know the basics of the process. A lot of people are confused about the exchange procedures. If you are new to it, perhaps you won’t understand it that well too. You can ask a professional about the terms and conditions that are unclear. Exchange process is not taken for granted because it has proper guidelines to follow.
If you are not aware with the exchange process, you can read books or if you are that interested, you can attend seminars that focus on exchange. They should be able to show how to deal with an exchange. If you want to be an expert in exchange, you should know a lot of important information and instructions. Exchange procedures may get complicated but it is important to be familiarized with it. It is not that easy that even the well-experienced investors and professionals avoid the exchange process because of its complexity. Exchange is considered profitable because you if you are an investor, you can still recover the earnings you have lost.
2. Who performs the exchange process?
- Real estate agents- Accountants- Attorneys- Escrow companies
In the earlier years, real estate agents were the ones who specialize in the exchange process. They were the ones who handled exchange matters because they were able to master the important instructions and information of the process.
3. Faciliation Companies
If you want to perform exchange, it’s not really necessary to know all the dos and don’ts. All you need to do is to call an exchange facilitator to advise you throughout the process. Most exchanges are handled by facilitation companies. They are in charge of resolving problems that may soon take place. Complete with the contacts of competent facilitation companies, you are sure to triumph the pursuit to financial independence. This will no longer be a problem. The exchange process is considered an exchange between two parties. Most of the exchanges are the considered to be delayed exchanges. In less than 45 days, they must then be able to identify the possible replacement property after the closure of the property.
4. Who Can Exchange?
In order to qualify for an exchange, you are required to provide some important papers. The Exchanger should sign a written document that is mailed or sent to the person who is obliged and concerned in the exchange. This is very essential in order to successfully qualify for an exchange. All information of the replacement property should be ambiguously stated including the type of property in the personal property exchange.
You must be prepared for your first exchange. You should be able to locate a good exchange facilitation firm with a nice background. You should choose agents who can do the process accordingly and not act as if they know the whole process perfectly. When it comes to pricing, the fees will vary on the services.
The rate is from $500 to $1,200. Once you notice that your facilitator can handle the exchange process well, you can take his advice. You can ask for copies of your documents that will be useful as reference by your attorney. It is important to find a good facilitator because time is important and investigation will take a long process but can be cut short if it is handled properly. Take note of these reminders in order to successfully apply or understand the fundamentals and applications of exchange.
By: Trevor Marshall -For more great real estate related articles and resources check out www.1031exchangehq.com
- Duplex- Commercial Property
- Single Family Rental
- Apartment
- Raw Land
1. Understanding Exchange
There are some points to understand regarding exchange. Here are some tips to guide you with the exchange process. It is important to know the basics of the process. A lot of people are confused about the exchange procedures. If you are new to it, perhaps you won’t understand it that well too. You can ask a professional about the terms and conditions that are unclear. Exchange process is not taken for granted because it has proper guidelines to follow.
If you are not aware with the exchange process, you can read books or if you are that interested, you can attend seminars that focus on exchange. They should be able to show how to deal with an exchange. If you want to be an expert in exchange, you should know a lot of important information and instructions. Exchange procedures may get complicated but it is important to be familiarized with it. It is not that easy that even the well-experienced investors and professionals avoid the exchange process because of its complexity. Exchange is considered profitable because you if you are an investor, you can still recover the earnings you have lost.
2. Who performs the exchange process?
- Real estate agents- Accountants- Attorneys- Escrow companies
In the earlier years, real estate agents were the ones who specialize in the exchange process. They were the ones who handled exchange matters because they were able to master the important instructions and information of the process.
3. Faciliation Companies
If you want to perform exchange, it’s not really necessary to know all the dos and don’ts. All you need to do is to call an exchange facilitator to advise you throughout the process. Most exchanges are handled by facilitation companies. They are in charge of resolving problems that may soon take place. Complete with the contacts of competent facilitation companies, you are sure to triumph the pursuit to financial independence. This will no longer be a problem. The exchange process is considered an exchange between two parties. Most of the exchanges are the considered to be delayed exchanges. In less than 45 days, they must then be able to identify the possible replacement property after the closure of the property.
4. Who Can Exchange?
In order to qualify for an exchange, you are required to provide some important papers. The Exchanger should sign a written document that is mailed or sent to the person who is obliged and concerned in the exchange. This is very essential in order to successfully qualify for an exchange. All information of the replacement property should be ambiguously stated including the type of property in the personal property exchange.
You must be prepared for your first exchange. You should be able to locate a good exchange facilitation firm with a nice background. You should choose agents who can do the process accordingly and not act as if they know the whole process perfectly. When it comes to pricing, the fees will vary on the services.
The rate is from $500 to $1,200. Once you notice that your facilitator can handle the exchange process well, you can take his advice. You can ask for copies of your documents that will be useful as reference by your attorney. It is important to find a good facilitator because time is important and investigation will take a long process but can be cut short if it is handled properly. Take note of these reminders in order to successfully apply or understand the fundamentals and applications of exchange.
By: Trevor Marshall -For more great real estate related articles and resources check out www.1031exchangehq.com
Thursday, March 1, 2007
Ecuador - A Booming Real Estate Market
By Michael Russell
Ecuador is a country where you can live surrounded by unparalleled beauty, whether it be in the ancient colonial cities of the Sierra, the tranquil Valley of Longevity, the exotic Amazon rainforest, Ecuador's beautiful and natural coastline, or the mystical and unique Galapagos Islands.
But it's also a country where you can live on the smallest of incomes. In Ecuador you can still find pristine beachfront lots for under $12,000, antique colonial homes for under $25,000 and peaceful mountain retreats for under $50,000. You'll pay almost no taxes and enjoy one of the most non-intrusive and non-regulatory governments in the civilized world.
Nestled in the jagged Andes Mountains, it is home to a large portion of the world's wildlife and bird species, as well as a staggering array of different landscapes and climates. There's truly something here for everyone.
Ecuador's real treasure, however, is its people. It's one of the few places where a foreign resident or visitor can blend easily into the community, being welcomed into a new circle of friends and a new way of life with relative ease. As a foreigner here you'll be treated with respect and the people will be proud to get to know you.
During the last 5 years, Ecuador has gone through a number of tumultuous changes, including the recent ousting of a president in 2005. But today's Ecuador has emerged as a country which remains a haven for those wanting to retire or invest and gives every sign of retaining a stable government. The landscape of the market has changed, but there are plenty of areas where significant property bargains can be found and a comfortable lifestyle can be enjoyed on just a fraction of what you'd spend in much of the world.
Today, you can buy a two-bedroom condominium in Quito's historic center, close to good shopping, gourmet restaurants and hotels, for under $55,000 and a one-bedroom for just over $25,000. Quito's antique Spanish colonial homes in need of restorations start at around $30,000. While there are good buys all over the country, the best buy right now in the property market is unquestionably the purchase of old Spanish colonials in Quito's historic center. The city is in the process of restoring the old colonial center, something which caused property values to rise rapidly in Cuenca and Guayaquil upon completion. Yet the tremendous value found in these irreplaceable antique homes-some in the $25,000 to $50,000 range-has not yet been recognized by the Ecuadorian investors.
A two-bedroom apartment in Cuenca's colonial historic center a block from the main square just sold for $34,000 and a beautiful one-bedroom apartment can be rented in Cuenca's most luxurious neighborhood-directly on the Tomebamba River-for just $250 per month.
Maid service costs around $120 monthly and construction workers still earn around $200 per month. At the market, you'll find handmade fisherman sweaters for less than $10 and leather jackets for under $50. Even if these prices doubled they would still be cheap.
Low prices alone do not make an ideal retirement or investment destination. There are plenty of places the world over where you can buy cheap land and find a 50-cent cup of coffee-but you wouldn't want to live there. Not so in Ecuador.
Here you'll enjoy a quality of life that's hard to beat and an experience in living that you won't get anywhere else. If you enjoy the outdoors, have dreamed of owning a Spanish Colonial home in a World Heritage site, or want to spend hours strolling on an undeveloped beach, then Ecuador may be for you.
As you may know, Ecuador survived the Latin American financial meltdown of 2002, in part because of a stability factor that came from adopting the US dollar as the official currency. The formerly high inflation rate came in at 3.9% in 2004, same in 2005 and it's on track to be about the same in 2006. There are no foreign-exchange controls and no restrictions on foreign-owned businesses. You can repatriate 100 percent of your profits.
The other hot area at this writing is the village of Vilcabamba in Ecuador's southern Sierra. Enjoying near-perfect year 'round weather and dramatic mountain scenery, it is called Ecuador's Valley of Longevity. Here a two-story traditional Ecuadorian house with five bedrooms on 2.5 acres with lots of fruit trees and a fresh water source that provides fresh water year-round, sold this year (2006) for $60,000.
Michael Russell
Your Independent guide to Real Estate
Ecuador is a country where you can live surrounded by unparalleled beauty, whether it be in the ancient colonial cities of the Sierra, the tranquil Valley of Longevity, the exotic Amazon rainforest, Ecuador's beautiful and natural coastline, or the mystical and unique Galapagos Islands.
But it's also a country where you can live on the smallest of incomes. In Ecuador you can still find pristine beachfront lots for under $12,000, antique colonial homes for under $25,000 and peaceful mountain retreats for under $50,000. You'll pay almost no taxes and enjoy one of the most non-intrusive and non-regulatory governments in the civilized world.
Nestled in the jagged Andes Mountains, it is home to a large portion of the world's wildlife and bird species, as well as a staggering array of different landscapes and climates. There's truly something here for everyone.
Ecuador's real treasure, however, is its people. It's one of the few places where a foreign resident or visitor can blend easily into the community, being welcomed into a new circle of friends and a new way of life with relative ease. As a foreigner here you'll be treated with respect and the people will be proud to get to know you.
During the last 5 years, Ecuador has gone through a number of tumultuous changes, including the recent ousting of a president in 2005. But today's Ecuador has emerged as a country which remains a haven for those wanting to retire or invest and gives every sign of retaining a stable government. The landscape of the market has changed, but there are plenty of areas where significant property bargains can be found and a comfortable lifestyle can be enjoyed on just a fraction of what you'd spend in much of the world.
Today, you can buy a two-bedroom condominium in Quito's historic center, close to good shopping, gourmet restaurants and hotels, for under $55,000 and a one-bedroom for just over $25,000. Quito's antique Spanish colonial homes in need of restorations start at around $30,000. While there are good buys all over the country, the best buy right now in the property market is unquestionably the purchase of old Spanish colonials in Quito's historic center. The city is in the process of restoring the old colonial center, something which caused property values to rise rapidly in Cuenca and Guayaquil upon completion. Yet the tremendous value found in these irreplaceable antique homes-some in the $25,000 to $50,000 range-has not yet been recognized by the Ecuadorian investors.
A two-bedroom apartment in Cuenca's colonial historic center a block from the main square just sold for $34,000 and a beautiful one-bedroom apartment can be rented in Cuenca's most luxurious neighborhood-directly on the Tomebamba River-for just $250 per month.
Maid service costs around $120 monthly and construction workers still earn around $200 per month. At the market, you'll find handmade fisherman sweaters for less than $10 and leather jackets for under $50. Even if these prices doubled they would still be cheap.
Low prices alone do not make an ideal retirement or investment destination. There are plenty of places the world over where you can buy cheap land and find a 50-cent cup of coffee-but you wouldn't want to live there. Not so in Ecuador.
Here you'll enjoy a quality of life that's hard to beat and an experience in living that you won't get anywhere else. If you enjoy the outdoors, have dreamed of owning a Spanish Colonial home in a World Heritage site, or want to spend hours strolling on an undeveloped beach, then Ecuador may be for you.
As you may know, Ecuador survived the Latin American financial meltdown of 2002, in part because of a stability factor that came from adopting the US dollar as the official currency. The formerly high inflation rate came in at 3.9% in 2004, same in 2005 and it's on track to be about the same in 2006. There are no foreign-exchange controls and no restrictions on foreign-owned businesses. You can repatriate 100 percent of your profits.
The other hot area at this writing is the village of Vilcabamba in Ecuador's southern Sierra. Enjoying near-perfect year 'round weather and dramatic mountain scenery, it is called Ecuador's Valley of Longevity. Here a two-story traditional Ecuadorian house with five bedrooms on 2.5 acres with lots of fruit trees and a fresh water source that provides fresh water year-round, sold this year (2006) for $60,000.
Michael Russell
Your Independent guide to Real Estate
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