Real Estate Investment Quick Guide in Panama (Panama City)

Before investing, read this Panama real estate investment quick guide for beginners and experts interested in commercial properties. Also, review Casco Antiguo's reasons for investing there.

1. What are the key factors before investing in real estate?

For starting, you need to consider many factors like location, state of the structure, quality of the materials used in the construction, the experience of the developer or builder of the property, quality of the tenants who rent the property, facilities in the environment, Real estate experience, appraisal company and due diligence of the property and owner.

2. What are some examples of due diligence when investing in real estate?

A due diligence example is verifying the tax status in the DGI. Another example of due diligence before real estate investment is to verify the property's legal status. Also, an example of due diligence is verifying before buying the property owners before the actual landlord. Also, you need to check if the property has a bank mortgage, liens for national or municipal taxes, lawsuits between partners, or homeowners association (HOA).

3. How can you determine the potential return on investment in making a real estate property?

To calculate the return on investment (ROI), you need to analyze the following factors: property income, maintenance expenses, property value, and depreciation.

4. What risks are associated with investing in real estate, and how can they be mitigated?

One of the principal risks is choosing the wrong location, not verifying the structure state, not knowing the profile of the property tenants, and not carrying out due diligence of the property and owners.
The risk will mitigated by the support of a good team of professionals with experience in the area: real estate brokers, lawyers, appraisal companies, accountants, etc., with experience in the area.

5. What are some examples of professionals who can help with real estate investments besides real estate brokers, lawyers, appraisal companies, and accountants?

When you make a real estate investment, sometimes verify the status of the property structure with a structural engineer.

6. What are the different types of real estate investments, and which one is best for beginners?

For beginners, we recommend investing in hotel units managed by recognized operators, stores in plazas or shopping centers, warehouses, and lots.

7. How important is location when investing in real estate investments, and how can you identify the right spot?

Location is essential when choosing a property in real estate investment, and one of the determining factors is to see the facilities of the environment. One example of facilities is if you plan to invest in a hotel for host executives before verifying if the neighborhood offers facilities to them. Also, check if the neighbor has coworking, restaurants, banks, insurance companies, shopping centers, etc.

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