P. 5 - LA PLAYA
APRIL / ABRIL 2014
WWW.PLAYACOMMUNITY.COM
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QUESTIONS TO ASK WHEN
BUYING A CONDO IN PANAMA
Liz
Larroquette’s
no-BS
approach to advising clients on
real estate has earned her the
respect of thousands of expats
who have relocated to Panama,
and many more who are considering relocating in the future. See
what there is to discover at
LizLarroquette.com.
Buying a condo in a foreign
country is an exciting, once-in-alifetime experience. Still, it can be
daunting- especially when you
feel like you don’t know what you
don’t know! I’m somewhat of a
“property matchmaker,” helping
to pair expats up with their dream
homes in Panama. After almost
10
years
of specializing
Panama’s Gold Coast, I’ve found
that the best indicator of my
clients’ person-to-property match
often lies within these questions
Does this qualify for the Property Tax Exoneration?
The compelling notion of a
20-year exemption on property
taxes has driven many foreigners
to Panama. Alas, there’s always
the fine print, and this one is often
overlooked or miscommunicated.
Etch this into your memory,
property seekers: Only buildings
completed after July 1st 2009
qualify for the exoneration, and
the tax-free window is opened on
the
building’s
original
commencement- not the date
you personally purchase. This
means that, depending what year
the building was officially
completed, most condos offer
closer to a 10-15 year window of
being void of property tax. Some
newer buildings, such as the
Coronado Golf, have as many as
18 years left- so you always want
to ask.
What’s the rental rate in this
building?
Not planning on renting out your
condo? Ask anyway. Inquiring
into the average rental rate will
tell you two things: 1. The
desirability of the building and 2.
Your property will be able to
sustain itself should the tides of
change ever come your way.
Your goal should be to acquire a
property that can be cashflow
positive. . Should you ever
decide to travel or return home
for an extended period, it’s
comforting to know your property
can carry its own weight.
What’s the reputation of the
developer?
I always tell my clients: Never
buy blindly. Some developers in
Panama are infamous for “cutting
corners” to save time and costsin
something you don’t want to
worry about on the 30th floor!
Others have a history of treating
residents poorly, or misusing
HOA fees. Others, such as
Empresas Bern, have won
awards for civil conduct and
honesty,
and
were
voted
amongst the most reliable developers for “completing best
product in Panama.”Explore the
developer’s history. How have
their other projects held up? Do
they have a history of taking care
of their residents? Do they have
enough money to solve issues
without fining property owners?
Do they give back to the community?
Is this a saturated market, or
an up-and-coming area?
The real estate boom of the
2000’s spurred an arm’s race of
condo construction. The result is
too many buildings with vacancies, and property owners willing
to go neck and neck with prices.
Ideally, you don’t want to own a
condo in a saturated area. Your
property value will inevitably
suffer, and yo e