Expert Says Panama Real Estate and U.S. Bubble Don’t Compare
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A piece of the notice published in this week’s issue of Panama’s first sheet Exchange, Capital Financiero by Alfredo Rivera Pizarro, Sales Manager for the real estate franchise CB Richard Ellis. In this article, Mr. Rivera gave his views on the reasons that have American market, the bubble is not, compared to the current boom in Panama City real estate. I think the long-term trend is overwhelming that the country Panama prices will continue to rise. I am particularly stubborn distance on the beaches of the sea, which favour of pensioners, recreation and tourism, owners of projects. However, I do not agree that the city of Panama’s Apartment market conditions can not be compared with the Internet bubble in the United States. Among the reasons for Mr. Pizarro of Incompatibility: “Conservative 1st system for the financing of projects” - maybe for the average foreign capital, research funding classics (banks), Panama, the system would be cumbersome, slow and frustrating. I have no doubt already this experience with my own small projects. However, what Mr. Rivera’s article does not address is too comfortable relations with Panama, as many real estate development banks, many of which retain seats on the board of directors or close friends and family. In some cases, developers are shareholders or, in case of Banistmo founder (and presidential candidate) Alberto Vallarino, which OWNER of the bank. Mr. Rivera has really expect me to believe, that these loan applications are treated with the same control? If the bank regulatory system Panama police in the interest of these conflicts of the same magnitude in the United States, as banking supervision? In addition, the granting of credit to the environment two years ago, when the American economy a Go-Go and investment in Panama, was a new idea, compared to the current situation, if the financial sector overall is the health of injuries, it is as different as night and day. It was not today that the majority of these pre-construction projects have received funding, and began units sold. 2nd Conservatives system ready for buyers effect is good, especially for foreigners are not able to demonstrate local income. But there are also a lot of foreign investors, who have been caught in “excessive” irrational of Panama City Housing cry went as far as buying units in cash, avoiding the system as a whole. What is the first Asset liquidate if again that difficult at home? 3rd Panama’s economy develops in record time Pace - certainly true. The investment is the country’s entry into all sectors; Panama economy is not a chair to 3 feet but still is / was the country. But how the housing boom Panama makes it immune to bubbles? If the pace of construction exceeds the buyer real home (and not just speculators), then the laws of the economy a priority. I can not count how many times, while the height of folly US housing, as owners, brokers and mortgage brokers went off record oath economic concerns of a cool head, with the instruction panacea, “Do not worry, the market is different.” For me, this is a panacea plapperte often sounded supernatural recalls the dot-com-point bomb before the era. The result was, of course, not much difference. But these markets compare DO? There are some things Mr. Pizarro not to mention the fact that the Panama DO bear similarity between the direction of the market and the ex-hot real estate market in the United States: 1 Developer kind Accept “Reservations” - Demand was so frenzied about certain projects, lists of booking elegant traded were taken. In short, this means that the developer is a project for sale, before planning any. Remember that if the draft Phoenix bubble markets functioned as lotteries for the lucky winners will have the opportunity to drop to $ 800k on a McMansion? 2nd Developer Canceling Sometimes, development contracts are simply not satisfied with the SOMEWHAT gains on the contracts signed, preparation for the construction, and consequently the attention grundstück destroy the contract for resale at a higher bid issued . This is just an example of the greed for developers, which, over time, markets. 3rd Investors Biting Off Too Much - I know, a lot of locals and foreigners, who has worked SOMEhow “conservative lending system and to obtain mortgages on several properties. Friends I deserve humble local government, wages are moving $ 600k grundstück construction taking into account such loans, 2 and 3 Properties expects’ Flip ‘. What could go wrong? Everybody’s 4th-Playing An incredible number of locals and foreigners who have business as a real estate broker, investors, property managers, and so forth. As for the buyers, I have lived in Panama as participants, both individuals and investors true homeland buyers who intend, in fact LIVE in dwellings they have purchased. To be sure that the current boom in Panama is a unique person and a case study for globalization’s New World Order. On investment, the seizure of all 4 corners of the world and in fields as diverse as tourism, agriculture, oil exploration and production, motion picture. Immigration from Colombia, Venezuela, North America, Asia and Europe, the selection of Panama as his new place of residence. But as long as Panama’s zoning laws remain powerless, legislation on the protection of investments “flexible” and personal relationships asset budgetary discipline… Panama real estate market is empty from an economic point of view, ™ Kevlar vest. |