Buying pre-construction is one of the most flexible ways to purchase a property before completion, as it allows you to lock in today’s price and come up with the balance in two to three years.
Here’s what most buyers new to Panama don’t realize: Early buyers in real estate developments in Panama are almost always friends and family FIRST. They buy because they are somehow connected to the developer and they usually purchase before the project is ever even taken to the market. These are the buyers who get in really, really well and often end up selling before the project is completed.
The next round of buyers already know the area and perhaps have purchased with the developer before. They probably had their radar up for a new project and managed to catch a deal on one of the first few price lists because they were LOOKING.
The last wave constitutes the general public who typically “close out” a project within 12 months of being 100% built. These buyers see their risk/return profile improving since the risk of the building not getting constructed is pretty much eliminated. These buyers get in at market price or maybe slightly below.
Determining the success of developers in Panama is a time-consuming process. And because there are so many out there, we decided to construct our own proprietary vetting process. This took us almost a year to complete and was a process of trial and error, meeting with banks, and understanding how to really make sure if a particular developer is someone we want to back. The list is finally ready and here’s our first bit of news: This message should act as an early warning for two projects that opportunistic investors need to be paying attention to.
Because once we start moving some inventory, the developers can and almost always DO raise the prices!
We have chosen two projects that we believe hedges the inherent risk of buying early-stages; issues such as project financing, titling, approvals, pre-sales, and the reputation of the builder and their past projects have been researched, confirmed, and have our official endorsement as being investments that we can recommend with confidence.
Let’s take a look at the details.
| Project 1: Zaphiro Tower | |
| Location | El Cangrejo, Panama City |
| Price | Apartments starting at $250,000 |
| Size | Two bedrooms, 115 meters (1,240sf) |
| Why we like it | Great opening price point, efficient and modern layout, hot neighborhood |
| The angle | In a rental market sweet spot: $100 million planned for neighborhood improvements |
| Timeline | Construction just started, delivery slated for early 2018 |
| Status | 40% sold |
What makes the Zaphiro project so special?
- Timing
This is ground floor pricing on the city project and very, very early stages on the beach development’s second tower. The locations are prime: NOT AAA, but moving that way. In other words, you are not paying top dollar because the neighborhood has already maxed out…on the contrary, expect some appreciation as the neighborhood grows.
- Price
We really like the numbers. Whether it’s buy-to-lease or buy for a second home, the holding costs are low, the initial price points are attractive, and we believe there’s upside based on the area, the design, and the pre-sale pricing.
| Project 2: Ocean Waves | |
| Location | Gorgona, 10 minutes to Coronado |
| Price | Starting at $206,000 |
| Size | 1, 2, and 3 bedrooms starting at 85 meters (900sf) |
| Why we like it | Amenities galore, much better than the standard. Direct unobstructed views of the ocean, great sandy beach for miles. |
| The angle | Vacation rental potential and less than 5 miles from Coronado’s critical mass |
| Timeline | Tower one is complete, tower two delivery end of 2018 |
Contact us today to request the most recent price and availability list on the projects above via email.
