Thinking about buying a property in Panama? If you are going to go it on your own, or perhaps not use our Buyer’s Agency services here at Panama Equity, we still want to make sure that you are working from an informed position. Here are 8 things you need to keep an eye out for, some Panama-specific and others which are quite general.
- Make sure you ask about future assessments because there’s nothing worse than buying property and then getting hit with a $2,000 assessment to paint the building or repair the pool.
- If the building only has one elevator, confirm that the building administration has been providing regular maintenance (once per month).
- If you are buying pre-construction, make sure to research your developer. Have you already looked on Acodeco’s website to see if they are listed?
- Understand what zoning is in place for your neighbors, because the last thing you want is a 50 story high-rise blocking your newly-purchased ocean views.
- Never put money down without some sort of signed agreement. Seems obvious but people do it all the time, especially in a hot market.
- Consider the tax implications of the transaction in terms of the existing property value and how the new value (and your taxes) will be affected by the transaction.
- Think mortgages are easy to obtain in Panama? Think again! Make sure that if you are going to be purchasing with help from the bank, you get a pre-approval first. Check out our blog post on all things related to mortgages and financing here.
- Check your homeowner’s association records as part of the due diligence, paying particular attention to open balances. We’ve seen cases where neighbors are in arrears into the thousands or there are pending, unpaid assessments with contractors soon to be filing suit against the building.
Bonus: If you are purchasing a property, make sure the property tax exonerations and improvements have both been filed.
Want to work with the best buyer’s agent in town? Give us a call today!
