How do I begin a real estate business in Panama? Real estate businesses in Panama have grown exponentially during the last decade. The country’s constant economic growth, its political stability, its position as a commercial and transportation Hub, have produced an increase in the demand for real estate in Panama. Therefore, this is a good time to begin your own real estate business.
As with all businesses, beginning one dedicated to real estate is never easy. Before leaping into it, you have to seek advice from specialized lawyers and keep him on your team. You must also investigate on your own and establish a business plan that will help you be successful.
A key step is to create a company and register it in Panama. This will allow you to separate your finances from those of the company. So, if your business isn’t successful, it won’t directly affect your personal bank account.
How do I earn money with a real estate business in Panama?
A real estate business is charged with buying, selling, and managing real estate properties. By real estate, we mean the property, the land, as well as the rights above and below said land.
Beware, the profession of real estate broker or agent is restricted to Panamanian citizens, so if you wish to develop this type of business, you must keep that in mind. Plus, professionals must be authorized.
Buying, selling and renting your properties doesn’t have restrictions. These days, you find second-hand real estate properties, or those being auctioned by banks, that can be much more profitable than new ones.
Generally speaking, real estate businesses are supported in the appreciation of profitability. What does this mean? The appreciation is the increase in value that a property obtains with the passage of time. These properties can range from residential to commercial, and we’re including unexploited land.
The secret is to buy cheap
Therefore, if, as a real estate business, you bought a certain number of properties at one price and, two years later, you sold this asset at a higher value, there you have generated earnings.
One of the elements that influence the appreciation of real estate s it location. In Panama’s case, Panama, specialists suggest investing in small, but well-located apartments, in the country’s principal cities, most especially in the capital.
If the neighborhood where the residential property you purchased incorporates various improvements, like new shopping centers , schools, children’s playgrounds, then it’s value will increase.
Another way to appreciate the value is to make improvements on the property, meaning if you restore and modernize it, it’s value will, logically, increase.
Furthermore, if, in your real estate business in Panama, you obtained undeveloped land, you can benefit when you begin to construct new buildings on this land. For example, you bought some land, without using it for value. Then, you find out that a shopping center will be put up in that zone. You could sell that land for a much higher price than the initial price you paid for it.
Renting, another way to generate benefits with your real estate business in Panama
Another way of obtaining benefits, with your real estate business in Panama, is through renting your properties. This works for both residential and commercial real estate. The tenants of your real estate pay a set amount of money for each month of use. However, keeping in mind economic growth, inflation and possible re-evaluation of the zone where the real estate is located, the cost of the rent could go up.
There can be a lot of benefits from a real estate business in Panama, if you look for the right advice. Among the benefits are fiscal, with lower tax rates. Let’s add the certainty of monthly cash flow, starting with rent payments. The possibility of your properties appreciating in value, in the medium and long term. And the security that you have, because with a real estate portfolio you will be guaranteeing financial stability for you and your family.