So, you are coming to Panama, and you want an honest broker to show you properties. Yes, there are a few so called “good brokers” in Panama, but honesty is not what I would be looking for. Better you understand what motivates brokers & Attorneys, and by doing so the game will become clear to you. Note: Before I built Punta Malibu, I owned varias apartments in the city, and over the years have observed what very few see.
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1. In all likelihood, brokers will almost always show you what I believe is “the worst investment you can make “APARTMENTS”. They will sell you on “safety, turn key operation, and of course the amazing amenities”. The real reason however is that brokers simply have developed relationships with varias developers, and they know their commission is secured. It is also much easier and faster to show 3-4 buildings in one day.
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2. Do not expect your broker to be your analyst. A broker’s function is to show you properties, and 80% of the brokers simply pick up extra income pretending to know the real estate market. Whether a property is a good investment, is NOT in their level of consciousness, nor expertise.
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3. Do not believe any developer’s plan on paper. Almost all real estate developments in Panama start huge on paper. “Here we will have 3 high rise buildings, and next to it there will be a 5* hotel. And right in the middle there will be a big lake, attached to a shopping center where you can just walk to buy your groceries”. It’s all just a paper dream. if you do not see it built, be extremely skeptical.
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4. ROI: The biggest lie that you will often hear in Panama is your expected ROI. The reality is that Panama has an extremely competitive real estate market, saturated with tons of apartments. These apartments rent well in the season, but once the rainy season starts, most stay empty until the next season. As the owner of Punta Malibu, I have a first hand experience of the rental market.
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5. Do not come to Panama for a week and expect to find your house. Rent first, and while here, SEE AS MANY HOUSES AS YOU CAN. Once informed, choose your house based on what you get for your money, relative to all the houses you have seen. AND FOR GOD SAKE UNDERSTAND THE DIFFERENCE BETWEEN BUYING AN APARTMENT VS BUYING A HOUSE.
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6. Never buy an ROP property (Right of possession). If a property does not have a clear registered title, RUN…
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7. Beware of Expats advice on online forums. Online forums are often a cesspool of misinformation. You really have to come here, and put your feet in the water so to speak. YES, nothing beats personal experience, and working with a number of brokers is ABSOLUTELY better than working with just one.
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8. If you call on a listing, do not be surprised if no one calls you back. Then out of the blue, a person will reach out to you 2 months later saying they are replying to your inquiry. Hard to believe, but it happens here all the time.
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9. Finally if you are a seller, you will discover its a tough market. Unfortunately, Panama’s MLS does NOT work like the US, and many brokers with exclusive listings, do not like to share their commission. So, try to list with as many brokers as you can, to extend your exposure.
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10. 95% of all properties listed for sale are “average properties”. Being average properties, typically means they will depreciate the most, and stay available for years. It is the other 5% of the properties that are Unique, Oceanfront, or Unesco, that you should buy. These type of properties ALWAYS SELL regardless of the economy, and will always appreciate. Learn to recognize the difference…
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Written by
Moti Weinberg
Punta Malibu
Punta Malibu
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