According to the prominent businessmen and entrepreneur, Adrián José Velasquez Figueroa, buying a property to rent in Panama can be time-consuming and challenging. Adrian is a well-known business-owner in the country who also holds various high-profile positions in five prominent companies in the country. Accordingly, Adrián José Velasquez Figueroa suggests that the real estate market in Panama should be investigated properly before undertaking a major investment. As such, here are eight useful tips that will help foreigners understand the major dynamics of investment in a rental property in Panama.
1. Buy Below Market Values
When buying a property for rent, buyers need to ensure that they are purchasing a property at a discount to make a profit, especially if they are taking a mortgage on adrianjosevelasquezfigueroa.com. After all, the income earned by tenants must be greater than the costs incurred.
2. Neighborhood Matters
Panama City is the prime investment area for foreigners. However, a multitude of property locations often makes it difficult to make the correct decision of Adrián José Velasquez Figueroa. Therefore, it is practical to consult a real estate broker who can assist in locating “best-value” properties in prime locations.
3. Panama Rental Laws
Laws in Panama can be tricky. Therefore, it is It is recommended to familiarize yourself with the relevant rules relating to rental real estate in the country like Figueroa.
4. Parking Space for Tenants
Because parking space in Panama City and vicinity is scarce, it is important to ensure that the rental condo has a parking space. If not, it is necessary to find a good parking spot, which often raises the final rent price benefiting the property owner.
5. Inspection for Construction Quality
In Panama, the quality of buildings can vary greatly. Even in newer condominiums, developers can use sub-standard material, resulting in poor quality according to Figueroa. Hence, it is important to review the history of the developer. Try talking to owners of that building, or hire an investigator to handle the matter.
6. Rental Management
If you do not live or plan to live full-time in Panama, you need to consider how your rental property will be administered. Under such conditions, it is better to hire a full-time management company.
7. Size does not Matter
Don’t try to acquire a large property thinking that it will give you more rental income per month. In Panama, the quality of construction and location matters the most. Often, small rentals in prime locations earn more than large properties outside the city center.
8. Cost of Public Service
As energy and utility prices can fluctuate considerably, it is better to ask the tenant to pay utilities directly. Doing so, ensures that you are not responsible for fluctuation in the price.