Taken from Panama Realtor's Website:
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The term Derecho Posesorio simply means, right of possession. Derecho Posesorio is a type of land reform which came to be in the 1960´s under the direction of General Omar Torrijos, the father of Panama´s current President, Martin Torrijos.
The original purpose of the derecho posesorio land reforms was to give poor farmer´s who worked land, but did not have title, some sort of legal right to the land that they farmed.
The main difference between having title and having derecho posesorio is that with title one has a registered deed in the public registry thus eliminating any questions regarding ownership. In other words, no one can contest ownership of land. Also, banks do not typically offer loans for land that has right of possession.
It is possible to title land that is owned through rights of possession. This method of obtaining land does have a degree of risk involved with it, however, it can be a very economic way of obtaining real estate.
A summary of steps required to title land that is owned through derecho posesorio are the following:
1. The land with right of possession status must be surveyed and have its boundaries formalized by a licensed surveyor.
2. A formal request must be presented to, and signed off by the neighbors of the land in question.
3. Once all of the neighbors have signed off on the property with derecho posesorio, the Agricultural Reform Office (Reforma Agraria) must do a formal inspection of the property.
4. Once this inspection is approved and all the neighbors have confirmed the boundary lines, the agricultural reforms office will emit a resolution.
5. The value set forth on the land by the government must be paid. This value depending on the location of the land.
6. Last but not least, the documentation of the land is sent to the Public Registry to recieve title.
The process of getting land titled from derecho posesorio status typically takes 6-8 months and is a right reserved for Panamanian Nationals alone.
Saturday, July 21, 2007
Friday, July 20, 2007
Google's $4.6 billion plan for an open wireless Internet
Ok, so this doesnt have that much to do with living in Panama, unless you run a global business who's main methods of infrastructure rely on the internet and its regulation or lack thereof.
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2007.07.20 • 12:54 EST
Google's $4.6 billion plan for an open wireless Internet
Would that all kings were so benevolent. Google announced today it would set aside at least $4.6 billion to purchase a slice of the public airwaves in an upcoming government auction of radio spectrum. The company is imposing one condition on its money: It will only participate, it says, if the Federal Communications Commission requires that all bidders for the radio waves be forced to adhere to principles of Internet "openness."
This is huge news, though to understand its implications you've got to know what's been going on in the regulatory debate over the next wireless Internet. More than a decade ago, the government mandated that all TV broadcasters transmit their signals digitally, freeing up a huge slice of public airwaves for other uses. In January, the FCC will hold a public auction of the vacated radio spectrum -- it's known at the 700 MHz frequency -- and traditional communications companies such as AT&T and Verizon are salivating at the chance to grab up the space.
The 700 MHz airwaves will be used for data; wireless companies talk of a fast, robust, nationwide wireless Internet -- but that's exactly what's so worrying about the prospect of the spectrum going to the telecom firms, which have not generally favored openness on their networks. On today's cellphone networks, wireless companies won't let people run the applications or devices they choose -- all major carriers, for instance, prohibit their customers from adding Skype to their cellphones, and they frown upon letting you use phones that also do Wi-Fi (because if you're using Wi-Fi, you're not ringing up minutes on the cell data plan).
Over the last several months, Google, eBay (which owns Skype), and other Internet firms -- along with many consumer advocacy groups -- have lobbied the FCC to mandate that telecom firms clean up their act on the 700 MHz spectrum. You can think of it as the network neutrality debate for wireless.
As it has outlined in a letter to the FCC (PDF) and numerous times on its company blogs, Google wants the agency to require that any firm that bids for rights to the 700 MHz spectrum promise to: 1) let customers download and use any software on the network; 2) let customers use any device on the network; 3) sell wireless space to any third-party wireless provider at commercial rates; 4) allow the wireless network to interconnect with other Internet service providers.
A couple of weeks ago, Kevin Martin, the chairman of the FCC, released a draft version of rules for the auction that were widely interpreted as siding with Google. In fact, Martin's draft only went partway toward full openness -- it allowed for points 1 and 2 from above, but not points 3 and 4. And that's where the $4.6 billion comes in: Google is using its considerable wealth as bait to bring Martin all the way to full openness.
Telecom firms loathe these openness principles, and they've been lobbying Martin to reject Google's plan by arguing that any rules would make the spectrum less attractive to bidders -- and, therefore, will result in lower revenues for the government in an auction. Google's money eviscerates that argument: Google will put its billions in only if the FCC adopts all four principles of openness, CEO Eric Schmidt told Martin in a letter (PDF). And the government stands to make a lot more money at auction if Google participates than if it does not.
It's a brilliant strategy, one that puts wireless companies in a tough spot. We've long known that Google hired the smartest engineers in the world. Now we're seeing their public policy gurus aren't too shabby either
---------------------------------------------------------
2007.07.20 • 12:54 EST
Google's $4.6 billion plan for an open wireless Internet
Would that all kings were so benevolent. Google announced today it would set aside at least $4.6 billion to purchase a slice of the public airwaves in an upcoming government auction of radio spectrum. The company is imposing one condition on its money: It will only participate, it says, if the Federal Communications Commission requires that all bidders for the radio waves be forced to adhere to principles of Internet "openness."
This is huge news, though to understand its implications you've got to know what's been going on in the regulatory debate over the next wireless Internet. More than a decade ago, the government mandated that all TV broadcasters transmit their signals digitally, freeing up a huge slice of public airwaves for other uses. In January, the FCC will hold a public auction of the vacated radio spectrum -- it's known at the 700 MHz frequency -- and traditional communications companies such as AT&T and Verizon are salivating at the chance to grab up the space.
The 700 MHz airwaves will be used for data; wireless companies talk of a fast, robust, nationwide wireless Internet -- but that's exactly what's so worrying about the prospect of the spectrum going to the telecom firms, which have not generally favored openness on their networks. On today's cellphone networks, wireless companies won't let people run the applications or devices they choose -- all major carriers, for instance, prohibit their customers from adding Skype to their cellphones, and they frown upon letting you use phones that also do Wi-Fi (because if you're using Wi-Fi, you're not ringing up minutes on the cell data plan).
Over the last several months, Google, eBay (which owns Skype), and other Internet firms -- along with many consumer advocacy groups -- have lobbied the FCC to mandate that telecom firms clean up their act on the 700 MHz spectrum. You can think of it as the network neutrality debate for wireless.
As it has outlined in a letter to the FCC (PDF) and numerous times on its company blogs, Google wants the agency to require that any firm that bids for rights to the 700 MHz spectrum promise to: 1) let customers download and use any software on the network; 2) let customers use any device on the network; 3) sell wireless space to any third-party wireless provider at commercial rates; 4) allow the wireless network to interconnect with other Internet service providers.
A couple of weeks ago, Kevin Martin, the chairman of the FCC, released a draft version of rules for the auction that were widely interpreted as siding with Google. In fact, Martin's draft only went partway toward full openness -- it allowed for points 1 and 2 from above, but not points 3 and 4. And that's where the $4.6 billion comes in: Google is using its considerable wealth as bait to bring Martin all the way to full openness.
Telecom firms loathe these openness principles, and they've been lobbying Martin to reject Google's plan by arguing that any rules would make the spectrum less attractive to bidders -- and, therefore, will result in lower revenues for the government in an auction. Google's money eviscerates that argument: Google will put its billions in only if the FCC adopts all four principles of openness, CEO Eric Schmidt told Martin in a letter (PDF). And the government stands to make a lot more money at auction if Google participates than if it does not.
It's a brilliant strategy, one that puts wireless companies in a tough spot. We've long known that Google hired the smartest engineers in the world. Now we're seeing their public policy gurus aren't too shabby either
Thursday, July 19, 2007
7 Million US Households are considering Relocation
The other half of the immigration equation: U.S. to Panama
By Robert Adams Thu Jul 19, 4:00 AM ET
Panama City - For all the heated debate over this summer's failed immigration reform bill, little attention has been paid to the other side of the equation: the flow of Americans out of the United States. Emigration doesn't stoke passions as illegal immigration does, but its scale and impact are significant.
As the US Census Bureau has discovered, attempting to count Americans residing outside the US is prohibitively expensive, assuming they could even be found scattered across the far corners of the globe. That led my global marketing firm, New Global Initiatives, to survey Americans to find out how many are planning to relocate outside the country. If we can't measure the past flow of emigrants, we can try to measure the current and future flow.
The survey results showed that some 1.6 million households, representing nearly 3.5 million people, have actually decided to relocate. Close to 2 million households claim to be seriously interested and likely to relocate. And while the media often discuss retirees as the major source of relocators, we found that Americans in their 30s and 40s are the most likely to relocate – and by a very wide margin.
Where they're interested in going is also significant. More than 40 percent of respondents have chosen Mexico, Central America, or Panama as their destination or are seriously considering the region. In numbers, they may not compare to the millions flowing in the other direction, but one American household moving to Mexico or Panama can have as great an economic impact as dozens of poor Latino immigrants to the US.
The influx of illegal immigrants from south of the border will continue until the economies of their homelands begin providing sufficient job opportunities. US emigrants help to create those jobs. They are America's most effective foreign aid program, but without the bureaucracy and waste. They share more than money. They share themselves. Taken together, they are helping to alleviate the root causes of illegal immigration.
Thus the flow of immigrants in both direction can be positive.
Immigrant labor is critical in helping America compete effectively with low-cost foreign competition. Perhaps it was best summed up by a comedian in Mexico City who quipped that the US was going to drive all the Mexicans out, then build a wall to keep them out. But, he asked, who was going to build the wall?
Illegal immigration is a real problem and must be dealt with, but the value America gains from immigrant labor cannot be ignored.
In like manner, Americans bring their sorely needed money and wealth of professional expertise to the homelands of America's immigrants. That steady emigration from the US is thoroughly ignored, however, because relevant statistics are nearly impossible to find.
Under contract to my firm over the last two years, Zogby International has completed seven opinion surveys of a total of more than 115,000 adult Americans. Each survey began with a question regarding their interest in relocating outside the US. Respondents who were relocating due to their employment were not included, only voluntary relocators and they had to be relocating for two or more years.
We provided three different positive responses, along with the standard negative response. We asked people if they had made the decision to relocate, if they were "seriously" interested in relocating, and likely to relocate, and finally if they were "somewhat" interested and might relocate.
In addition to 1.6 million households that said they had decided to relocate, some 7 million households are at a tentative stage of considering relocation. Finally, 3 million households which do not plan to relocate now are seriously considering purchasing a vacation home or other property outside the US. These may be vacation homes now, but they can easily become full-time residences in the future.
All told, fully 21 percent of respondents placed themselves in one of the categories above. That's a lot of Americans.
For 40 years, I have worked all over the world for both public and private organizations. And I have stood in more immigration lines than I ever imagined. Today, those lines are much longer.
I am watching the birth of a true global community. It comes not by the design of altruists or politicians, but by the free choice of millions of individuals. This may seem to be a silent migration, but actions do speak louder than words and I hear them in those immigration lines.
How sweet the sound.
• Robert Adams is the president and CEO of New Global Initiatives Inc., a global marketing firm in Bethesda, Md., and Panama Wave S.A., a real estate marketing firm in Panama City.
By Robert Adams Thu Jul 19, 4:00 AM ET
Panama City - For all the heated debate over this summer's failed immigration reform bill, little attention has been paid to the other side of the equation: the flow of Americans out of the United States. Emigration doesn't stoke passions as illegal immigration does, but its scale and impact are significant.
As the US Census Bureau has discovered, attempting to count Americans residing outside the US is prohibitively expensive, assuming they could even be found scattered across the far corners of the globe. That led my global marketing firm, New Global Initiatives, to survey Americans to find out how many are planning to relocate outside the country. If we can't measure the past flow of emigrants, we can try to measure the current and future flow.
The survey results showed that some 1.6 million households, representing nearly 3.5 million people, have actually decided to relocate. Close to 2 million households claim to be seriously interested and likely to relocate. And while the media often discuss retirees as the major source of relocators, we found that Americans in their 30s and 40s are the most likely to relocate – and by a very wide margin.
Where they're interested in going is also significant. More than 40 percent of respondents have chosen Mexico, Central America, or Panama as their destination or are seriously considering the region. In numbers, they may not compare to the millions flowing in the other direction, but one American household moving to Mexico or Panama can have as great an economic impact as dozens of poor Latino immigrants to the US.
The influx of illegal immigrants from south of the border will continue until the economies of their homelands begin providing sufficient job opportunities. US emigrants help to create those jobs. They are America's most effective foreign aid program, but without the bureaucracy and waste. They share more than money. They share themselves. Taken together, they are helping to alleviate the root causes of illegal immigration.
Thus the flow of immigrants in both direction can be positive.
Immigrant labor is critical in helping America compete effectively with low-cost foreign competition. Perhaps it was best summed up by a comedian in Mexico City who quipped that the US was going to drive all the Mexicans out, then build a wall to keep them out. But, he asked, who was going to build the wall?
Illegal immigration is a real problem and must be dealt with, but the value America gains from immigrant labor cannot be ignored.
In like manner, Americans bring their sorely needed money and wealth of professional expertise to the homelands of America's immigrants. That steady emigration from the US is thoroughly ignored, however, because relevant statistics are nearly impossible to find.
Under contract to my firm over the last two years, Zogby International has completed seven opinion surveys of a total of more than 115,000 adult Americans. Each survey began with a question regarding their interest in relocating outside the US. Respondents who were relocating due to their employment were not included, only voluntary relocators and they had to be relocating for two or more years.
We provided three different positive responses, along with the standard negative response. We asked people if they had made the decision to relocate, if they were "seriously" interested in relocating, and likely to relocate, and finally if they were "somewhat" interested and might relocate.
In addition to 1.6 million households that said they had decided to relocate, some 7 million households are at a tentative stage of considering relocation. Finally, 3 million households which do not plan to relocate now are seriously considering purchasing a vacation home or other property outside the US. These may be vacation homes now, but they can easily become full-time residences in the future.
All told, fully 21 percent of respondents placed themselves in one of the categories above. That's a lot of Americans.
For 40 years, I have worked all over the world for both public and private organizations. And I have stood in more immigration lines than I ever imagined. Today, those lines are much longer.
I am watching the birth of a true global community. It comes not by the design of altruists or politicians, but by the free choice of millions of individuals. This may seem to be a silent migration, but actions do speak louder than words and I hear them in those immigration lines.
How sweet the sound.
• Robert Adams is the president and CEO of New Global Initiatives Inc., a global marketing firm in Bethesda, Md., and Panama Wave S.A., a real estate marketing firm in Panama City.
The Economist - Article On Panama
Jul 19th 2007 | PANAMA CITY
From The Economist print edition
Panama
Glitter and graft
A country revamped as a service hub grows at Chinese rates
COMMUTER traffic crawls along Avenida Balboa, the coastal road that is the spine of Panama City, slowed by thousands of new cars. In the city's wealthier districts restaurants are packed, and it is hard to find a street without a skyscraper under construction. While some of its neighbours in Central America struggle with commodity-based economies, Panama is busy reinventing itself as a regional logistics and services hub.
That was a position it enjoyed in the 1970s, when an offshore financial industry briefly flourished. Then came the dark years of Manuel Noriega, a thuggish strongman toppled by an American invasion in 1989. Several undistinguished governments followed.
Several things have now come together to produce an extraordinary boom in Panama. The economy will expand by 11% this year and by over 9% in both 2008 and 2009, according to a forecast by LatinSource, a consultancy. That is faster than anywhere else in Latin America.
The first was the transfer of sovereignty over the Panama Canal in 1999. Since then, the canal has been run as a Panamanian business, rather than a branch of the United States' federal bureaucracy. President Martín Torrijos, who took office in 2004 (and whose father, a military ruler, negotiated the canal handover in the 1970s), pushed through a referendum last year which approved a $5.2 billion plan to expand the canal, doubling its capacity and enabling it to take much bigger ships. Work is due to start in August.
Other big projects are planned in the wake of the canal expansion. Occidental Petroleum, in partnership with Qatar Petroleum, plans an oil refinery, costing $7 billion, at Puerto Armuelles. A consortium led by Hutchison Whampoa, a Hong Kong company, plans to turn Balboa into the largest port in Latin America. China's government-owned shipping operator, COSCO, is competing to build a second mega-port, this one on the Caribbean coast—even though Panama recognises Taiwan. Copa, a local airline, aspires to turn Panama into an alternative regional hub for travellers deterred by the security hassles of Miami airport.
The second factor is that Mr Torrijos's government has been rather more effective than its predecessors. He has cleaned up the public finances, pushing through an unpopular reform of social security. He actively courts foreign investors. He has negotiated a free-trade agreement with the United States, which Panama hopes will soon be ratified by the American Congress. But he also has close ties to other regional leaders, including Cuba's Raúl Castro.
This week Spain's prime minister, José Luis Rodríguez Zapatero, was the latest foreign leader to drop by, with a coterie of businessmen in tow. New foreign direct investment more than doubled in 2006 compared with the previous year, accounting for 16% of GDP—a share that is twice as big as in any other country in the region, according to the UN Economic Commission for Latin America and the Caribbean.
The government has finally got around to developing the prime land once occupied by American military bases in the former Canal Zone. The UN is moving its regional headquarters into one; another will become a technology park. Last week the government signed a contract with London & Regional, a British property company, which plans to build housing and industrial units at the former Howard Air Force base. Some of the new housing is aimed at American retirees, who are flocking to Panama. Donald Trump, an American property developer, is planning a 68-storey hotel and resort.
But as the developers pile in, not everyone is cheering. Some worry that the property bubble will soon burst. Others note that a weak education system does not produce enough engineers or skilled workers. Contractors are likely to import skilled labour from abroad. But with 40% of Panamanians still living in poverty, and unemployment at 8.6% last year (though falling), that will not be popular.
A handful of families continue to control much of the country's wealth and benefit from cosy ties to government while most Panamanians struggle to make ends meet. Mr Torrijos proposes to increase the minimum wage of $300 a month. American diplomats worry that if the benefits of growth don't filter down, the resulting sense of injustice could fuel political radicalisation.
A bigger, related, worry is corruption. Foreign firms are beginning to complain that they are hampered by the informal links between government and local business oligarchs. Sam Taliaferro, an American who runs a property business catering to foreign retirees in Boquete, a hill resort, says that corruption threatens to choke off foreign investment. With three-dozen other investors, he has formed a group to campaign against what he sees as the gouging of foreign firms.
Though Mr Torrijos's government has a cleaner record than its predecessors, it has not been scandal-free. An uncle of the president controversially acquired vacant land, and went on to destroy protected mangrove swamp without the necessary permit. It is hard to judge how deep corruption goes, or how much of an impact it may have on foreign investment. But if Panama's boom is to propel it swiftly to developed-country status over the next decade or so, it would help if it rested on a stronger institutional foundation.
From The Economist print edition
Panama
Glitter and graft
A country revamped as a service hub grows at Chinese rates
COMMUTER traffic crawls along Avenida Balboa, the coastal road that is the spine of Panama City, slowed by thousands of new cars. In the city's wealthier districts restaurants are packed, and it is hard to find a street without a skyscraper under construction. While some of its neighbours in Central America struggle with commodity-based economies, Panama is busy reinventing itself as a regional logistics and services hub.
That was a position it enjoyed in the 1970s, when an offshore financial industry briefly flourished. Then came the dark years of Manuel Noriega, a thuggish strongman toppled by an American invasion in 1989. Several undistinguished governments followed.
Several things have now come together to produce an extraordinary boom in Panama. The economy will expand by 11% this year and by over 9% in both 2008 and 2009, according to a forecast by LatinSource, a consultancy. That is faster than anywhere else in Latin America.
The first was the transfer of sovereignty over the Panama Canal in 1999. Since then, the canal has been run as a Panamanian business, rather than a branch of the United States' federal bureaucracy. President Martín Torrijos, who took office in 2004 (and whose father, a military ruler, negotiated the canal handover in the 1970s), pushed through a referendum last year which approved a $5.2 billion plan to expand the canal, doubling its capacity and enabling it to take much bigger ships. Work is due to start in August.
Other big projects are planned in the wake of the canal expansion. Occidental Petroleum, in partnership with Qatar Petroleum, plans an oil refinery, costing $7 billion, at Puerto Armuelles. A consortium led by Hutchison Whampoa, a Hong Kong company, plans to turn Balboa into the largest port in Latin America. China's government-owned shipping operator, COSCO, is competing to build a second mega-port, this one on the Caribbean coast—even though Panama recognises Taiwan. Copa, a local airline, aspires to turn Panama into an alternative regional hub for travellers deterred by the security hassles of Miami airport.
The second factor is that Mr Torrijos's government has been rather more effective than its predecessors. He has cleaned up the public finances, pushing through an unpopular reform of social security. He actively courts foreign investors. He has negotiated a free-trade agreement with the United States, which Panama hopes will soon be ratified by the American Congress. But he also has close ties to other regional leaders, including Cuba's Raúl Castro.
This week Spain's prime minister, José Luis Rodríguez Zapatero, was the latest foreign leader to drop by, with a coterie of businessmen in tow. New foreign direct investment more than doubled in 2006 compared with the previous year, accounting for 16% of GDP—a share that is twice as big as in any other country in the region, according to the UN Economic Commission for Latin America and the Caribbean.
The government has finally got around to developing the prime land once occupied by American military bases in the former Canal Zone. The UN is moving its regional headquarters into one; another will become a technology park. Last week the government signed a contract with London & Regional, a British property company, which plans to build housing and industrial units at the former Howard Air Force base. Some of the new housing is aimed at American retirees, who are flocking to Panama. Donald Trump, an American property developer, is planning a 68-storey hotel and resort.
But as the developers pile in, not everyone is cheering. Some worry that the property bubble will soon burst. Others note that a weak education system does not produce enough engineers or skilled workers. Contractors are likely to import skilled labour from abroad. But with 40% of Panamanians still living in poverty, and unemployment at 8.6% last year (though falling), that will not be popular.
A handful of families continue to control much of the country's wealth and benefit from cosy ties to government while most Panamanians struggle to make ends meet. Mr Torrijos proposes to increase the minimum wage of $300 a month. American diplomats worry that if the benefits of growth don't filter down, the resulting sense of injustice could fuel political radicalisation.
A bigger, related, worry is corruption. Foreign firms are beginning to complain that they are hampered by the informal links between government and local business oligarchs. Sam Taliaferro, an American who runs a property business catering to foreign retirees in Boquete, a hill resort, says that corruption threatens to choke off foreign investment. With three-dozen other investors, he has formed a group to campaign against what he sees as the gouging of foreign firms.
Though Mr Torrijos's government has a cleaner record than its predecessors, it has not been scandal-free. An uncle of the president controversially acquired vacant land, and went on to destroy protected mangrove swamp without the necessary permit. It is hard to judge how deep corruption goes, or how much of an impact it may have on foreign investment. But if Panama's boom is to propel it swiftly to developed-country status over the next decade or so, it would help if it rested on a stronger institutional foundation.
Wednesday, July 18, 2007
US Real Estate Agent Writes About International Purchasing, Specifically Panama
Debra Allen of Gilbert writes about a real estate expo she attended in Spain.
In May, for a second year in a row I traveled to Madrid to attend the SIMAExpo.
Annually, SIMA represents the largest real estate convention in the world, hosting an estimated 17,000-plus from more than 50 countries and approximately 750 exhibitors on 45,000-plus square feet of convention space. As a Realtor licensed with the Gilbert office of Prudential Arizona Properties, I went into SIMA this year with a new perspective.
In 2006, I attended SIMA after 2005's record-breaking sales year for Maricopa County. In 2006, SIMA led me to pursue referral opportunities in emerging markets such as Panama that enhanced my earnings. However, closing business at home in Arizona had not been a trial during the previous year, in which cynics suggested that being a real estate agent was a "license to print money."
This year I attended with hopes to not only accumulate frequent flyer miles but also to attain global insights for myself and my clients after the regional market slowdown of '06. I am happy to report that I did both.
Many key themes explored at SIMA 2007 will likely touch homeowners and Realtors in the months and years ahead, including those of us in the Valley.
The dream, sometimes naively referred to as the "American dream" of home ownership now has been realized by the most diverse demographic base ever worldwide. Buyers and sellers are more inventive and adventurous about where they want to live.
Telecommuting is allowing more residents to live in remote areas and work virtually via e-mail.
Moreover, second-home ownership, a major topic at SIMA 2007, has opened the channels between buyers and sellers across countries, oceans and time zones. Specifically, of more than 70 million U.S. baby boomers leaving the workforce and seeking second or retirement homes, many will buy abroad instead of in the familiar enclaves of Florida and, yes, Arizona.
Tax incentives and low-cost health care provided by nations such as Dubai, Argentina and Panama, coupled with the rebellious "boomer' generation that grew up in the '60s, is making international home buying common.
Simultaneously, emerging markets such as Panama and Mexico continue to develop spa and resort communities such as Los Faros de Panama and Campeche de Mexico, on the Yucatan Peninsula, complete with draws to U.S. buyers like casinos, 5-star hotels, shopping and, in the case of Campeche, a golf course designed by Jack Nicklaus.
Argentina, with new construction in cities such as Buenos Aires, Mendoza and Cordoba from investors like Grupo Ecipsa, had an influential presence at SIMA with 19 developers. These are all regions to watch for residential and investment opportunities.
On the home front, I believe that sellers need to talk to their real estate representatives about international networking and referrals.
With a Transnational Referral Certification, an Arizona licensee can field referrals from overseas markets. Realtors who do not have the TRC designation and/or the more advanced Certified International Property Specialist designation, for which I am now a candidate myself, need to get this training to stay competitive.
Realtors also need to attend expos such as SIMA or the upcoming National Association of Realtors Convention in Las Vegas where SIMA has a presence.
And as currency conversion rates favor, for example, the British pound, Valley sellers must embrace that their resort property's next buyer may be a across the pond, not across the street.
In the end, to stay competitive and sell locally, buyers, sellers and realtors will need to think globally.
In May, for a second year in a row I traveled to Madrid to attend the SIMAExpo.
Annually, SIMA represents the largest real estate convention in the world, hosting an estimated 17,000-plus from more than 50 countries and approximately 750 exhibitors on 45,000-plus square feet of convention space. As a Realtor licensed with the Gilbert office of Prudential Arizona Properties, I went into SIMA this year with a new perspective.
In 2006, I attended SIMA after 2005's record-breaking sales year for Maricopa County. In 2006, SIMA led me to pursue referral opportunities in emerging markets such as Panama that enhanced my earnings. However, closing business at home in Arizona had not been a trial during the previous year, in which cynics suggested that being a real estate agent was a "license to print money."
This year I attended with hopes to not only accumulate frequent flyer miles but also to attain global insights for myself and my clients after the regional market slowdown of '06. I am happy to report that I did both.
Many key themes explored at SIMA 2007 will likely touch homeowners and Realtors in the months and years ahead, including those of us in the Valley.
The dream, sometimes naively referred to as the "American dream" of home ownership now has been realized by the most diverse demographic base ever worldwide. Buyers and sellers are more inventive and adventurous about where they want to live.
Telecommuting is allowing more residents to live in remote areas and work virtually via e-mail.
Moreover, second-home ownership, a major topic at SIMA 2007, has opened the channels between buyers and sellers across countries, oceans and time zones. Specifically, of more than 70 million U.S. baby boomers leaving the workforce and seeking second or retirement homes, many will buy abroad instead of in the familiar enclaves of Florida and, yes, Arizona.
Tax incentives and low-cost health care provided by nations such as Dubai, Argentina and Panama, coupled with the rebellious "boomer' generation that grew up in the '60s, is making international home buying common.
Simultaneously, emerging markets such as Panama and Mexico continue to develop spa and resort communities such as Los Faros de Panama and Campeche de Mexico, on the Yucatan Peninsula, complete with draws to U.S. buyers like casinos, 5-star hotels, shopping and, in the case of Campeche, a golf course designed by Jack Nicklaus.
Argentina, with new construction in cities such as Buenos Aires, Mendoza and Cordoba from investors like Grupo Ecipsa, had an influential presence at SIMA with 19 developers. These are all regions to watch for residential and investment opportunities.
On the home front, I believe that sellers need to talk to their real estate representatives about international networking and referrals.
With a Transnational Referral Certification, an Arizona licensee can field referrals from overseas markets. Realtors who do not have the TRC designation and/or the more advanced Certified International Property Specialist designation, for which I am now a candidate myself, need to get this training to stay competitive.
Realtors also need to attend expos such as SIMA or the upcoming National Association of Realtors Convention in Las Vegas where SIMA has a presence.
And as currency conversion rates favor, for example, the British pound, Valley sellers must embrace that their resort property's next buyer may be a across the pond, not across the street.
In the end, to stay competitive and sell locally, buyers, sellers and realtors will need to think globally.
The Octopus Garden Inn - Portobello, Panama
A few weeks ago our family and Juli spent a weekend out on the Portobello coast. We decided to try out a Bed & Breakfast called the 'Octopus Garden Inn'. Granted, this name made no sense to us at all until the owner of the place, Clay Jorgensen played the song for us by the Beetles while we were sitting at the bar. Ok, now it makes sense.
The place is extremely laid back, with a huge deck, a bar, pool table, dart board, barbeque etc. The rooms are simple, but clean and reasonably priced. The best part of this operation though, is how they take care of their customers. Clay was alot of fun but more importantly anticipated our needs and made sure everything was taken care of, from providing one of his boats to take us to a 'private' beach, to making sure meals were ready whenever the horde of children we call a family started making 'Im starving' noises.
You can see a gallery of pictures here: Octopus Garden Inn
In addition to the Inn, Clay also operates Panama Divers, which is one of the best known dive operations in Panama. Clay has owned and operated diving operations for many years, including commercial diving, and is a certified PADI Master Diver Instructor. They run 7 boats from San Blas, Portobello, to the Pacific Coast. I had a chance to make a run with them taking out 3 very experienced divers, and the operation was smooth as the crews are experienced and know what they are doing.
Overall, if you want a laid back experience with great food and great fun, the Octopus Garden Inn is reccommended.
The place is extremely laid back, with a huge deck, a bar, pool table, dart board, barbeque etc. The rooms are simple, but clean and reasonably priced. The best part of this operation though, is how they take care of their customers. Clay was alot of fun but more importantly anticipated our needs and made sure everything was taken care of, from providing one of his boats to take us to a 'private' beach, to making sure meals were ready whenever the horde of children we call a family started making 'Im starving' noises.
You can see a gallery of pictures here: Octopus Garden Inn
In addition to the Inn, Clay also operates Panama Divers, which is one of the best known dive operations in Panama. Clay has owned and operated diving operations for many years, including commercial diving, and is a certified PADI Master Diver Instructor. They run 7 boats from San Blas, Portobello, to the Pacific Coast. I had a chance to make a run with them taking out 3 very experienced divers, and the operation was smooth as the crews are experienced and know what they are doing.
Overall, if you want a laid back experience with great food and great fun, the Octopus Garden Inn is reccommended.
Tuesday, July 17, 2007
Huge Golf Community Development Launched
Found this on Sam Talifero's Blog this morning:
Mega housing project announced near Panama City
Last year while attending the exposition of developers in Panama, we saw a model of a massive project called Panama Country Club that was to be built in the Costa Del Este area here in Panama. Since that time we have heard only rumors about the project. Today however, they made an official announcement that the project is finally getting underway and will be called Santa Maria Golf and Country Club (Saint Mary). According to one of the developers I spoke to about the project, it will be marketed to both locals and the wave of baby boomer's expected to arrive on these sunny shores over the next 10 years or so. The website is in English and Spanish and the catch phrase is "Be a part of Panama City's most exclusive private community".
With 5000 homes, they only have to build all the infrastructure and 500 homes a year to achieve their 10 year goal. It has taken me over five years to build just 200 homes of that proposed caliber, but I did not have the funding to bring in the manpower these boys do. Now lets just hope enough Boomer's wash up on our shores.
From Capital Financiero
Here are some of the stats.
Developers-owners
Carlos Pellas from Nicaragua—BAC – banco de america central—one of the richest man in Central America
Stanley Motta
Mello Aleman
Abdul Waked
Alberto Vallarino
Rafael Barcenas
http://www.santamariapanama.com/index.asp
Project at glance:
280 Hectares
5K homes
5 star hotel with 30 rooms
Jack Nicklaus 18 golf course
Mega housing project announced near Panama City
Last year while attending the exposition of developers in Panama, we saw a model of a massive project called Panama Country Club that was to be built in the Costa Del Este area here in Panama. Since that time we have heard only rumors about the project. Today however, they made an official announcement that the project is finally getting underway and will be called Santa Maria Golf and Country Club (Saint Mary). According to one of the developers I spoke to about the project, it will be marketed to both locals and the wave of baby boomer's expected to arrive on these sunny shores over the next 10 years or so. The website is in English and Spanish and the catch phrase is "Be a part of Panama City's most exclusive private community".
With 5000 homes, they only have to build all the infrastructure and 500 homes a year to achieve their 10 year goal. It has taken me over five years to build just 200 homes of that proposed caliber, but I did not have the funding to bring in the manpower these boys do. Now lets just hope enough Boomer's wash up on our shores.
From Capital Financiero
Here are some of the stats.
Developers-owners
Carlos Pellas from Nicaragua—BAC – banco de america central—one of the richest man in Central America
Stanley Motta
Mello Aleman
Abdul Waked
Alberto Vallarino
Rafael Barcenas
http://www.santamariapanama.com/index.asp
Project at glance:
280 Hectares
5K homes
5 star hotel with 30 rooms
Jack Nicklaus 18 golf course
Monday, July 16, 2007
Panama Economic Growth - International Living
July 16, 2007
Panama City, Panama
Dear Panama First Alert Reader,
Panama’s economy is growing—no one can dispute that. But at what price?
Not one but two consulting firms have released surprising 2007 projections for economic growth in Panama. The new projections come from Indesa—a Panama-based finance and economics consulting firm—and Deloitte, 2007 winner for the title of “world’s best financial assessment firm,” according to England’s prestigious International Securitization Report.
Indesa’s report indicates that Panama’s Gross Domestic Product (GDP) will grow 11% this year. That’s quite a revision from earlier projections by the same company, which placed growth at around 7.3%. Deloitte’s report is slightly more conservative, placing 2007 GDP growth at around 10%. But this is still a far cry from Panama growth projections released earlier this year by the International Monetary Fund (IMF) and Panama government (6.6% and 8%, respectively).
Panama City, Panama
Dear Panama First Alert Reader,
Panama’s economy is growing—no one can dispute that. But at what price?
Not one but two consulting firms have released surprising 2007 projections for economic growth in Panama. The new projections come from Indesa—a Panama-based finance and economics consulting firm—and Deloitte, 2007 winner for the title of “world’s best financial assessment firm,” according to England’s prestigious International Securitization Report.
Indesa’s report indicates that Panama’s Gross Domestic Product (GDP) will grow 11% this year. That’s quite a revision from earlier projections by the same company, which placed growth at around 7.3%. Deloitte’s report is slightly more conservative, placing 2007 GDP growth at around 10%. But this is still a far cry from Panama growth projections released earlier this year by the International Monetary Fund (IMF) and Panama government (6.6% and 8%, respectively).
Sunday, July 15, 2007
Yahoo! Finance Article
by Elaine S. Povich and Leah Dobkin
Tuesday, July 10, 2007
provided by
The first time Dwight Ford visited Panama City two years ago, he was in for a big surprise. "I thought I would see guys pulling banana carts," he recalls. Instead, he found a thriving capital city and international banking center. "The value was staring me in the face." So was the prospect of a blissful retirement in a 31st-floor penthouse condominium overlooking the Pacific Ocean.
Dwight and his wife, Marciana Wilkerson, who lived outside Washington, D.C., put 10% down on two side-by-side condos selling for about $440,000 each when the luxury high-rise was under construction. Today, the condos in the fashionable commercial district of Punta Pacifica are worth close to $700,000 each. The couple plan to sell one and use the cash to pay off the other after moving in this spring. "We'll have no mortgage, and I get to choose my neighbors," says Dwight.
Seeking a year-round tropical climate and a relatively low cost of living, U.S. retirees are flocking south of the border. Panama, Mexico and Costa Rica top the list of the most popular retirement destinations in Latin America. Moving to Panama allows Dwight and Marciana to stretch an already comfortable nest egg even further. Thanks to the explosion in real estate values in the Washington area, they were able to sell their home of 17 years in Potomac, Md., for $2.35 million in 2006, clearing $1.3 million to invest in the stock market.
The couple expect to live quite comfortably on about $10,000 a month in a country where the average cost of living is well below that of the U.S. American retirees living in Panama pay no tax on foreign-generated income and are exempt from property taxes for up to 15 years. They can import their cars and household goods tax-free and take advantage of an array of discount programs on goods and services, ranging from prescription drugs and health care to airfares, restaurants and movie tickets. However, retiring to another country doesn't excuse you from your U.S. tax obligations.
Once they settle in, Dwight and Marciana anticipate an active retirement filled with golf, tennis and some part-time work. Dwight, who gave up a full-time position in a stateside technology company, may continue running a consulting business serving some former clients. Marciana, a bilingual, U.S.-trained obstetrician who was born in Panama, may continue to practice at a Johns Hopkins hospital that recently opened near the couple's new home. If you're thinking about working part-time in retirement, investigate before you move whether your destination provides opportunities, and whether your visa will allow you to work.
A perennial favorite
Mexico has always been a popular Latin American destination for U.S. retirees. Patt Barrack, a former medical secretary, and her husband, Robert, a retired firefighter, are among the more than 155,000 Americans over 55 who call Mexico home. After reading a magazine article about retirees in Lake Chapala, 30 miles south of Guadalajara, the Barracks found a real estate agent on the Internet and paid $236,000 for a three-bedroom house. A few months after selling their home in Lake Anna, Va., for $325,000 in 2004, they moved to their new lakeside community, which is home to thousands of other American expats. "You can't beat the weather," says Patt, 65. "And you don't have the hustle and bustle you have in the States."
But even paradise can take some getting used to -- and not all surprises are pleasant ones. Most financial and international-living advisers caution against doing what the Barracks did: making a snap decision, buying a home and moving, all within a few months. Instead, they recommend taking a vacation in the country you have in mind, and then planning a longer stay, possibly renting in the off-season, to get a flavor of routine life. You may discover that a seemingly idyllic neighborhood is rife with crime.
Financial hurdles
Complicated tax laws and unfamiliar local customs can be a minefield for the uninitiated. Before you move, consult a tax attorney, accountant or financial planner familiar with international-living issues. One of the thorniest problems can be buying or building a home because some countries impose tight restrictions on land ownership. In Costa Rica, for example, if you build a house within 200 meters of the shoreline, you cannot buy the land -- you can only lease it from the government. And in Mexico, you're not allowed to own property along the coast. You can only buy the rights to the property. The deed to the land is held in a bank trust called a fideiscomiso.
A reputable real estate agent can help you find property, plus a lawyer to sort through the legal morass. To find a foreign real estate agent, search www.realtor.org/international. It provides a list of 1,500 agents worldwide who have taken international real estate courses and have agreed to follow standards set by the National Association of Realtors. The agents' Web sites include photos and prices of properties.
Medical checkup
Health care should be another major consideration. Medicare does not reach beyond the U.S. border, and your former employer's retiree health coverage may not, either. The quality of medical care was a big factor for Elinor and Harvey Prawer, who lived in Scarborough, Maine, when they decided to move to Puerto Vallarta, Mexico. Before settling on the coastal community, they had stayed several times at Costa Careyes, two-and-a-half hours south. The closest hospital was 70 miles away. Harvey, 67, a retired wholesale food company owner, had already undergone two surgeries before the move. "With medical issues, you don't want to be out in the middle of nowhere," he says. Elinor, 66, describes the American-designed Cornerstone Hospital in Puerto Vallarta as "state of the art."
Before moving, the Prawers bought a health insurance policy from a global company that specializes in issuing policies to Americans who live abroad. If you're between 60 and 65 years old, expect to pay premiums of about $3,000 for a plan with a $1,000 deductible, says Derek Patterson, a broker at eGlobal Health Insurers Agency (http://www.eglobalhealth.com/). If you have a serious pre-existing medical condition, your premiums can cost as much as $13,000 a year. Be sure the policy includes coverage for medical evacuation. For minor medical problems, you can use the local health-care system.
Just your style
Whether you're looking for a quiet retreat or an active lifestyle, you're likely to find a community south of the border to suit your needs. Six years ago, Pam and Mike Ellsworth, from Little Torch Key, Fla., retired to Nosara, a cattle-farming community in Costa Rica. Before their move, Pam, 55, managed a boutique, and Mike, 60, was a custom-cabinet maker. They bought and rehabbed a one-bedroom house, which is within walking distance of the ocean. The Ellsworths love the natural environment and the stimulation of an international community. "I have more time for reflection," Pam says. "Costa Rica allows me time to relax and to stop keeping up with the Joneses."
If you want a lot more action and a lot less rusticity, you can buy one of 400 units at Luma (http://www.lumaliving.com/), the first U.S.-developed active-adult community in Mexico, located in Paradise Village, 30 miles north of Puerta Vallarta. The first apartments, with designer kitchens and 13-foot ceilings, are scheduled to open in the fall of 2008. Beachfront common space will include a café and bar, an exercise room and a pool. Concierge service will make restaurant reservations and find live-in personal help. A shopping mall and restaurants are just steps away.
Luma will be built as a partnership between Front Porch Development Co., a nonprofit developer of senior-living communities in the U.S., and Grupo Krone, a Mexican real estate development company. If you're 50 or older, you can reserve a unit ranging in price from $400,000 to $1.2 million through Prudential California Realty. "While this is primarily a community of Canadians and Americans, we will have touches of Vallarta everywhere," says Lee Ratta, Front Porch senior vice-president. "Luma has all the advantages of a Mexican lifestyle and the convenience of American-style living."
Just like home -- almost
You don't have to move to an American luxury community, such as Luma, to find many of the conveniences of home in Latin America. As the number of expatriates grows, big-box stores, such as Wal-Mart and Costco, show up in enclaves where Americans live. Satellite and cable television bring news and entertainment into expats' homes, and the Internet is readily available for information and online shopping.
Although the leisurely pace of Latin America is attractive, the laid-back attitude can be frustrating when it comes to getting your house repaired or your mail delivered. "There is still a bit of a 'mañana' attitude here," says Bill Fisher, 63, who used to live in Austin, Tex., and now lives in San Miguel de Allende, in central Mexico. "To pay a phone bill, you have to stand in line."
He and his wife, Judy, rented in San Miguel for two years before buying. "Wherever you're going to retire, you need to be in love with the place," he says. San Miguel, a vibrant arts center, reminds the couple of what Santa Fe was like a decade ago. Household help is cheap, so the Fishers employ both a maid and a gardener. There's no way they could afford that back in the States. But mail service is slow and unreliable. Many Americans avoid the problem by having their mail sent to a U.S. address, then trucked across the border to Mexico and delivered to a local Mailboxes Etc.
The law of supply and demand is alive and well in Latin America. As increasing numbers of Americans move south, housing prices are rising. But in many cases, services and infrastructure can't keep up, resulting in occasional water shortages, poorly maintained roads and long waits -- of months or years -- for telephone lines. Cell-phone service is spotty in some areas.
Copyrighted, Kiplinger Washington Editors, Inc.
Tuesday, July 10, 2007
provided by
The first time Dwight Ford visited Panama City two years ago, he was in for a big surprise. "I thought I would see guys pulling banana carts," he recalls. Instead, he found a thriving capital city and international banking center. "The value was staring me in the face." So was the prospect of a blissful retirement in a 31st-floor penthouse condominium overlooking the Pacific Ocean.
Dwight and his wife, Marciana Wilkerson, who lived outside Washington, D.C., put 10% down on two side-by-side condos selling for about $440,000 each when the luxury high-rise was under construction. Today, the condos in the fashionable commercial district of Punta Pacifica are worth close to $700,000 each. The couple plan to sell one and use the cash to pay off the other after moving in this spring. "We'll have no mortgage, and I get to choose my neighbors," says Dwight.
Seeking a year-round tropical climate and a relatively low cost of living, U.S. retirees are flocking south of the border. Panama, Mexico and Costa Rica top the list of the most popular retirement destinations in Latin America. Moving to Panama allows Dwight and Marciana to stretch an already comfortable nest egg even further. Thanks to the explosion in real estate values in the Washington area, they were able to sell their home of 17 years in Potomac, Md., for $2.35 million in 2006, clearing $1.3 million to invest in the stock market.
The couple expect to live quite comfortably on about $10,000 a month in a country where the average cost of living is well below that of the U.S. American retirees living in Panama pay no tax on foreign-generated income and are exempt from property taxes for up to 15 years. They can import their cars and household goods tax-free and take advantage of an array of discount programs on goods and services, ranging from prescription drugs and health care to airfares, restaurants and movie tickets. However, retiring to another country doesn't excuse you from your U.S. tax obligations.
Once they settle in, Dwight and Marciana anticipate an active retirement filled with golf, tennis and some part-time work. Dwight, who gave up a full-time position in a stateside technology company, may continue running a consulting business serving some former clients. Marciana, a bilingual, U.S.-trained obstetrician who was born in Panama, may continue to practice at a Johns Hopkins hospital that recently opened near the couple's new home. If you're thinking about working part-time in retirement, investigate before you move whether your destination provides opportunities, and whether your visa will allow you to work.
A perennial favorite
Mexico has always been a popular Latin American destination for U.S. retirees. Patt Barrack, a former medical secretary, and her husband, Robert, a retired firefighter, are among the more than 155,000 Americans over 55 who call Mexico home. After reading a magazine article about retirees in Lake Chapala, 30 miles south of Guadalajara, the Barracks found a real estate agent on the Internet and paid $236,000 for a three-bedroom house. A few months after selling their home in Lake Anna, Va., for $325,000 in 2004, they moved to their new lakeside community, which is home to thousands of other American expats. "You can't beat the weather," says Patt, 65. "And you don't have the hustle and bustle you have in the States."
But even paradise can take some getting used to -- and not all surprises are pleasant ones. Most financial and international-living advisers caution against doing what the Barracks did: making a snap decision, buying a home and moving, all within a few months. Instead, they recommend taking a vacation in the country you have in mind, and then planning a longer stay, possibly renting in the off-season, to get a flavor of routine life. You may discover that a seemingly idyllic neighborhood is rife with crime.
Financial hurdles
Complicated tax laws and unfamiliar local customs can be a minefield for the uninitiated. Before you move, consult a tax attorney, accountant or financial planner familiar with international-living issues. One of the thorniest problems can be buying or building a home because some countries impose tight restrictions on land ownership. In Costa Rica, for example, if you build a house within 200 meters of the shoreline, you cannot buy the land -- you can only lease it from the government. And in Mexico, you're not allowed to own property along the coast. You can only buy the rights to the property. The deed to the land is held in a bank trust called a fideiscomiso.
A reputable real estate agent can help you find property, plus a lawyer to sort through the legal morass. To find a foreign real estate agent, search www.realtor.org/international. It provides a list of 1,500 agents worldwide who have taken international real estate courses and have agreed to follow standards set by the National Association of Realtors. The agents' Web sites include photos and prices of properties.
Medical checkup
Health care should be another major consideration. Medicare does not reach beyond the U.S. border, and your former employer's retiree health coverage may not, either. The quality of medical care was a big factor for Elinor and Harvey Prawer, who lived in Scarborough, Maine, when they decided to move to Puerto Vallarta, Mexico. Before settling on the coastal community, they had stayed several times at Costa Careyes, two-and-a-half hours south. The closest hospital was 70 miles away. Harvey, 67, a retired wholesale food company owner, had already undergone two surgeries before the move. "With medical issues, you don't want to be out in the middle of nowhere," he says. Elinor, 66, describes the American-designed Cornerstone Hospital in Puerto Vallarta as "state of the art."
Before moving, the Prawers bought a health insurance policy from a global company that specializes in issuing policies to Americans who live abroad. If you're between 60 and 65 years old, expect to pay premiums of about $3,000 for a plan with a $1,000 deductible, says Derek Patterson, a broker at eGlobal Health Insurers Agency (http://www.eglobalhealth.com/). If you have a serious pre-existing medical condition, your premiums can cost as much as $13,000 a year. Be sure the policy includes coverage for medical evacuation. For minor medical problems, you can use the local health-care system.
Just your style
Whether you're looking for a quiet retreat or an active lifestyle, you're likely to find a community south of the border to suit your needs. Six years ago, Pam and Mike Ellsworth, from Little Torch Key, Fla., retired to Nosara, a cattle-farming community in Costa Rica. Before their move, Pam, 55, managed a boutique, and Mike, 60, was a custom-cabinet maker. They bought and rehabbed a one-bedroom house, which is within walking distance of the ocean. The Ellsworths love the natural environment and the stimulation of an international community. "I have more time for reflection," Pam says. "Costa Rica allows me time to relax and to stop keeping up with the Joneses."
If you want a lot more action and a lot less rusticity, you can buy one of 400 units at Luma (http://www.lumaliving.com/), the first U.S.-developed active-adult community in Mexico, located in Paradise Village, 30 miles north of Puerta Vallarta. The first apartments, with designer kitchens and 13-foot ceilings, are scheduled to open in the fall of 2008. Beachfront common space will include a café and bar, an exercise room and a pool. Concierge service will make restaurant reservations and find live-in personal help. A shopping mall and restaurants are just steps away.
Luma will be built as a partnership between Front Porch Development Co., a nonprofit developer of senior-living communities in the U.S., and Grupo Krone, a Mexican real estate development company. If you're 50 or older, you can reserve a unit ranging in price from $400,000 to $1.2 million through Prudential California Realty. "While this is primarily a community of Canadians and Americans, we will have touches of Vallarta everywhere," says Lee Ratta, Front Porch senior vice-president. "Luma has all the advantages of a Mexican lifestyle and the convenience of American-style living."
Just like home -- almost
You don't have to move to an American luxury community, such as Luma, to find many of the conveniences of home in Latin America. As the number of expatriates grows, big-box stores, such as Wal-Mart and Costco, show up in enclaves where Americans live. Satellite and cable television bring news and entertainment into expats' homes, and the Internet is readily available for information and online shopping.
Although the leisurely pace of Latin America is attractive, the laid-back attitude can be frustrating when it comes to getting your house repaired or your mail delivered. "There is still a bit of a 'mañana' attitude here," says Bill Fisher, 63, who used to live in Austin, Tex., and now lives in San Miguel de Allende, in central Mexico. "To pay a phone bill, you have to stand in line."
He and his wife, Judy, rented in San Miguel for two years before buying. "Wherever you're going to retire, you need to be in love with the place," he says. San Miguel, a vibrant arts center, reminds the couple of what Santa Fe was like a decade ago. Household help is cheap, so the Fishers employ both a maid and a gardener. There's no way they could afford that back in the States. But mail service is slow and unreliable. Many Americans avoid the problem by having their mail sent to a U.S. address, then trucked across the border to Mexico and delivered to a local Mailboxes Etc.
The law of supply and demand is alive and well in Latin America. As increasing numbers of Americans move south, housing prices are rising. But in many cases, services and infrastructure can't keep up, resulting in occasional water shortages, poorly maintained roads and long waits -- of months or years -- for telephone lines. Cell-phone service is spotty in some areas.
Copyrighted, Kiplinger Washington Editors, Inc.
Common Practices - Panama Real Estate
By Panamanian Association of Real Estate - ACOBIR | Published: 2006-10-23
Right of ownership by non Panamanians (Foreign Ownership)
Foreign investments in all real estate areas are welcome and present in Panama. The procedures to adjust to the legal requirements in this area are simple and easy to implement. In the particular case of retirees (pensioners) who rent, Panamanian legislation provides for tax exemptions when taking cars as well as household items into the country and discounts on the cost of bureaucratic processing regarding moving and getting settled in Panamanian territory. Furthermore, it grants many other prerogatives and privileges to said retired persons (pensioners), as well as ample financial opportunities in Panama’s modern banking center.
Land Registration System
All transactions pertaining to the sale and purchase of real estate should be registered with the Public Registry General Office (“Dirección General de Registro Público”) of the Republic of Panama. A Notary Public executes this registration, and that officer is responsible for verifying all the necessary steps and data. This serves as a guaranty to all investors.
Requirements to practice as a Real Estate Agent (Broker)
It is necessary to have a professional capability license, issued by the Real Estate Technical Board (“Junta Técnica de Bienes Raíces”) of the Republic of Panama. Panamanian citizens and foreign nationals who have resided in Panama for over 5 years are eligible to request this license, as long as they pass the professional examinations required by the technical board in a satisfactory manner and further do not have any problems complying with the other mandatory requirements.
Other Industry Professionals
In the case of condominiums and/or communities regulated under the Horizontal Property (cooperative apartment house) system, they are regulated by Law 13 dated April 28th, 1993, and by Executive Decree No. 39 dated November 7th, 2001. Many members of ACOBIR are dedicated to the administration of horizontal properties (cooperative apartment houses).
Practitioner Dispute Resolution Systems
In accordance with Executive Order (Decree Law) No. 6 dated July 8th, 1999, the Real Estate Technical Board of the Republic of Panama is empowered to listen to the arguments presented regarding any conflict that arises between contracting parties in a real estate sale (or purchase) transaction, and to impose the corresponding sanctions, should that be necessary. The Panamanian Association of Real Estate Agents (Brokers) and Promoters (“Asociación Panameña de Corredores y Promotores de Bienes Raíces / ACOBIR”) has a strict code of ethics for its members. The ethics committee may act as a conflict mediator, applying the corrective measures it may deem appropriate. This is an additional Guaranty to those who do business through members belonging to ACOBIR.
Practitioner Services
Real estate agents (brokers) in Panama are trained to offer other services that go beyond the conventional real estate market, such as:
Property appraisals.
Periodic reports on concrete marketing actions.
Counseling on legal and financial matters.
General counseling services.
Negotiation and closing of commercial transactions.
Preparation and processing of the corresponding legal documents.
Procedures after the closing of the transaction, such as: collections, payments, registrations with the Public Registry, etc.
Referral Systems
The business agreements between two agents (brokers) based on a property for sale or for rent may be established after prior consultation with the owner. Nevertheless, any purchase offer on a property represented by another agent (broker) has to be channeled through the latter and not directly to the property owner.
Relationship of Buyer/Seller to Practitioner
The Promissory Letter of Purchase (“Carta de Promesa de Compra Venta”) constitutes the basic document from which the parameters for the commercial transaction between the buyer and the seller, as well as between the seller and the real estate agent (broker) are established. This document reflects the obligation contracted by the seller in the event a sale is carried out without the direct participation of the real estate agent (broker). In turn, the latter shall not present any formal proposal to purchase a property, nor shall he/she engage in negotiations regarding the price of the property, without having been duly authorized to do so by the potential buyer. Likewise, the real estate agent (broker) is not authorized to formulate sale proposals regarding a property without the prior authorization of the property owner. Should there be irreconcilable differences between an ACOBIR member and his/her client, the trade union recommends the use of the arbitration mechanism put in place to solve them.
Compensation
It is customary in the Panamanian market to set the commission level at 5%, to be credited to the real estate agent (broker) for the sale of a property. Nevertheless, setting the amount of the commission is free for negotiation between the parties. Except in the case of an agreement to the contrary, said commission shall be discounted from the payment received by the seller of the property.
Right of ownership by non Panamanians (Foreign Ownership)
Foreign investments in all real estate areas are welcome and present in Panama. The procedures to adjust to the legal requirements in this area are simple and easy to implement. In the particular case of retirees (pensioners) who rent, Panamanian legislation provides for tax exemptions when taking cars as well as household items into the country and discounts on the cost of bureaucratic processing regarding moving and getting settled in Panamanian territory. Furthermore, it grants many other prerogatives and privileges to said retired persons (pensioners), as well as ample financial opportunities in Panama’s modern banking center.
Land Registration System
All transactions pertaining to the sale and purchase of real estate should be registered with the Public Registry General Office (“Dirección General de Registro Público”) of the Republic of Panama. A Notary Public executes this registration, and that officer is responsible for verifying all the necessary steps and data. This serves as a guaranty to all investors.
Requirements to practice as a Real Estate Agent (Broker)
It is necessary to have a professional capability license, issued by the Real Estate Technical Board (“Junta Técnica de Bienes Raíces”) of the Republic of Panama. Panamanian citizens and foreign nationals who have resided in Panama for over 5 years are eligible to request this license, as long as they pass the professional examinations required by the technical board in a satisfactory manner and further do not have any problems complying with the other mandatory requirements.
Other Industry Professionals
In the case of condominiums and/or communities regulated under the Horizontal Property (cooperative apartment house) system, they are regulated by Law 13 dated April 28th, 1993, and by Executive Decree No. 39 dated November 7th, 2001. Many members of ACOBIR are dedicated to the administration of horizontal properties (cooperative apartment houses).
Practitioner Dispute Resolution Systems
In accordance with Executive Order (Decree Law) No. 6 dated July 8th, 1999, the Real Estate Technical Board of the Republic of Panama is empowered to listen to the arguments presented regarding any conflict that arises between contracting parties in a real estate sale (or purchase) transaction, and to impose the corresponding sanctions, should that be necessary. The Panamanian Association of Real Estate Agents (Brokers) and Promoters (“Asociación Panameña de Corredores y Promotores de Bienes Raíces / ACOBIR”) has a strict code of ethics for its members. The ethics committee may act as a conflict mediator, applying the corrective measures it may deem appropriate. This is an additional Guaranty to those who do business through members belonging to ACOBIR.
Practitioner Services
Real estate agents (brokers) in Panama are trained to offer other services that go beyond the conventional real estate market, such as:
Property appraisals.
Periodic reports on concrete marketing actions.
Counseling on legal and financial matters.
General counseling services.
Negotiation and closing of commercial transactions.
Preparation and processing of the corresponding legal documents.
Procedures after the closing of the transaction, such as: collections, payments, registrations with the Public Registry, etc.
Referral Systems
The business agreements between two agents (brokers) based on a property for sale or for rent may be established after prior consultation with the owner. Nevertheless, any purchase offer on a property represented by another agent (broker) has to be channeled through the latter and not directly to the property owner.
Relationship of Buyer/Seller to Practitioner
The Promissory Letter of Purchase (“Carta de Promesa de Compra Venta”) constitutes the basic document from which the parameters for the commercial transaction between the buyer and the seller, as well as between the seller and the real estate agent (broker) are established. This document reflects the obligation contracted by the seller in the event a sale is carried out without the direct participation of the real estate agent (broker). In turn, the latter shall not present any formal proposal to purchase a property, nor shall he/she engage in negotiations regarding the price of the property, without having been duly authorized to do so by the potential buyer. Likewise, the real estate agent (broker) is not authorized to formulate sale proposals regarding a property without the prior authorization of the property owner. Should there be irreconcilable differences between an ACOBIR member and his/her client, the trade union recommends the use of the arbitration mechanism put in place to solve them.
Compensation
It is customary in the Panamanian market to set the commission level at 5%, to be credited to the real estate agent (broker) for the sale of a property. Nevertheless, setting the amount of the commission is free for negotiation between the parties. Except in the case of an agreement to the contrary, said commission shall be discounted from the payment received by the seller of the property.
Why do some Americans choose to live elsewhere?
An article from the Philly Inquirer:
By Jeff Price
Inquirer Staff Writer
Ted Pollard of Wayne traces his roots in America to Nicholas Cooke, colonial governor of Rhode Island. His grandfather, Rear Adm. Edward Ellsberg, was an accomplished World War II leader and a prolific author. His cousin is Daniel Ellsberg of Pentagon Papers fame.
"That was patriotism," he said of Cooke's refusal to help the British halt the colonial rebellion. Studying his family's past, he's learned "what it means to be an American and what it means to be free."
But today, he fears, "those freedoms are eroding."
So, Ted Pollard, 61, president of the Radnor Historical Society and former township commissioner, plans to leave his country - for good.
Pollard joins a growing number of U.S. citizens who have found the grass is greener in Mexico, Panama, Argentina, even Croatia - literally in dozens of countries around the world.
His search for a place to "rebuild my life" accelerated 21/2 years ago when he discovered International Living, a print and online publication that promotes investing in residential real estate outside the United States. He also peruses escapeartist.com, whose name suggests its message, to "restart your life overseas."
The U.S. State Department doesn't have statistics on the number of citizens moving permanently out of the country. Laura Tischler, spokesperson for the Bureau of Consular Affairs, said yesterday that was because people cannot be compelled to register at U.S. embassies or consulates.
For many people, taxes, real estate prices, and increasing costs of living provide reason enough to search the world for more economical lifestyles or more affordable retirement.
"I was in Mexico a year and a half ago," Pollard said. "I found a lovely four-bedroom house with a swimming pool and a little house out back, for an office. Taxes were a hundred bucks; $125,000 for the house. That really got me thinking.
"I can live pretty well someplace else for what I pay in taxes, insurance and heat here."
His business, a health-care Web site, is portable; he has no family ties to keep him here and is looking for new challenges. "I want to be able to go do things while I'm able to," Pollard said.
He'd been thinking of moving "off shore" for years for the economic benefits and the adventure, but lately a "darker side" to American life has strengthened his resolve, allying him with others fed up with the direction of the country's politics and priorities.
"We're moving, really, toward a police state in this country," Pollard said, citing as examples the Patriot Act and the NSA's tapping of phone calls. "It's very sad, very scary," he said, adding that "9/11 was the catalyst."
Mexico, he acknowledged, "is not perfect." Although it has its drug problems and commonplace corruption, he said, "I'm not talking about drugs, but about actions that infringe on your liberties." No one he's talked to who has moved to Mexico has "expressed that kind of fear," Pollard said.
"I grew up in Maine; I was a lobsterman when I was a kid," he said. "There's a theory about putting lobsters in cold water and then turning on the heat, and they cook slowly... . By the time they realize they're too hot, they're cooked.
"Well, the same thing is happening to the people in this country... . Suddenly, you'll be totally in the grips of the power elite and won't have the freedom to be able to move about and do the things you want to."
For people like Pollard who are feeling the heat - or, more commonly, for those looking for a way to make savings go further - International Living was founded 27 years ago.
Publisher Kathleen Peddicord says International Living seeks out places for its readers, 95 percent of whom are Americans, "that the masses have yet to find." International Living's motives are economic - to improve quality of life, lower cost of living and illuminate profitable investments.
Although economic factors drive most people's decision to move abroad, Brian O'Sullivan, International Living marketing director, said that "for the longest time people were fleeing to something. In the last few years we've seen a certain number fleeing something. They don't like the way things are going. They feel their freedoms are being infringed."
"Tens of thousands" of International Living's 400,000 daily online readers, he said this week, long for the 1950s' feeling of Mayberry RFD.
Pollard, who returned last week from an International Living "Live and Prosper in Mexico" seminar, with about 80 attendees, said, "I met a number of people who were thinking of moving, and there seems to be a groundswell of sentiment about the wrong direction the country is going in."
Roger Gallo, founder of escapeartist.com, said the motive for his 1995 book Escape from America, which gave birth to the Web site, was "disenchantment with the United States after Vietnam."
Among his 350,000 subscribers, he said this week, "some seek better opportunities, better environmental conditions, less crime; some young people are looking for adventure," but "we get a lot of traffic from people very disenchanted with the Bush Administration."
Gallo said numbers are hard to pin down. "People don't want to leave a trail if they're going to take money out of the country. The U.S. views every American citizen as a taxpayer no matter where they live." Also, he said, people who permanently leave the country are looked upon as "kind of a traitor."
Pollard said he has heard the "snide" remarks and wondered if people who came to America were likewise considered traitors by their countrymen. What he's planning, Pollard said, "is not like draft dodgers during the Vietnam War."
Gallo, living now in Argentina, began to vent about Lebanon, Iraq and the Mideast in general. Then he paused.
"Don't get me started," he said. "Down here, the food is good; people are nice; the air is clean. I'm happy."
By Jeff Price
Inquirer Staff Writer
Ted Pollard of Wayne traces his roots in America to Nicholas Cooke, colonial governor of Rhode Island. His grandfather, Rear Adm. Edward Ellsberg, was an accomplished World War II leader and a prolific author. His cousin is Daniel Ellsberg of Pentagon Papers fame.
"That was patriotism," he said of Cooke's refusal to help the British halt the colonial rebellion. Studying his family's past, he's learned "what it means to be an American and what it means to be free."
But today, he fears, "those freedoms are eroding."
So, Ted Pollard, 61, president of the Radnor Historical Society and former township commissioner, plans to leave his country - for good.
Pollard joins a growing number of U.S. citizens who have found the grass is greener in Mexico, Panama, Argentina, even Croatia - literally in dozens of countries around the world.
His search for a place to "rebuild my life" accelerated 21/2 years ago when he discovered International Living, a print and online publication that promotes investing in residential real estate outside the United States. He also peruses escapeartist.com, whose name suggests its message, to "restart your life overseas."
The U.S. State Department doesn't have statistics on the number of citizens moving permanently out of the country. Laura Tischler, spokesperson for the Bureau of Consular Affairs, said yesterday that was because people cannot be compelled to register at U.S. embassies or consulates.
For many people, taxes, real estate prices, and increasing costs of living provide reason enough to search the world for more economical lifestyles or more affordable retirement.
"I was in Mexico a year and a half ago," Pollard said. "I found a lovely four-bedroom house with a swimming pool and a little house out back, for an office. Taxes were a hundred bucks; $125,000 for the house. That really got me thinking.
"I can live pretty well someplace else for what I pay in taxes, insurance and heat here."
His business, a health-care Web site, is portable; he has no family ties to keep him here and is looking for new challenges. "I want to be able to go do things while I'm able to," Pollard said.
He'd been thinking of moving "off shore" for years for the economic benefits and the adventure, but lately a "darker side" to American life has strengthened his resolve, allying him with others fed up with the direction of the country's politics and priorities.
"We're moving, really, toward a police state in this country," Pollard said, citing as examples the Patriot Act and the NSA's tapping of phone calls. "It's very sad, very scary," he said, adding that "9/11 was the catalyst."
Mexico, he acknowledged, "is not perfect." Although it has its drug problems and commonplace corruption, he said, "I'm not talking about drugs, but about actions that infringe on your liberties." No one he's talked to who has moved to Mexico has "expressed that kind of fear," Pollard said.
"I grew up in Maine; I was a lobsterman when I was a kid," he said. "There's a theory about putting lobsters in cold water and then turning on the heat, and they cook slowly... . By the time they realize they're too hot, they're cooked.
"Well, the same thing is happening to the people in this country... . Suddenly, you'll be totally in the grips of the power elite and won't have the freedom to be able to move about and do the things you want to."
For people like Pollard who are feeling the heat - or, more commonly, for those looking for a way to make savings go further - International Living was founded 27 years ago.
Publisher Kathleen Peddicord says International Living seeks out places for its readers, 95 percent of whom are Americans, "that the masses have yet to find." International Living's motives are economic - to improve quality of life, lower cost of living and illuminate profitable investments.
Although economic factors drive most people's decision to move abroad, Brian O'Sullivan, International Living marketing director, said that "for the longest time people were fleeing to something. In the last few years we've seen a certain number fleeing something. They don't like the way things are going. They feel their freedoms are being infringed."
"Tens of thousands" of International Living's 400,000 daily online readers, he said this week, long for the 1950s' feeling of Mayberry RFD.
Pollard, who returned last week from an International Living "Live and Prosper in Mexico" seminar, with about 80 attendees, said, "I met a number of people who were thinking of moving, and there seems to be a groundswell of sentiment about the wrong direction the country is going in."
Roger Gallo, founder of escapeartist.com, said the motive for his 1995 book Escape from America, which gave birth to the Web site, was "disenchantment with the United States after Vietnam."
Among his 350,000 subscribers, he said this week, "some seek better opportunities, better environmental conditions, less crime; some young people are looking for adventure," but "we get a lot of traffic from people very disenchanted with the Bush Administration."
Gallo said numbers are hard to pin down. "People don't want to leave a trail if they're going to take money out of the country. The U.S. views every American citizen as a taxpayer no matter where they live." Also, he said, people who permanently leave the country are looked upon as "kind of a traitor."
Pollard said he has heard the "snide" remarks and wondered if people who came to America were likewise considered traitors by their countrymen. What he's planning, Pollard said, "is not like draft dodgers during the Vietnam War."
Gallo, living now in Argentina, began to vent about Lebanon, Iraq and the Mideast in general. Then he paused.
"Don't get me started," he said. "Down here, the food is good; people are nice; the air is clean. I'm happy."
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