Ineresting Article. So is commerce the key to a world free of conflict?
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By Brian Harris for the Jewish News Weekly - Colon Free Zone, Panama
- While conflicts in the Middle East make the prospect of peaceful coexistence between Jews and Arabs seem distant, a walk along the crowded streets of this trading zone shows Jews and Arabs can get along. Inside the stores here — wholesale distribution centers for Asian goods seeking Latin American importers — businesses run by Orthodox Jews and Arab Muslims operate side by side with nary a hint of conflict. In some cases, businesses are co-owned by Jews and Arabs. “We all came to Panama to work and for reasons of prosperity, but we are all allowed to work and no one interferes,” said Allan Baiten, a second-generation Jew and a consultant to businesses here. “Once upon a time, we were all brothers, and we continue to be.” (more)
Unlike other parts of the world where devoutly practicing Jews and Muslims have come into conflict, in Panama the two are almost symbiotic. Saturday nights find Panamanian Jews enjoying meals at Arab-run restaurants with halal-certified food. Nightclubs are packed with young Jews and Arabs more concerned about partying the night away than the faith of their fellow revelers.
Here at the free zone, a stone’s throw from the Caribbean near the northern mouth of the U.S.-built Panama Canal, that spirit spills into the high-stress world of business. The free zone continues to be a linchpin in Latin American commerce, but the era of free trade and Internet purchasing has put the squeeze on business owners who now compete not only for customers but also for goods, prices and logistics. An increasing amount of business is done on consignment.
That, merchants here say, has led to increased stress levels but also a greater sense of kinship among merchants, no matter their religion.
All agree that one key to that kinship is avoiding the issue of conflict in the Middle East. Panama’s Jews are known for their support of Zionism while its Arab community is know for displaying support for the Palestinian cause.
“You don’t touch on that issue,” said Mordejai Burstein, sales manager at the fabric firm Tex Tela, a midsized company nestled among appliance distributors here. “So long as that issue is not touched, there are no problems.”
Geography also plays a role in the good relations. Nearly all of the 9,000 Jews in Panama live in Panama City, on the Pacific Ocean, while the estimated 10,000 Muslims are concentrated mainly in Colon, on the Caribbean, and in the western provincial city of David, near the Costa Rican border. The mosques in Panama tend to follow moderate strains of Islam.
As Baiten noted, many of the Jews and most of the Arabs trace their roots back to present-day Syria, a geographical coincidence that helps unite the two groups in this predominately Catholic country.
But for all the excuses that could serve to dismiss the social harmony as a product of circumstance, there is an underlying desire to get along, says Ezra “Sury” Hafeitz, the owner of the Panama City fabric store Bazar Pico-Pico and a leader in the local B’nai B’rith chapter.
“There is a code of respect here to not interfere or make religious comments,” Hafeitz said. “Here we respect one’s religion and do not seek out conflict.”
The good relations have found themselves strained at times, especially after a 1994 bombing of a commuter flight that killed 10 Jews, an unsolved bombing blamed by some on Hezbollah and by others on Colombian drug cartels. But tensions eased when most Arabs joined the rest of the country in condemning the attack.
With three Jewish congregations — two Orthodox and one Reform — and thousands of kosher and Sabbath-observant Jews, Panama stands out in Latin America as having one of the most devout and practicing Jewish populations. Muslims are as practicing as their Jewish counterparts here; synagogues and mosques are under construction to attend to the ever-growing flocks.
The respect between Panamanian Jews and Muslims is mutual. The country’s grand rabbi and the local imans say they speak on the phone, and local Jews say they have never felt victimized by Muslims.
“They want to maintain a good level of friendship and respect, above all, between the two communities,” Baiten said of the Muslims. Panama, he said, “is a showcase of tolerance.”
Friday, July 27, 2007
Thursday, July 26, 2007
Panama Banks surpass $55 billion.
From Sam Talifero's:
Banks are the best thermometer of how things are going. If banks are moving in, growing and profiting then you can bet things are going pretty well. Here is a news report from todays paper on the sunject.
Panama, Thursday, July 26, 2007
Banking assets at historical levels - $55.7B
The banks reported net gains of $444.1M in the first five months of the year.
Edith Duarte Castle ecastillo@prensa.com
The total assets of the Panamanian banking center have reached values never seen before. As of May closing, the consolidated assets totaled 55 billion 79 million dollars, an increase of 17% in comparison to May of 2006, when they added 47 thousand 250 million dollars. This amount surpasses 52 billion 258 million that the bank reached in assets in 2006, which they were elevated in the history of international financial center of Panama.
The profits also mark record numbers. The banks reported net gains of 444,1 million dollars in the first five months of the year, 19,4% superior to those of 2006. The extraordinary performance obeys to a series of factors, between which they excel the external commercial surroundings, the growth of the credit to the private sector - to a monthly average of 15% - and a strong liquidity.
Ex- banker Edgardo Lasso emphasizes that the data demonstrate that "Panama is fashionable" and that all the sectors are requiring financial resources to keep up with demand. On the other hand, the general manager of HSBC Panama, Joseph Salterio, indicated that every day Panama "is seen as a much more interesting country to deposit funds and to invest". Recently, two new banks opened in Panama city, Natixis and UBS AG, and other five are in the process of opening operations.
Banks are the best thermometer of how things are going. If banks are moving in, growing and profiting then you can bet things are going pretty well. Here is a news report from todays paper on the sunject.
Panama, Thursday, July 26, 2007
Banking assets at historical levels - $55.7B
The banks reported net gains of $444.1M in the first five months of the year.
Edith Duarte Castle ecastillo@prensa.com
The total assets of the Panamanian banking center have reached values never seen before. As of May closing, the consolidated assets totaled 55 billion 79 million dollars, an increase of 17% in comparison to May of 2006, when they added 47 thousand 250 million dollars. This amount surpasses 52 billion 258 million that the bank reached in assets in 2006, which they were elevated in the history of international financial center of Panama.
The profits also mark record numbers. The banks reported net gains of 444,1 million dollars in the first five months of the year, 19,4% superior to those of 2006. The extraordinary performance obeys to a series of factors, between which they excel the external commercial surroundings, the growth of the credit to the private sector - to a monthly average of 15% - and a strong liquidity.
Ex- banker Edgardo Lasso emphasizes that the data demonstrate that "Panama is fashionable" and that all the sectors are requiring financial resources to keep up with demand. On the other hand, the general manager of HSBC Panama, Joseph Salterio, indicated that every day Panama "is seen as a much more interesting country to deposit funds and to invest". Recently, two new banks opened in Panama city, Natixis and UBS AG, and other five are in the process of opening operations.
Wednesday, July 25, 2007
Forbes Article - Retirement Realty Fiesta
Retirement Realty Fiesta
Hugh Bromma, The Entrust Group 07.24.07, 4:45 PM ET
We recently found that 30% of our roughly 30,000 clients who invest in real estate through self-directed IRAs were interested in investing in offshore real estate. While that might seem like a surprisingly high percentage, longtime real estate investors have been seeing the proverbial writing on the wall for some time.
Despite the recent pounding REITs have taken, there are still some buying opportunities. This finance REIT yields 7%. Click here for details in the Forbes/Slatin Real Estate Report.
Interest in offshore real estate has been slowly growing over the last few years, and real property investment opportunities for the small investor outside of the U.S. have multiplied. Add in a softening domestic real estate market, and you have the necessary ingredients for a nascent boom in real estate south of the border.
Interest in real estate in Mexico, Panama, Costa Rica, Nicaragua and other central and South American countries has risen over the last several years. The popularity of Central America appears to be related to its proximity to the U.S., a widely held perception that these locations offer good value for the money, and the notion that offshore property can be used for investment purposes or perhaps second homes or vacation homes. Panama, for example, ties its currency to the U.S. dollar, and the dollar is the medium of exchange. Costa Rica is sometimes called "the Switzerland of the Americas." Mexico is closest geographically and is seeing strong economic growth and investment opportunity.
Just as Spain became an ideal location for Germans to have a second home that could be used for retirement, some believe that Mexico and Central and South America present a similar opportunity for Americans.
But turning these aspirations into reality is definitely more complex than simply purchasing a nice property in a warm climate like Florida or California. The U.S. investor must be clear about his or her objective. You can become enamored on a vacation trip and talk yourself into a purported investment property. But vacation is often an escape from reality, and a true investment must include proper due diligence and an analysis that the investment can meet the necessary financial objectives.
In each venue, whether Mexico, Costa Rica, Panama, Nicaragua, Belize or Ecuador, for example, the language is Spanish. Therefore, even if the local seller is an Anglophone, the language of law is Spanish. Competence in the language of law and expertise in local law is essential. If the prospective investor doesn't have this type of expertise, he should make certain that he is in very close contact with people who do.
Mexico and every other country in Central and South America have different laws regarding real estate and taxes. The vesting of property varies from one country to the next, and so does the method of title transfer.
For example, recently there was a real estate developer in Panama who had begun to grade roads, subdivide property and take deposits of $6,000 per parcel, to be sold for $80,000, for single-family homes. The investors were told that development would start soon after local officials consented, which was thought to be a given.
In Panama, the legal ownership must be registered properly with a central authority. The builder had "purchased" the property from local inhabitants who farmed the land. But the title to the land had never been established by the local inhabitant who had right of possession. When the builder bought the land, he failed to follow the proper procedure of securing title. His time line for completing the process of building and selling suddenly became much longer.
The farmer continued to farm the land, and the developer continued to work with local lawyers. The builder also had to deal with cultural issues. The inhabitants are San Blas Indians, who have a culture of their own, just like many peoples in other countries.
The mayor of the village, who had veto power over most everything, was not in the right frame of mind to go along with some of the revisions to the building plan. The builder's "hill to climb" became even steeper, and the investors had all their deposits returned, without loss, thanks to the deposits remaining un-cashed, with the attorney handling the purchase.
Planning and fully understanding financial objectives, along with language, cultural and legal issues, are among the first set of issues that must be addressed by would-be investors. Then there is the question of how to insure that one's financial objectives are reasonable and sensible.
One of the most overlooked issues that may affect the popularity of buying investment property is taxes. Tax issues are not just local; for the U.S. taxpayer, there is the requirement to report and pay tax on worldwide income. In our experience, many investors overlook the reporting requirements to the IRS, and the ordeal of expatriating, if one wants to do that. The matter of designating beneficiaries varies from country to country. It is essential to pay attention to these details with local counsel, along with your U.S. legal counsel.
The number of real estate investors in Mexico and Central America has been increasing, and, not surprisingly, prices for the most desirable properties and locations are rising as well. Beachfront property, in particular, is very much in demand, so cash-on-cash returns should begin to moderate. The more due diligence and planning that is performed, the better. As everywhere, caveat emptor is the rule.
Hugh Bromma, The Entrust Group 07.24.07, 4:45 PM ET
We recently found that 30% of our roughly 30,000 clients who invest in real estate through self-directed IRAs were interested in investing in offshore real estate. While that might seem like a surprisingly high percentage, longtime real estate investors have been seeing the proverbial writing on the wall for some time.
Despite the recent pounding REITs have taken, there are still some buying opportunities. This finance REIT yields 7%. Click here for details in the Forbes/Slatin Real Estate Report.
Interest in offshore real estate has been slowly growing over the last few years, and real property investment opportunities for the small investor outside of the U.S. have multiplied. Add in a softening domestic real estate market, and you have the necessary ingredients for a nascent boom in real estate south of the border.
Interest in real estate in Mexico, Panama, Costa Rica, Nicaragua and other central and South American countries has risen over the last several years. The popularity of Central America appears to be related to its proximity to the U.S., a widely held perception that these locations offer good value for the money, and the notion that offshore property can be used for investment purposes or perhaps second homes or vacation homes. Panama, for example, ties its currency to the U.S. dollar, and the dollar is the medium of exchange. Costa Rica is sometimes called "the Switzerland of the Americas." Mexico is closest geographically and is seeing strong economic growth and investment opportunity.
Just as Spain became an ideal location for Germans to have a second home that could be used for retirement, some believe that Mexico and Central and South America present a similar opportunity for Americans.
But turning these aspirations into reality is definitely more complex than simply purchasing a nice property in a warm climate like Florida or California. The U.S. investor must be clear about his or her objective. You can become enamored on a vacation trip and talk yourself into a purported investment property. But vacation is often an escape from reality, and a true investment must include proper due diligence and an analysis that the investment can meet the necessary financial objectives.
In each venue, whether Mexico, Costa Rica, Panama, Nicaragua, Belize or Ecuador, for example, the language is Spanish. Therefore, even if the local seller is an Anglophone, the language of law is Spanish. Competence in the language of law and expertise in local law is essential. If the prospective investor doesn't have this type of expertise, he should make certain that he is in very close contact with people who do.
Mexico and every other country in Central and South America have different laws regarding real estate and taxes. The vesting of property varies from one country to the next, and so does the method of title transfer.
For example, recently there was a real estate developer in Panama who had begun to grade roads, subdivide property and take deposits of $6,000 per parcel, to be sold for $80,000, for single-family homes. The investors were told that development would start soon after local officials consented, which was thought to be a given.
In Panama, the legal ownership must be registered properly with a central authority. The builder had "purchased" the property from local inhabitants who farmed the land. But the title to the land had never been established by the local inhabitant who had right of possession. When the builder bought the land, he failed to follow the proper procedure of securing title. His time line for completing the process of building and selling suddenly became much longer.
The farmer continued to farm the land, and the developer continued to work with local lawyers. The builder also had to deal with cultural issues. The inhabitants are San Blas Indians, who have a culture of their own, just like many peoples in other countries.
The mayor of the village, who had veto power over most everything, was not in the right frame of mind to go along with some of the revisions to the building plan. The builder's "hill to climb" became even steeper, and the investors had all their deposits returned, without loss, thanks to the deposits remaining un-cashed, with the attorney handling the purchase.
Planning and fully understanding financial objectives, along with language, cultural and legal issues, are among the first set of issues that must be addressed by would-be investors. Then there is the question of how to insure that one's financial objectives are reasonable and sensible.
One of the most overlooked issues that may affect the popularity of buying investment property is taxes. Tax issues are not just local; for the U.S. taxpayer, there is the requirement to report and pay tax on worldwide income. In our experience, many investors overlook the reporting requirements to the IRS, and the ordeal of expatriating, if one wants to do that. The matter of designating beneficiaries varies from country to country. It is essential to pay attention to these details with local counsel, along with your U.S. legal counsel.
The number of real estate investors in Mexico and Central America has been increasing, and, not surprisingly, prices for the most desirable properties and locations are rising as well. Beachfront property, in particular, is very much in demand, so cash-on-cash returns should begin to moderate. The more due diligence and planning that is performed, the better. As everywhere, caveat emptor is the rule.
Monday, July 23, 2007
Theres gold in them thar hills
Ok, I dont normally tell anyone about my stock picks because I do not claim to be any sort of investment guru, but I have been studying quite abit about currencies and economies lately ( I blame Mr. Simon Heapes of Anglo Far-East for this ), and I have recently come to the conclusion that gold is a good thing. Why you ask? Well, thats not something I am going to try and convince anyone of, its best if you do your own research on the matter, I would be happy to point you to some resources if you want to email me.
Anyways, for those of you who agree that gold is a good thing, I have run across what I consider to be a pretty decent gold play in Petaquilla Minerals Ltd.
They have third party surveys estimating what they are sitting on: "Petaquilla Minerals Ltd. (the “Company”) announces that a NI 43-101 compliant gold resource estimate has been completed by AAT Mining Services (AquAeTer, Inc. dba AAT Mining Services) that significantly upgrades the prior resource estimate of 893,000 ounces of Inferred gold ounces."
Also, they expect to enter production 3rd Qtr. 2007: "The Phase I construction of the 2,200 TPD CIP plant for the Molejon gold mine is on schedule to reach production in the third quarter of 2007. The foundations for the ball mills are now being poured and the steel for the initial CIP and the leach tanks is en route. Phase I is fully financed and due to the ongoing drill program, and results thereof, it is anticipated the plant size will be increased to 5,000 TPD soon after Phase I completion. Phase II will be financed with cash flow generated by gold production. The Company expects initial production at Molejon to be 120,000 ounces of gold annually with estimated cash costs of below $200.00 USD per ounce."
If you decide to check out the company, make sure you see the 3-D imagery they have of the core samples and survey data they have. The geek in me loves this stuff.
Here is a current chart:
They trade on the Nasdaq OTCBB under the symbol PTQMF.
I have personally seen the trucks, roads, etc. these guys have built in the mountains and I intend to go visit the mine soon. My personal opinion if you think gold has a strong immediate future, is this is a great find (plus, I bought shares before it started going vertical =p)
Anyways, for those of you who agree that gold is a good thing, I have run across what I consider to be a pretty decent gold play in Petaquilla Minerals Ltd.
They have third party surveys estimating what they are sitting on: "Petaquilla Minerals Ltd. (the “Company”) announces that a NI 43-101 compliant gold resource estimate has been completed by AAT Mining Services (AquAeTer, Inc. dba AAT Mining Services) that significantly upgrades the prior resource estimate of 893,000 ounces of Inferred gold ounces."
Also, they expect to enter production 3rd Qtr. 2007: "The Phase I construction of the 2,200 TPD CIP plant for the Molejon gold mine is on schedule to reach production in the third quarter of 2007. The foundations for the ball mills are now being poured and the steel for the initial CIP and the leach tanks is en route. Phase I is fully financed and due to the ongoing drill program, and results thereof, it is anticipated the plant size will be increased to 5,000 TPD soon after Phase I completion. Phase II will be financed with cash flow generated by gold production. The Company expects initial production at Molejon to be 120,000 ounces of gold annually with estimated cash costs of below $200.00 USD per ounce."
If you decide to check out the company, make sure you see the 3-D imagery they have of the core samples and survey data they have. The geek in me loves this stuff.
Here is a current chart:
They trade on the Nasdaq OTCBB under the symbol PTQMF.
I have personally seen the trucks, roads, etc. these guys have built in the mountains and I intend to go visit the mine soon. My personal opinion if you think gold has a strong immediate future, is this is a great find (plus, I bought shares before it started going vertical =p)
New species of snowbird eyes exotic nests in sun
Latin America hot with greying bargain hunters
From thestar.com
Jul 21, 2007 04:30 AM
Gail Swainson
Real Estate Report
Hal and Donna Grabowski – perched just this side of retirement – are busy, busy these days.
Both run successful businesses; Hal is an accountant and Donna owns an insurance agency. But what really has the pair hopping lately is a slightly offbeat acquisition: a colonial home in Merida, a city of about one million on the tip of Mexico's Yucatan peninsula.
The gracious heritage villa, which is undergoing a complete-gut renovation, was purchased as a vacation home with an eye to spending at least part of the winter there come retirement.
"It's not a retirement home, not just yet," Donna says. "But we still come as often as we can because we just love it there."
The Grabowskis aren't alone: they are part of a formidable and emerging trend – the baby boom generation on the move.
More and more, boomers are heading into retirement with plans to trade the snow shovel for a tall cool one under a palm tree, housing industry observers say.
"This is something that has been going on for 20 years, but it's gaining a great deal of momentum," says Klaus Rohrich, president of Taylor/Rohrich Associates Inc., a Toronto firm that specializes in adult-lifestyle communities.
To be sure, this get-out-of-town mentality is hardly new. Beginning with the Florida snowbirds, generations of Canadian retirees have looked for ways to take extended breaks from winter's tight grip.
What's different this time is that the number of affluent baby boomers preparing to head south, are – like the song says – going to do it their way.
Jam-packed, all-inclusive resorts or old favourites such as Florida hold little allure for this more adventurous generation. Instead, they are snapping up bargain-priced Panamanian condos, villas on the beaches of Belize, Roatan and Nicaragua or colonial fixer-uppers in Mexico.
Not only are they buying discount digs, the boomers are discovering that trading down from life in the fast lane is also bank account-friendly.
And with an estimated 10 million Canadian boomers and another 73 million in the U.S., the number of boomers planning to head south for at least part of the year could reach staggering proportions.
Merida, about three hours west of Cancun, has recently caught the eye of foreign buyers with a keen sense of value. Last July, Fortune magazine declared the Yucatan one of the world's six best places to invest.
Colonials needing extensive work can still be bought in Merida for under $100,000 (all figures U.S.), while spacious, restored homes with a pool start at about $200,000. The Grabowskis first discovered Merida during their travels 30 years ago. When it came time to look for a warm-weather vacation home, the couple's must-have checklist came up Merida.
They made a return visit and "within three or four hours, we knew this was the right place," Donna says.
"We just realized it had everything – it is different and, really important, not too touristy," Hal adds.
Merida's thriving arts community and relative safety – with a notably low crime rate for a city its size – also struck a chord with the couple.
"Merida still has a small town feel," Hal says. "We feel so comfortable there."
Latin America has many advantages, says Lief Simon, a spokesperson for International Living, a print and online magazine that has been tipping subscribers on the best places to live on the cheap for 27 years.
"It is warm and it is close by for North Americans," Simon says in a telephone interview from his Paris office. "Most people still want to be close enough to visit their friends and family and that's what you get with Latin America."
Right now, Simon is bullish on Panama, recently ranked first in International Living's Global Retirement Index. "It has good infrastructure and telecommunications; it uses the U.S. dollar and many speak English because it is a world banking centre," Simon says.
Panama also has a number of advantages for retirees, including its pensionado, or pensioner's program.
With this comes an impressive list of perks – including huge discounts on everything from movies to meals to airfare – for retirees with a minimum monthly income of $500 U.S.
And buying in Panama is also easy on the pocketbook. Condo prices are climbing in Panama City; however, an older two-bedroom condo can still sell for as little $80,000.
"There are still great deals in the resale market," Simon says.
Mexico, which placed fifth after Malta, New Zealand and Uruguay on the International Living Index, is also growing in popularity, Simon says.
A recent International Living newsletter says it all: "Our parents retired to Florida and Arizona. Today's baby boomers are heading south of the border."
While few deep, deep oceanfront discounts remain on either Mexico's east or west coasts, the little-known Gulf Coast just outside Merida is still an affordable place to park a beach towel.
There, a modest, three-bedroom, oceanfront villa can still be bought for about $115,000. An oceanfront condo with pool in a desirable area clocks in at some $85,000, with about $30 a month in added maintenance fees.
And if you want it all, almost 10,000 square feet of off-the-dial luxury right on the ocean can still be found for a little more than $650,000.
Simon says that Eastern European vacation homes tend to be priced on the high side, though bargains for under $100,000 can still be found in Croatia and apartments for about 17,000 euros are available in Bulgaria.
"There are a lot of boomers coming into the market and prices are bound to be affected, but there are still a lot of opportunities out there," Simon adds.
From thestar.com
Jul 21, 2007 04:30 AM
Gail Swainson
Real Estate Report
Hal and Donna Grabowski – perched just this side of retirement – are busy, busy these days.
Both run successful businesses; Hal is an accountant and Donna owns an insurance agency. But what really has the pair hopping lately is a slightly offbeat acquisition: a colonial home in Merida, a city of about one million on the tip of Mexico's Yucatan peninsula.
The gracious heritage villa, which is undergoing a complete-gut renovation, was purchased as a vacation home with an eye to spending at least part of the winter there come retirement.
"It's not a retirement home, not just yet," Donna says. "But we still come as often as we can because we just love it there."
The Grabowskis aren't alone: they are part of a formidable and emerging trend – the baby boom generation on the move.
More and more, boomers are heading into retirement with plans to trade the snow shovel for a tall cool one under a palm tree, housing industry observers say.
"This is something that has been going on for 20 years, but it's gaining a great deal of momentum," says Klaus Rohrich, president of Taylor/Rohrich Associates Inc., a Toronto firm that specializes in adult-lifestyle communities.
To be sure, this get-out-of-town mentality is hardly new. Beginning with the Florida snowbirds, generations of Canadian retirees have looked for ways to take extended breaks from winter's tight grip.
What's different this time is that the number of affluent baby boomers preparing to head south, are – like the song says – going to do it their way.
Jam-packed, all-inclusive resorts or old favourites such as Florida hold little allure for this more adventurous generation. Instead, they are snapping up bargain-priced Panamanian condos, villas on the beaches of Belize, Roatan and Nicaragua or colonial fixer-uppers in Mexico.
Not only are they buying discount digs, the boomers are discovering that trading down from life in the fast lane is also bank account-friendly.
And with an estimated 10 million Canadian boomers and another 73 million in the U.S., the number of boomers planning to head south for at least part of the year could reach staggering proportions.
Merida, about three hours west of Cancun, has recently caught the eye of foreign buyers with a keen sense of value. Last July, Fortune magazine declared the Yucatan one of the world's six best places to invest.
Colonials needing extensive work can still be bought in Merida for under $100,000 (all figures U.S.), while spacious, restored homes with a pool start at about $200,000. The Grabowskis first discovered Merida during their travels 30 years ago. When it came time to look for a warm-weather vacation home, the couple's must-have checklist came up Merida.
They made a return visit and "within three or four hours, we knew this was the right place," Donna says.
"We just realized it had everything – it is different and, really important, not too touristy," Hal adds.
Merida's thriving arts community and relative safety – with a notably low crime rate for a city its size – also struck a chord with the couple.
"Merida still has a small town feel," Hal says. "We feel so comfortable there."
Latin America has many advantages, says Lief Simon, a spokesperson for International Living, a print and online magazine that has been tipping subscribers on the best places to live on the cheap for 27 years.
"It is warm and it is close by for North Americans," Simon says in a telephone interview from his Paris office. "Most people still want to be close enough to visit their friends and family and that's what you get with Latin America."
Right now, Simon is bullish on Panama, recently ranked first in International Living's Global Retirement Index. "It has good infrastructure and telecommunications; it uses the U.S. dollar and many speak English because it is a world banking centre," Simon says.
Panama also has a number of advantages for retirees, including its pensionado, or pensioner's program.
With this comes an impressive list of perks – including huge discounts on everything from movies to meals to airfare – for retirees with a minimum monthly income of $500 U.S.
And buying in Panama is also easy on the pocketbook. Condo prices are climbing in Panama City; however, an older two-bedroom condo can still sell for as little $80,000.
"There are still great deals in the resale market," Simon says.
Mexico, which placed fifth after Malta, New Zealand and Uruguay on the International Living Index, is also growing in popularity, Simon says.
A recent International Living newsletter says it all: "Our parents retired to Florida and Arizona. Today's baby boomers are heading south of the border."
While few deep, deep oceanfront discounts remain on either Mexico's east or west coasts, the little-known Gulf Coast just outside Merida is still an affordable place to park a beach towel.
There, a modest, three-bedroom, oceanfront villa can still be bought for about $115,000. An oceanfront condo with pool in a desirable area clocks in at some $85,000, with about $30 a month in added maintenance fees.
And if you want it all, almost 10,000 square feet of off-the-dial luxury right on the ocean can still be found for a little more than $650,000.
Simon says that Eastern European vacation homes tend to be priced on the high side, though bargains for under $100,000 can still be found in Croatia and apartments for about 17,000 euros are available in Bulgaria.
"There are a lot of boomers coming into the market and prices are bound to be affected, but there are still a lot of opportunities out there," Simon adds.
Sunday, July 22, 2007
NPR Article - Panama Boom
All Things Considered, July 21, 2007 ·
Fueled by a rash of new construction, Panama's economy is thriving and attracting notice all over the world, but some say that the country's economic surge is straining its infrastructure.
The tiny Central American country is now one of the fastest-growing economies in the region, experiencing a growth rate of 8 percent last year. That rate is expected to be even higher this year, making it the Latin American powerhouse.
The economic boom comes amid efforts by the Panamanian government to market itself as a financial haven in an area of instability, drawing investors from across the region and the world.
A Construction Frenzy
In a cavernous sweltering hall on the former Howard U.S. Air Force Base, all of Panama's ministers and President Martin Torrijos gathered to sign an agreement to construct what will become one of the largest development projects in the country's history.
The project, worth up to $10 billion, will include a media city, an industrial area and a residential town on the shores of the Panama Canal, the site of the former base. For a country of only 3 million, its scale – the size of central London — is massive.
British company London & Regional will manage the project, and Ian Livingstone, the company's managing director, says the expansion of the Panama Canal, new refinery and ports projects, and a possible free-trade agreement with the U.S., all make Panama attractive.
"Panama is going through a big economic boom at the moment. It is a stable oasis for investment in a part of the world that isn't always quite as stable as Panama. We see huge opportunities," Livingstone says.
American money is also pouring in, and the wealthy of Bolivia, Venezuela and Ecuador, nervous about the direction of their own governments, are also investing.
More than anything else, construction is driving the boom, and the Panama skyline is showing the result.
"Right now, according to the government numbers, we've got 175 projects under construction, 120 more projects that have already been approved by the government," says Ivan Carlucci, president of the Panamanian Real Estate and Developers Association. "So right now, we are talking about … close to 400 projects that are in construction, to be constructed or waiting for approval."
Many of the buildings are high-rises whose skeletons are making Panama City look like an out-of-water coral reef. More than 11,000 apartments are coming online this year, and already they have all been sold.
Growing Pains
While positive in many respects, the economic boom is causing its own set of difficulties. At the main thoroughfare between the old and new sections of Panama City — where all the high-rise buildings are being constructed — traffic is bumper to bumper, and Panamanians have been noticing more and more that the new construction is placing a strain on the country.
"The infrastructure is not appropriate to sustain this growth and is not adequate to sustain all the building that is going on," says Carlos Guevara Man, a Panamanian analyst. "The sewer system, the road system, the public transportation system, the electric grid — the public infrastructure is not adequate."
Man says speculators are playing a huge role in the market, and some landmark projects have already been pulled because they simply weren't viable.
Though it's marketing itself as a first-world destination, Panama isn't there yet, Man says.
Panama is plagued by a high level of corruption and is run by a white oligarchy that is profiting from the economic boom. Its judicial system is in serious need of reform.
Countries in Latin America have a very poor track record of making sure that everyone benefits from economic growth, and Panama, with one of the most unequal distributions of wealth in the region, is no exception. Despite the money pouring in, so far that disparity has not changed.
"Most of the benefits of this growth are being appropriated by the people at the top … Most people at the bottom are not seeing these benefits. What they are seeing is an incredible rise in the cost of living ... They are not seeing increased salaries, they are not seeing increased opportunities ... and I think that creates a lot of resentment," Man says.
Fueled by a rash of new construction, Panama's economy is thriving and attracting notice all over the world, but some say that the country's economic surge is straining its infrastructure.
The tiny Central American country is now one of the fastest-growing economies in the region, experiencing a growth rate of 8 percent last year. That rate is expected to be even higher this year, making it the Latin American powerhouse.
The economic boom comes amid efforts by the Panamanian government to market itself as a financial haven in an area of instability, drawing investors from across the region and the world.
A Construction Frenzy
In a cavernous sweltering hall on the former Howard U.S. Air Force Base, all of Panama's ministers and President Martin Torrijos gathered to sign an agreement to construct what will become one of the largest development projects in the country's history.
The project, worth up to $10 billion, will include a media city, an industrial area and a residential town on the shores of the Panama Canal, the site of the former base. For a country of only 3 million, its scale – the size of central London — is massive.
British company London & Regional will manage the project, and Ian Livingstone, the company's managing director, says the expansion of the Panama Canal, new refinery and ports projects, and a possible free-trade agreement with the U.S., all make Panama attractive.
"Panama is going through a big economic boom at the moment. It is a stable oasis for investment in a part of the world that isn't always quite as stable as Panama. We see huge opportunities," Livingstone says.
American money is also pouring in, and the wealthy of Bolivia, Venezuela and Ecuador, nervous about the direction of their own governments, are also investing.
More than anything else, construction is driving the boom, and the Panama skyline is showing the result.
"Right now, according to the government numbers, we've got 175 projects under construction, 120 more projects that have already been approved by the government," says Ivan Carlucci, president of the Panamanian Real Estate and Developers Association. "So right now, we are talking about … close to 400 projects that are in construction, to be constructed or waiting for approval."
Many of the buildings are high-rises whose skeletons are making Panama City look like an out-of-water coral reef. More than 11,000 apartments are coming online this year, and already they have all been sold.
Growing Pains
While positive in many respects, the economic boom is causing its own set of difficulties. At the main thoroughfare between the old and new sections of Panama City — where all the high-rise buildings are being constructed — traffic is bumper to bumper, and Panamanians have been noticing more and more that the new construction is placing a strain on the country.
"The infrastructure is not appropriate to sustain this growth and is not adequate to sustain all the building that is going on," says Carlos Guevara Man, a Panamanian analyst. "The sewer system, the road system, the public transportation system, the electric grid — the public infrastructure is not adequate."
Man says speculators are playing a huge role in the market, and some landmark projects have already been pulled because they simply weren't viable.
Though it's marketing itself as a first-world destination, Panama isn't there yet, Man says.
Panama is plagued by a high level of corruption and is run by a white oligarchy that is profiting from the economic boom. Its judicial system is in serious need of reform.
Countries in Latin America have a very poor track record of making sure that everyone benefits from economic growth, and Panama, with one of the most unequal distributions of wealth in the region, is no exception. Despite the money pouring in, so far that disparity has not changed.
"Most of the benefits of this growth are being appropriated by the people at the top … Most people at the bottom are not seeing these benefits. What they are seeing is an incredible rise in the cost of living ... They are not seeing increased salaries, they are not seeing increased opportunities ... and I think that creates a lot of resentment," Man says.
Financial Times Article - Panama Boom
Panama builds on economic boom
By Richard Lapper and Adam Thomson in Panama City
Published: July 11 2007 18:59 | Last updated: July 11 2007 18:59
President MartÃn Torrijos of Panama on Wednesday unveiled what could become one of the biggest investment projects in the country’s history, with a value of up to $10bn (€7.3bn, £4.9bn).
The creation of an urban centre the size of central London on the outskirts of Panama City is the latest sign of an economic boom that has invited comparisons between Panama and bigger international business centres, such as Dubai.
A specially created government agency will provide residents with streamlined regulation and there will be tax incentives for selected industries.
London & Regional, the UK-based company that will develop the site, said the project, on the former Howard US air force base, would reinforce Panama’s attractions as a centre of international business.
Ian Livingstone, of London & Regional, said it would combine industrial, retail and residential properties and its value, including all finished infrastructure and buildings, could be worth up to $10bn.
Mr Torrijos’s administration, which took office in 2004, is poised to award the first contract for breaking ground in an ambitious $5.25bn plan to expand the canal, which connects the Atlantic and Pacific oceans and is one of the world’s most important waterways.
Panama took full control of the canal in 1999 and the investment in three new locks and physical widening will facilitate the passage of huge cargo ships, known as post-Panamax vessels.
International and local companies are pouring billions of dollars into Panamanian residential property developments, in large part to capitalise on the peak of interest shown by US and Canadian retired people and second-home buyers.
In addition, deals worth $14.5bn have been agreed recently to build two oil refineries and the US Congress is expected to approve a trade agreement soon between the two countries.
Mr Torrijos said recently that the refineries, canal expansion and trade pact are the three motors that could propel Panama towards developed country status. Panama’s economy, which is fully dollarised, grew 8.1 per cent in 2006, and economists believe it could grow more than 10 per cent this year. Inflation, meanwhile, is subdued and lending rates are among the most competitive in the western hemisphere.
However, some analysts suggest that the government must do more to reduce poverty, especially in rural areas, if development goals are to be achieved.
“Wealth is being concentrated more and more. This is very bad news,” said Guillermo Chapman, an analyst at the Indesa consultancy in Panama City.
The London & Regional project hopes to attract businesses from neighbouring countries that do not enjoy the sort of stability that Panama offers.
Panama has begun to attract significantly higher numbers of investors from Colombia and Venezuela than in previous years, and analysts expect that trend to continue.
Although London & Regional has yet to present the government with a master plan of the 1,800-hectare site – WS Atkins, the UK professional services company, must do so within 90 days – the plans are known to include a golf course, apartments, schools and hospital.
“It will have an urban feel, with town-centre-type shops, public open spaces, condominiums. . . We are going to build a sustainable community,” said Mr Livingstone.
The site’s proximity to the Panama Canal, the Pan-American highway and to Howard’s 3.5km runway gave it unprecedented access for individuals and companies, he said. “In terms of logistics, it’s a no-brainer.”
In addition to an initial $405m minimum investment over the next eight years by London & Regional and local partners, Mr Livingstone has committed another $300m over the remainder of the 40-year concession.
London & Regional, a private company run by Mr Livingstone and his brother Richard, is known as a highly leveraged buyer of property assets. In recent years it has branched out into development projects and started investing overseas, with offices in South Africa, Russia and Ukraine.
Additional reporting by Jim Pickard
Copyright The Financial Times Limited 2007
By Richard Lapper and Adam Thomson in Panama City
Published: July 11 2007 18:59 | Last updated: July 11 2007 18:59
President MartÃn Torrijos of Panama on Wednesday unveiled what could become one of the biggest investment projects in the country’s history, with a value of up to $10bn (€7.3bn, £4.9bn).
The creation of an urban centre the size of central London on the outskirts of Panama City is the latest sign of an economic boom that has invited comparisons between Panama and bigger international business centres, such as Dubai.
A specially created government agency will provide residents with streamlined regulation and there will be tax incentives for selected industries.
London & Regional, the UK-based company that will develop the site, said the project, on the former Howard US air force base, would reinforce Panama’s attractions as a centre of international business.
Ian Livingstone, of London & Regional, said it would combine industrial, retail and residential properties and its value, including all finished infrastructure and buildings, could be worth up to $10bn.
Mr Torrijos’s administration, which took office in 2004, is poised to award the first contract for breaking ground in an ambitious $5.25bn plan to expand the canal, which connects the Atlantic and Pacific oceans and is one of the world’s most important waterways.
Panama took full control of the canal in 1999 and the investment in three new locks and physical widening will facilitate the passage of huge cargo ships, known as post-Panamax vessels.
International and local companies are pouring billions of dollars into Panamanian residential property developments, in large part to capitalise on the peak of interest shown by US and Canadian retired people and second-home buyers.
In addition, deals worth $14.5bn have been agreed recently to build two oil refineries and the US Congress is expected to approve a trade agreement soon between the two countries.
Mr Torrijos said recently that the refineries, canal expansion and trade pact are the three motors that could propel Panama towards developed country status. Panama’s economy, which is fully dollarised, grew 8.1 per cent in 2006, and economists believe it could grow more than 10 per cent this year. Inflation, meanwhile, is subdued and lending rates are among the most competitive in the western hemisphere.
However, some analysts suggest that the government must do more to reduce poverty, especially in rural areas, if development goals are to be achieved.
“Wealth is being concentrated more and more. This is very bad news,” said Guillermo Chapman, an analyst at the Indesa consultancy in Panama City.
The London & Regional project hopes to attract businesses from neighbouring countries that do not enjoy the sort of stability that Panama offers.
Panama has begun to attract significantly higher numbers of investors from Colombia and Venezuela than in previous years, and analysts expect that trend to continue.
Although London & Regional has yet to present the government with a master plan of the 1,800-hectare site – WS Atkins, the UK professional services company, must do so within 90 days – the plans are known to include a golf course, apartments, schools and hospital.
“It will have an urban feel, with town-centre-type shops, public open spaces, condominiums. . . We are going to build a sustainable community,” said Mr Livingstone.
The site’s proximity to the Panama Canal, the Pan-American highway and to Howard’s 3.5km runway gave it unprecedented access for individuals and companies, he said. “In terms of logistics, it’s a no-brainer.”
In addition to an initial $405m minimum investment over the next eight years by London & Regional and local partners, Mr Livingstone has committed another $300m over the remainder of the 40-year concession.
London & Regional, a private company run by Mr Livingstone and his brother Richard, is known as a highly leveraged buyer of property assets. In recent years it has branched out into development projects and started investing overseas, with offices in South Africa, Russia and Ukraine.
Additional reporting by Jim Pickard
Copyright The Financial Times Limited 2007
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