- Sell Properties
- Commercial Estates
- Contact Us
Before starting real estate investing in Panama and success, you need to request information on the market. For this reason, we prepared the Panama Commercial Real Estate Guide. If you want to do your first commercial investment, verify the location. All the other factors are important but maybe not necessary. investing, read this Panama real estate investment guide for beginners and experts interested in commercial properties. Also, review Casco Antiguo’s reasons for investing there.
For starting, you need to consider many factors like location, state of the structure, quality of the materials used in the construction, the experience of the developer or builder of the property, quality of the tenants who rent the property, facilities in the environment, Real estate experience, appraisal company and due diligence of the property and owner.
A due diligence example is verifying the tax status in the DGI. Another example of due diligence before real estate investment is to verify the property’s legal status. Also, an example of due diligence is verifying before buying the property owners before the actual landlord. Also, you need to check if the property has a bank mortgage, liens for national or municipal taxes, lawsuits between partners, or homeowners association (HOA).
To calculate the return on investment (ROI), you need to analyze the following factors: property income, maintenance expenses, property value, and depreciation.
One of the principal risks is choosing the wrong location, not verifying the structure state, not knowing the profile of the property tenants, and not carrying out due diligence of the property and owners.
The risk will mitigated by the support of a good team of professionals with experience in the area: real estate brokers, lawyers, appraisal companies, accountants, etc., with experience in the area.
When you make a real estate investment, sometimes verify the status of the property structure with a structural engineer.
For beginners, we recommend investing in hotel units managed by recognized operators, stores in plazas or shopping centers, warehouses, and lots.
Location is essential when choosing a property in real estate investment, and one of the determining factors is to see the facilities of the environment. One example of facilities is if you plan to invest in a hotel for host executives before verifying if the neighborhood offers facilities to them. Also, check if the neighbor has coworking, restaurants, banks, insurance companies, shopping centers, etc.
Visit an example of Real Estate Investment Success in Panama!