Beautiful Custom Home in Hacienda Los Molinos 

Boquete, Panama

3 BEDROOM – 3 BATH (with additional office room)   

Listed at $269,000

Unless you’ve been hiding in a cave since 2007, you probably know that the real estate industry hasn’t been exactly rosy over the past 4 years.  On the plus side, there’s no question that the economy in Panama has been going gangbusters during that time.  But even Panama hasn’t been immune to the effects of the global real estate slow down and many of the promising residential projects that you read about 4, 5 or 6 years ago are now tropical ghost towns.  Fortunately, there’s a success story out there that you should know about.

Tucked up in the mountains of western Panama, about half way between the city of David and the beautiful town of Boquete is a master planned, residential project called Hacienda Los Molinos.  Conceived in early 2000, construction began in 2002 and by 2005 the first buyers were moving into their new homes.  Today, Los Molinos has over 50 completed single family homes and 20 condominiums all with breathtaking mountain views. 

Unlike dozens of large and small residential projects in the area, the developers of Hacienda Los Molinos continue to make significant investments in their project.  An ambitious $2 million infrastructure improvement program is currently underway that includes road paving, enhanced landscaping and the construction of a new country club facility with a modern fitness center, club house and conference center.  While other developers make promises, the guys at Los Molinos are actually delivering.

What does that mean for a person interested in buying a home in Panama?  My experience at other successful residential communities shows that when amenities are added, demand increases and values go up.  And, to make things even better, a new four lane highway connecting the Boquete area to the city of David is also nearing completion and the airport in David is undergoing a multimillion dollar enhancement and renovation.  All of these factors add value to the area and Hacienda Los Molinos is well positioned to take advantage of these developments.  History shows that those who purchase a home in an established project before the completion of improvements and amenities profit more than those who purchase after the work is completed.

CLICK HERE TO SEE PHOTOS OF SOME OF THE NEW IMPROVEMENTS AT HACIENDA LOS MOLINOS 

I started working and doing business in Panama in 1997.  A lot has happened in this country over that time (some good and some bad) but all the compelling reasons that drew people to Panama and to Boquete are still as valid today as they were then.  Great climate, friendly people, low taxes and, most of all, an extremely affordable lifestyle await you there.

Although prices have increased in the Boquete area over the years, there are still some great deals to be found. 

Here’s a home listed in Hacienda Los Molinos for $269,000 that has everything that you’d need for your retirement years or as a second home in Central America.  New homes of comparable size are now selling for more than $350,000 

Custom Home in Hacienda Los Molinos 

This beautiful house includes everything you’d expect in a custom built home including upgraded floor tiles throughout, custom cabinetry, luxuriously appointed master bathroom, walk in closet in the master bedroom, granite counter tops, stainless steel sink in the kitchen, enclosed garage, tongue and groove solid wood ceiling over the patio and an office in the rear of the home with its own private bathroom.  If you’re planning to relocate to Boquete, this home is available for immediate occupancy.  The house is located on a scenic lot in Hacienda Los Molinos, one of Boquete’s finest planned communities.

Detailed Information

Construction Type: Concrete block, reinforced steel with tile roof

Total Size (interior space): 2,800 sq ft
Lot Size: 15,325 sq ft (1,423.71 mt2), over 1/3rd of an acre,fully landscaped with rock wall fence

Number of bedrooms: 3 (with an additional office room)

Number of bathrooms: 3

Home Owners Association fee*: $102.07 mo*

16 year property tax exemption

* HOA fee includes water, garbage pick up (twice weekly), road and common area maintenance and 24 hour security.  An events center with full sized gym is currently under construction and will be completed in mid 2012.

Detailed Description: This single level home is the perfect size for a couple looking to retire in Panama.  The high ceilings make the main living space feel comfortable and airy.  The huge master bedroom includes a finished walk in closet and well appointed master bathroom.  There are two additional bedrooms in the main living area that share a full bathroom.  An additional room (with full bath) is located off the laundry area and can be used as a spare bedroom, office/crafts room or maid’s quarters.

The deed and title to the property are held in a Panama bearer share corporation.  The corporation is included with the purchase of the home.  Call me to discuss the many benefits of owning property in a Panama corporation.

FEATURES

• High quality ceramic floor tiles
• Individual controlled air conditioning units throughout the home
• Spacious kitchen cabinets with generous granite counter tops
• Kitchen appliances (gas range, microwave and dishwasher) 
• Master suite with luxurious bathroom and fully finished walk in closet 
• Laundry room with washer and dryer 
• Spacious covered and tiled patio area with tongue and groove wood ceilings  
• Top quality fixtures and ceiling fans
• Fully enclosed garage with automatic door 

Listed at $269,000

CNN Money – International purchases of America homes are ramping up, and a new Senate bill designed to boost the ailing real-estate market would encourage globe-trotting investors to buy even more.

Read the full story

Last minute summer deal
for Punta Mita

Deluxe Beachfront Condos, Golf and Ocean View Villas

Book 4 nights or more in a 3 bedroom Condo or Villa and recieve 1 night free

- Includes 2 complementary 50 minutes massages (per stay)
- 1 complementary green fee at Pacifico Golf Course (for 2 guest)

Rate $865 mxn
per night, per person

Plus 16% Mexican taxes and 2% service charge
Capacity 8 guest
Rate is subject to availability

This offer is valid starting May to October 31th, 2011

Property rentals includes:
- Personalized residence or villa orientation tour
- High-speed internet connection (available in select properties)
- Use of the Residents´ Beach Club (subject to prior reservation and availability)
- Pre-arrival itinerary planning
- Restaurant reservations
- Booking of tours and excursions

Services with extra charge
- Airport pick up and drop off
- Pre-arrival grocery shopping
- In house or villa spa services
- Baby sitter service
- Car rental arrangements

Mita Residential
Phone: 1 877.561.2893 / Email: rentals@mitaresidential.net
Website: http://www.mitaresidential.com

We invite you to learn about Panama, it’s people, places to visit and investment opportunities that we feel are of merit.  Our mission statement is simple.  Offer our clients up to date relevant news  and provide unparalleled service.  

Like many people, my wife and I often took trips abroad to see other lands with the idea one day of having a second home or moving to another country. Having been in commercial real estate for 30 years in the US, I saw things building towards another bubble in 2006 and started my journey to Panama, the land of my birth to see what all the talk was about. I realized that time was running out and it was time to “stop and smell the roses”, so we made the move and here we are. 

We have lived in the mountain town of Boquete for 5 years  in a small community called Valle Escondido. We have traveled extensively throughout Panama looking for places to live and investment opportunities.  We have a good understanding of values and amenities associated with each area of Panama, we can guide you to the right place and introduce you to the right people. Whether you are looking for a family retreat or you wish to invest some of your portfolio in another sovereign nation, we can be of assistance.

Tom Brymer
tbrymer@brymerpa.com
phone: (305) 448-1003 In US
(507) 6810-1074 In Panama

To our Canadian colleagues,

I am writing this letter as an introduction, and also to give your clients the opportunity to invest in San Francisco real estate. The other day it occurred to me that the Canadian dollar is very strong against the US dollar and that there might be real estate agents with clients who would like to invest in property in the US or have a second home in our beautiful city of San Francisco but don’t know how to get started or where to buy.

As a Realtor with over 33 years of experience in San Francisco real estate, I can tell you that NOW is a great time to buy and can best guide your clients to the right areas of the City. Our market has never been stronger, and with the Fed continuing to lower rates, loans are just going to get better and better.

A lot of areas have been hit by the sub-prime meltdown and foreclosures but not us. In fact, while sales volumes are down for the year (mostly because of low inventory), our average selling price has continued to go up at about 10% a year! Think about the cash on cash return for your clients in these leveraged investments!

We expect as the year rolls on, our economy continue to roar back, and with that comes a stronger housing market and higher home values. Don’t let your clients miss out on the opportunity to take advantage of the strong Canadian dollar, the lowering of interest rates and a strong San Francisco real estate market!

We pay referral fees and will take great care of your clients.  Please check out my website www.sfresidence.com or call me TOLL FREE: 1-866-224-8024.

I hope to hear from you soon!

Sincerely,

Janis Stone

Red Frog owners meet in Minneapolis!

The owners had a meeting last week, and organizer, Chris Hahn, wrote a general overview of the outcome. Apparently many people who had been opposed to moving forward had their minds changed by the open disclosures of the Red Frog principals and were encouraged by the fact that funding may be just around the corner.

Read the article here.

- Mick Orton

Here is an article spawned by a letter I wrote to Sam Taliaferro, a Panama Developer, who runs a blog called the Panama Investor Blog.

The Red Frog Beach project in Bocas Del Toro is an important one for that area as well as Panama. It is an ambitious project built on an island in one of the more difficult areas of the country in which to take on such a project. The challenges range from material acquisition and logistics to labor and financing. As a developer I sympathize with the difficulties these folks have faced. I have visited the property on several occasions and some of the property buyers receive my blogs and write to me regularly. Everyone wants to know, “When will this project get back on its feet and start building again?”

I recently asked the developer to give me an update and he has promised to do so in the near future, but I wanted to share some information with my readers that is from one of the homeowners. Mick Orton loves the project and the area and still looks forward to one day spending a lot of time there. Mick sent me the following information and asked me to share it with you.

Construction at Red Frog Beach on Bastimentos in Bocas del Toro has been silent for over a year. As an investor this made me very nervous that our home on the Caribbean would never be built. After all, we had dreams of keeping our boat at the boat slip, dining in the fine restaurant that they promised would be built, cooling off in our own private pool, waking up to the gentle crashing of waves of the ocean, lounging on the beach and maybe even surfing or waterskiing. Before construction stopped, several homes were finished, and many were under construction. When we got our call to pick our options and colors we thought we were nearing the finish line. Then came word of a strike and pending financing problems. Months went by with no resolution to the problems that plagued Red Frog, and we got concerned.

During that time, not a lot of news was coming from the developers other than the 1 hour monthly conference calls. As a result, several owners started blogs like our Red Frog Blog and Red Frog Beach Forum to keep the buzz going, to stay informed and keep the dream alive. Some chose to use it as a negative forum, but mostly the comments were pleasant and upbeat. The general consensus was (and still is) that we owners wanted this project to succeed, and felt that the developers had the best of intentions to complete it.

Much has changed since we first invested in Red Frog. The government has made several revisions to the tourist visa and property tax exemption laws, not necessarily for the better. (Thanks to the Prima Panama Newsletter and Blog we are keeping a close eye on those changes.) We also found that with the housing and mortgage chaos in the United States, the Panamanian banks and lenders were also affected negatively. And though we were originally told the developers had funding sources for construction on rights of possession land, as money tightened up, these sources disappeared.

The situation has been very complicated with so many rights of possession lots and contracts coming due, it was time for the developers to begin looking for alternatives. Most recently we have seen a major push to move much of the equity from later phases into phase 1 with the introduction of fractional ownerships. Many of the people who were in the project early have seen their financial situations change and were very happy to participate. Money is getting tighter, and fractional ownerships are a great solution for many of the people involved. Another move by the developers to get this project back on track has been to make concessions to owners in order to get around problems with rights of possession land. I feel Red Frog has been exceedingly creative in working with the owners to turn this thing around and get back on course.

Since the beginning I have been bullish on Red Frog. The project will bring much needed money back to the business people of the area and to construction workers as well as their families. I am told the area has been hurt by the work stoppage, and starting construction again will be a boom to the local economy as it was in the past. There is hope that complications will be worked out soon and construction could begin again within a very short time.

Mick Orton – Red Frog Beach lot owner

When we bought our contract to build at Red Frog Beach 3 years ago, we were on the cutting edge of US citizens who were beginning to buy property in Panama and retiring there. There were many articles about it being the next craze, similar to what happened in Costa Rica. Check the Internet and Google Panama and retirement you get about 201,000 results.

Not long ago, I got an e-mail from a woman from my high school graduating class who found me by searching on my name, and Panama kept coming up. There just are no secrets on the Internet, I guess. Turns out she is buying in a development near Panama City and wanted to hear about our investment.

Anyway, our project in Bocas del Toro looked like a dream come true. We could buy our beach front villa at the price of a small condo in San Francisco. The cost of living down there is practically nothing compared to the cost of living in the United States.

So we eagerly put our money down and got into contract. Several months into the building phase, the workers went on strike. In that time (over a year now) we learned a lot about buying property in other countries! Here are some things you might want to think about:

1)       Get an “in country” representative that knows the country and local laws regarding owning real estate like an attorney or Realtor. The worst thing we did was buy in Panama without representation or an understanding of the local laws and customs.

2)       Depending on the country, it might be best to own the property in an entity like an IBC (International Business Corporation) to protect yourselves from lawsuits. But that is for your legal person to clarify.

3)       Check into financing options. They are probably different from buying in the US; unless you are paying cash, then it’s a moot point. But if you want to get out, it will affect your ability to sell.

4)       Be aware of rights of possession land versus titled land. Sometimes they are not treated the same. Find out the difference in the country you are buying.

5)       Is it a home, condo or in a planned development? Find out the tax situation for that country. For example, in Panama, they keep changing the laws. What was once a tax haven has now changed and property taxes will be due on all titled properties. This all happened within 3 years.

6)       Safety – pick a country with a safe government. Not all countries are created equal. Some of these island possessions change government by coups and in those turnovers, people lose property rights. Check what the history is for that country.

7)       Property management – see if the representative knows anything about managing rental properties and see if they can give you information or point you to someone who does rentals so you know what to expect. We found that handling our own rentals is a pain, especially the tax reporting (Hawaii). We prefer letting a professional company do it, and they file all the taxes.

       It’s only money. As long as you know it’s a risk, you’ll be in good shape if anything bad happens.

We have had an education from the school of hard knocks. Fortunately, we were able to restructure our deal and are now in a pretty good equity position once the construction starts back up.

Happy investing!

- Mick Orton
Marketing Director