Panama real estate blog

The Colon Free Zone, the duty free zone in Colon, Panama on the Caribbean end of the Panama Canal, is the world’s second largest of its kind.

The Colon Free Zone is embroiled in a dispute with the Panama government over paying taxes. It has come to where the bulk of the operators in the zone are going on strike Wednesday, September 2. This will put roughly 30,000 employees out of work for the day.

The issue has to do with tax advantages of operating in the duty free zone. The presence of these tax advantages has helped the zone grow and prosper. However, its presence on the Panama Canal is the major factor here. Now the new administration is adopting and enforcing a policy of each part of society paying its way. That appears to apply to those who have been paying less than the going rate for their taxes.

The issue is not, according to the government, legal exemptions but the fact that some of the operators have not been paying the reduced amounts that they owe and have not been providing the necessary paperwork to the government.

The issue in Panama comes back to corruption and who is paying their fair share. The ongoing rap against Panama is, in fact, corruption. Investment in Panama thrives on a fair system. Hopefully, as the issue of who pays taxes is resolved the issue of government corruption will go away to the benefit of investment in Panama.

Popularity: 3% [?]

Volcan, Panama is an alpine village misplaced in the tropics. This little community sits near the base of Panama’s highest mountain, the extinct volcano, Volcan Baru. With a year round temperature ranging between 55 and 78 degrees Fahrenheit, Volcan fits the Central American desciption of such locations as “the land of eternal spring.” Real estate in and around Volcan is available for retirement living in Panama and for farming as much of Panama’s flowers and coffee are grown in the Chiriqui highlands in and near Volcan.

Less known than Boquete, Panama, Volcan is more scenic and has better sense of open spaces than the valley where Boquete is located.

The Volcan area is ideal for hiking and mountain biking for those interested in such pursuits. The area, especially, Volcan Baru National Park, is world famous as a birding destination. People come from all over the world to see birds that you can see in your back yard in Volcan.

If such things a white water rafting interest you this part of Panama has a number of outfitters ready to take you on the Chiriqui and old Chiriqui Rivers where you can find Class 4 rapids during the rainy season from May to December.

Volcan is about forty miles from David, the provincial capital and commercial center of Chiriqui Province. Half the distance is on the Pan American Highway. For someone interested in  an active retirement this location is ideal year round. And, like all places in Panama, the capital city, Panama, only few hours away for first world shopping, entertainment, hotels, and restaurants.

Volcan, in many ways, offers the best of all worlds for residency in Panama.

Popularity: 5% [?]

Steel prices earlier this year were just over a third of what construction companies were paying for rebar just year before, $450 versus $1,200 a ton. Although cement use is down and there are currently not a lot of high rises starting up in Panama City this is a good time to order rebar, lock in low prices, and plan a construction start on Panama City real estate before construction costs go up again.

Common opinion is that when the economies of India and China start to recover they will resume building and thus will drive up the cost of raw materials. Assuming that it will take a year to get prices of rebar and cement back up to levels of a year or more ago anything started now will have lower costs which will translate into lower real estate costs for apartments and condos or more profits for developers.

Likewise Panama’s mega projects continue with the Canal Expansion Locks just starting up and the metro ready to start plans. We can expect to see local projects compete for materials and a drive up cement and rebar locally in a year or two. All of this comes back to right now being a great time to invest in Panama residential real estate or Panama commercial real estate before prices start to go up seriously again.

Popularity: 5% [?]

Whether you travel to Panama or travel in Panama the prospect of an efficient mass transport system in Panama City is a welcome thing. The old US school buses, nicknamed red devils (diablos rojos) will be phased out, new buses will come in and the backbone of public transport in Panama City will be a modern metro.

The current administration has obtained a loan guarantee of $1 billion for this project. The number of parties interested in designing, building, and running a metro has been wittled down to six.

According to press reports the metro will develop in four phases which are as follows:

Planning

Design and Construction

Installation of Equipment

Setting up operations

The President of Panama, Ricardo Martinelli, has expressed his gratitude to President Luiz Enacio Lula da Silva of Brazil for helping Panama get the $1 billion loan guarantee from the Development Bank of Brazil. The government seems to have hit the ground running with this project which promises to add jobs, stimulate the economy, and make travel within Panama City exceptionally easier.

Popularity: 8% [?]

With Panama tourism you do not worry about hurricanes. Living in Panama City you might feel a earthquake tremor every decade or so. Living in Panama City the last tornado was 17 years ago, until yesterday. A tornado appears to have touched down briefly on the Eastern outskirts of Panama City yesterday during an unusual rain and wind storm.

Rain almost always comes straight down in Panama. Lots of it comes straight down. Panama City gets six feet of rain a year on the average. When a little wind comes with the rain and blows off a roof or knocks down a tree it is big news in Panama.

And, yes, Panama gets tornados, rarely. The last one before yesterday was in 1992. Storm damage in heavy storms or with yesterday’s tornado takes off roofs which are the weakest part of house consruction.  The cement block construction of virtually all homes in Panama is relatively impervious to strong winds and even tornadoes.

So, this is not Kansas. With tourism in Panama you do not scan the horizon for churning clouds at 40,000 feet and tornado chasing is not a sport. Living in Panama you take a nap in your hammock, walk on the beach, and, every 17 years, go inside when the wind starts to blow and stay away from the windows for the next five minutes until things blow over and you can return to your hammock.

Popularity: 5% [?]