I just got back from a trip to David, Panama, where I visited the local housing investment opportunity that I’ve been covering for my Global Property Advisor Members.
This has become one of our all-time most popular projects, and it’s easy to understand why. The investment fundamentals that underpin it make the decision to opt in a no-brainer for most people.
I’m happy to report that what I saw on the ground during my visit validates this project’s popularity on paper.
What’s The Deal?
This is a hard-money loan investment.
The developer owns the land and has the necessary construction permits in hand.
He needs funding to construct the homes.
That’s where you come in.
With as little as US$59,000, you can pre-buy a housing unit that the developer will then resell at a guaranteed rate of return.
Specifically, it’s paid out at a fixed rate of 30% after 24 months.
How It Works
The investment funds are held in escrow with an attorney and released only as construction of the unit progresses.
The lot and house are your collateral if, for some reason, the developer doesn’t sell the house. You can take possession of the house yourself and sell it through a local agent.
This is highly unlikely, however, because the demand for housing is so strong.
End-buyers are already in place for the first three phases of this project, to be completed between the ends of 2023 and 2024. The developer also has a list of about 200 pre-approved end-buyers.
Adding to this, there’s a shortage of affordable housing in the area, further enhancing the development’s selling power.
Why Local Housing?
The middle class is expanding across Latin America.
The World Bank reports that it grew by 50% between 2008 and 2018, and it’s not finished yet.
This amounts to millions of people looking for quality homes, which, for the most part, have not been built yet.
If you’re a prospective overseas property investor, you’ll recognize the opportunity in this supply-versus-demand situation.
In Panama specifically, there’s a deficit of at least 100,000 low- and middle-income homes.
To prevent a crisis, the government has invested US$1 billion in local housing.
It’s supporting middle-income buyers by offering zero- to low-interest loans for home purchases.
This applies to our opportunity in David as well.
Locals buying into it will receive a US$10,000 bonus for their down payment from the Ministry of Housing if they purchase houses priced at US$70,000.
This bonus is available to first-time homebuyers whose monthly salary does not exceed US$2,000.
The government will also subsidize 4% of the mortgage interest for a period of 10 years (non-renewable).
This kind of government assistance makes our project undeniably attractive to locals.
What I Saw On The Ground
I visited the site and saw the progress being made firsthand.
I was impressed by the size and quality of the completed houses. I haven’t seen another project where you can get this kind of value at this price.
The houses have a more elevated look than the matchbox-style housing that you find across Panama.
The homes in this development have plenty of yard space, and the interiors are spacious with nice quality finishes.
I can see this being a great neighborhood once the majority of construction phases are complete. If I lived in David, I’d be happy living here.
What About The Location?
David is the capital of the Chiriquí Province and the third-largest city in Panama, with over 80,000 residents.
In a country with few concentrated population zones, it stands out for its size and busyness.
It’s western Panama’s commercial center, home to shopping malls, restaurants, car dealerships, international banks, and more conveniences.
There aren’t many planned communities in downtown David. Most are at least 30 minutes away by car, and if you know much about Panama, you know that traffic jams can make a quick commute a never-ending one.
Our development is in central David, 5 to 15 minutes from malls, the airport, supermarkets, hospitals, banks, and more.
It’s also less than an hour to Boquete, the world-famous retirement community in Panama’s highlands.
What Makes This A No-Brainer
This is a straightforward investment opportunity—perhaps the reason why it’s so popular with my Global Property Advisor Members.
It’s a hard-money loan with a fixed rate of return, paid out over a short time period; specifically, it’s a 30% return paid out in 24 months.
On top of that, it’s a foothold in a market that’s not easy for the individual investor to access—Panama’s local housing market.
You’d face a steep learning curve trying to crack into this market on your own.
Aside from knowing where to look, who to trust, and when to act, there’s language and cultural barriers to consider, plus Panama’s mind-boggling bureaucracy to tackle.
We’ve done the legwork of identifying the opportunity for you.
We’ve also vetted the developer, who has over 40 years of experience in the development of small- to large-scale projects.
The developer has packaged everything to minimize headaches and risks. Pay-outs have been on schedule, and current investors are happy, which is why most of them have decided to roll over.
If you’re interested in joining them and acting on this investment in housing for Panama’s middle class, find out more by subscribing to Global Property Advisor here now.
Sincerely,
Monica Linares
Managing Editor, Global Property Advisor