Profit from Panama Rentals

Today's Financial News - Posted July 10, 2008

“There is one of the world’s most exciting short-term rental yield opportunities at play today in Panama City.” — Ronan McMahon

by Ronan McMahon

Baltimore – (TFN): My former Panama condo is now a boutique hotel suite. I’ve just seen the photos.

The Panama City condo market first got my attention 4.5 years ago. Back then, many prime ocean-view condos were more than 279 square meters (3,000 square feet). I considered these to be a risky buy, as they were too large (and expensive) to sell to the new market of retirees, second-home owners, or visiting business people.

So instead, I bought a 120-square-meter condo right on Ave de Balboa off plan. This one-bed, one-bathroom condo—without a maid’s quarters—was the perfect size and layout for retirees, second-home owners, or business people. The broader the market is for end users, the lower the risk for the pre-construction buyer. I paid $1,225 per meter for a 120-square-meter condo. On completion, I listed my condo, and sold for 60% more than I bought for.

Today, there is still an opportunity in Panama to buy condo rental units like the one I bought and sold. I don’t expect to see the same level of capital appreciation I enjoyed during the build period of my unit anytime soon, but there is one of the world’s most exciting short-term rental yield opportunities at play today in Panama City. Read on to learn more.

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