Archive for the 'Panama' Category
Baby Boomers And International Real Estate in Central America
Much has been made of the ‘baby boomer’ generation when analyzing future buying trends in many markets worldwide. While this generation is usually characterized as North American, the same demographic pattern is playing out worldwide. Baby boomers began turning 50 in 1996 and the number of Americans 55 years and older will skyrocket to 97 million by 2020. It is said that over the next 20 years the baby boomer generation will likely constitute the largest potential market ever for real estate products, especially second homes and timeshare/fractional ownership offerings.
Products outside ‘developed’ countries are increasingly attractive to baby boomers in light of retirement plan issues and concerns over government ability to support aging populations. The recent financial crisis has shriveled nest eggs and reduced pensions funds so an added factor is the need for many retirees to lower their cost of living. For many this means leaving the US or Canada, bypassing the traditional ‘sun-belt’ states such as Florida, Louisiana, New Mexico and Texas, and seeking out countries overseas where the cost of living is lower and the real estate more affordable.
Given the region’s close proximity to the US, Central American countries are attracting increasing number of baby boomers interested in the kind of lifestyle on offer. The region is known for low living costs and affordable real estate. In its research of the region, overseas property site Reveal Real Estate analysed asking prices for master planned communities across the region and found Nicaragua real estate listings to be the lowest in price, Costa Rica the highest with Panama and Belize both falling in the middle of this range. The baby boomer demographic are a sophisticated group of consumers with a long list of due dilligence issues. Many are making a lifestyle choice (in addition to an investment decision) so consideraitons such as security, sense of community, ready infrastructure, quality services and amenities are important.
Think Before You Act: Retiring Out of the Country
A sizeable section of seniors citizens are choosing to retire outside the US. That’s because many foreign countries offer a lower cost of living to retirees, apart from the excitement of living in an exotic new locale. A lower cost of living, though important, should not be the only parameter to be considered when making such a life-changing move. Here are a few tips:
Is this for you? Consider the change that comes with living in a new place. The familiarity, the services and convenience you enjoy in American cities may not be available where you are planning to move. You have to be okay with that. If you are not fascinated with new cultures and like familiarity, then maybe moving out of the US may not be the right option for you and you should look into investment property in Phoenix AZ.
Make your money go farther. Several Latin American countries can offer incentives to retirees that make relocating a very attractive option. Panama, for instance, has pension programs which offer discounts on utilities, airline tickets, doctor bills, hotel stays, and even movie tickets and cultural events. You need a fixed pension of $1,000 a month for an individual, plus an additional $250 a month per dependent, Social Security checks included.
Do your homework. Information gathering about the place you are considering is indispensable. Talk to experts and expats. Look through online resources. Visit the place you have chosen during its various seasons to understand the weather. If you have chosen a city, rent and stay in various areas before choosing.
Work out the logistics. Taxes, budgets, investments, and documents are some things that can be challenge to handle from outside the US. Employ the services of a professional to sort out tax work, especially in your first couple of years abroad.
Rethink your finances. Maintain two bank accounts. A new bank account in the new country to be used for day-to-day transactions. And the old one in the States to handle to bill payments for your home there and for federal income taxes.
Maintaining a US address (with something like Phoenix investment property) helps you keep a U.S. bank account. Your Social Security checks too can be deposited into a U.S. bank account and can be accessed from outside. Save on the conversion fees by getting yourself a Visa or MasterCard in your new country.
Protect your health. Research your health-insurance options. In some countries you can save a lot of money through inexpensive and accessible government-sponsored health care.
Panama Coffee $105 lb!
While in Vancouver, BC for our 21st Anniversary we stayed at the Marriott Pinnacle downtown. On the corner of the same building is a small cafe. The door man told us ‘it has the best coffee in all of Vancouver!’
With a testimony like that we had to wander around the corner to check it out. To our surprise the menu posted just insdie the listed some of their gormet coffees for sale including Panamanian Coffee – our absolute fav at $105 lb. Really! No kidding! Here’s the proof -
Panama Coffee in Canada
Panama Coffee in Canada $105 lb