7 Real Estate Terms You Must Know Before Investing!

Investing in your first real estate property in Panama can be an exciting time. But before doing that, you need to make sure that your money is going to the right place and that it will provide the optimum long-term returns. So, be sure to do your research especially before buying property in Panama and learn these seven terms that could help you make informed decisions throughout the process:

 

1. Return on investment

 

ROI pertains to the measure of profit an investment can give. It is calculated by dividing the net profit by the investment’s total capital cost. You need to aim for a higher ROI, which means you can earn better profit. Calculating the ROI can help you understand the profitability of an investment.

 

2. Turnkey property

 

This pertains to an apartment or home that is nearing completion or almost ready to be occupied or moved into. Investors buying property in Panama typically look into these types of properties because they can purchase it and start renting it out without waiting too long. And since these properties are new, owners don’t have to worry about repairs or renovation!

 

3. Basic sale price or market value

 

BSP or MV is the base rate per square foot where the property is listed for sale by a seller. It excludes additional charges, like the goods and services tax, preferential loan charges, amenity charges, and other maintenance.

 

4. Appreciation

 

In real estate, appreciation pertains to the increase in the property’s value over a period of time. Factors such as limited supply, high property demand, location, inflation, and others can influence the value appreciation of the property.

 

5. Equal monthly installment

 

EMI is a monthly amount that the borrower should pay the lender. It is applicable when buying property in Panama with a home loan, and it is calculated based on various factors, like credit history, salary, loan tenure and amount, and salary.

 

6. Freehold property

 

This pertains to property where the owner has unrestricted and completes ownership of the building and land. They have no restrictions to further transfer it, and the property can be inherited. That makes this type of property more stable than leaseholds, and capable of fetching higher value down the line.

 

7. Credit score

 

Lenders often look at your creditworthiness or eligibility before they approve your loan for buying property in Panama. This way, they can identify your capacity to repay over time. A high credit score could mean flexible payment terms, fast approval, and lower interest rates among other benefits.

Spring Break 2021 - How to Save on Panama City Beach Condo Rentals?

Panama, the beautiful country of Central America, is becoming popular as a travel destination. The islands and beaches of Panama are fascinating. You can plan a vacation here with your family and friends, explore the mesmerizing wonders of nature, and spend a rejuvenating time. Panama is also gaining popularity in terms of real estate investments among all the investors. There are several reasons why people invest their money in villas, independent houses, and condos in Panama.

Whether you are visiting Panama as a holiday or a part of your business plans, you can plan on staying at the amazing Panama condos and enjoy a luxurious and comfortable stay. Here are the tips to help you save money on Panama condo rentals: 

1.The first step to saving your money on Panama condo rentals is exploring each property and comparing their prices. Panama is full of beach condo rentals. These condos have a beautiful beach view. Some service providers charge you a little extra for the location of such condo rentals, while others may agree for a reasonable price. Always compare the prices of these rentals with each other before making a choice. 

2.Whether you are booking a Panama condo rental for a stay or buying the property as a part of an investment, it is a good idea to get in touch with a realtor or a real estate agent. These people will give you the best leads and help you choose the best property to fulfill your purpose. 

3.Online directories and leads always come to your rescue if you are searching for the best Panama condo rentals to stay in. After comparing their amenities, location, and prices, you can dig deep into these directories and gather the best leads. However, do not compromise on a comfortable stay. Always remember, there is a chance of negotiation. You only need to hit the right spot! 

The above-listed tips and tricks will help you save a good amount of money while booking Panama condo rentals. You can also inquire about these condos as a part of your investment as the real estate market in Panama is booming by leaps and bounds, and there is a good scope of returns!