Making up your mind in Casco Viejo in 5 Steps

I had an interesting conversation yesterday with a client.  He was looking for a property in Casco, mainly an apartment, and he asked me what was the best purchase he could make. There is no easy answer for this, because “best” is very subjective… I would say it all “depends”.There is a “depend” clause on each step of the way:

Step 1. The philosophical question: is Casco right for you?

Casco Viejo is a fascinating place, with lots of things happening and information. Take your time to research. Look for people with experience. But above all, listen to your own gut feeling.  Do you enjoy Casco as is? Did you feel excited about the revitalization that is going on? Do you want to be part of it? Have you lived in areas that had experienced this type of “come back”? Can you feel connected to this place?

Now, to more material things, assuming the answer was yes:

Step 2. Use for the Property: is this an investment apartment or a future home. Or perhaps a combination? some people are set on having two bedrooms, other don´t mind and just want a pied á terre.

Step 3. Personal Preferences: some clients like having water views, other plaza views. Some like colonial looking buildings, some like more modern, Art Deco style. For others, they don´t mind having only street views. It all reflects in the price, of course, so preferences + price range hold hands throughout the process.

Step 4. Price Range: it is very, very, very important to be upfront about this. Your wish list may include many things, but as you add up to the list you should know each item adds equally up to the price of the property. Many clients apply the “it depends” clause to this particular issue.  But when shown what is out there (which I usually do through a “virtual tour” at Arco Properties office first) a price range is quickly revealed. This is extremely helpful because it lets us land the “airplane” into a concrete field of reality.

The price range also depends heavily on the use. People tend to devote more resources to a home than to an investment or a pied á terre. So, unless you have gone through steps 1 and 2, then 3 might be confusing. Is financing critical for you? maybe not at a certain range, but you would need it if you want to go higher. Knowing this in advance provides both parties with peace of mind and clarity.

Now… it might be that your particular combination of property wishlist + price range just doesn´t exist. If this is the case, then step 5 for you would look like:

Step 5. Casco Yoga…Take a deep breath… Open your mind and options will open for you.

Once you realize your ideal wishlist + price point might not exist, but that other combinations that are very good are out there, start considering them seriously. Each property has a different set of virtues. By now, your goals might have changed. Talk to your specialized realtor in the area (hope it´s us!). Once you make up your mind… act quickly! always remember there are others in the same process and until a contract is signed, nothing is set.

If you found that your wishlist + price did exist… your step 5 is called “get-your-checkbook-out-right-now-and-call-your-lawyer-immediatly”.

In both cases, you´ll be very happy with your purchase. Why? because Step 1 is actually the most important one, and this will determine your “purchase happiness level”.

I was laughing the other day with a client who is receiving at the ends of this year his unit in a project that at the moment of pre sales (a year ago) was considered to be “at the edge” of San Felipe. It was literally the first project to break ground in the area.  He negotiated right, left and center, gave me a hard time, but he knew … Casco was right for him. But he had a very specific price point and was fighting like a cat to get there.  After understanding exactly his situation I proposed him a unit. It was slightly over the price he wanted to pay, but it was right for him.  He finally signed.  Now, after almost a year, he finally confessed to me: “I went to see the unit, they are still working on it but is coming out so beautifully. I wanted to thank you for chocking this unit down my throat.”

And I am thankful that he “got Casco” from day one, but above all, that he was honest with me from the first moment and that was willing to open his mind to other options.

Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Panama invests heavily in airport infrastructure and increases flights and routes all over the world

Panama is closer to the world each day. The article, featured at La Prensa´s Martes Financiero talks about the fast increase Panama has experienced in number of flights, routes and carriers, in a moment in time where the world seems to be suffering due to the credit crisis and the increase in gas prices.Last week, Air Caribes launched flights to France via Guadalupe, that will make the jump to Europe in only 10 hours. Next month, KLM will renew flights to Amsterdam´s hub, which where stopped back in 1998.  Just to show how different is Panama nine years later.  This hub to hub connection would allow easy access to Europe and Middle East. Even Mexicana has started flying back to Panama. TACA is also increasing its presence in the country through its branch Sansa, opening flights to San José, Costa Rica and David (Chiriquí) which used to be a local airport, but is now gearing up to be an international boosted by the increasing foreign community living in this province. Demand keeps growing, and according to the article the number of destinations has increased a 38% from year 2000. The United States has also raised its participation through American Airlines and Delta, opening new flights and increasing frequency. Cities like Dallas have daily flights now, and you can´t get a seat from Miami if you don´t plan ahead. Delta inaugurated Atlanta in June and  New York in December. COPA alone (Panama´s the national carrier) opened new routes to USA (Washington), Córdoba (Argentina), Guadalajara (México) and Punta Cana (Dominican Republic). They have expanded their fleet investing more than 700 million dollars in the last five years. Parallel to all this activity, Panama is investing more than $4 million in airport infrastructure throughout the country, gearing up to be the best regional hub. 

Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Today at martes financiero at la prensa

AERONÁUTICA.

Invierten 4.5 millones en aeropuertos

Raúl A. Bernalrbernal@prensa.com Cuatro millones 575 mil dólares asignó para este año la Autoridad Aeronáutica Civil (AAC) para la construcción, reparación y mantenimiento de las instalaciones aeroportuarias del país, confirmó Gregorio Montecer, asesor de la dirección general de esta institución. El funcionario detalló que de este monto, cuatro millones 325 mil dólares estará destinado propiamente para la construcción y mejoras de los aeropuertos, mientras que el resto, 250 mil dólares, será utilizado en la conservación de las áreas verdes de las terminales aeroportuarias. En el plan de mejoras está programada la rehabilitación del pavimento de la plataforma del aeropuerto Marcos A. Gelabert, que incluye la reposición de losas, limpieza, resanar y sellado de juntas, así como la colocación de morteros asfálticos. En este mismo aeropuerto, ubicado en Albrook, en la ciudad capital, se pretende remodelar el edificio de la terminal de pasajeros con el fin de acondicionar áreas para atender a un mayor número de viajeros. El presupuesto de la AAC para este año supera los 27 millones de dólares.

PanamaJazz Fest Success!!! Casco Viejo gathered and enjoyed

I think these pictures speak for themselves…. For those who didn´t make it, don´t be too jealous, this could be you, just don´t forget to plan for next year!!!!!

Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Investing in difficult times… Panama features in european expert opinion

This week´s Prima Panama newsletter announced an article at the Finance Daily ( http://www.financedaily.co.uk/showArticle.aspx?loadid=00880 )A Sound Investment: What To Invest in Now With volatile markets, stock exchange slumps, property declines and experts predicting a year of market uncertainty, are the old favourites like property and shares still smart investment choices? Experts agree that it will be harder in 2008 to make the right investment decisions. However, that shouldn’t deter you from investing. Dr Kate Warne, an Edward Jones Market Strategist, suggests that you review your portfolio to ensure that you have quality investments; make sure that your portfolio is diversified and have a plan to stay invested during times when the market is choppy. “These strategies historically have worked to help long-term investors achieve their financial goals,” she says. “While slower growth is a concern, it should also help calm worries about higher UK inflation during 2008. Globally, economic growth is expected to remain reasonably strong, which should provide a generally supportive environment. However, as in 2007, currencies and financial institutions appear likely to continue to be turbulent.” So which investments in the current climate are lower risk? Property: Confusing Times Currently, there seems to be a consensus among property professionals that the market this year will fall, or at the very least be flat. House prices in the fourth quarter of 2007 rose by less than the long-term average of 8%, and the slowdown is expected to continue or even worsen. Scotland remains the most promising investment area. For the fifth consecutive year, Scotland recorded the biggest price rises, with a 13.1% increase; the only double digit increase. A key factor driving the increase in house prices in Scotland has been its relative affordability. Scottish house prices continue to be the most affordable in the UK. At £144,897, the average price of a house in Scotland is 26% less than the UK average of £197,071. Northern Ireland is another promising option. To find out how other areas fared, Click Here. If you’re in it for a long term investment though, it’s not all bad. “Conflicting data on the state of the housing market may leave homeowners, property sellers and prospective house buyers feeling confused,” says David Kuo, Head of Personal Finance at Fool.co.uk. He, along with other commentators, predicts that the price of an average house in the UK will fall this year before resuming growth at the long-term rate of 8% per annum after that. “We believe that the average price of a house could fall up to a fifth to £157,290 in 2008 before rising to £185,410 in 2012,” he says. “However, this would be £13,000 less than the price of a typical home now.” Not convinced? If the pound continues to swing in value compared to the Euro and U.S. dollar, overseas property may be a better investment. Overseas Property Investments Property markets across the world have experienced some tough times in 2007 as international economic events have shaken consumer confidence, but the property market across Europe has fared relatively well despite market fluctuations. The EU’s economy continues to grow above trend. Record low unemployment, together with relatively modest borrowing rates and a strong housing market, is reflected in rising expansion and consumer confidence. As returns from property in the UK are expected to slow significantly, they are expected to be well below those forecast for the Euro zone market. Rental growth forecasts strongly suggest that European property will outperform the UK across all sectors, making it a hot buy-to-let option. “There has been a surge of interest for Continental European property from UK investors over the last few years,” says Maria Grubmueller, Head of Research for the Close Investments property division. “There is, however, the possibility of oversupply in some of these markets as development has been boosted by foreign investment and is not always matched by the economic development and demand.” The world’s established property markets have maintained a consistent level of interest over the last 12 months and, despite speculation to the contrary, many are expected to continue being popular. Countries such as France, Portugal, Italy and Cyprus will do particularly well in 2008 according to Vanessa Bird, of financial services company Baydonhill. “There has been considerable nervousness over the economy recently, but the majority of the established markets will remain robust over the next 12 months,” she says. “The key is the diverse selection of buyers who look to purchase in these destinations, from second home owners to those relocating for retirement. The huge variety present here – in terms of age, financial circumstances and motivation for buying – is the driver behind the constant supply of purchasers.” Don’t go for France or Spain though, unless you’re going for a stable, long-term investment and looking very carefully at where demand outstrips supply. Interest in Spain has decreased by 2% since 2006 and is 10% lower than interest levels in 2005. Interest in France remained steady from 2006 to 2007 however enquires last year were down 7% compared to 2005. Experts say the biggest investment potential is in the emerging markets – in particular the likes of Bulgaria and even Panama, Egypt, Brazil and China. The past 3 years have seen a surge in interest in less traditional overseas property destinations, according to HiFX’s Annual Global Property Hot Spots roundup. For a quick and easy round-up of some of the best overseas properties on offer, visit www.JustOverseas.co.uk. To read more about 2008’s predicted property winners, Click Here. To read an interview on overseas property investment with A Place in the Sun’s presenter and property expert Amanda Lamb, Click Here. The Stock Market: Temporary Glitch? The stock market has recently seen a much publicised fall, and with conditions remaining uncertain and volatile, fears are rife that investing in shares may not be the smartest move after the shock announcement by the US Federal Reserve to cut interest rates 0.75% to 3.5%. One in five stock market investors have moved some of their money into more cautious investments, such as cash or bonds over the past three months. “Investors have undoubtedly been rattled by the recent stock market turbulence, and the widely-reported ‘credit crunch’ has prompted many to review their investments,” says Nathan Moss, managing director of wealth management at Lloyds TSB. Of investors who made changes to their portfolio over the past three months, one in five (21 per cent) moved some of their money into more cautious investments such as cash or bonds, 17 per cent kept their stock market investments the same but invested more in other investments while nearly one in ten (9 per cent) decided to invest more money in equities to take advantage of any subsequent rises in share prices. To find out more, Click Here. Taiwan Stock On the positive side, there are hopes that short term falls in stock markets will not have an enduring effect – and even now, there are some smart investment options. The Lincoln Far East Trust is finding good value in Taiwan and Korea, in particular those countries’ information technology, telecoms and utilities sectors, while continuing to underweight China, which looks increasingly overvalued. Taiwan is one of the highest-yielding stock markets in the region and an attractive target for investors looking for an alternative to the overheating stock-prices of China. Taiwan and Korea will benefit from Asia’s growing domestic economy, but they have good defensive qualities that will stand them in good stead if China’s export-led growth were to encounter difficulties. Such difficulties could be prompted by a US economic slowdown or protectionist policies in response to China’s failure to allow its currency to appreciate. “The valuations of companies in China and India can make the Far East as a whole look expensive, but if those markets are taken out of the equation then the region looks much more attractive,” says Will Hale, Head of Distribution at Lincoln Unit Trust Managers. “Investors who want to participate in the long term story of the region would be well advised to look at the value-driven approach in this fund.”

Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Raising the bar in Casco Viejo: introducing green elements and social responsability to our projects

A while ago I wrote about how I enjoyed my life in Casco Viejo and the opportunity this business gives me to help other people or just make my neighborhood better. Here is a concrete example: Las Clementinas.

This is a small project which we hope plant the seed for a big change and help raise the bar in developments in the area. It will be the first project in the old city to have an organic garden (maybe even in the entire Panama City!) and to use sustainably harvested wood. This historic garden (which has a restriction for life, it can only be a garden) is actually already in the works, and has the potential to be the gravity center for a small community program where kids and retirees can learn and help things grow. As in so many other community gardens around the world, it is almost incredible that this would be the first one in Panama City.

Also, the building will include rare finishes like sustainably harvested tropical hardwood floors made from timber reclaimed from Lake Gatun. This timber has been submerged and therefore preserved since 1913 inside the lake and it is cured to last a lifetime. Some of these species where harvested until extintion around the world because of its everlasting properties.

Another detail that gives away the uniqueness of this project is that there will be no commercial bathroom cabinets, but custom made, reworked from antique furniture. All to preserve the nostalgic feeling that Casco Viejo is all about.  You can check our virtual tour of the area at: http://www.arcoproperties.com/about-casco.aspx

Crown it all with water views and plaza views!  If you would like to be part of it, don´t hesitate to write: patrizia@arcoproperties.com

 Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Cinta Costera Panama project on its way: see utube video

For those who thought it would never happen, or that it would take ages… it is real and going forward at full speed. The cinta costera project is a huge park along the coast that involves new lanes to deal with heavy traffic at Balboa Avenue, green areas and most important of it all, it covers all the equipment needed to clean up the bay (meaning new blackwater infrastructure).

The video looks like something completely fake and taken out from a Disney fantasy. However, it is true, and they are moving  fast!

Check it our at UTube:  http://www.youtube.com/watch?v=T7z6cK_q5b8

Soon they´ll reach the Vasco Núñez de Balboa sculpture, I´m super curious to see how they move that huge ball…

Now, the big question is: how it affects Casco Viejo? you´d better start buying in Terraplen! Time frame for the construction of the entire cinta: 3 years.  This will compress the development at Casco Viejo´s old “Market Boulevard”. There is already a restoration project going on (Casa Malecon) starting on summer 2008 and the cinta costera for sure will make circulation towards the Casco easier. If this is so, Terraplens boulevard becomes a fantastic spot for nightlife: ocean front, skyline views, a huge park 2 minutes away, at the very entrance of a colonial city.

This historic waterfront has a huge potential on it´s own, but projects like Cinta Costera will make it even more interesting. A big wave is there to ride for those who like to get in early!  Want to learn more about Casco Viejo? visit: www.arcoproperties.com

Patrizia Pinzon
President
Arco Properties
www.arcoproperties.com 

Drum Fest in Casco Viejo … and Jazz Fest coming up soon

This is one of the things I enjoy most of living in Casco Viejo: there is always an interesting cultural event going on. Last sunday it was Drum Fest… a loud but very enjoyable (somehow) event where hearts pumped at the drums of all sorts of musicians. Preparing for Jazz Fest? (remember its from January 21th to 26th) probably! but I´m also glad that drums where taken in consideration seriously enough to have it´s own place. For me, Panamanian drums are one of the best places to look for fusion between cultures. Why? because Panama is a complete blend between spanish, caribbean, african and indigenous… and you can feel it in how we play the drum.

The other day I was thinking about it when I attended a dinner at this place called “Tinajas” which is a famous restaurant in Panama because of it´s traditional dance show with polleras and montunos. This is our best known heritage, from the central part of the country, where the Spanish had their biggest cultural influence. Folkloric music from this area is played with flute, violin (almost extinct now replaced by the cheerful but also loud achordeon), guitar and drums. While the dancing was very “spanish colonial” and the dresses could very well ressemble a court dance, the drums, once left alone … where definatly african. Wild drums, wild rythms, a joyful smile in the drummers… in which faces you could see clearly traces of both spanish and indians. What a world! and all in Panama.

So even if it´s loud, I like drums. And I think it suits Casco Viejo perfectly, since the old town itself blends all sorts of architectural styles, ranging from colonial to republican but not forgetting caribbean and art deco. What a wild place!

What to expect on 2008 an economic report from CEPAL (Comision Economica para America Latina y el Caribe)

You can download full reports for each country at: http://www.eclac.org/cgi-bin/getProd.asp?xml=/prensa/noticias/comunicados/5/32025/P32025.xml&xsl=/prensa/tpl/p6f.xsl&base=/tpl/top-bottom.xsl

For Panama, here is the summary:

In 2007, Panamanian economy grew 9.5%. This is Panama´s 4th year of sustained growth where the GNP per person has incremented 7.7%.

For 2008 they are more conservative: estimating an 8.5% growth, still 1% more than what they estimated at the beginning for 2007 which was 7%.  They estimate that the public deficit will remain less than 1% of the GNP.

During 2007 public debt was reduced (from 61% to 54%) and public investment increased in programs related to reduce poverty and to moderate the impact of inflation over basic goods.  It was also the year where the canal expansion was authorized, an important construction that will be done between 2007 and 2012 with investments that would be equivalent of 25% of 2007´s GNP.  Unemployment was reduced from 8.7% (in 2006) to 6.3%.  Exports at the Colon Free Trade Zone increased in 15%.  Local products like melon, watermelon and pineapple increased 11%.

Tourist visitors increased 16% and their expense raised another 14%.

Panama Lead Growth in Latin America and the Caribbean in 2008

Is Panama on its way to become the new Hong Kong of Latin America? a wild thought, and quite unthinkable ten years ago… but not all that crazy these days. Think about it: all the companies that are moving their headquarters here (Caterpillar, Procter & Gamble, Dell between others), the international banking center along with the Free Trade Zone are paving the way. The Canal Expansion alone is generating masive amount of business, but ironically it is only one of many other indicators that are either at the same volume or more. A well balanced economy, in the middle of the America´s Continent. It´s rapidly becoming the best hub to access the region.

At the beginnings of 2007 every international and national analyst thought Panama was going to grow between 7% to 8%. They were already impressed by the steady growth in past years: 2006 surpassed most economic indicators from the last 14 years. But 2007 proved to be so much better than expected. Here is an article from La Prensa, with a quick analysis on the regional growth, from Argentina to Bahamas.

http://mensual.prensa.com/mensual/contenido/2007/12/13/uhora/negoc_2007121311303416.shtml

11:30 a.m. – CHILE (EFE). -La economía de América Latina y el Caribe creció un 5.6% en 2007, con lo que completó cinco años consecutivos de expansión, según un Balance Preliminar presentado hoy en Santiago por la CEPAL.

Panamá, con un 9.5%; Argentina, con un 8.6%; Venezuela, con un 8.5%, y Perú, con un 8.2%, lideraron el crecimiento a nivel de países, mientras en el extremo inferior de la escala se situaron Nicaragua (3%), Ecuador (2.7%), Jamaica (1.5%) y Dominica (1.0%).

También con altos niveles de expansión figuran República Dominicana (7.5%), Uruguay (7.5%), Colombia (7.0%), Costa Rica (7.0%) y Cuba (7.0%), mientras Honduras creció un 6% y Paraguay y Guatemala lo hicieron un 5.5%, según el texto.

Brasil, Chile y Surinam crecieron un 5.3%, en tanto El Salvador lo hizo un 4.5%, lo mismo que Guayana, en tanto Bolivia lo hizo un 3.8%.

México, Haití y Bahamas expandieron su economía un 3.3%, señala el informe de la Comisión Económica para América Latina y el Caribe (CEPAL).

A priviledged lifestyle only available in Casco Viejo

Last night I was sitting in a beautifully restored 300 year old church listening to sacred and Christmas music in a concert given by Musica Viva, a very well known Panamanian choir. It took me 6 minutes to walk from my office to the concert, which lasted an hour, and another 10 minutes to walk back home (I was so sleepy I was walking slowly).  No fuss, no traffic, and a great event in a unique hidden jewel of a colonial city. While sitting there, relaxing to the tones of Bach, Mozart and Scarlatti and humming cheerfully with Handel´s best seller (Hallelujah) I thought to myself: I´m so spoiled now! the world has only a few places where you can live this, all of them very special and in high demand. I feel so lucky to be here and live the revitalization of this wonderful town.