Little Real Estate

The property is defined as property income as being held to generate income for its owner. These profits are achieved from the rental and are offset by some costs such as taxes, maintenance, utilities and increases in value you can have.

The increase in the price of the property is not perceptible in the first instance until an appraisal is to be sold, hence the need to take into account that proper management of rental property can greatly increase its value.

Investment financing

Current revenues are the main net profit of a property, because we have to make an estimate of the costs that are generated and how they are reflected in earnings. If you as an investor is planning to borrow money to invest make sure your well start generating income which will then be used for debt payments and therefore have greater control of the property. This type of operation gives the investor greater ease, since the debt is generated on the property being purchased and not on the investor’s home.

Income-generating properties can also be used as tax benefits if they did not receive any profit, since the costs of compensating property rental income, which translates into a tax-free property. Read the rest of this entry →

Possession right property is not similar to the “right of occupancy” common in North America for many years. This property belongs to the government but is “occupied” or “used” by a Panamanian citizen (or Panamanian organization) for a while. Possession rights are generally certified by either mayors, police, other government organizations such as land reform. Possession rights are not subject to property taxes, although registered improvements on possession rights property may be taxed at the municipal level and / or national level. Most Possession Rights properties can be titled through a procedure of purchasing the land from the government, however, the law prohibits titling of possession rights properties in some areas and some coastal areas, national parks, or islands . In these cases, as an alternative, the “keeper” of the property may apply for an administrative concession over the land to ensure its peaceful use.

Possession right to acquire a property normally requires the following:

1. Pledge Agreement for Purchase and Sale: A small payment is made to sign the promissory note. The initial payment secures the property and establishes time for title research and to coordinate payment arrangements for closing. Contracts relating to the sale of rights of possession can not be registered with the Public Registry, but may be authenticated by a notary public.

2. Due diligence: due diligence procedures possession right in property is more complicated because there is no central database of property information possession right. Possession rights buyers should be careful in your purchase. The following due diligence investigation can be made on property rights of possession: Read the rest of this entry →