I just got back from 5 days in Panama. As most of you know I went to an investment/tax shelter,Panama real estate conference.
The conference was very interesting.Most of it does not apply to my situation,but I have alot of contacts if I ever do,or if anybody else needs some imformation.
About Panama.Panama city is the only real city.Colon(on the atlantic) is maybe 30,000 people and then it drops way off from there.
Panama city is booming.The went through a bit of a slump around the yaer 2000 when we gave thenm the canal back and all th4 Americans and their big salaries left.One of the conference leaders is a former United States congressman who was on the transition team when we gave them the canal back.
Also,we basically gave them all the property and buildings in the american compound around the canel.They put most of it up for sale and this created alot of inventory,depressing prices for awhle.3 years ago you could by a big 4000 sq ft house in the American compound for $50,000.Now they are going for $150,000 up.Alot of them needed work and there is alot of renovation going on.They are also selling 4 plex buildings for about $120,000.And some apartments.Alot of the compound has been converted to a new technical Uiversity.It looks real good for them.
The old city,San Felipe,is like the old city in Cartegena.But about 2 thirds of it is in serious need of repair,about one third already renovated and looking great.Some of the old buildings look vacant,but they have a big problem with squaters,who have rights.The presindential palace is right in the middle of it.They have woman president,I didn't get her name.She moved the Palace,actually a white house,like our white house I joked,to San Felipe and some other government offices.One real estate guy said he thought tis is where the best chance of appreciation is,but most of it requires lots of renovation.There are some government programs to help.
There is also an older old city,the original Panamacity,sacked by Henry Morgan about 1515.Most of it was wood and long gone,but some buildings,like a big church,were stone and are still there.This is north of the new city.San felipe is ajacent to the new city,just south of it.even though there aremaybe 100 high rise buildings,the city is not very big.About 1,000,000 people,but maybe only 2 miles across.Everything is right next to each other.When you hit the outskirts of town you are in the countryJust city,country,no in between.Even the southern locks on the Canel at Miraflores is only 3 miles or so from downtown.You can just look over and see the buildings so close when you are really out in the country.
The new city is maybe 100 high rises,as I said.Most are buildings less than 20 years old.Maybe 2 thirds only 3 or 4 years old.There is a law whefe you get 2o years of no real estate tes when you buy in to a neww building,but it will end om 12/31/04.So there is a huge construction boom trying to beat that deadline,15 - 20 high rises under construction.
The prices are not cheap by latin american standards,but inexpensive by most US standardsi saw 1 beroom condos in the best areas for $60,000.3 bedroom 3 bath condos,1500 sq ft for $140,000.These are a little misleading because one bedroom anf bath is the maids room,very tiny.I saw a beautifull new 3500 sq ft condo for $400,000.Same building,7500 sq ft fpr $780,000.
The property in the interior is much cheaper.The interior is about any place but Panama city.One hour from Panama city you can buy beach front lots,I'm not sure the price now.
But - - - ,for me.I want to be where people are.The house on the beach or an island migfht be a little borig evern if you already had the woman you want.Without her,forget it.
Even Panama city din't star to comparte to me to Cali.There were good looking women,but far fewer it seemed.And not much going on ,or I didn't fing it.Our travel agent guy said go downtown to the area around the hotel Panama.I finally did that Saturday night.I din't see much but some restaurants and one message parlor.So I went to the hotl Panama itself,which I was told had a number of bars and lots of intertainment.I went to this one bar,the door man said the only other one in the hotel was very quiet.This one had a $5 cover and there was supposed to be intertainment later.I went in at 9.00 PM.About 20 -30 people ther.About 9.45 I asked when does this place get started.They said 11.00.I had to fly out the next morning and didn't want to stay out real late.So I went to a place we toured the day before.Its called Amador.Its an island maybe 2 miles from panama city.They connected the islands to the mainland with a causeway,lkie the Keys although only a mile or 2 long.Amador is really being developed.Its like Disneyland its so nice.They are constructing a dock for cruise ships.Plus there is a big yaught clib.Beautifull bars restaurants and shops.And there was alot going on when I got there at 10.00.
I went a nice restaurant that had a barit was beautifull,open air with a roof.I just stayed there about 90 miniutes.A lady maybe 28 at the next table came over and started talking to me.I noticed later she waw sort of telling the staff what to do.She told me her father was building a development next door,and it looked like he might have already owned the bar we were at.She asked me if I wanted anotherr drink and then ordered the waiters to bring me one.She said when the miss universe pagent was there are the girls were at their restaurant and that Mick Jagger had been there 2 weeks before.I noticed another area that lookexcmore like shops.but when I walked through it what dio I find?A crepes and waffles.Plus there were a couple of big dance type bars but not going to much yet at 11.30 latins party late.
I had to get up at 6.30 the next morning and caught a cab.The driver was a guy named Adolfo that was telling me all this stuff about women and sex,pretty rude in his discriptions.He said in Nicaragua its $5 for a hooker.I saw Muy ecoomico mujeres.He laughs.Then he tries to take me to this bordelo.Then he says you can take a girl from there to your hotel,very good.I wasn't going to do it but I did ask the price.$125,some to him probably.
Where I am at with Panama is I don't see mys4elf living there.Its expensive by latin standards all though everyone says its safe.They roll their eyes when you mention Colombia.I found myself defending
Colombia,its not THAT bad,just the opposite of what I say here when someone says its no more dangrous than the US.
OK,here is the plan.
I will go to Cali December or January,rent a big 3br 3 ba.min condo and furnish it to the hilt.It will be my home base and some people have already said they would stay with me instead of the hotel,for a good price for both of us.I think it can possibly pay for itself,but It doesn't have to.From there I will trip out to Cartegena and maybe Brazil and otherr countries.My homebase to explore from.I opened a bank account in Panama and it looks like I will go for one in Denmark also,to be able to trade European stocks,funds and commodities.Conservatively,no more gambling on tech stocks.They tell me there are 60,000 mutualfunds in the world and we have access to 7000 of them.One fund did 1700% in 5 years.The europeans think our stocks and money are overvalued.They made a strong casefor the money,pointing out Bush wants to srtimulate the economy and want5 to devalue the dollar to do that.Our goods get cheaper,foriegn goods get more expensive.We sell more and buy less but the dollar tanks.These gyuys,admittedly biased european bankers and investment managers from switzerland,Austria and Denmark say the euro has gone from .80 t0 1.17 against the Euro and thery predict 140 plus.They all said put you money in euros.That alone would have made you 25% the last year or 2,with no interest or investment return.These banks will let you have your account in pretty much any currency you like.My thought, margain conservative funds that are highly unlikely to lose money.The denmarkmbank will give you 5-1 margains,loan 80 % on whatever you want buy,even real estate.So a return of 20-40% yields 100 -200% with a 5-1 margain.Plus maybe a small amount of money on currency futures,but thats real risky.No more than 10% max.
Oyh,back to Cali.My main reason to go there firstis I know I will not be alone or isolated.I know alot of people.Plus the best woman selection going,a good idea when getting out of a marriage,plus I don't have to bring them back,no visas ect.And its inexpensive.One of my friends had a 3br 3 ba 2000 sq ft condo ,Ciudad Jardine,for $500 a month.I guess for $800 or so you get a penthouse maybe 4000 sq ft.
I will furnish to the hilt TV's,steroes,computer,nice furniture,decor.My home base for the cost of a dump here.Someplace people will want to visit me.It would be fund seeing my old buddies and meeting new ones.We were joking you might attract the wrong kind of girl.No problem,just don' t marry here.And I know I have worried aloud over Cali safety,but I'm going to do it. I will try to be smart outside the condo.Plus I want a big high rise place in the best area,guards,pools,ect.I know you can rent house cheap.My in law have 4 br 3 ba in a fairly good area for $125.But thats not what I have in mind.
OK,off to bed.Maybe I will dream up some more tonight.This is fun,I'm getting excited.
Pete
