Panama in the Spotlight

For the past decade, or so, the hottest tourism attraction in Central America has been the beautiful country of Costa Rica, and rightfully so. After all, it was Costa Rica that started the concept of "Eco-tourism", and has successfully captured the imagination (and money) of adventure travelers from around the globe. Ask the average person about Central America, and Costa Rica likely will be their first thought. An effective marketing slogan (PuraVida) and images of tranquil beaches, erupting volcanoes, toucans, monkeys and bikini clad models is almost too much to resist. What else could you ask for in a vacation in the tropics? Consequently, the booming tourism industry in Costa Rica has brought with it, real estate prices that rival Maui.

We've all heard about a friend of a friend who moved to Costa Rica years ago, bought some cheap land, and now owns a hotel, dive shop or vacation home. This friend of a friend now spends their semi-retirement days surfing or discovering previously unknown species of flora in the rain forest. It's the lure of this elusive lifestyle that haunts the minds of millions of cubicle dwellers across the corporate landscape. I guess I should only speak for myself. By the time I arrived in Costa Rica, pursuing my dream lifestyle, real estate bargains had been replaced by a multitude of shifty agents and brokers with questionable ethic standards. Although there has been significant appreciation since then, I took a pass because I couldn't shake the feeling of being the proverbial babe in the woods.

Today, people familiar with Costa Rica talk about the, less than positive, changes that have taken place over the years. Petty crime is out of control, as less fortunate locals find naive tourist easy pickings. Development has run amok, ruining the tranquil scenery that attracted people in the first place. High prices for hotels and restaurants destroyed the concept of a budget vacation in the tropics. In a sense Costa Rica has been a victim of its own success. It's still a beautiful destination, but lately, the people I've met who have travelled to Costa Rica, do so by organized tours in a comfortable motor coach. Hardly, the Costa Rica that invented "adventure travel".

A study in contrast, Panama has a completely different story to tell. Although, next door to Costa Rica, Panama receives a fraction of the tourism business that Costa Rica depends upon. This is mainly due to a practically embryonic tourism industry, which until recently focused on cruise ships passing through the canal. Oh yes, The Canal. The primary subject conjured by mention of the entire country. Just as Costa Rica invokes eco-tourism, Panama invokes... shipping. Hardly a sexy draw unless you're Aristotle Onassis or an heir to Sam Walton. Let's face it, Pura Vida has a better ring to it than The greatest short cut on Earth. It's this lack of mass marketing know how that has kept masses of surfers and hippies interested in other parts of Central America. Let's not forget the brutal dictatorship and money laundering factor that has long since been squelched, but images die hard without a loud multi-million dollar PR campaign.

There has been a campaign in Panama, but it's been subdued and focused. Operating under the radar because it's target demographic has been highly focused on basically two niches. Business and Retirees. Panama has very attractive programs that open its doors to low key folks who have a steady form of income. Primarily, mature folks less likely to be raving on the beaches at 4am.

The other demographic is the international businessman and woman. Once thought of as an offshore tax haven, attractive to shady characters, Panama has a bustling banking industry rivaling Switzerland and Hong Kong for its variety services and privacy laws. As a result some of the worlds most stable banks do business in Panama. These days, that's a big draw.

So, now let's look at the demographic most likely to find Panama attractive, today. Unless you've been living on the moon, you might have heard of a little group known as baby boomers. Over 100 million strong in the US alone, they make up the single largest demographic with any money, and they're thinking about packing it up and calling it a career. With the world economy as it is, I'm sure this thought is weighing heavy on the collective brain.

Let's say one percent of 100 million, have the means, and decide to retire in a stable little country with a strong economic outlook, good infrastructure and quality health care. That's one million people. Let's say ten percent of that population choose Panama as their new home. And why not, it's still close to the US (2.5 hours from Miami), and ranked as the number one retirement destination globally year after year. That's 100 thousand people, the population of a decent sized town.

How will Panama, a country of less than three million people absorb 100 thousand newcomers? My guess is that Panama will continue the current open arms policy...up to a certain point. Then, the powers that be will gradually raise the price of admission, as the government begins to cap immigration. For now, the door is still open, and there exist some very attractive visa programs. (which I will write about later) But, if a stampede ensues, you can bet these programs will be altered and discontinued. My advice is to book a flight to Panama to take a look around. Do your due diligence, if you like what you see, buy some property before it goes Costa Rica. In a country this small, with this much to offer, with conditions as they are, it's better to act now than regret later.

If you would like more information on locating some of the last areas in Panama with low prices, contact Esteban through email: info@mypanamaranch.com

Wall Street Meltdown: How's your IRA doing?

"Don’t wait to buy land. Buy land and wait."
– Will Rogers

“Buy land, they're not making it anymore.”
-Mark Twain

"Land is the basis of all wealth."

-Adam Smith

Land Banking is the acquisition of unimproved land for the purpose of development or disposition at a future date.

Advantages of Investing in Land Banking
Attractive Return - If the land is in the path of development, the return can be outstanding. Out performing practically any other vehicle of investment. The key is due dilligence.

Portfolio Diversification - Land banking investment offers an opportunity that isn’t directly correlated or tied to the movement of other standard investments. This offers clients a unique opportunity to bring diversity to their portfolios.

Minimum effort by Investor(Dummy Investing)- No Service or management charges to pay. Just invest one lump sum and wait for about 3-6 years to reap the expected return. It offers a hassle free investment because you pay your initial investment, and you don’t have to think about it until exit. Very suitable for who do not have the time/education/patience to study and do research.

Land is a finite resource- The key to land investing is to buy in countries with a shortage of land and a growing economy and population that will make prime land locations rise in price as they are developed.

Disadvantages of Investing in Land Banking
Minimum liquidity – You are expected to hold the investment minimum for 3-6 years for the land price to appreciate. Early exit will result loss.

No guarantee on Exit - Companies operating these schemes are seeking investors to buy plots of land in areas which HAVE NOT YET been granted planning permission. There is no guarantees on how soon developers will buy over the land. Estimates by landbanking companies range from a period of three to eight years, to five to seven years. Basically the companies will apply to convert from agriculture to Commercial land status from the Government. Government may changed their policies anytime.

Land is located Oversea- You do not know the real value of the land, except the promise of the marketer that no investor had sold the land at a loss.
Land banking is unregulated , and thus falls into a legal grey area. This could pose problems if disputes arise between companies and individual investors. You cannot complaint to Bank Negara Malaysia(BNM) for dispute as land banking is not under its purview. In November 2006, UK landbanking company, Land Heritage (UK) closed down after an investigation by the Financial Services Authority. Its 700 investors were not refunded.
There is NO perfect Investment . Therefore Investors need to do their due diligence before investing.

http://www.wisegeek.com/what-is-land-banking.htm

http://en.wikipedia.org/wiki/Land_Banking

http://www.proland.com/land_banking.htm

http://alantanblog.com/investment/land-banking-secret-recipes-to-wealth.html

The Plot Thickens...Part IV

As the Saga continues, a theme seems to emerge. Oh what the heck, I'll run with it. This theme is using classic parlor games as cliched metaphor to describe the plot twists in an unfolding story of international intrigue. An epic tale about a regular guy in seeking amusement, sets out to try his skill in an obscure, nearly forgotten, yet historically significant part of the world. Naively wandering, by chance, into an extraordinary situation from which he can not turn back. Suddenly, he must find inner strength and formulate strategy to succeed against formidable odds....Finding time among the needs of three kids, executing moves between diaper changes and after school activities.

Could someone please explain to me exactly what the hell is going on? When did all the rules change? We are not merely living in strange times, we've slipped into whole other dimension where everything is skewed by 18o degrees, then thrown into a blender set for frappe. World economies are either on the brink of recession or hip deep in one, but due to an astonishing level of denial, nobody seems willing to admit it. The private central bank (a.k.a. Federal Reserve) is printing paper money (or electronically creating it) by the billions in order to stave off the inevitable implosion. The bail out of financial institutions traditionally thought of as pillars, these days looking more like...dominoes, ( ha!) is now being ceremoniously passed on to the common tax payer, and played off as a stroke of genius. The mortgage industry is in total collapse, as Freddie and Fannie are the latest pieces to tumble.

How many more banks will fold is any one's guess. How much can the fiat currencies of the world be diluted, before it starts looking like 1930's Germany?

(hint: It's already looking like it, when you consider the consolidation of power in the executive branch)

The "cold war" is making a big comeback, but the temperature this time may be several degrees warmer. As tensions between the US and Russia take front and center, strategic positions are assumed, game faces are shown. Meanwhile the unfinished stalemates in Iraq, Afghanistan and possibly Iran get pushed out of sight and out of mind. (A Chess reference would fit appropriately here, but I've already used that one on my last post)

We're in the final stretch of a presidential election, yet despite all the dire issues at hand, the corporate controlled media seems to be preoccupied with the non-issue of lipstick wearing pigs. I've been concerned about the unravelling of our society for some time, but I'm now convinced we're on a slippery surface and rapidly sliding toward an abyss, or maybe we're teetering on the edge, I'm not sure which.

In order to protect my family's future, and pocket what was left of my cash. I've taken a cue from the big players, and put my savings into Panama land as a safe bet against the declining securities market. I figured it was calculated risk and was going to take some balls. I didn't plan to buy land with huge gold deposits under the surface. However, when the prospect presented itself, I figured it could be the ultimate hedge against the swirling economic shit storm gathering on the horizon.

Traditionally, times of uncertainty like impending hyper-inflation, bank failures, world wars and general societal collapse tend to raise the price of gold. The fundamental measure of wealth since the dawn of civilization, gold traditionally attracts buyers looking for security. For a brief period gold was acting accordingly. By all logic and reason, gold should be somewhere in the upper atmosphere on it's way toward the outer solar system right about now. However, we do not live in a world of logic and reason any longer. Now considered expendable, logic and reason were thrown under the bus a while ago, to make room for more "fiat". We now live in world of pigs and lipstick (a.k.a. total denial). I was determined to hold on to some resemblance of the world I formerly knew. What savings I hadn't invested in Panama real estate, I invested in precious metals...with leverage. I was certain, bad economic forecasts would buoy the metals, and I'd emerge from the pending wreckage intact.

Even as the metals dropped from their all time

peak six months ago, I was certain new trajectories would be hitting their targets at any moment. Boy, did I miss the mark. I am now facing my second margin call in a month, and the sharp, piercing pain inflicted on my investment portfolio is really smarting. It has been a hard lesson in illogical economics, and really burst my ego. I'm still trying to figure out how a traditional store of wealth, such as precious metals drops like a rock, at a moment, by historical standards, it should be performing.

These guys at the Federal Reserve and the other central banks around the world must benefit from suppressed commodities prices, which stifle the flow of money toward tangible wealth, such as gold. Therefore, propping up their paper fiat currencies, otherwise left to a free market would likely collapse.

Hmmm...How do they do it? It's as if this is just a big game to the central bankers. They create the money through making loans, then collect interest on the loans. Since more money is owed to the bank than has been put into circulation, the money owed to the bank can never be paid off. This scheme works for a while, but eventually an ever increasing money supply, without a basis on real assets, becomes diluted in value. They know this, so they use their position as creators of currency to buy up all the tangible assets, such as factories, toll roads, water rights, natural resources, governments, etc. etc. Meanwhile everyone else is chasing their little pieces of paper that continues to lose value. Eventually, the central banks have the entire globe bouncing around at dizzying speed, banging up and down with bright lights and distracting noise, flipping all over the place, until no one really knows the score, and we hit Tilt. It's as if the game is completely rigged.

Continue to Conclusion