Unique Double-Digit Yield Opportunity In An Important Untapped Market
Dec. 16, 2011, Panama City, Panama: This condo-hotel investment opportunity in Panama City is one of the best current options for taking a position in this important global property investing market.
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Dear Live and Invest Overseas Reader,
Earlier this week, Kathleen told you about a friend, Bruno, who is building a hotel here in Panama City. As Kathleen explained, Bruno didn't just show up one day and decide to build a hotel in this city where many new hotels are already being built.
Bruno, a developer with a very successful four-decade-long track record in Europe and the Americas, has identified an expanding market niche that, despite the recent and ongoing building boom, is currently untapped in Panama's capital city.
Bruno is from Italy and has connections there in the fashion world. These contacts, including one big Italian designer in particular, have explained that they are interested in doing more business in Latin America. They see this is as an important growth market.
Bruno's plan is to work with these contacts to develop Panama City as the center of this industry for this region.
Panama is a trade hub and a travel hub, and, increasingly, it's the place where all Latin America comes to shop. As it becomes more and more difficult for Latinos to get visas to travel to the States, fewer and fewer of them make their traditional annual shopping expeditions to Miami and New York. Instead, they come to Panama City.
Bruno's plan is to build a five-star, luxury-level hotel, unlike anything Panama has seen to this point, in the heart of the city, the kind of place that big deal players in the international fashion industry wouldn't mind spending time. With the help of his connections back in Italy, he'll position this hotel as the place in Latin America to come to make fashion deals. In addition, he'll work with his contacts to develop it as the center of a Panama-based Fashion Week, Latin America's answer to the event that takes place in Paris.
The project is called Unicorn. Specifically, it is a condo hotel, meaning individual investors can benefit from Bruno's unique marketing strategy.
Unicorn will be an all-suite hotel (with 96 suites). It will operate under an international flag and will be managed locally by a group of experienced hotel executives. It's a completely turn-key investment. You buy the unit, and the management company takes care of renting and maintaining the property. The only thing an investor has to do is decide whether or not he wants to use the 30 days stay at the hotel he's entitled to each year or put those days back into the rental system.
The pricing can be confusing, as you're not buying an apartment and therefore can't make that comparison. You're buying a hotel room, a fully furnished and outfitted unit, including the television and phone system, mini-bar, fridge, etc. In addition, Unicorn will have normal hotel amenities, including a restaurant with room service, a bar, a pool, a gym, and conference rooms.
To evaluate an investment like this one, you can't look at cost per square meter, as you would were you buying an apartment. When considering a condo-hotel investment, you have to look at the projected yield on the invested amount.
The projected net annual yield to owners at Unicorn is 10% to 11%. This is figured based on reasonably conservative room and occupancy rates. And, remember, Bruno has a unique strategy for bolstering his occupancy rate.
It's also worth noting that Panama is the one market in Latin America where it's possible for a foreign buyer to arrange local bank financing (typically for up to 70% of the purchase price if you qualify).
As you know, Panama is a market where I strongly recommend you take a position. And this offering from Unicorn is one of the most appealing current investment opportunities on offer in this country right now. For more information, get in touch here.
Lief Simon
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This Is Your Final Call
Uncle Sam is working quietly, behind the scenes, to put obstacles in place that will make it more difficult for you to broaden your horizons overseas. And much more difficult for you to be in the driver's seat of your own future.
It's not just the banking arena that's under threat.
In 2008, changes to the Veterans Act allowed for an "exit tax" on U.S. citizens who choose to leave the country and end their citizenship.
What other countries have done this in the past? Nazi Germany. Communist Russia. Apartheid South Africa...
This is your civil liberty at stake. How long before you just won't be able to get your assets out of the States?
I'm not an alarmist. I'm a pragmatist. And, as a pragmatic investor, I've seen the writing on the wall for some time. I've worked all these years and with an added sense of urgency more recently to take control of my own life, my own financial future, and, most important to me now, the future of my family.
Now I'd like to offer you a chance to do the same.
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Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter.
Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
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