“I just read a recent article from Lief Simon regarding diversifying into nondollarized assets and foreign real estate. That makes total sense, however, my confusion comes in regards to Panama real estate. It’s certainly foreign real estate, but the whole economy is based on the U.S. dollar. Unlike Colombia or Chile or many other countries, there is no currency ‘discount’ when buying Panama real estate. Would Panama be an example of a place you would avoid because of its use of the U.S. dollar or does the fact that Panama is foreign real estate outweigh their use of the U.S. dollar?
“Thank you in advance for your reply.”
–Scott H., United States
You’re right that you won’t get currency diversification by investing in real estate in Panama, but you will get economic, political, and geographic diversification, all also very important.
In addition, note that Panama is one country where nonresident foreign buyers can borrow locally for the purchase of real estate, allowing you leverage not available in much of the world.
We’ll address the best current opportunities for diversifying into Panama real estate during our upcoming Live and Invest in Panama Conference, taking place at the Marriott Hotel in Panama City April 13–15.