Welcome to episode #13 of RealtyCast Global – a global connection to all things real estate, hosted by Hugh Gilliam, president of Global Property Pros.
Discover the evolving real estate landscape of Panama through an insightful conversation with Eric Van Hoorde, the past president of FIABCI Panama and owner of Van Hoorde Realty. Learn about how government incentives are attracting multinational companies to the region. We shed light on prime neighborhoods like Costa del Este and Santa Maria, ideal for high-return residential investments, and examine the growing appeal of beach and mountain regions for expats and retirees, influenced by remote work trends.
Considering a move to Panama? We delve into the nuances of purchasing property as a foreigner, including the benefits of the Permanent Residence for Qualified Investors visa. Eric explains how foreigners can buy property without needing a visa and the educational options for families, ranging from American and Panamanian to international schools, ensuring a seamless transition for expatriate children. Eric discusses diverse industries represented by over 140 multinational companies now operating in Panama, boosting its economic landscape.
The luxury real estate market takes center stage in our discussion of the Bioma project in Costa del Este; high-demand, amenity-packed apartments including terraces, high ceilings, and facilities like a two-star Michelin restaurant and a heliport. With 70% of units sold within ten months, Bioma represents a promising investment opportunity. We also address practical considerations such as maintenance fees and the absence of selling restrictions for non-residents.
About the Guest - Eric Van Hoorde:
With more than 24 years in the Real Estate sector of Panama, Eric has extensive experience both nationally, in unions, and in the private sector, and internationally representing Panama. He has a Master's Degree in Business Administration with an emphasis in Finance, as well as a Bachelor's degree in Economics and Finance from the University of South Florida. He also has various certifications from the NAR (National Association of Realtors, USA), such as CIPS, ABR, CRS, SRS, and was International Realtor of Year 2018, being the only Panamanian to have received this distinction.
About the host - Hugh Gilliam:
Hugh Gilliam co-owned a national transportation company, created a land development business, and worked as a general contractor in residential and commercial construction for over two decades. Hugh also co-founded an international distribution company and successfully negotiated and contracted with 135 sales representatives in the United States, Canada, France, Brazil, Japan, and the Netherlands.
Today, Mr. Gilliam is affiliated with RealtyHive, LLC where he serves as Director of International Real Estate and President of Global Property Pros. His duties include involvement in commercial and residential transactions, plus promoting marketing systems and lead generation platforms.
For real estate professionals looking to take their business to the next level, check out Global Property Pros!
He is also co-founder of the luxury digital magazine, DOORWAYS INTERNATIONAL, powered by RealtyHive, which serves as a platform for Brokers and Buyers throughout 70 countries.
Hugh's Designations Include:
- Certified Luxury Home Marketing Specialist
- Certified Distressed Property Export
- Certified International Property Specialist
- Certified International Investment & Immigration Specialist
- Transnational Referral Certification
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Hugh Gilliam (00:01):
Welcome to RealtyCast Global, where we
bring insights and advice fromtop professionals in the global
market.
Join us for a journey ofculture and real estate from
countries across the globe.
My guest today is Eric VanHoorde, from Panama.
Eric's been a good friend ofmine for a long time and he is
(00:24):
the past president for FIABSIPanama.
He owns his own company calledVan Hoard Realty in Panama City
and he's known as a globalrealtor, heavily involved with
NAR and all the global aspectsthat NAR has to offer.
Eric, thanks for being on ourprogram today.
I certainly appreciate youaccepting the invitation.
Eric Van Hoorde (00:47):
Thank you, Hugh .
It's a pleasure to be with youtoday.
Hugh Gilliam (00:50):
I'm so happy you could be here.
Let's just start right out ofthe chute.
We've got a lot to talk about,and I'd like to focus today on
the current real estate marketin Panama.
If you could give us a littlebit of an update about what
you're experiencing there, thatwould be great.
Eric Van Hoorde (01:08):
Sure, definitely.
Let me tell you, actually,nowadays, panama is doing very
good.
We do have before and afterCOVID, as everyone, and then
what we're doing right now isthat.
What we have to see is how wasthe market before COVID and how
we're doing after COVID?
A lot of people say forgetabout COVID.
(01:30):
That was a while ago, it's notthat far away.
So we have to consider how wasthe country before the period
and after the period?
If you have a lot of inventoryit takes some time just to
consume the inventory and thenin in our case, we we used to
have a lot of inventory forcommercial properties that now
(01:53):
we're starting to feel thatwe're doing much better, you
know, because we're we'reactually consuming those, uh,
those inventories.
So definitely we still talk alittle bit about COVID because
it's not like something that waslike yesterday or too far away,
but in general I feel that thecountry is very attractive.
(02:13):
When we talk about the region,everybody knows that Panama is
one of the top countries in theregion and is very attractive
for investors.
The government has a lot ofincentive for international
companies to move to Panama andthey give incentives to the
company themselves and then atthe end, all these multinational
(02:35):
companies that come to ourcountry, they start helping and
supporting the economy itself.
Hugh Gilliam (02:43):
I see, and that makes sense completely.
I mean, it seems like everybodyuses COVID as a measuring stick
about before and after, but Ifeel like that just what I've
seen in Panama I mean reallyselling a lot of properties
there I feel like that babyboomers probably have a huge
(03:04):
direction as far as moving therebecause of opportunities for
economical living number one.
But more importantly, I thinkalso that you have people moving
there for vacation homes, forother type of investment
properties and in short-termrentals.
(03:25):
Also, if you were looking atmaking, you know, just say
you're in the United States andyou're looking at making an
investment in Panama where wouldyou say would be like the two
or three most popular places toinvest in residential properties
?
Eric Van Hoorde (03:43):
Okay, when we talk about investing, we have to
focus on what is the purpose ofthe investment?
Just to get a return oninvestment.
It's a property that you mightuse eventually, or a few months
per year.
So that's the first question.
Let's say that you're onlylooking for the return on
investment.
I believe that it should be inthe city of Panama and we do
(04:06):
have a lot of demand for smallunits in the city, on the
financial district, on the areasof Costa del Este, santa Maria
neighborhoods.
That is basically where most ofthe multinational companies are
located.
Most of the multinationalcompanies are located and all
their personnel you know theirstaff they need to rent, they
(04:28):
need to live there.
Everything is walking distance.
So definitely that would belike the most attractive for as
a return point of view.
But when we're talking aboutdifferent, we do have a lot of
alternative.
We have on the beach area, themountain area, have a lot of
alternatives.
We have the beach area, themountain area.
(04:48):
There's a lot of expats orretirees that moved to Panama
and they love to live in eitherthe beach area or the mountain
area.
So I believe that it's like amix.
But when we talk about just thereturn investment.
I believe that the highestdemand is on these two
neighborhoods that are in thecity itself.
Hugh Gilliam (05:11):
I see During COVID we'll go back to that for just
a minute people found out theycould work remotely and not have
to go into offices Across theUnited States.
People learned that prettyquickly.
Offices across the UnitedStates People learned that
pretty quickly.
So during that time did you seean increase in purchasing
condos and homes in Panama atthat time?
Eric Van Hoorde (05:33):
Well, actually, at that time during COVID,
people decide just to move tothe interior and they prefer
just to work from their beachhouse or the mountain house
instead of living on a smallapartment on the city, but at
the same time, it was easier, uh.
Uh, it really depends on thestructure that they have, the
(05:57):
family, the family structurethat they have, because, uh, we
already talked about for for somany months and years about the
effect of COVID, but when wetalk about how this affects
investors, I think that at theend it's a mix.
We have a demand for everything.
We have a demand for peoplethat are looking for more let's
(06:21):
say, a bigger property, more,let's say, a bigger property.
The property in the city has aprice and the property in the
interior is a lower cost.
So I feel that it reallydepends.
It really depends on what theinvestor is looking for.
Hugh Gilliam (06:38):
So when you're looking at, just say, a baby
boomer moving into Panama fromeither Canada or the United
States and they're looking fornot necessarily a huge return on
their investment becausethey're not buying it to rent
short term, they want to livethere and they want to be living
(06:58):
in an economically affordablearea.
Affordable area what would bean average price for a smaller
home that would fit, say?
Eric Van Hoorde (07:13):
you know two individuals.
Sure.
Well, I think, when you thinkabout an average price, would be
something around $180,000 and$350,000, more or less, because
it really depends on thelocation.
Sure.
And well, finishes are verysimilar actually, so it's not
like a main point.
I feel that, based on location,it will be in that price range.
(07:37):
And let me tell you, there's alot of people that are retiring
from the States and from Canada,basically, and they love to
move to Panama.
Based on our weather, based onthe cost of living, people can,
if just to.
I didn't know.
You were gonna ask me later on,probably something about the
visas and all this stuff.
One of the requirement is tohave an income as a pensioner,
(08:02):
as a retiree, of $1,000.
So once you can prove that it'sbecause that's more or less
what you really need as a personjust to have a decent and
comfortable life in Paris.
Hugh Gilliam (08:16):
And you're talking $1,000 per month.
That would cover food andclothing and shelter, right
Right, wow, so that's why thebaby boomers are headed that way
, that's incredible.
Well, you know, eric, I thinkNAR put a study out a couple of
(08:38):
years ago about baby boomers andthe fact that every day 10,000
baby boomers are turning age 65.
And so that's retirement age.
And so a lot of those peopleare making their plans to move
(08:59):
into other countries intoPortugal, into Panama, into
Costa Rica, different placeslike that because they find it
more economical to live alifestyle that they had here,
but yet do it on less money,because a lot of people didn't
save a lot of money during theworking years because they
(09:20):
couldn't.
They had children to put toschool and college bills and
things like that.
So you know as well as I do tofind an economical place to live
is what you would need at thatvery last chapter of your life.
Which brings up one question Ihave about hospitals and medical
(09:40):
facilities and things like that.
In Panama, I know you and I hada discussion about a certain
medical procedure and how moreeconomically it was there than
here in the United States.
I mean, does that hold truewith medicine and doctors and
hospitals as far as having abetter price than we do here in
(10:03):
the United States?
Eric Van Hoorde (10:05):
Definitely Most of the people that retire to
Panama.
They do have their owninsurance and most of the
insurance works in Panama withno problem.
At the same time, the cost ofgoing to a doctor or a clinic is
very, very, very low comparedto the States.
So whenever you go, you have aninsurance in the States and you
(10:27):
have to pay your monthlypayment to your insurance once
you retire.
Whenever you have to visit adoctor, you have to pay
something, or it's 100% cover,you have to pay a deductible
usually Absolutely.
Hugh Gilliam (10:41):
There's a copayment, that's what we call
it here.
Eric Van Hoorde (10:45):
Okay so at the end that copayment will be
equivalent to what I believethat the cost of the visit of
the doctor will be here inPanama.
So it's definitely cheaper.
It's less expensive than in theStates.
That's what a lot of peoplethat are retiring in Panama tell
me.
Whether my insurance doesn'tcover, or if my insurance covers
(11:06):
, there's no problem.
But if it doesn't cover, theactual appointment with the
doctor or whatever I need hereis so economic compared to other
countries, compared to theStates or Canada, so they feel
very comfortable about it.
Hugh Gilliam (11:22):
I want to get into a couple of other things about
a school for expats.
They're there doing digitalnomads, I think is the name for
it today.
But first, what about a certainrequirement to purchase
property in Panama?
A foreigner can come to Panamaand purchase property.
(11:44):
Is that correct?
Eric Van Hoorde (11:46):
Anyone can come to Panama and buy a property
and have the same treatment as aPanamanian.
They have the same treatment.
If you come, come to Panama andbuy a property and have the
same treatment as a Panamanianthey have the same treatment.
If you come tomorrow to Panamaand you buy any property, you
will be treated the same as if Ibuy it.
It's the same treatment foreveryone.
Hugh Gilliam (12:01):
Okay, so there's no process about the visa that
we have to have or our no, youcan buy a property without
having a visa with no problem.
Eric Van Hoorde (12:10):
But at the same time, if you want to have a
visa, there are some incentivesfor investors as well.
There is a visa that is calledpermanent residence for
qualified investors.
That's the one that you can buya property of $300,000 and you
will get the permanent residenceright away.
Hugh Gilliam (12:35):
So you can be a resident of Panama with a
$300,000 or more purchase of aresidential property.
Eric Van Hoorde (12:43):
Exactly you have three options.
Either you buy a property of$300,000 and the property will
be you.
It could be 500,000, whatever,or x amount, but you have to pay
300,000.
You have to prove that you paidthat amount.
Even you can get a loan for thedifference, but the only thing
(13:04):
that you have to do is give fromyour own funds and it has to be
an international water transferthat comes to panama.
You have to show that you youdid it water transfer and you
did the payment from fronts overoverseas, and then you will
qualify to to get the residenceas an investor buying a property
.
Or you can invest through abroker's house 500 000500,000,
(13:29):
or you can create a time depositon a bank for $750,000.
And everybody prefers just tobuy a property.
They have a return oninvestment.
They can leave the property,depending on the building, on
the project that they invest.
Actually it could be an Airbnbunit, so at the end it's
(13:51):
fantastic.
So most of the people preferjust to invest $300 or $500,
depending on the taste or thebudget that they have and they
buy a property.
They have a return, they canhave a valuation of the property
, so it's the easiest wayactually.
Hugh Gilliam (14:07):
To go back to the moving into Panama and just say
you're coming in and you have afamily, a small family, and you
know education is going to be atthe top of their mind.
The parents about providing agreat educational program for
the children.
So what's available?
(14:28):
What's available there inPanama?
Eric Van Hoorde (14:29):
school terms calendars.
One is the same calendar thatwe call American system, or it's
(14:53):
exactly the same year periodthat you have in the States, and
then the other one is thePanamanian system, or the school
year that goes from February toDecember.
So let's go the Panamaniansystem is they start school on
February, they graduate or theyfinish the year in December, and
(15:13):
then the other one is exactlythe same the same months, from
the States, and those are whatwe call international school or
high school or elementaryschools, that most of the people
that come from internationalmultinational companies, they
put their kids in that system,you know, just to make sure that
(15:35):
they don't lose time from yearto year when they travel from
one country to another one.
But we have a lot ofalternatives.
We have great elementaryeducation here in Panama.
In reference to, foralternative, remember that all
these multinational companies Idon't want to say the name, but
(15:56):
let's say Procter, gamble,ranger, l'oreal all these
companies that they bring theirstaff here to Panama.
They relocate, they bring theirfamily, the whole family with
the kids and everything.
So at the end they come here,they do the sightseeing, check
where you're going to live andeverything At the same time.
They go to the school searchand they coordinate everything
(16:19):
through the relocation companies.
And once they move to Panama,everything is set up and it's
much easier, everything iscompletely smooth.
Hugh Gilliam (16:31):
So you mentioned companies, these Fortune 500
companies, moving into Panama.
Do you see a lot of?
I mean, what kind of mix do yousee coming in?
Do you see a lot of technologycompanies coming in?
Have you seen an influx of newcompanies over the last two
years?
What's the status of that?
(16:52):
What do you see moving intoPanama at this time?
Eric Van Hoorde (16:59):
Okay, right now we have over 140 multinational
companies that are working inthe country of Panama.
Most of them are in the cityand it's a mix.
It's a mix of services,technology, logistics.
There's a lot of companies thatthey finish the manufacturing
locally and they re-support it.
(17:19):
So it really depends on whatare the needs we do have a lot
of.
When we talk about visas, adifferent type of visas we have,
we feel that we have like a bigcatalog of visas focused on
what people will need.
That's something that, duringthe last years, panama have been
(17:40):
working pretty hard just tomake sure that we're more and
more competitive and basically,you told me what kind of
business you need and I canassure you that we have a one
that is like just fixed for you.
So at the end, it's somethingthat people are going to see.
That makes the country moreattractive as a whole.
Hugh Gilliam (18:04):
Sure it does.
Sure it does.
In talking about people movinginto the country and I know that
there's specific neighborhoodsthat are designed for, kind of
you know, home to home, livingside by side, subdivisions and
things like that what type ofsecurity do you find in those
(18:28):
neighborhoods?
I mean, are they gated?
Do they have surveillance?
Eric Van Hoorde (18:31):
I mean what would be security systems in
those?
Hugh Gilliam (18:34):
neighborhoods to protect the residents.
Eric Van Hoorde (18:37):
Well, when we talk about these gated
communities, it's very similar.
Let's take as an example Miami.
If you go to Miami, you haveKendall, you have Doral, you
have all these differentneighborhoods and whatever you
have there is very similar toPanama.
We do have security guard atthe entrance.
(18:59):
It's a gated community.
You have cameras also if youneed it.
Actually, it's not that we needit because the security is very
good on all these neighborhoods, but it just gives you know
this comfort that you know thatit's secure and, for instance,
where I live, we just love thehouse.
(19:19):
At the end of the day, my dooris always open, so we feel that
it's quite secure.
We do have a guard at theentrance and the gate.
You know that is normal, but ingeneral it's very similar to
the States and it's somethingthat gives you that you know
(19:40):
that piece of control.
You know, probably, that peoplefeel that their kids are secure
, they're safe while they'reworking.
Hugh Gilliam (19:51):
Sort of peace of mind, Right exactly.
Eric Van Hoorde (19:54):
That's the right word.
Hugh Gilliam (19:56):
What about shopping centers?
People love to get out and shopand I've been downtown in
Panama City and I've seen a lotof stores there.
But as you move into thesuburbs, what about shopping
centers and things like that forpeople to get out and have
entertainment as well asshopping?
Eric Van Hoorde (20:13):
Actually, we do have all kinds of alternatives.
We have big shopping malls andwe have all these big brands and
fancy brands and we also havestreet malls.
So, for instance, in the areaof Costa Rica and Santa Maria,
we do have actually one bigshopping mall that is the most
(20:35):
modern one actually, and at thesame time we have a lot of
street malls, street classes.
So we do have all kinds ofservices.
We have drugstores, laundryareas, I mean laundromatic
services.
We have doctors, clinics justgive me one service.
We have everything.
We have theaters, dentists, youknow all kinds of services on
(20:58):
these three classes.
So at the end, we feel that wehave everything there.
We have all these services thatare up to a point that you
don't need to get out of theneighborhood.
You have everything there.
And that's the same thing onthese two that I mentioned, the
same as San Francisco or Barrio,or right now my office is in
(21:20):
Paitilla.
We have all kinds of servicesaround, so we don't need to move
out.
Everything is walking distanceactually.
Hugh Gilliam (21:30):
Well, see the reason I'm bringing this up?
Because, as you and I talkedearlier, before we even started
the program, a lot of peopleknow Panama, they know the
Panama Canal Zone and they don'tknow much more about what
Panama is all about.
And all sorts of people, fromretirees to you, know the
(21:56):
younger people that have gottenout of college, that have been
shipped off there to work withdifferent companies and it's
just a best all around world foranything that you would want.
And also, let's talk aboutclimate, and then we'll move on.
Tell me about the climate Now.
We always hear about the rainyseason and the fact that you've
(22:18):
got that going on, and I thinktoday you have.
Like.
The temperature is probablyabout 82 degrees.
Eric Van Hoorde (22:24):
Fahrenheit.
Hugh Gilliam (22:26):
And maybe you had a little bit of rain this
morning.
Eric Van Hoorde (22:33):
But what's considered the rainy time for
Panama?
Actually, we do have a lot ofrain.
I can, I can light about that,but in general, uh, when it's
like rainy season, uh, the lastmonths we can say there are from
, uh, probably august tonovember more or less.
So there's a few months whereit's more rainy itself, but in
(22:57):
general when it rains it's likein the afternoons, not in the
morning, so we can work aroundthat.
And then, basically, what isDecember, january, february,
march?
Hugh Gilliam (23:09):
it's like summer so.
Eric Van Hoorde (23:12):
I think that we have a lot of alternative, a
lot of things to do in thecountry, so raining is not an
issue, definitely if you'replanning to walk from your
apartment to the office you haveto think about it, you need to
get your umbrella.
you know that's normal.
It's walking distance from youknow, from the, and that's what
(23:33):
people love to have.
They love to work very close totheir offices.
When we talk about thesemultinational companies, all
their, these young executives,that's the way that they do.
They love to, even in scooters.
They drive, they take theirscooters and they go to the
office.
Hugh Gilliam (23:49):
You know we've talked about property and I
think now's the time to let youshow one of your properties.
That's fairly new, Okay, andyou can tell a little bit about
it as soon as you pull that upand share it with the viewers.
I have this project calledBioma.
Eric Van Hoorde (24:07):
That is a new project.
Actually, it launched less than11 months ago 10 months ago
more or less and right now,bioma is a new project that is
going to be constructed in Costadel Este neighborhood.
It's a very modern concept thatyou have all these amenities
(24:31):
you have, as you can see rightnow, is a big building.
You have very ample terracesand high ceiling.
The distance between floor andceiling is 3.2 meters.
Okay, so it's considered a veryample apartment.
(24:53):
When we talk about theamenities, you're going to have
all kinds of restaurants.
You're going to have a two-starMichelin restaurant on top.
You're going to have a heliport.
There is a big demand right nowfor these units.
Believe me, we do propertymanagement for the last 24 years
and we don't have any vacantunit in this area because
(25:16):
there's a huge demand.
Hugh Gilliam (25:18):
So let's talk about that.
I think you mentioned that itwent on the market.
I mean like pre-constructioncontracts.
Maybe it's 70% sold at thispoint in time.
Yes, it's incredible thathappened over eight months Over
almost ten months, ten months.
Okay, that's fantastic.
(25:40):
It looked like at the very topthat there were three-story
penthouses.
Actually it's not a penthouse.
Eric Van Hoorde (25:46):
It's the social areas.
You're going to have a heliporton the top.
You're going to have a huge andvery elegant restaurant with
two Michelin stars.
You're going to have all kindsof amenities.
I will send you thepresentation so you can add it
later on.
And at the end, it's a projectthat just by who's the developer
(26:13):
, who's behind behind, havingsold pretty fast and the
experience and all the expertisethat the previous project that
the developer have done withfantastic results.
People love it.
People love it.
So I will send you theinformation later.
Hugh Gilliam (26:28):
So if you could give us just maybe one prize for
and I think you said that youknow someone purchased one,
there was that a two-bedroom,three-bedroom or what no, I told
you that I bought one there,okay okay, you bought one there.
Eric Van Hoorde (26:44):
That's an investment point of view or an
investment property, my ownhouse, so but I, I have three
kids, so I have to think aboutthem too, you know.
So at the end, um, at the end,let's say what is the price per
square meter.
We can get an apartment of oneor two bedrooms, let's say
two-bedroom apartment, foraround $390,000.
(27:07):
We're talking about like 85square meters, more or less, and
with one parking space.
But you have all thesefacilities.
You don't need to move out fromthe building, okay?
So these projects are the onesthat people are looking for.
Now, as you mentioned, peopleare working more and more from
(27:27):
home and this building has allthese, as I mentioned, all these
facilities.
You know that you can havemeetings on different spots from
the building, that you can havethe social areas, the sport
areas.
It's something out of thisworld.
Hugh Gilliam (27:45):
It's a unique project and again tell us where
that's located.
Eric Van Hoorde (27:50):
That one is in Costa del Este, okay, okay.
Hugh Gilliam (27:54):
How close is that to downtown?
Eric Van Hoorde (27:57):
We're talking about driving time, probably
like 10, 15 minutes.
Hugh Gilliam (28:02):
Okay, Okay, In the specific one that you purchased
, what about the we call it herein the United States the HOA
fee?
What would be your monthlyassessment or monthly fee that
you would have to pay?
Eric Van Hoorde (28:19):
On this one.
We call it maintenance fee.
That is the same right.
This one is 2.75 per squaremeter.
Okay 2.75 cents per squaremeter.
Hugh Gilliam (28:31):
Okay, okay.
And you said how many squaremeters in the one you purchased.
Eric Van Hoorde (28:35):
The one that I purchased is 130 plus 30 of
balcony.
Hugh Gilliam (28:39):
Okay, okay, I tell you it's a beautiful property.
And if you're 70% sold out.
Eric Van Hoorde (28:47):
it's going to be sold out by the first quarter
of next year, I feel certainabout it.
Hugh Gilliam (28:53):
It's fantastic, it's incredible Moving right
along.
Are there any sellingrestrictions?
Once I buy a property in Panamaand I'm not necessarily a
resident there any sellingrestrictions on me when I sell
the property or make a decision?
Eric Van Hoorde (29:10):
to sell.
No, there's no restriction atall.
Once you own the property andyou want to sell it, you only
have to pay the sales tax to thegovernment.
You need to pay 5% of the salevalue.
Hugh Gilliam (29:25):
Okay, okay, I mean this is kind of a no-brainer as
far as a question to ask you,but looking at the property that
we just saw and looking atother properties in Panama, what
does it look like over the nextthree years?
In your mind as far as growth,as far as the values going up or
(29:49):
down, there's always, you know,depending on the point of view
of view of person.
Eric Van Hoorde (29:54):
No one has like what we call, you know, the
crystal ball used to to figureout how it's going to be the
market what we have to check andand be very I'm always positive
.
You're not an optimistic, but wehave to be realistic as well.
So I believe that there is noway that I can tell you the
expected growth will be around10, 50%.
(30:17):
I cannot assure you that, butwhat I can tell you is that we
are building these projectsbecause we are out of stock.
People feel that we need itactually, and then Panama is
being very competitive duringthe last years and the forecast
(30:42):
that we have is that we're goingto keep on that track.
So I think that, based on thisinformation, we feel that it
should have a very attractivereturn.
I cannot give you a specificnumber, but what I can tell you
is that there is a lot ofinvestors that, let's say, 12
years ago or 10 years ago, theybought property and nowadays
(31:06):
that property is like threetimes current value, so it is
attractive as a global realtorand your involvement for many,
many years in Panama.
Hugh Gilliam (31:21):
What would be if you were talking to a person
that just had the thought I'dlike to move to Panama?
What would be one of the firstthings you would tell that
individual Not necessarily topersuade them, but just based on
your experience about why theyshould move to your country?
Eric Van Hoorde (31:40):
I think that Panama is unique.
Honestly, I feel that we haveour connectivity and our
geographical position makesPanama more and more attractive
in comparison to other countries.
There is a lot of incentive andbenefit of living in Panama.
(32:03):
There's a lot of people thatthey don't know that Panama is a
very small country with a lotof benefits.
As you know, we have aworld-class logistic platform,
we have the US dollar as legalcurrency, we have a great and
very stable internationalbanking and financial center,
(32:25):
and we do have high-qualityeducation, world-class
communication infrastructure.
So at the end, when someone isconsidering to move out from
their country to go to anotherone, just to restart or start
working on another business orsomething, or just relocate for
any reason, they have toconsider that they need to have
(32:49):
a place that gives you all thisincentive or attractiveness you
know.
So they feel that it's a goodidea just to move to another
country.
There are other neighborhoods.
Hugh Gilliam (33:02):
you know, we have Colombia, we have Costa Rica.
Eric Van Hoorde (33:04):
We have Costa Rica.
For so many years have beenworking on tourism and nature,
you know, and they have done aquite good job.
On reference to the branding,you know in tourism and well.
I believe that every countryhas their own, you know,
(33:25):
incentive and benefits.
So that's why a lot of peopleare moving to Panama.
Hugh Gilliam (33:32):
Okay, so yeah, I get it.
Eric Van Hoorde (33:37):
Yeah, I don't like to compare talk about other
countries, but in general everycountry has their own unique
you know their own benefits, butI feel that Panama is doing
quite good.
Hugh Gilliam (33:45):
Yeah, I just wanted to give you the
opportunity to sell Panamabecause people need to hear you
from your point of view, and soyou know you're a native there.
I mean, you were born andraised there.
Eric Van Hoorde (33:56):
Yeah, I think that Panama has a lot to offer.
I believe that, as I mentionedagain, the geographical position
helps a lot.
The distance from here to theStates, from here to yeah, just
to Miami we're talking about athree-hour plane, so it's a
flight so it's a flight, so it'svery close and once you get
(34:21):
here, you're going to feel thatyou're in the States.
It's very, very similar thelanguage, the dollars, the
currency the food the lifestyle.
Everything is very, verysimilar to the States.
Hugh Gilliam (34:34):
So people feel comfortable and, believe me,
there's a lot of Americans thatmove to Panama and they really
enjoy it.
That's for sure.
Eric Van Hoorde (34:42):
We have tropical culture.
But it's cool, it's very nice.
Hugh Gilliam (34:49):
Listen, it's been a pleasure having you today.
Eric Van Hoorde (34:53):
And.
Hugh Gilliam (34:54):
I do want to get back with you a little bit later
in the year and talk a littlebit more about Panama and what's
happening, because it'sevolving, it's changing.
I mean, new people are movingin, new construction's coming up
all the time and I would liketo see more inventory at some
point in time.
Maybe we can do this mid-yearand just do a quick update on
(35:16):
where we are today, where we'regoing to be then and, like I
said, it's always good to talkto you.
Eric and I go way back andevery time we have meetings with
the International Real EstateFederation, we always have time
to sneak off in a corner andcatch up and talk a little bit
about personal life as well asbusiness, and I really
appreciate corner and catch upand talk a little bit about
personal life as well as asbusiness, and I really
(35:36):
appreciate you and evelyn andyour family and we'll get back
together soon.
Thank you so much for beinghere thank you actually.
Eric Van Hoorde (35:45):
You have a great time with you and you're a
fantastic friend.
Thank you thank you.
Hugh Gilliam (35:53):
Thanks for joining in on today's episode of
RealtyCast Global.
Make sure to subscribe to thepodcast to be notified when new
episodes air.
Welcome to RealtyCast Global, where we
bring insights and advice fromtop professionals in the global
market.
Join us for a journey ofculture and real estate from
countries across the globe.
My guest today is Eric VanHoorde, from Panama.
Eric's been a good friend ofmine for a long time and he is
(00:24):
the past president for FIABSIPanama.
He owns his own company calledVan Hoard Realty in Panama City
and he's known as a globalrealtor, heavily involved with
NAR and all the global aspectsthat NAR has to offer.
Eric, thanks for being on ourprogram today.
I certainly appreciate youaccepting the invitation.
Eric Van Hoorde (00:47):
Thank you, Hugh .
It's a pleasure to be with youtoday.
Hugh Gilliam (00:50):
I'm so happy you could be here.
Let's just start right out ofthe chute.
We've got a lot to talk about,and I'd like to focus today on
the current real estate marketin Panama.
If you could give us a littlebit of an update about what
you're experiencing there, thatwould be great.
Eric Van Hoorde (01:08):
Sure, definitely.
Let me tell you, actually,nowadays, panama is doing very
good.
We do have before and afterCOVID, as everyone, and then
what we're doing right now isthat.
What we have to see is how wasthe market before COVID and how
we're doing after COVID?
A lot of people say forgetabout COVID.
(01:30):
That was a while ago, it's notthat far away.
So we have to consider how wasthe country before the period
and after the period?
If you have a lot of inventoryit takes some time just to
consume the inventory and thenin in our case, we we used to
have a lot of inventory forcommercial properties that now
(01:53):
we're starting to feel thatwe're doing much better, you
know, because we're we'reactually consuming those, uh,
those inventories.
So definitely we still talk alittle bit about COVID because
it's not like something that waslike yesterday or too far away,
but in general I feel that thecountry is very attractive.
(02:13):
When we talk about the region,everybody knows that Panama is
one of the top countries in theregion and is very attractive
for investors.
The government has a lot ofincentive for international
companies to move to Panama andthey give incentives to the
company themselves and then atthe end, all these multinational
(02:35):
companies that come to ourcountry, they start helping and
supporting the economy itself.
Hugh Gilliam (02:43):
I see, and that makes sense completely.
I mean, it seems like everybodyuses COVID as a measuring stick
about before and after, but Ifeel like that just what I've
seen in Panama I mean reallyselling a lot of properties
there I feel like that babyboomers probably have a huge
(03:04):
direction as far as moving therebecause of opportunities for
economical living number one.
But more importantly, I thinkalso that you have people moving
there for vacation homes, forother type of investment
properties and in short-termrentals.
(03:25):
Also, if you were looking atmaking, you know, just say
you're in the United States andyou're looking at making an
investment in Panama where wouldyou say would be like the two
or three most popular places toinvest in residential properties
?
Eric Van Hoorde (03:43):
Okay, when we talk about investing, we have to
focus on what is the purpose ofthe investment?
Just to get a return oninvestment.
It's a property that you mightuse eventually, or a few months
per year.
So that's the first question.
Let's say that you're onlylooking for the return on
investment.
I believe that it should be inthe city of Panama and we do
(04:06):
have a lot of demand for smallunits in the city, on the
financial district, on the areasof Costa del Este, santa Maria
neighborhoods.
That is basically where most ofthe multinational companies are
located.
Most of the multinationalcompanies are located and all
their personnel you know theirstaff they need to rent, they
(04:28):
need to live there.
Everything is walking distance.
So definitely that would belike the most attractive for as
a return point of view.
But when we're talking aboutdifferent, we do have a lot of
alternative.
We have on the beach area, themountain area, have a lot of
alternatives.
We have the beach area, themountain area.
(04:48):
There's a lot of expats orretirees that moved to Panama
and they love to live in eitherthe beach area or the mountain
area.
So I believe that it's like amix.
But when we talk about just thereturn investment.
I believe that the highestdemand is on these two
neighborhoods that are in thecity itself.
Hugh Gilliam (05:11):
I see During COVID we'll go back to that for just
a minute people found out theycould work remotely and not have
to go into offices Across theUnited States.
People learned that prettyquickly.
Offices across the UnitedStates People learned that
pretty quickly.
So during that time did you seean increase in purchasing
condos and homes in Panama atthat time?
Eric Van Hoorde (05:33):
Well, actually, at that time during COVID,
people decide just to move tothe interior and they prefer
just to work from their beachhouse or the mountain house
instead of living on a smallapartment on the city, but at
the same time, it was easier, uh.
Uh, it really depends on thestructure that they have, the
(05:57):
family, the family structurethat they have, because, uh, we
already talked about for for somany months and years about the
effect of COVID, but when wetalk about how this affects
investors, I think that at theend it's a mix.
We have a demand for everything.
We have a demand for peoplethat are looking for more let's
(06:21):
say, a bigger property, more,let's say, a bigger property.
The property in the city has aprice and the property in the
interior is a lower cost.
So I feel that it reallydepends.
It really depends on what theinvestor is looking for.
Hugh Gilliam (06:38):
So when you're looking at, just say, a baby
boomer moving into Panama fromeither Canada or the United
States and they're looking fornot necessarily a huge return on
their investment becausethey're not buying it to rent
short term, they want to livethere and they want to be living
(06:58):
in an economically affordablearea.
Affordable area what would bean average price for a smaller
home that would fit, say?
Eric Van Hoorde (07:13):
you know two individuals.
Sure.
Well, I think, when you thinkabout an average price, would be
something around $180,000 and$350,000, more or less, because
it really depends on thelocation.
Sure.
And well, finishes are verysimilar actually, so it's not
like a main point.
I feel that, based on location,it will be in that price range.
(07:37):
And let me tell you, there's alot of people that are retiring
from the States and from Canada,basically, and they love to
move to Panama.
Based on our weather, based onthe cost of living, people can,
if just to.
I didn't know.
You were gonna ask me later on,probably something about the
visas and all this stuff.
One of the requirement is tohave an income as a pensioner,
(08:02):
as a retiree, of $1,000.
So once you can prove that it'sbecause that's more or less
what you really need as a personjust to have a decent and
comfortable life in Paris.
Hugh Gilliam (08:16):
And you're talking $1,000 per month.
That would cover food andclothing and shelter, right
Right, wow, so that's why thebaby boomers are headed that way
, that's incredible.
Well, you know, eric, I thinkNAR put a study out a couple of
(08:38):
years ago about baby boomers andthe fact that every day 10,000
baby boomers are turning age 65.
And so that's retirement age.
And so a lot of those peopleare making their plans to move
(08:59):
into other countries intoPortugal, into Panama, into
Costa Rica, different placeslike that because they find it
more economical to live alifestyle that they had here,
but yet do it on less money,because a lot of people didn't
save a lot of money during theworking years because they
(09:20):
couldn't.
They had children to put toschool and college bills and
things like that.
So you know as well as I do tofind an economical place to live
is what you would need at thatvery last chapter of your life.
Which brings up one question Ihave about hospitals and medical
(09:40):
facilities and things like that.
In Panama, I know you and I hada discussion about a certain
medical procedure and how moreeconomically it was there than
here in the United States.
I mean, does that hold truewith medicine and doctors and
hospitals as far as having abetter price than we do here in
(10:03):
the United States?
Eric Van Hoorde (10:05):
Definitely Most of the people that retire to
Panama.
They do have their owninsurance and most of the
insurance works in Panama withno problem.
At the same time, the cost ofgoing to a doctor or a clinic is
very, very, very low comparedto the States.
So whenever you go, you have aninsurance in the States and you
(10:27):
have to pay your monthlypayment to your insurance once
you retire.
Whenever you have to visit adoctor, you have to pay
something, or it's 100% cover,you have to pay a deductible
usually Absolutely.
Hugh Gilliam (10:41):
There's a copayment, that's what we call
it here.
Eric Van Hoorde (10:45):
Okay so at the end that copayment will be
equivalent to what I believethat the cost of the visit of
the doctor will be here inPanama.
So it's definitely cheaper.
It's less expensive than in theStates.
That's what a lot of peoplethat are retiring in Panama tell
me.
Whether my insurance doesn'tcover, or if my insurance covers
(11:06):
, there's no problem.
But if it doesn't cover, theactual appointment with the
doctor or whatever I need hereis so economic compared to other
countries, compared to theStates or Canada, so they feel
very comfortable about it.
Hugh Gilliam (11:22):
I want to get into a couple of other things about
a school for expats.
They're there doing digitalnomads, I think is the name for
it today.
But first, what about a certainrequirement to purchase
property in Panama?
A foreigner can come to Panamaand purchase property.
(11:44):
Is that correct?
Eric Van Hoorde (11:46):
Anyone can come to Panama and buy a property
and have the same treatment as aPanamanian.
They have the same treatment.
If you come, come to Panama andbuy a property and have the
same treatment as a Panamanianthey have the same treatment.
If you come tomorrow to Panamaand you buy any property, you
will be treated the same as if Ibuy it.
It's the same treatment foreveryone.
Hugh Gilliam (12:01):
Okay, so there's no process about the visa that
we have to have or our no, youcan buy a property without
having a visa with no problem.
Eric Van Hoorde (12:10):
But at the same time, if you want to have a
visa, there are some incentivesfor investors as well.
There is a visa that is calledpermanent residence for
qualified investors.
That's the one that you can buya property of $300,000 and you
will get the permanent residenceright away.
Hugh Gilliam (12:35):
So you can be a resident of Panama with a
$300,000 or more purchase of aresidential property.
Eric Van Hoorde (12:43):
Exactly you have three options.
Either you buy a property of$300,000 and the property will
be you.
It could be 500,000, whatever,or x amount, but you have to pay
300,000.
You have to prove that you paidthat amount.
Even you can get a loan for thedifference, but the only thing
(13:04):
that you have to do is give fromyour own funds and it has to be
an international water transferthat comes to panama.
You have to show that you youdid it water transfer and you
did the payment from fronts overoverseas, and then you will
qualify to to get the residenceas an investor buying a property
.
Or you can invest through abroker's house 500 000500,000,
(13:29):
or you can create a time depositon a bank for $750,000.
And everybody prefers just tobuy a property.
They have a return oninvestment.
They can leave the property,depending on the building, on
the project that they invest.
Actually it could be an Airbnbunit, so at the end it's
(13:51):
fantastic.
So most of the people preferjust to invest $300 or $500,
depending on the taste or thebudget that they have and they
buy a property.
They have a return, they canhave a valuation of the property
, so it's the easiest wayactually.
Hugh Gilliam (14:07):
To go back to the moving into Panama and just say
you're coming in and you have afamily, a small family, and you
know education is going to be atthe top of their mind.
The parents about providing agreat educational program for
the children.
So what's available?
(14:28):
What's available there inPanama?
Eric Van Hoorde (14:29):
school terms calendars.
One is the same calendar thatwe call American system, or it's
(14:53):
exactly the same year periodthat you have in the States, and
then the other one is thePanamanian system, or the school
year that goes from February toDecember.
So let's go the Panamaniansystem is they start school on
February, they graduate or theyfinish the year in December, and
(15:13):
then the other one is exactlythe same the same months, from
the States, and those are whatwe call international school or
high school or elementaryschools, that most of the people
that come from internationalmultinational companies, they
put their kids in that system,you know, just to make sure that
(15:35):
they don't lose time from yearto year when they travel from
one country to another one.
But we have a lot ofalternatives.
We have great elementaryeducation here in Panama.
In reference to, foralternative, remember that all
these multinational companies Idon't want to say the name, but
(15:56):
let's say Procter, gamble,ranger, l'oreal all these
companies that they bring theirstaff here to Panama.
They relocate, they bring theirfamily, the whole family with
the kids and everything.
So at the end they come here,they do the sightseeing, check
where you're going to live andeverything At the same time.
They go to the school searchand they coordinate everything
(16:19):
through the relocation companies.
And once they move to Panama,everything is set up and it's
much easier, everything iscompletely smooth.
Hugh Gilliam (16:31):
So you mentioned companies, these Fortune 500
companies, moving into Panama.
Do you see a lot of?
I mean, what kind of mix do yousee coming in?
Do you see a lot of technologycompanies coming in?
Have you seen an influx of newcompanies over the last two
years?
What's the status of that?
(16:52):
What do you see moving intoPanama at this time?
Eric Van Hoorde (16:59):
Okay, right now we have over 140 multinational
companies that are working inthe country of Panama.
Most of them are in the cityand it's a mix.
It's a mix of services,technology, logistics.
There's a lot of companies thatthey finish the manufacturing
locally and they re-support it.
(17:19):
So it really depends on whatare the needs we do have a lot
of.
When we talk about visas, adifferent type of visas we have,
we feel that we have like a bigcatalog of visas focused on
what people will need.
That's something that, duringthe last years, panama have been
(17:40):
working pretty hard just tomake sure that we're more and
more competitive and basically,you told me what kind of
business you need and I canassure you that we have a one
that is like just fixed for you.
So at the end, it's somethingthat people are going to see.
That makes the country moreattractive as a whole.
Hugh Gilliam (18:04):
Sure it does.
Sure it does.
In talking about people movinginto the country and I know that
there's specific neighborhoodsthat are designed for, kind of
you know, home to home, livingside by side, subdivisions and
things like that what type ofsecurity do you find in those
(18:28):
neighborhoods?
I mean, are they gated?
Do they have surveillance?
Eric Van Hoorde (18:31):
I mean what would be security systems in
those?
Hugh Gilliam (18:34):
neighborhoods to protect the residents.
Eric Van Hoorde (18:37):
Well, when we talk about these gated
communities, it's very similar.
Let's take as an example Miami.
If you go to Miami, you haveKendall, you have Doral, you
have all these differentneighborhoods and whatever you
have there is very similar toPanama.
We do have security guard atthe entrance.
(18:59):
It's a gated community.
You have cameras also if youneed it.
Actually, it's not that we needit because the security is very
good on all these neighborhoods, but it just gives you know
this comfort that you know thatit's secure and, for instance,
where I live, we just love thehouse.
(19:19):
At the end of the day, my dooris always open, so we feel that
it's quite secure.
We do have a guard at theentrance and the gate.
You know that is normal, but ingeneral it's very similar to
the States and it's somethingthat gives you that you know
(19:40):
that piece of control.
You know, probably, that peoplefeel that their kids are secure
, they're safe while they'reworking.
Hugh Gilliam (19:51):
Sort of peace of mind, Right exactly.
Eric Van Hoorde (19:54):
That's the right word.
Hugh Gilliam (19:56):
What about shopping centers?
People love to get out and shopand I've been downtown in
Panama City and I've seen a lotof stores there.
But as you move into thesuburbs, what about shopping
centers and things like that forpeople to get out and have
entertainment as well asshopping?
Eric Van Hoorde (20:13):
Actually, we do have all kinds of alternatives.
We have big shopping malls andwe have all these big brands and
fancy brands and we also havestreet malls.
So, for instance, in the areaof Costa Rica and Santa Maria,
we do have actually one bigshopping mall that is the most
(20:35):
modern one actually, and at thesame time we have a lot of
street malls, street classes.
So we do have all kinds ofservices.
We have drugstores, laundryareas, I mean laundromatic
services.
We have doctors, clinics justgive me one service.
We have everything.
We have theaters, dentists, youknow all kinds of services on
(20:58):
these three classes.
So at the end, we feel that wehave everything there.
We have all these services thatare up to a point that you
don't need to get out of theneighborhood.
You have everything there.
And that's the same thing onthese two that I mentioned, the
same as San Francisco or Barrio,or right now my office is in
(21:20):
Paitilla.
We have all kinds of servicesaround, so we don't need to move
out.
Everything is walking distanceactually.
Hugh Gilliam (21:30):
Well, see the reason I'm bringing this up?
Because, as you and I talkedearlier, before we even started
the program, a lot of peopleknow Panama, they know the
Panama Canal Zone and they don'tknow much more about what
Panama is all about.
And all sorts of people, fromretirees to you, know the
(21:56):
younger people that have gottenout of college, that have been
shipped off there to work withdifferent companies and it's
just a best all around world foranything that you would want.
And also, let's talk aboutclimate, and then we'll move on.
Tell me about the climate Now.
We always hear about the rainyseason and the fact that you've
(22:18):
got that going on, and I thinktoday you have.
Like.
The temperature is probablyabout 82 degrees.
Eric Van Hoorde (22:24):
Fahrenheit.
Hugh Gilliam (22:26):
And maybe you had a little bit of rain this
morning.
Eric Van Hoorde (22:33):
But what's considered the rainy time for
Panama?
Actually, we do have a lot ofrain.
I can, I can light about that,but in general, uh, when it's
like rainy season, uh, the lastmonths we can say there are from
, uh, probably august tonovember more or less.
So there's a few months whereit's more rainy itself, but in
(22:57):
general when it rains it's likein the afternoons, not in the
morning, so we can work aroundthat.
And then, basically, what isDecember, january, february,
march?
Hugh Gilliam (23:09):
it's like summer so.
Eric Van Hoorde (23:12):
I think that we have a lot of alternative, a
lot of things to do in thecountry, so raining is not an
issue, definitely if you'replanning to walk from your
apartment to the office you haveto think about it, you need to
get your umbrella.
you know that's normal.
It's walking distance from youknow, from the, and that's what
(23:33):
people love to have.
They love to work very close totheir offices.
When we talk about thesemultinational companies, all
their, these young executives,that's the way that they do.
They love to, even in scooters.
They drive, they take theirscooters and they go to the
office.
Hugh Gilliam (23:49):
You know we've talked about property and I
think now's the time to let youshow one of your properties.
That's fairly new, Okay, andyou can tell a little bit about
it as soon as you pull that upand share it with the viewers.
I have this project calledBioma.
Eric Van Hoorde (24:07):
That is a new project.
Actually, it launched less than11 months ago 10 months ago
more or less and right now,bioma is a new project that is
going to be constructed in Costadel Este neighborhood.
It's a very modern concept thatyou have all these amenities
(24:31):
you have, as you can see rightnow, is a big building.
You have very ample terracesand high ceiling.
The distance between floor andceiling is 3.2 meters.
Okay, so it's considered a veryample apartment.
(24:53):
When we talk about theamenities, you're going to have
all kinds of restaurants.
You're going to have a two-starMichelin restaurant on top.
You're going to have a heliport.
There is a big demand right nowfor these units.
Believe me, we do propertymanagement for the last 24 years
and we don't have any vacantunit in this area because
(25:16):
there's a huge demand.
Hugh Gilliam (25:18):
So let's talk about that.
I think you mentioned that itwent on the market.
I mean like pre-constructioncontracts.
Maybe it's 70% sold at thispoint in time.
Yes, it's incredible thathappened over eight months Over
almost ten months, ten months.
Okay, that's fantastic.
(25:40):
It looked like at the very topthat there were three-story
penthouses.
Actually it's not a penthouse.
Eric Van Hoorde (25:46):
It's the social areas.
You're going to have a heliporton the top.
You're going to have a huge andvery elegant restaurant with
two Michelin stars.
You're going to have all kindsof amenities.
I will send you thepresentation so you can add it
later on.
And at the end, it's a projectthat just by who's the developer
(26:13):
, who's behind behind, havingsold pretty fast and the
experience and all the expertisethat the previous project that
the developer have done withfantastic results.
People love it.
People love it.
So I will send you theinformation later.
Hugh Gilliam (26:28):
So if you could give us just maybe one prize for
and I think you said that youknow someone purchased one,
there was that a two-bedroom,three-bedroom or what no, I told
you that I bought one there,okay okay, you bought one there.
Eric Van Hoorde (26:44):
That's an investment point of view or an
investment property, my ownhouse, so but I, I have three
kids, so I have to think aboutthem too, you know.
So at the end, um, at the end,let's say what is the price per
square meter.
We can get an apartment of oneor two bedrooms, let's say
two-bedroom apartment, foraround $390,000.
(27:07):
We're talking about like 85square meters, more or less, and
with one parking space.
But you have all thesefacilities.
You don't need to move out fromthe building, okay?
So these projects are the onesthat people are looking for.
Now, as you mentioned, peopleare working more and more from
(27:27):
home and this building has allthese, as I mentioned, all these
facilities.
You know that you can havemeetings on different spots from
the building, that you can havethe social areas, the sport
areas.
It's something out of thisworld.
Hugh Gilliam (27:45):
It's a unique project and again tell us where
that's located.
Eric Van Hoorde (27:50):
That one is in Costa del Este, okay, okay.
Hugh Gilliam (27:54):
How close is that to downtown?
Eric Van Hoorde (27:57):
We're talking about driving time, probably
like 10, 15 minutes.
Hugh Gilliam (28:02):
Okay, Okay, In the specific one that you purchased
, what about the we call it herein the United States the HOA
fee?
What would be your monthlyassessment or monthly fee that
you would have to pay?
Eric Van Hoorde (28:19):
On this one.
We call it maintenance fee.
That is the same right.
This one is 2.75 per squaremeter.
Okay 2.75 cents per squaremeter.
Hugh Gilliam (28:31):
Okay, okay.
And you said how many squaremeters in the one you purchased.
Eric Van Hoorde (28:35):
The one that I purchased is 130 plus 30 of
balcony.
Hugh Gilliam (28:39):
Okay, okay, I tell you it's a beautiful property.
And if you're 70% sold out.
Eric Van Hoorde (28:47):
it's going to be sold out by the first quarter
of next year, I feel certainabout it.
Hugh Gilliam (28:53):
It's fantastic, it's incredible Moving right
along.
Are there any sellingrestrictions?
Once I buy a property in Panamaand I'm not necessarily a
resident there any sellingrestrictions on me when I sell
the property or make a decision?
Eric Van Hoorde (29:10):
to sell.
No, there's no restriction atall.
Once you own the property andyou want to sell it, you only
have to pay the sales tax to thegovernment.
You need to pay 5% of the salevalue.
Hugh Gilliam (29:25):
Okay, okay, I mean this is kind of a no-brainer as
far as a question to ask you,but looking at the property that
we just saw and looking atother properties in Panama, what
does it look like over the nextthree years?
In your mind as far as growth,as far as the values going up or
(29:49):
down, there's always, you know,depending on the point of view
of view of person.
Eric Van Hoorde (29:54):
No one has like what we call, you know, the
crystal ball used to to figureout how it's going to be the
market what we have to check andand be very I'm always positive
.
You're not an optimistic, but wehave to be realistic as well.
So I believe that there is noway that I can tell you the
expected growth will be around10, 50%.
(30:17):
I cannot assure you that, butwhat I can tell you is that we
are building these projectsbecause we are out of stock.
People feel that we need itactually, and then Panama is
being very competitive duringthe last years and the forecast
(30:42):
that we have is that we're goingto keep on that track.
So I think that, based on thisinformation, we feel that it
should have a very attractivereturn.
I cannot give you a specificnumber, but what I can tell you
is that there is a lot ofinvestors that, let's say, 12
years ago or 10 years ago, theybought property and nowadays
(31:06):
that property is like threetimes current value, so it is
attractive as a global realtorand your involvement for many,
many years in Panama.
Hugh Gilliam (31:21):
What would be if you were talking to a person
that just had the thought I'dlike to move to Panama?
What would be one of the firstthings you would tell that
individual Not necessarily topersuade them, but just based on
your experience about why theyshould move to your country?
Eric Van Hoorde (31:40):
I think that Panama is unique.
Honestly, I feel that we haveour connectivity and our
geographical position makesPanama more and more attractive
in comparison to other countries.
There is a lot of incentive andbenefit of living in Panama.
(32:03):
There's a lot of people thatthey don't know that Panama is a
very small country with a lotof benefits.
As you know, we have aworld-class logistic platform,
we have the US dollar as legalcurrency, we have a great and
very stable internationalbanking and financial center,
(32:25):
and we do have high-qualityeducation, world-class
communication infrastructure.
So at the end, when someone isconsidering to move out from
their country to go to anotherone, just to restart or start
working on another business orsomething, or just relocate for
any reason, they have toconsider that they need to have
(32:49):
a place that gives you all thisincentive or attractiveness you
know.
So they feel that it's a goodidea just to move to another
country.
There are other neighborhoods.
Hugh Gilliam (33:02):
you know, we have Colombia, we have Costa Rica.
Eric Van Hoorde (33:04):
We have Costa Rica.
For so many years have beenworking on tourism and nature,
you know, and they have done aquite good job.
On reference to the branding,you know in tourism and well.
I believe that every countryhas their own, you know,
(33:25):
incentive and benefits.
So that's why a lot of peopleare moving to Panama.
Hugh Gilliam (33:32):
Okay, so yeah, I get it.
Eric Van Hoorde (33:37):
Yeah, I don't like to compare talk about other
countries, but in general everycountry has their own unique
you know their own benefits, butI feel that Panama is doing
quite good.
Hugh Gilliam (33:45):
Yeah, I just wanted to give you the
opportunity to sell Panamabecause people need to hear you
from your point of view, and soyou know you're a native there.
I mean, you were born andraised there.
Eric Van Hoorde (33:56):
Yeah, I think that Panama has a lot to offer.
I believe that, as I mentionedagain, the geographical position
helps a lot.
The distance from here to theStates, from here to yeah, just
to Miami we're talking about athree-hour plane, so it's a
flight so it's a flight, so it'svery close and once you get
(34:21):
here, you're going to feel thatyou're in the States.
It's very, very similar thelanguage, the dollars, the
currency the food the lifestyle.
Everything is very, verysimilar to the States.
Hugh Gilliam (34:34):
So people feel comfortable and, believe me,
there's a lot of Americans thatmove to Panama and they really
enjoy it.
That's for sure.
Eric Van Hoorde (34:42):
We have tropical culture.
But it's cool, it's very nice.
Hugh Gilliam (34:49):
Listen, it's been a pleasure having you today.
Eric Van Hoorde (34:53):
And.
Hugh Gilliam (34:54):
I do want to get back with you a little bit later
in the year and talk a littlebit more about Panama and what's
happening, because it'sevolving, it's changing.
I mean, new people are movingin, new construction's coming up
all the time and I would liketo see more inventory at some
point in time.
Maybe we can do this mid-yearand just do a quick update on
(35:16):
where we are today, where we'regoing to be then and, like I
said, it's always good to talkto you.
Eric and I go way back andevery time we have meetings with
the International Real EstateFederation, we always have time
to sneak off in a corner andcatch up and talk a little bit
about personal life as well asbusiness, and I really
appreciate corner and catch upand talk a little bit about
personal life as well as asbusiness, and I really
(35:36):
appreciate you and evelyn andyour family and we'll get back
together soon.
Thank you so much for beinghere thank you actually.
Eric Van Hoorde (35:45):
You have a great time with you and you're a
fantastic friend.
Thank you thank you.
Hugh Gilliam (35:53):
Thanks for joining in on today's episode of
RealtyCast Global.
Make sure to subscribe to thepodcast to be notified when new
episodes air.
Popular Podcasts
Bookmarked by Reese's Book Club
Welcome to Bookmarked by Reese’s Book Club — the podcast where great stories, bold women, and irresistible conversations collide! Hosted by award-winning journalist Danielle Robay, each week new episodes balance thoughtful literary insight with the fervor of buzzy book trends, pop culture and more. Bookmarked brings together celebrities, tastemakers, influencers and authors from Reese's Book Club and beyond to share stories that transcend the page. Pull up a chair. You’re not just listening — you’re part of the conversation.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!