Buying a Pre-construction Property in Panama: What Questions to Ask?

Pre-construction projects in Panama can be found anywhere from the capital, from the inner cities or even in the beach communities.

If you’re considering buying a pre-construction project in Panama, you have to definitely know what questions to ask the real estate developer. Buying a new property in current development can be exciting and of course, it might give you a good return in the future, but it also carries a certain degree of risk.

Here are some essential questions to ask the developer before you commit to a pre-construction property:

1. What is the project’s completion timeline?

Before you invest in a new project, you will want to know when the project is expected to be completed. This information will help you plan your finances and make necessary arrangements.

Ask the developer for a detailed timeline that outlines the construction process, key milestones, and completion dates. Be sure to ask what will happen if the project is delayed and whether there are any penalties for late completion.

2. What is the payment schedule?

When investing in a pre-construction property, it is great to have a clear understanding of the payment schedule. The payment schedule outlines when payments are due and how much is due at each stage of the construction process.

Be sure to ask for a detailed payment schedule, including the deposit amount, installment amounts, and final payment. And of course you have to know if there are any penalties for late payments.

3. What is the developer’s experience and track record?

It’s essential to know the developer’s experience and track record before investing in a pre-construction property.

The best way to ask this to the developer is by checking all the portfolio of ready projects they already have. You can also look for reviews and testimonials from previous customers to measure the developer’s reputation.

4. What is the warranty and after-sales service?

Make sure to ask about the warranty and after-sales service for the pre-construction property. A reputable developer should offer a warranty on the property that covers defects and any issues that may arise during the construction process. You’ll also want to know what after-sales service is available, such as maintenance and repair services.

5. What is the expected return on investment?

It is good to understand in a way what return on investment you can porentially see in the future from the project. Ask about the property’s potential appreciation, rental income, and any tax benefits that may apply.

You can also ask the developer if the project would have any preferential interest when applying for a mortgage.

Be sure to consider the property’s location, the state of the local real estate market, and the overall economic conditions when assessing the potential return on investment.

6. What amenities are included in the property?

Make sure to ask about the amenities that are included in the pre-construction property. Amenities such as parking, swimming pool, fitness center, and security features can significantly impact the property’s value and desirability.

Ask about the quality and type of materials that will be used for construction, as well as any energy-efficient or eco-friendly features. And important, ask what is the expected maintenance (HOA) cost per month to maintain these amenities.

7. What is the cancellation policy?

Before investing in a pre-construction property, it’s essential to understand the cancellation policy.

Ask the developer about the terms and conditions of canceling the purchase agreement, including any penalties or fees that may apply. You’ll want to know what your options are if you’re unable to proceed with the purchase, and whether you can get a refund or resell the property.

Investing in a pre-construction property in Panama can be a wise decision, but it’s essential to ask the right questions before committing to the purchase.

By asking about the project timeline, payment schedule, developer’s experience, warranty, expected return on investment, etc., you’ll have a better understanding of the property and the risks involved.

Don’t be afraid to ask questions! And Also you can seek advice from a reputable real estate agent or attorney. With due diligence and careful consideration, you can make an informed decision and find the perfect pre-construction property in Panama.