Savvy investors know that volatility and sudden downturns tend to be the best times to reconsider strategies and asset allocations, with opportunities and risks available in equal measure.
Even as we work from our homes and follow government guidelines, business continues. Decisions will be made, funds invested and opportunities seized.
At PPR, we’ve been through crises before. In the wake of the 2008 global financial crisis, business seemed to stop. For months and years, uncertainty ruled and there was no indication of when markets would reach bottom and when they might recover.
In a previous article, we discussed how investors are already starting to return to real estate as a safe haven, after the collapse of the stock market. Real estate in a stable, growing market like Panama City makes sense to many investors when the fate of the global economy is unclear.
In our experience, there are a few things every investor should consider during turbulent times.
Define your goals. Do you need cash flow? Or are you looking for long-term appreciation? Real estate offers both, which is one of the reasons it is popular in downturns.
Focus on income. In tough times, the more money going into your pocket the better. Property yields start to look extremely attractive when bond rates plummet and companies start to cut their dividends. It is important to identify high demand apartments with established renters, offering income on your money from day one.
Shop for yield. Take the time to analyze the long-term yield potentials of different assets. Real estate is a consistent earner. Quality apartments, on the market now in Panama City, offer yields between 4 to 6 percent, with the added bonus of potential appreciation.
Look for stable performance. A track record matters. Panama City has gone through its ups and downs, but the overall market metrics look particularly appealing when compared to the limited performance data available in many countries. This is no time to gamble on emerging, unproven markets.
Support demand. The investors who make money focus on products generating demand in good times and bad times. People always need a place to live. And when the economy slows and new construction wanes, supply becomes limited, driving up values, no matter the state of the economy.
Invest in a strong foundation. In rocky times, it’s essential to invest in stable environments, supported by solid fundamentals. Now is not the time for speculation. Panama’s stable government, growing economy, and international role ensure that the property market will continue to thrive in all types of economic climates.
Sure, our perspective is focused on real estate. But we helped a lot of people make money in the past slowdowns. If you want more information on income properties available right now, contact me at firstname.lastname@example.org or call/chat to 507 6673-7810