With the stock market on a roller coaster and interest rates low, investors are once again turning to investment property as an attractive target for their money. Rentals apartments offer the opportunity for long-term capital investment as well as a steady income, which both look promising during difficult times.
But not all rental properties are created equal. Experienced investors know any potential investment property must be evaluated much differently than a regular home purchase. To be successful, a rental property must be able to beat alternative investment strategies and generate consistent income and capital appreciation over the long-term, good times and bad.
At PPR, we’ve been working with property investors in Panama for 15 years. Even with veteran investors, we always find ourselves stressing these key factors.
Location is Everything. I know, this is the oldest cliche in the book. But location is still the biggest factor in successful property investment. However, the analysis needs to go beyond simply a nice view. Will the view still be there in 5 years? What’s going to be built around the building? Is the location walkable? Savvy investors dive deeply into the location to make sure it will stand the test of time.
Is there a strong base of renters? There are many great apartments in great buildings, but that doesn’t mean they are great for renters. The apartment must fit the demand. In Panama City, rental demand is based on the consistent strength of the economy and the role of local government, which sets it apart from many rental markets around the world. That demand includes executives working for the big multinational firms with offices in the capital, who provide a steady stream of clients for our centrally-located buildings.
Is the apartment the right size? In our experience, it’s important to find the right size apartment in the right building. In many cases, two-bedroom apartments are the most popular with rentals. But in some buildings the three bedrooms are most in-demand and provide more value.
Look for amenities: The more top quality amenities the better. You never know what renters will want, so it’s important that a rental property be able to accommodate all types of lifestyles. Our property management team sees it all the time. One renter likes the pool; another renter likes access to restaurants. A variety of amenities helps ensure a unit can attract a broader base of potential renters.
Think healthy: The one dominant theme we’re seeing in renters (and buyers) these days is a focus on a healthy lifestyle. There are different interests and tastes, but people are looking for homes that support their health and wellness. That means units with health-focused amenities, access to quality restaurants and a lifestyle-oriented design will offer more potential for success.
Interested in learning more? PPR has a variety of already-rented waterfront apartments for sale, right now. Contact us at +507 6670-8011 or write to us at firstname.lastname@example.org