Expert: Lorena Mlns - 9/12/2008

Question
Hello Lorena.  Thanks for your answer to my previous questions about visiting Panama.  My vacation there was everything I expected it to be and more.  My question is about neighborhoods.  My husband and I are interested in buying a house there and we would like it to be somewhat close to his family.  His family lives in Arraijan.  Are there nice and safe neighborhoods close to there.  We saw a lot of new developments goings up which were quite cheap that it was almost unbelievable.  I have been checking a lot of real estate websites in Panama, but I would like to know which are the middle class, lower middle class, etc. neighborhoods.

Answer
Hi Lystra,
I am glad your vacation went as planned.
In regards to neighborhoods near Arraijan there are a couple to chose from.
The developments located AFTER crossing the Americas bridge vary in prices as you may have seen from 33k and up....

Home prices would be closely tied to the class they are in.

Use this example as a guide... If you make 1,000.00 USD a month the bank will only allow you to compromise 30% of your salary for a home loan.
Which means your monthly payment cannot exceed 300.00 USD, which means that your home should cost no more than 60k (this is an approximate as % loan rates, insurance and so on must be considered). This price range might be a home for low middle class.

You can always ask the realtor who is buying in the area, they will probably tell you that families that are starting out or young couples... you can ask if they are professionals and that could also be a guide.

If you have a neighborhood name you would like for me to ask around about, just let me know.

Good luck.

Lorena