Dear A-Letter Reader:
In September 1999, the late Bob Kephart, a life-long friend of mine and the founder of The Sovereign Society, went to Panama for the first time on business. Bob, a worldly, world traveler not easily impressed by anyone, anything or any place, was amazed at what he saw.
On his way home to Florida he sent me an e-mail from his laptop and here's what he said: "I'm writing from the Panama City airport, sweating that the hurricane currently heading for Miami will not close the airport before I can get there."
"Panama City is a VERY impressive place. If you've never been there you'll be surprised to learn it's a very cosmopolitan city -- full of the trappings of wealth. Dozens of skyscrapers and four star hotels. I stayed on the 31st floor of a hotel as good as any I've ever found in New York, Paris or Zurich. The place is clean. No goats or chickens roaming the streets. Virtually no crime and no violent crime at all.
"And real estate is a screaming bargain. For $60K you can find a three bedroom luxury apartment in downtown, walk everywhere, Panama City, ocean view, deck, private parking, pool -- the works. Panama City has so much going for it that I can't believe these apartments won't be worth ten times that in a few years. I'm thinking of returning just to shop for such a place." (Bob was right; that $60K apartment in 2006 will cost you $150K.)
For my part, unlike Bob, I had been to Panama before many times in the turbulent 1970s, when the country was in the grip of the late dictator, Omar Torrijos, and demonstrators raged in the streets against continued American control of the Panama Canal. In those long ago days I visited Panama in an official capacity, as the ranking Republican member of the Subcommittee on the Panama Canal of the U.S. House of Representatives Committee on Merchant Marine and Fisheries. President Jimmy Carter had just signed the so-called "Carter-Torrijos treaties" that would eventually turn over control of the American canal to Panama, a radical decision to which I was then very much opposed.
Fast forward to September 2000: I return to Panama for the first time in 20 years, this time as a private U.S. citizen on a business trip. As was my friend Bob Kephart a year before, I too was amazed at what for me was the tremendous change I encountered. This new Panama was a very different place than the one I remember from the 1970s. The sleepy, slightly seedy colonial city, dominated by the American military that operated the Panama Canal - all that was long gone.
In its place was a thriving, gleaming metropolis with scores of modern skyscrapers, fashion malls, condos, first class hotels, restaurants, shops, digital Internet and global communications, fast paced, (even dangerous) traffic, a brand new airport, super highways and your pick of night clubs with Latin music filling the warm, tropical night air until all hours. My eyes confirmed the truth of that local tourist slogan: there's more to Panama than a canal!
In the five years since my return, Panama has continued to undergo an amazing economic transformation.
For those living in Panama or for recent visitors it's clear there's an investment boom going on throughout the country. I've been there twice in the last year. From my room at the Miramar Intercontinental Hotel on Avenida Balboa overlooking downtown Panama City, I could literally see a new city rising up along the bay and the Pacific Ocean. There are a host of new and exciting projects coming on line, not the least of which is the amazing Ice Tower, a 110-story residential condominium building going up on the waterfront that will be the tallest building in Latin America. When completed, you'll be able to view both the Atlantic and Pacific oceans from the top floor. Now that's a transcontinental view you don't see every day! This incredible development is only one of a score of world class projects under construction or in the final planning stages here in Panama City.
Having visited Bouquete and Bocas del Toro, I can attest that the real estate story is much the same across the country. Master planned communities are springing up on both coasts and in the mountains and new, five star island resort projects are currently under way in the Caribbean and the Pacific regions.
What does this mean for you? If you're an investor, this represents an unprecedented opportunity to take advantage of one of the world's most lucrative real estate markets. If you're simply looking for a better place to live or for a second home, this boom provides you with an unbelievable number of residential living options in one of the world's leading tax havens. (No taxes on foreigners' offshore income in Panama).
Why not join me and a host of other offshore and Panama experts at the Total Wealth Symposium this coming May 17-20th at the brand new five star Playa Bonita Resort & Spa outside Panama City. You can learn first hand all about the residential and investment possibilities -- and all about Panama, a great place with great people who will welcome you as they have me.
Hope to see you in Panama -- and that's the way that it looks from here,
BOB BAUMAN, Editor
Editor's Note: Intrigued by the idea of moving your wealth (or yourself) to Panama? You might consider a prima passport - which offers prime discounts for travelers to Panama. LINK: Click Here To Save Money On Travel To Panama. Also, look in tomorrow's A-Letter for another Panama article on bank secrecy.