33. Should You Rent Before Buying Property in Panama?
Every Friday in my Panama Expats: Real Talk, Real Life Facebook group,we have a "Real Talk Fridays" post where we dive deep into the whole story of expat life in Panama.
We recently discussed if expats should rent for at least a year before buying property in Panama.
When I moved here, I was advised to do so from all sides…but I dismissed it. 😆 In my mind, there were several valid reasons, including but not limited to being absolutely sure I was going to stay in the area I had chosen for years and that I needed to own in order to open my dream nature and book retreat. (Spoiler alert: I was wrong about both of these things!)
Do I have regrets about not renting? Yes and no.
Why Renting for a Year is Solid Advice
For most people, renting for at least a year is excellent advice. Here’s why:
❶ You'll Learn A LOT About Panama & Your Chosen Area
You’ll discover way more when you're living here during a 1+ year probationary period than you ever learned from your research. And, the odds are that the experiences and information you will gather during the year will impact your decision on buying or building in some minor to huge way.
It took me about a 1-1/2 years to realize that the place I was positive was for me actually wasn't.
A few things that contributed to this change of mind are:
- Missing my daughter way more than I thought I would
- Missing options (in groceries, restaurants, service providers, stores, etc.)
- Living so far from the city is a hassle (for us and our visitors)
- My area has gone in a completely different direction that I had envisioned (and changes to happen FAST)
❷ Selling a Property Here Can Take a LONG Time
While there are exceptions, in most cases, selling a property in Panamá takes time—sometimes years. If you end up changing your mind about the area you chose, you might be stuck for longer than you want to be if you need to sell a house. If you sell too soon after buying, there’s a chance you could lose money.
No Regrets...(Yet 🤞)
Not only did I not rent for a year, but I dove head first into the deep end and bought two vacant lots and built a house (one that's considered "luxury" by Panamanian standards) on one of them.
It's very likely I would have had pretty significant regrets if I had chosen to buy in a different part of Panamá. I'm very fortunate that it's a bizarre little bubble and prices have skyrocketed in the past six years. (In fact, if I hadn’t bought when I did in 2017, and built in 2021, I couldn’t afford to live here today!)
Instead of regrets, I simply had to shift my mindset from being happy to find my "forever place" (💔) to being grateful for a decent investment (🙏).
But, this is just my (very personal) experience. Let’s hear from other seasoned expats...
Voices from the Expat Community
“I got the same advice and also ignored it…”
“I thought I’d love being on the beach, but the heat drained me. After housesitting, I realized I wanted a yard for gardening. I ended up buying a fixer-upper in El Valle, and I love it! For full-time residents, renting first is definitely smart advice.” – Expat in El Valle
“We purchased land but held off on building…”
“We’ve been renting in Azuero since 2022 and are glad we didn’t rush into building. Living in a typical Panamanian home has shown me what I’d do differently when we finally build. It’s important to give yourself time to understand what works here.” – Expat in Azuero
“Rent and keep your money working for you…”
“We’ve rented since 2013, and I wouldn’t have it any other way. No maintenance costs, and we’re free to travel, cruise, and enjoy life. Owning a home would tie us down with upkeep, but renting gives us freedom.” – Expat in Playa El Rompio
“We rented for 6 months before buying…”
“We wanted to be sure Panama was for us. We couldn’t find anything we wanted or could afford at first, so we ended up buying land and building. Good lawyers and a good builder are a must!” – Expat in Pedasi
“Our situation was unique…”
“We fell in love with Pedasi during our first trip, bought a house on the second visit, and rented it out for five months in 2019. COVID delayed our move, but once we got here, we lived happily until medical issues brought us back to the U.S. We sold quickly, but in Panama, you never know what will happen!” – Expat in Pedasi
“I rented for 4 years before buying…”
“I waited for the right opportunity and have been loving it ever since. No rush, no regrets!” – Expat in Panama
Final Thoughts
For most people moving to Panama to live full-time, renting for a year is a very smart move. It gives adequate time to adjust, explore, and make informed decisions.
But, every situation is unique and there are no wrong answers here—just different journeys.
So, what are YOUR thoughts and experiences on this topic? Share your experiences and advice below so we can keep the conversation going.
