News and events

21/06/2009

Donnas birthday today - she is back from Costa Rica. She had a great time visiting a number of resorts. She will have an update and pictures in teh coming weeks. Are you following Iran on Twitter & Facebook - amazing how the new media has allowed a revolution to be world wide - think of all the revolutions of the past - what would have happened if they had these tools.

I was upset to hear our Canadian Embassy in Iran was not one of the many embassies accepting casualties yesterday. I sent a note to our ambassador in Iran and the Foreign Affairs.

If you have any influence with any of these people or with the incoming government of Sr. Martinelli support Lin & David - this could be any of us - or any Panamanian for that matter.

Update on Finca los Monos Botanical Garden, Bocas - they met with the representatives and lawyers from the Eleta Group  and while negotiations are continuing the legal process involving their land continues and the next date set for the invasion of their property is July 9th at 9 am. If you are in Bocas, or know someone in Bocas, please support Lin and David in their struggle.

I was pleased to read in her note that they delivered their petition to "Stop the Harassment of Legal Land Ownership in Boacs del Toro, Panama" to the Supreme Court of Panama and to the Minister of Tourism.

They also hand delivered letters to the Ambassadors to Panama from the United Kingdom, USA, and Canada as well their counterparts appointed to represent Panama in these countries.

I have been working on the donation part of the Arraijan Pet Shelter - www.theyneedyourlove.org - it has taken me some time to finally figure out how to allow our friends from Canada and the USA support the shelter financially.

You can now donate a simple $15 per month to help feed one dog or one cat. Mari has over 200 dogs and 100 cats to feed and car for medically. Will you help? Please.

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Another piece of news this month. The 20 year property tax exoneration is based on having a building permit issued before July 1, 2009 and  the improvements registered in the Public Registry before December 31, 2009. That means that all the projects that are visible today will be eligible for the 20 year tax relief but anything starting this fall will not. Most of you may not think this a big deal but when you consider the tax rate of Panama is over 2% that adds up in a hurry if you do the math. Imagine a $500k condo with the tax relief being sold next to one without. The one without will have a $200k tax burden that the other one doesn't - which one would you buy :}

And that brings me to the property tax. I am pretty sure when this kicks in there will be an increasing swell of disbelief / shock / anger that will be felt across the country.

One of our friend Alan Ross, an investment advisor (see www.trustintelligence.com ) did a calculation for me of the impact of the 2% tax on a property versus a property that is covered by the tax exoneration.

Paying a 2% RE tax on a $400k condo is the same as having a $160,000 mortgage on a home, paying 5% interest forever (because real estate taxes, unlike mortgage payments, never end).

Add the 1.5% condo fees minus the savings of perhaps $500 per year on the "free" NG you get, and the yearly total is $13,500 (on a $400k apartment), which is the same thing as adding a 5% perpetual mortgage for $279,000.

So net net, your cash flow for buying a $400k condo with RE taxes and 1.5% condo fee is the same as buying a private home for $679,000 that has a 20 year tax exoneration and no condo fees.
 

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