The other day, I read about a British study that said in 2018, people took 23% longer to decide to purchase a property compared to two years before.
I wasn’t surprised people were taking longer, but that “longer” meant about 65 minutes to decide if a property is right for them. The study found that on average people would visit a property 2.4 times, with an average of 27 minutes for each visit, before deciding to sign on the dotted line.
According to the article, the longest time is generally the first visit and then a follow-up second trip to reinforce the initial decision. The statistics varied slightly for different areas on the globe, but when individuals were considering property in a foreign country, that time went up only slightly to about 78 minutes.
No Reason to Rush
78 minutes! That is not a lot of time to educate yourself on an entire country, its culture, and the market in which you’re investing.
The last thing I think people should do is rush into a decision about buying property– particularly when it’s abroad. It’s a commitment of your time and finances. Usually, it represents a large investment and a prominent portion of an investor’s portfolio. Take your time and enjoy the process of visiting the country, doing your research, and talking with subject matter experts.
Come Stay Awhile
When thinking about buying in Panama, I always encourage people to visit and try it out before even considering a long-term purchase. If the property is going to be a retirement home, maybe on the beach, then renting for several months is my best advice. You really can easily try before you buy. Lots of people invest in a property where they want to eventually relocate, but rent the unit to help pay the mortgage prior to moving in personally. That’s a win, win in my opinion.
Things change dramatically when it’s an executive who has been ordered to relocate, as opposed to a personal decision. Deciding what property to purchase usually doesn’t take 2.4 visits or even 78 minutes if people have already come to the conclusion that buying is a better option than renting. Even then, I encourage people to slow down.
Looking For The Purple
I am obsessive about research and I love the internet, but there will always be some things you can’t learn online. That’s why it’s so important to come experience it yourself. For example, buildings in Panama have personalities– even though they may be less than a mile apart with a very similar amenities list. With a variety of people living in a building, the personality of the building becomes distinct and unique.
This may sound strange, but particularly with my clients from the States, it has become essential that someone who considers themselves “Blue” does not move into a “Red” building and visa versa. I always thought the divide couldn’t be that strong, but I have been proven wrong time and time again. My favorite buildings are the “Purple” ones with enough space for everyone!
Other preferences are more related to hobbies or lifestyle. A young family might want a building with a playground and other children, while a retired couple may prefer a quieter atmosphere. Some want the modern hi-rises with all the amenities, others want the house with the yard and pool to maintain. You should come see what the options are for yourself before you commit to one.
Bottom line, buying property is a big decision. Take your time. Go see for yourself. Find people you can trust who have experience in the area and the investment options that interest you. There will be plenty of time to relax when you’re swaying in the sunshine.
