Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/53603
toolkit "Before buying, you should live here for a month," says Chiriquí local Hector Palacios, who connects area realtors with foreigners dreaming of owning in this southern Central American nation, where winter tem- peratures average 22 C. "Also, hire someone [$75 to $100, plus expenses] for a real estate tour. They'll show you around with- out expecting to sell you anything. Later, you can talk to brokers about specifi c properties." Panama is growing in popularity, with Canadians often buying in two areas – bustling Panama City draws the urban fans, while breathtaking sea and mountain vistas – and signifi cantly lower prices – lure buyers to the west- ern province of Chiriquí, particularly the districts of Boquete and Volcán. Good deals are emerging in the capital, and Palacios expects up-and- coming Puerto Armuelles, on the Pacifi c coast, to be increasingly popular. Part of a former vast banana-growing region, it's being developed by the government and has lovely beaches. "It is a hidden secret with great poten- tial," he says. Practicalities-wise, there are some key considerations. "Land rights, or title, are the same for foreigners, and property tax is one per cent," notes Palacios, adding potential buyers should "get second opinions on law- yers' advice and make sure their bro- ker has a registered licence." Check the broker listing on the Spanish- language Ministry of Commerce and Industry website: mici.gob.pa. AMA MEMBERS SAVE MORE Before you go: Enjoy member- exclusive savings on fl ights and attractions passes. Also, protect yourself and your loved ones by purchasing AMA travel medical insurance before you depart. 1-866-667-4777; AMATravel.ca International Property Buyer's Guide RENT IN AN AREA YOU LIKE AND SEE IF you're really interested after you've had an opportunity to view the lifestyle," says Gordon Pape, fi nancial expert and author of the book Retirement's Harsh New Reali- ties. Once the romantic attachment is forged, it's time to get serious. "Identify the purpose or goal behind the acquisition," says Brett Simpson, a Rogers Group Financial advisor who assists clients with property acquisitions. Is it for investment only, personal use or something in between? Then, determine the fi nancial capacity you have for the purchase." He adds that transaction costs and exit strategies may be less important if you're planning to retire to the property, but these are key considerations for investment properties. For Pape, invest- ments are best located in tourist areas where it's easier to fi nd renters, while retirees may prefer somewhere quieter. Both suggest grilling Canadians who have bought in the area, especially for rec- ommendations on local realtors and bro- kers. "They'll also be able to tell you about costs you may not have thought of, such as pool maintenance and lawn services, and they may have tips on good properties iStock coming on the market," says Pape. Once you've chosen your dream pad, you'll need to pay for it. "Most Canadians buy with cash in the U.S., but many obtain that cash by refi nancing a Canadian property," says Simpson, with Pape adding, "Many U.S. lenders are reluctant to provide mortgages to non-residents, although some will accept business from Canadians — a broker who has dealt with Canadians should be able to provide names." If your new residence is not lock- and-leave, consider hiring a local to watch over your place — Pape pays $50 a month for someone to check on his Florida property. Taxes might also trigger heart trem- ours, with wide disparities across the U.S. and further south. Do your homework to make sure unexpected demands don't arise from rental income, capital gains or income tax withholding. Income from for- eign property must be declared in Canada, and anyone who receives rental income from a U.S. property must fi le a U.S. tax return. "People may wish to consult a specialist in cross-border taxation before buying," suggests Pape. A pre-fl ight checklist for Alberta snowbirds BY LINDSEY NORRIS border this year, there are a few things you should do to make sure that your return is as pleasurable as your departure. S Boost your medical coverage While sipping a cool beverage in the sunshine, the last thing you want to think about is illness or injury. But out-of-country medical care is expensive – and worth thinking about. You could easily run up more than $100,000 at an American hospital after a heart attack, for example, and your Alberta Health coverage might only cover a small portion. Alberta Health Care also doesn't cover ambulance rides south of the border, or, say, the cost of bringing a vehicle back to Canada when the driver is physically unable. Travel medical insurance does, however. Per-day rates can be as low as $4, depending on your age, health and length of stay. To qualify, you'll need to be free of certain pre-existing health conditions – be upfront about this to avoid potential problems. Protect your home Have someone check on your home frequently while you're away, to catch any repair issues early and deter break-ins (a security company is another option if you're not comfortable asking a friend or family member). "Most insurance policies have an exclusion that says if you're away for more than four days in the heating season, you need to have someone check- ing your home every day for frozen pipes and other plumbing-related issues," says Diane Lennie, administration manager for AMA Insurance. Your pre-departure checklist should include locking your doors and windows, shutting off the WESTWORLD >> FEBRUARY 2012 25 O YOU'VE SECURED YOUR LITTLE SLICE OF sunshine and decided to make white winters a thing of the past. If you plan to take an extended jaunt south of the