Beyond Sight Unseen: She Bought a Condo in Panama That Didn’t Exist

When Daniel Waters met Jodie Horton five years ago, one of the first things he told her was that he dreamed of buying property on a beach.

“Being able to wake up, look out the window, and see the sun melting into blue water feels like the ultimate décor,” said Mr. Waters, 49.

Dr. Horton, 52, is a gynecologist based in New Orleans. Mr. Waters is in the military. As they thought about where they might want to retire one day, they looked at beach towns in the United States, but couldn’t agree on a state they wanted to live in. Most of the homes they saw were too expensive anyway.

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The couple, who have three adult-aged children from previous relationships, were well traveled, having been to Colombia, Chile and Peru together.

“When I first met him, he was learning Spanish and he’s pretty immersed in Spanish culture,” Dr. Horton said. “He knows how to salsa and bachata, and so he was like, ‘OK, we should look in a Spanish-speaking country.’ But we weren’t really sure which one.”

Mexico and Costa Rica offered direct flights, but homes there were either too expensive or too far inland. “We always look at the cost of living,” Dr. Horton said. “And how easy is it to get back to America? We both have kids that are out of the house. I’ve always been a single mom. Like, my daughter — I want to make sure she’s OK.”

Finally, they zeroed in on Panama, which they knew was popular with American expatriates and conveniently uses the U.S. dollar. Best of all was the country’s Qualified Investor Program: Any real estate purchase over $300,000 allows a buyer to obtain permanent residency status.

“Panama had us at warm weather, beaches and affordable cost of living,” Mr. Waters said. “Add in vibrant culture, fewer natural disasters, and the chance to finally use the Spanish I sweated through in language school, and it felt like a smart life decision disguised as a tropical daydream.”

With up to about $650,000 to spend, the couple aimed for a two-bedroom or three-bedroom condo in a new waterfront development with hotel amenities, preferably in or around Panama City. After perusing some options, they realized they could get a good deal on a condo that hadn’t even been built yet. They started with online research — flights, locations, retirement possibilities — and made decisions based on brochures with digital renderings.

“We looked at properties that were either just built or were going to be finished in 2026 to 2029,” Dr. Horton said. “I also thought living in a hotel residence is luxury. Like when you stay in a hotel and say, ‘I could live here.’ Foreigners buy property unseen all the time. It’s not unusual, and if we don’t like it we can use it as an investment.”

This planned development was in Costa del Este, a vibrant coastal neighborhood in Panama City. A three-bedroom, 2.5-bathroom unit with nearly 1,700 square feet came fully furnished with 10-foot ceilings, an open layout with a kitchen island, bedrooms on opposite ends, and a roughly 215-square-foot terrace. The 60-story development, which had ocean views but was not on the water, promised 75,000 square feet of common spaces and amenities, including restaurants, a sports club, green spaces and a cinema. Tocumen International Airport was less than an hour away. Prices started at $457,000, with an HOA fee of about $515 a month. Foreigners had to make a 30 percent down payment, with payment increments each year until the scheduled 2029 completion.

A three-bedroom, three-bath, roughly 1,375-square-foot unit in this waterfront Westin development offered views of Panama City, which was about 20 miles north, and the ocean. The renderings showed a sleek unit with an open layout, tile floors and floor-to-ceiling windows. Buyers would have the option to close off the third bedroom and add a kitchenette, allowing it to be rented out separately. They’d also have access to a rooftop restaurant, a cinema, two pools, a beach club, and Marriott membership. Construction was scheduled for completion in 2029. The quoted price was $668,000, with a monthly HOA fee of $525. Buyers pay 15 percent up front, 25 percent over the next two years, and 60 percent upon completion.