Panama
What Everyone Considering Retiring Here Needs To Know
Brief History:
Unlike many, I enjoy history. However recognizing that many do not I’ll be brief. This brief capsule will help one understand why there is an appreciation of America and Americans here.
Until 1904 Panama was a province of the country of Columbia. Panamanians wanted their independence and the U.S. with some circumspection determined it would probably be in our best interests to aid the Panamanians to that end. The U.S. bought the licenses to build and operate the canal from France who had bought them from
Columbia. Columbia sent in about 500 troops to protect their interests the U.S. sent a couple of gun-ships and stationed them off the coast of
Colon. The Columbians evacuated the troops and that was that. Shortly thereafter we took over the construction of the canal from the failed French attempt and completed it. A canal zone was established which ran the canal. Many American military were stationed there to protect the zone and many American workers were there as well. These people contributed greatly to the Panamanian economy, as did the revenues paid from canal transit fees. In 1979 the canal was returned to Panamanian control and operation.
At that time a referendum was held. The questions were, did the Panamanian people want the canal to be returned to their control? Did the Panamanian people want the U.S. forces to leave? In an unprecedented turnout, estimated at 80%, 70% voted NO! The people were concerned that control of the receipts would engender more corruption, and the loss of the Americans would cause a huge loss in revenue to the Panamanian economy. Obviously, the government ignored the results.
The Panamanian economy suffered a serious recession after the departure of the Americans. This economy in the last several years
has staged a strong recovery.
2
Climate and Topography
Panama is about 9 degrees above the equator and as you would expect is hot, and humid in the lowlands. This proximity to the equator also has a positive effect. No hurricanes! One must be 12.5 degrees above the equator for that to be possible. At the same time hurricanes do impact
the rainy season here is as in any tropical country. Hot and humid is the daily forecast for the lowlands. However, the country is blessed with some beautiful highlands where the weather can be as near perfect as anywhere in the world. In the highlands, the weather should be expected to be anywhere from in the range of 65-82 year around depending on the altitude and location.
I am going to concentrate on the area in the province of Chiriqui often referred to as the Chiriqui highlands. Specifically, the greater Boquete area, this area is the best known and the most beautiful. In this area 65-82, again depending on altitude, is the year around norm. For my money that is perfect. The dry season from about late December to mid April is actually warmer than the rainy season from May through October. Panamanians actually refer to the seasons of winter and summer opposite from the U.S. reference. So, to avoid confusion, I use dry and rainy to describe the seasons.
During the dry season, the temperature in the greater Boquete area averages 67-82 degrees. During the rainy season it averages 65-77.
Just by way of information, Boquete means a “small opening.”
That is in fact, what the entrance to the canyon valley is; with the village at is bottom. Historically, all villages were begun near water. This village is no different. The Caldera River borders the eastern edge of the village and a couple of other small rivers on the western edge.
I have been everywhere in the world, and can truly say there are few places that equal this areas’ beauty, climate and retirement possibilities.
We retirees want a simple, beautiful, easy life, without a great deal of stress. That is what we worked so hard to achieve. Additionally, we need to be alert to accessibility of hospitals and other services. The area around Boquete offers all of this.
3
If you were to comment to a Panamanian that you live in Boquete their response would invariably be, “Oh, it is very beautiful and very tranquil there.” People from Panama City with the wherewithal, go there to escape the heat and humidity of the city. Approximately, 80% of the vegetables that are consumed in the country come from this area. In fact, some people from Chiriqui say that if they didn’t work the country wouldn’t eat. It is the ideal climate, rainfall and soil that lend this area the ability to grow anything. Even someone with a “yellow thumb” can grow anything here.
This country has beautiful beaches but after 20 years in the heat and humidity of Naples, Florida, the greater Boquete area is the place for me. I say greater Boquete area because if you were to draw a circle around the village with a 15-mile radius you would encompass just about any climate you would like. No snow, no mountains high enough here for that. Within that 10-15 mile radius you will find many “micro-climates.” The prevailing winds are from the north (off the Carribean) and come laden with humid warm air that collides with the mountains cools and becomes rain.
Boquete is in a valley as I mentioned and the mountains immediately to the north of the village serve to cool the air and the first place the rain hits is the village. So, as you might imagine, even in the dry season the warm moist air still comes from the Carribean, collides with the mountains but the air contains less moisture so the result is what is termed here “bajareque.” If you would imagine San Francisco in the fall and the spring with the heavy mists and drizzle you’d be pretty close. The fact of the matter is there are few days when there isn’t some moisture in the air in the village in the valley. It is an unusual day that is totally dry. As you might imagine with the rainfall, rich soil, and climate, flowers do exceedingly well here.
Nonetheless, a mere three miles outside the valley the climate changes. The temperature is about 3-4 degrees warmer and it is much drier. In the area that I live which is 6 miles from the valley it is 65-82 year around. We have no rain whatsoever from January until the mid
4
April most years. Normally, there would be an occasional shower earlier in April. This area does not get the “bajareque” or drizzle; it is much drier than is the village. The rainy season begins usually in mid to late April. The rain begins normally about 2:30 in the afternoon and continues for 2-3 hours.
The primary landmark in the area is Volcan Baru. It just means the Baru volcano. The volcano is not extinct, only dormant. It hasn’t erupted in 12,000 years. Though there are occasional tremors in the area, there have been no serious earthquakes. Typically, 3-6 times a year one can feel a tremor. They are be about 3-4 on the Richter scale. These last no more than 1-2 seconds for the most part. I have lived in Japan for three years. They have earthquakes. These tremors we feel here are often not even noticed by many, that is how “soft” they usually are.
Volcan Baru is 11,800 feet and is the highest point in Panama. The peak is less than 10 miles from my home. We live in a development immediately across the canyon from the volcano. As an insight to “micro-climates” I’ll tell you about ours. The development on our side of the canyon is less than a 1000 yards from the far side of the canyon. When the winds and those moisture-laden clouds from the Caribbean hit Baru and collide with the cooler Pacific air on the south side of the mountain, there are tremendous lightning storms. We can sit on our back deck and watch God’s fireworks. The topography is such that the area across the canyon is the lightning capital of Panama but it very rarely if ever strikes this side of the canyon. A mere 1000 yards has a dramatic effect on the weather.
Our home site features 77-82 degrees in the dry season. I believe we had about 6 days when the temperature hit 86. However, we sit on our deck out of the tropical sun and because it is the dry season it is very comfortable. There are days when we sit on our deck in midday and feel the cool Pacific breezes in the hottest season and it is only 76 there.
The secret is to scout the climate you want. Cooler and wetter up close to the mountains at altitude and warmer and drier lower and away from the highest peaks is the rule of thumb. In the valley it is wet.
5
Before we moved into our home we stayed in one of the better known hotels in the village where in the rainy season the bed linens though freshly changed every morning were so damp in the afternoon that we had to run a hair dryer under the sheets to be able to tolerate the dampness. We would drop off our clothing at the Laundromat and pick them up perfectly dry. We would hang them in the closet and by morning they would already be damp. Mold and mildew is a problem in the valley. You will not need air conditioning in your home if you decide on the village, but you will certainly want dehumidification. Once you decide what climate suits you the rest is easy.
Finally, here is the straight poop on the weather. About the middle of February until the middle of March it blows like heck. Every day, all day, the wind blows 35 miles an hour. At night it blows even harder. Then about the end of the second week in March it stops and reverts to breezes. In the valley, due to heavy tree cover and the mountains the winds are not as strong they are somewhat blocked. Out of the valley it blows. Everywhere. As is very typical of mountainous areas anywhere in the world, in the spring it blows. Secondly, and far worse to me is the month of October. It rains all day everyday and into the night. The valley suffers from this worse than those of us out of the valley as the breezes dry it out somewhat. In the valley is just seems like you’ll never get dry. So, we plan our vacations out of the country to be gone at least some of October to make it more tolerable.
Development or Private Home
Like many first time visitors, I was inclined to buy some land on the side of one the mountains perhaps with a couple of acres of coffee, build my home, and be a small time gentleman farmer. My wife’s good sense prevailed. Having had a heart attack in July of 2002 she suggested that I would start working too hard and end up killing myself. Additionally, she wanted to have neighbors, well-paved streets to walk and a sense of security that a gated community gives. She prevailed on me to buy a lot and build in a new gated community we liked over the others available called Hacienda Los Molinos. We had been coming to Panama for a week a month for about 6 months sorting out the climates, the building places, and prices and picked this community after thoroughly
6
evaluating the whole area. We made the right decision. Now I really know the area. There is a joke that I know the area so well that the locals ask me directions. I absolutely would live nowhere else! There are five significant developments in the area. I use the word significant in terms of size. There are many small private developments, where the buyer of a couple of hectares (five acres) will make three other pieces of his land available for sale. These do not qualify to me as developments as the infrastructure (water electricity, paved roads) is left in a sort of catch as catch can. The owner rarely, provides it. So, I will ignore them, even though they may appeal to some.
Deciding Where You Want To Live
When we first visited the area it was difficult to get any input from other expats about living in the area. I think now, it was because the options are so great and there is really no such thing as a bad piece of land in the area. The options have increased in the last couple of years in terms of developments. The prices have escalated rapidly, showing that greed exists here as well as everywhere else in the world. Some of the developments are way out of line for the area but as they say “different strokes for different folks.” The most common new construction type is called M-2. In case you are not aware, it is a styrene foam with options of 4” or 6” thick. This is covered with a heavy wire mesh and subsequently stuccoed. There are typically rebar reinforced pillars every so often to provide support for the roof and tie beams. It is not intrinsically less expensive than block and stone. There is less labor used to complete as you might imagine, and therefore the construction is more rapid. I know that I am probably prejudiced as I just feel like I don’t want to live in a “foam” house.
The following information is as accurate as I can make it and is my opinion based on my knowledge of the area and the people and prices that are common for the area. Generally, I am of the opinion that if you want to live here you will do better to have a home versus a condo. I
7
Here, it appears, you will do better with appreciation and over-all square foot per dollar spent with a home. The other obvious benefit to a home is privacy. Generally, I am in favor of the developments as opposed to a private home on the side of one of the mountains. There are a number of reasons for this. It is nice to have neighbors and still have privacy especially as you get a little older you may need some help from time to time. It is nice to have a place to romp with your dogs and not worry about them running off into the wilds. It is nice to have the “clubhouse” with a pool and Jacuzzi and etc. for which you have no physical effort needed to maintain. It is nice to have grounds and green-spaces that you don’t have to maintain. You get the idea, I am biased toward homes in developments. I am biased toward homes versus condos. Nonetheless, I have done a bunch of “research” on what is going on in the area. I have made a lot of honest observations about each of the developments. Probably, some of the people I know locally will be angry with me because of my statements. But this is intended to provide you with a starting point in evaluating the area and your options. I believe that after reading the following, and personally visiting the area you’ll find that I have been totally honest. While I may prefer certain things you may prefer others, but the comments about the areas are no less valid.
Valle Escondido- The name means hidden valley. It is the oldest of the developments. It is about 8-9 years old. It was nicely conceived by the founder, Sam Talifero. It is in a canyon totally surrounded by mountains. They have a small executive nine-hole golf course. A small river runs through it. Though it is quite pretty in the canyon, in my opinion this development has three significant shortcomings. First, it has no view except the development itself. You are walled in a bowl. It is perhaps 400 yards from one side of the canyon to the other. Among the factors used in deciding where to live here, are the magnificent vistas. Valle Escondido has none. Second, it is in the Boquete valley, it is very humid and wet there. Third, it is very high priced for the value. The maintenance fee here is $75 per month. In addition, the owner charges the homeowners for electricity, garbage removal, and etc. So,
the fact is, people living there are paying about $375 per month!
8
Brisas Boquetenas- the name means Boquete breezes. This development is very modestly priced. You can buy a lot and a home there for near $145,000. It would be only about 1500sq.ft. but nonetheless you would have a small piece of the Shangri-la that is the greater Boquete area. That is a pretty good deal. There is an excellent weather pattern here. The views there are nice if you are on the canyon, if not, and I don’t believe any canyon lots remain available, then the views are limited. There are a couple of shortcomings here too. There is no gate or guard to provide any measure of comfort or security. (I don’t want to over-emphasize this point because there is very little crime here but if you want to vacation for a couple weeks or a month somewhere, it is better to have a gated and guarded community.) The homes are obviously, more modest in size and “extras.” I don’t mean to sound “snooty” at all but I wanted to find something a little more upscale. I have a couple of good friends living there that are retired military, and they are very happy. There are no ponds rivers or community green space. Green-space and a child’s playground is planned but in all probability they will not do this until the development is at least 50% sold out. But it is a good value if your resources are limited. This development is about 267 lots when complete and currently there are 43 sold and about half that many homes completed. At this time the developers are using M-2 construction, the foam thing I talked about earlier. One of my friends that lives there is a retired New York cop. He has done an outstanding job in decorating and finishing the interior to be the equal of nearly any home in the area. He is quite fluent in Spanish and has been here for nearly 4 years and therefore can get things done a little easier than the average newcomer. The maintenance fee is $75 per month. Anselmo Moreno, and Jose Moreno are the owner/builders.
Country Club of Boquete-
This is a new development, slightly over three years old. At this time there are about 8 homes and three condos soon to be completed. The infrastructure is nearly complete. They say this will have 135 homes when completed. There is an excellent weather pattern here. Strangely, it has some lots that would and could have canyon views but they will not! The government here is very strict about cutting down trees and the canyon edge is completely lined with trees that may not be cut down.
9
My wife calls this The Flintstones development. The reason would be apparent to you upon visiting it. The entrance features a grand arch over the road that looks like something from a Flintstones cartoon. It is not well formed and is somewhat twisted so that the first time she saw it she made this comment. I could not help but laugh, as it is quite accurate. Lots in here run in the 65K-100K ranges for about a third to one half acre. There are a lot of things that are supposed to happen but have yet to. One of the local realtors that is associated with the sales of this development claims he can build through his association with a Panamanian builder a really nicely finished home for $70/square foot in M-2 construction. I’m under the impression that the owner is trying to build this on new customers money rather than using his own which is not inconsiderable. I do have another friend that bought a lot in there and says he’ll begin building in about 6 months. We’ll see. You can see the Pacific but no other vistas, though at night you can look to the south and see the lights in David. That is pretty neat. There are 38 lots that we know of that have been sold; there are 5 more with deposits.
They are forecasting a $75/month maintenance fee.
Montanas de Caldera- The name simply means the mountains of Caldera. This is a new development; two years ago they were still moving rocks. Now there are dirt roads within the development. There is a model and about 6 townhouses with about 1300 feet of living space for $145,000 under construction. The main gate is attractive. They are in the process of planting decorative flowerbeds on the periphery, which is totally fenced. I understand this will be guarded as well as gated at some point in time. There are some beautiful vistas here. The lots seem to be very close to one half acre in size. Those in the least desirable location are in the 75K range. Prices escalate to 130K on the canyon.
This will be about a 350 home site development. At this moment 43 are sold. If I were you, and you decide to build here, I would suggest you keep an eye on it yourself! They claim they will have a 60 room hotel with an indoor pool! The biggest shortcoming in my view is that it is hotter there. While the average temperature in the hot dry season in Hacienda Los Molinos is 77-82. Since this development is only 1450 feet above sea level, you should expect about 4-6 degrees warmer temperatures! So you should expect 90 degrees in the dry season.
10
While I’m told that there is community green space planned none is evident nor are there any lakes, or streams winding through the place.
They are forecasting a $100 per month maintenance fee.
The Springs
This development is a small one cut into a mountain above and just to the north of the village. The owners are from Naples Florida. They have been in Boquete about 4 and a half years. They have done a very nice job of setting up the development on the side of a mountain. We have watched what they are doing for 3 years. The view of the Boquete valley is very nice as is the view of Baru. It is quite cool and wet here as in all the Boquete valley. This development is bordering on 4000 feet in altitude. They plan to have an artists studio for painting and sculpture on the premises. Their son Jason is here now and has been for about 1 and a half years. He has begun a cabinet business and does have some nice offerings, though it is also a little “pricey” when compared to what can be purchased locally from some high quality custom cabinet makers. I was told they expect to charge about $100 per month in maintenance fee.
Palo Alto Mountain Club
This development has been going on for about 3 years. Nothing is happening. There was death in the family of the developers and things have just nearly halted. The plans are for 48 home sites and 14 condos/villas. They have plans for a clubhouse and all the trimmings. They intend to begin construction on 2 model homes, 2 condos, and the clubhouse “soon”. They will be charging $75/sq.mtr. for the land parcels and approximately $120/sq.ft. for the homes and condos. The construction will be M-2. The marketing manager, Mr. Mark Henderson told me they plan to build only first class finishes throughout. I believe that will be more difficult to do here than they think. High quality finishing as one might expect, depends on craftsmanship. Real craftsmanship is largely not existent in this part of the country, most of the workers here have only been in the home building business for a very short time! This construction boom here is only about 5 years old.
11
This development is situated only about a half mile from The Springs and is on the side of the same mountain and about the same altitude. So, the vistas are fine but the weather is too cool and wet for me. They are planning to charge $1/sq.mtr. of home size as the fee for maintenance. For my home that would cost $400/month! Pricey! They claim their clubhouse and amenities will be first class as well.
Hacienda Los Molinos
The name means the windmills estate. This development is about 4 and a half years old. It has far and away the best vistas of any of the ones mentioned. It is bordered on the west by a very deep canyon, 460 foot vertical drop! The Cochea River roars through the bottom year around. On the eastern border it is bordered by a tree line that has a small seasonal river called the Soco. The owners have the development tied in with a construction company so you can hold them responsible for your home and property. More importantly, they have every motivation to keep you happy with all facets of living there. They do just that. If you have built before, you know there are always some irritating problems. The Los Molinos family will go out of their way to make you happy with your home and the area. Quality and satisfaction is assured when dealing with them. They remove legal hassles from your life. There are other good builders in the area that will do a good job for you but Los Molinos does not allow other builders within the development at this time. They can, therefore, assure you that the development will maintain a high standard of quality in construction and appearance. I have talked to many people in the Boquete area that are supervising the construction of their own homes and all of them complain about the experience with their builders. I have not had that experience at all! Some people here have complained when something was done two days later than expected! Part of that is the spoiled personality from the U.S.
12
Rarely does construction go perfectly, there are always little things that annoy. I should comment here that I spent the better half of my adult life outside the U. S. until I was age 42. Most of that time was in less developed countries. I learned early on that in less developed countries things don’t work exactly the same as in the States. Again, I can assure you this will be the least annoying experience you’ve had in home building. Keep in mind, that you are in a less developed country; building in the country, (as opposed to a big city where everything is pretty much available on short notice) things can take a little longer than you might wish. However, it still only takes about 10-12 months to complete your home. Keep in mind, also these homes are all built on seismic foundations and seismic construction overall. They are all concrete and stone. Few could afford the time or money to build this kind of home in the States.
I began this section saying that I would tell you the truth about all the areas. Obviously, I live here in Los Molinos. Here is the truth very simply….. Los Molinos is absolutely the best all around value in location (for our climate preference), the best all around value in property cost and the best all around value in home square foot cost and quality!
Come visit, you’ll see what I mean. There maintenance fee is by lot size but averages about $100/month.
Cielo Paraiso
This is the most expensive development in the Boquete area. It is about 35 minutes drive from the village on the southern slope of the Jaramillo mountains slightly east of Boquete. Boquete is in a bowl on the other side of the Jaramillo mountains. It consists of a development of 200 lots of which 43 are sold. The prices are quite high i.e. the smallest lot is just under one acre for 188K! However, this price does include a required membership fee in the golf course of 45K. This will be an 18 hole championship course in a very attractive situation on the side of the mountain. There are no homes complete yet but about three or four soon will be the course was expected to be completed by early 2007, it like most things in less developed countries will probably be another two years until it is completed. I have been watching the progress of this development for about 3 and a half years now and it is going
13
slowly, but it has picked up some speed lately. The road going there is absolutely awful. It will be fixed and made a quality road when some of the major construction is completed. There is no doubt it will be repaired. However, I believe that it will be at least 3 years before this will be done. Realistically, in this area things don’t often progress at a rapid pace and plans are often altered in length of time required for a variety of reasons. Especially when the government is promising to build something or repair the roads.
These people offer you three builders to select from that are “approved.” These builders are probably the top three builders in the area that do not have their own developments. You can bring your own plans that must conform to their standards. This is the way they keep the standards up to par. Homes must be no more than 2 stories and no more than 10 meters high (about 33 feet) which is plenty high for two stories. Within 2 years of purchasing your land you must present plans for construction then you must begin construction within two years. Here is the kicker, your MONTHLY fees for living there will be $650/MONTH. That’s nearly $8000/month for the privilege of living in this community and using the golf course exclusively. Now, this is not an abnormal fee for some United States golfing community however, it does seem high for maintenance here in Panama! Nonetheless, it will be an exclusive place for someone that loves golf and is wealthy enough that these costs represent no problem. Personnally, I believe it will be too far from the community and too expensive for the area. Nevertheless, this place will appeal to a select few for whom it was designed.
Nuare Boquete
This is a new development that is just underway. The roads are being built as is the gate and gatehouse that will become the sales office. There are a total of 52 lots plus villas and condos and a clubhouse planned. The lots here are about average price for the area and they are located on the south canyon overlooking the Caldera river. It is about 3 and a half miles out of town so the climate will be nicer and
slightly warmer than the village of Boquete. The homes are developer built only. The prices are outrageous for this time in the Boquete area.
14
They are charging $99/sq.ft. for M-2 construction! However, they have a special on right now. The special is if you buy and put your down-payment on your home you will get a 3299 sq.ft. home for 329K and the lot is thrown in for free! I don’t know how long the offer will last but this is very high price for the area. Just to put it in perspective there are other builders building M-2 for $25/sq.ft.! I believe this price is a classic case of the rapid growth in the area has inducing some to get excessively greedy. I find it hard to believe that this place will sell rapidly or at all at these prices. The views are nice and the weather is nice but the prices are excessive at this time. There is strong upward pressure on prices here due to the rapid growth but this is out of line at this time. They are forcasting a $100/month in maintenance fee.
THIS PLACE, RUMOR HAS IT, JUST DECLARED BANKRUPTCY AND NO ONE KNOWS IF OR WHEN IT WILL RESTART OR WHAT IS GOING TO HAPPEN!
Vista Boquete
This development is about 1 and a half years old. The views will be great but the location is right on the road into Boquete. It can get a little noisy here. The development has a great view of the Caldera river from the upper floors and will have a great view of Baru as well. These are exclusively condominiums. The ground floor condos are 2600 as are the top floor. The middle floor condos have an additional deck of 500 square feet. The project will be constructed of M-2. The condos are a little pricey from my point of view. For the ground and the upper floors they will be priced at 320K, that is $123/sq.ft. the middle floor condos will be $345K. The maintenance fee is to be in the $180-230 range and will not be charged until 80% occupancy is achieved. The builder is one of the best builders locally, Latifalla Nader. I’ve already made my views known about condos and M-2 construction so I won’t repeat them. However, it is worthwhile noting that for this kind of money you can buy a lot on the canyon with a spectacular view and the biggest of the models in Los Molinos (about 3200sq.ft.) built on a seismic foundation of block and stone for less than the total proposed asking price for these condos! Different strokes for different folks!
15
Cost of Living
We emigrated here from Naples, Florida. We calculated it cost about $5000/month to live there. That included insurances, taxes, and normal living expenses. We did not include routine vacations, not any luxuries.
Here that cost is $1200/month. Others have reported $700-800/month.
I don’t believe that lower level is realistic, as most of we retired want a little more luxurious life. Rest assured, however, one can live like a king here for $1200-1500, assuming you own your home, without any problem whatsoever! You will have everything you can imagine you would have in your normal life in the States for that amount. We spoil ourselves and want for nothing for $1200/month.
Retiring
You definitely need to get your Pensionado Visa. This should cost you no more than about $700 for the first and if you are married an additional $500 for your spouse. You should expect to pay one half down and the balance on completion of the work. You will need an attorney for this and I would strongly suggest that you are very careful
in the selection of this person. There are unscrupulous attorneys here just as there are in the U.S. Imagine that! I say unscrupulous because when a local person views you, it is obvious that you are a “gringo.” This is not a derogatory term. It simply means foreigner, usually referring to Americans (and Canadians). Since you are a foreigner, you
have too much money and some attorneys will charge you way more than $1200 for a couple, just because they think you don’t know better and will pay it. The “pensionado visa” means a pensioners visa. It works similar to a green card in the U.S. You are treated like a citizen here in every respect with this visa, except you can’t vote. This visa gives you discounts one virtually everything. Mentioning a couple, airline discounts of 30%, food discounts at restaurants of 15%, dental services, virtually everything is discounted for retirees both natives and émigrés! I will recommend our attorney, a lady whose English is excellent and can get any legal work you might require in a timely and fair priced manner. I have recommended her to a number of people and they have found her to be as recommended, fair, bright, and timely. You can’t ask for much more than that. Her name is Mayra Lamboglia
16
telephone (office) is 507-226-9523, fax 507-270-1469, cellular 507-6618-5436. Please note that the cellular phone has an extra 6 in the number. All cellular connections here must have that additional 6 or the call will not go through. Her email is 1crisma@gmail.com or mayra1378@hotmailcom. Mayra is in Panama City one of these addresses will work. Please mention that Casey sent you, (I get no kick back for recommending her, I just think you ought not to have to go through what I went through in sorting all this out.) Sending her new customers is my way of saying thanks for treating us so well.
There is no reason to form a corporation here unless you are going to work. The laws regulating corporations have changed in the last year and a half. Corporate officers and directors can be held personally responsible for the debts of the corporation! Since that is the primary reason for forming a corporation, why forms one if all you are trying to do is protect assests? There is a reason and a smart one for forming a “Foundation” here. The foundation protects your assets and allows you to circumvent the probate laws. Probate laws here are very strict. If
you were to die and your assets were not protected by a foundation; then the assets are tied up in probate for at least a year. If you have a foundation and your assets are shielded therein, in the event of your death your spouse could take all your money out of the banks, sell your
house and car and leave the next day should she wish to do so. It also protects your assets from attack caused by a lawsuit. One example, God
forbid you should hit a child with your car and the child dies. It would not be unreasonable or unexpected for the family to sue you for damages. Any assets within the foundation are free from attack. We have our home, bank deposits, car and most of our ready cash in the foundation. Only a couple of thousand dollars are not included in the foundation. When we need more cash, we just transfer cash from our foundation savings account to our checking account. It is a simple device but I highly recommend it. It should cost you no more than $1200 for this from a reputable attorney. I have friends that have paid as much as $3000 for this service. That is patently ridiculous. The sense of security and freedom this foundation will give you is enormous.
17
Are You Ready To Retire?
I don’t believe enough people ask this question of themselves. Retirement is a life change. More so than graduating from college and going to work, having kids, and all the rest. This is the entering into your “golden years.” You should be prepared to enjoy life for life’s sake. I have seen many people retire and say I’m going to play golf every day. That lasts for about three months. You should do some introspection. Are you really happy with yourself and your relationships? Can you enjoy being essentially alone? Can you tolerate no one caring about your past or your daily life now? You will no longer be important to anyone’s life except your spouse and your
children, possibly some of your friends. No one is going to say “Yes, sir” to you anymore. No one here really gives a darn about how much money you have or how many goodies you have. You will find that the only thing that is important to people when you are retired is what kind of person you are. This is true here even more than in the States! Most people here are very friendly and are easy to talk to as they have similar interests…or they wouldn’t be here…makes sense. I caution everyone retiring to take up a hobby. Not golf, not fishing, do something creative,
painting, drawing, pottery, wood carving, writing, sculpture, photography, again something creative. Creative hobbies chew up time in huge chunks and are very satisfying. You don’t have to sell
something you’ve created to be happy. The creation process in itself is very satisfying. I believe most alcoholism that occurs late in life and
other destructive behavior is caused by lack in fulfillment in people’s daily lives. Creative hobbies will really help get by that problem.
If you are a sports geek as am I, you’ll have no problem enjoying the sports you love here. You can buy the American Baseball package or the football package just as you can in the States.
Networking among expatriates here is routine and everyone can and does help everyone else. Some of the suggestions and directions you will be pointed in are good, some not so good. Like all small communities everyone thinks they know your business and false gossip is not uncommon. Most people are too lazy to go to the source to find out the truth. But, this is not unusual in small communities in the States either.
18
Realtors/Real Estate
Real estate is not done here in the same way that you have grown accustomed. A multiple listing service is just now being initiated. No realtor helps sell any other realtors properties. Nearly all listings are private and exclusive. What most realtors do is find out what the owner wants for the property, and then gets an exclusive sales contract for that property for a 6-10% commission. Meantime, he explains to the owner
that he may be able to get more money than the owner is asking, and if he does so the excess over the asking price is to be split on a 50% basis. An example would be the owner wants 150K for his property on which he will pay the salesman 10%. So, the realtor then lists the property for 250K believing that some foreigner will pay it. When you suggest you would like to offer 200K, the realtor will say, “Oh, I don’t believe the owner will take that but I believe I can get him to cave to 225K.” Rather than 15K commission, the realtor just made another 37.5K and the owner is happy too. The buyer may well be happy that he saved 25K but, in fact, this kind of deal is causing inflation in the local market and land prices have nearly doubled in the last two years because of it.
I understand supply and demand as well as any but this law of greed has pushed things a little too far in my mind. On the other hand, people wouldn’t pay these prices if they didn’t think the value was there from
their particular point of view. I bring this to your attention because I can suggest one local Panamanian realtor that I trust totally. His name is Jose Branca. He owns Joe Branca Realty and is not just a friend but
the guy I would trust most with investing in land here. He speaks perfect English and his website is www.panamahighlandrealty.org
his email is joebranca.realty@gmail.com. He is totally reliable and trustworthy. He grew up in the area and knows it well. I wish I could say that of more of the realtors here.
My suggestion is while you may have realtors show you properties in the area I would suggest it would be prudent to get some input from people that live here and know the area well. I know one U.S. realtor salesman that goes on ad infinitum about the beauty and terrific explosion in value of the area and how important it is to take advantage of the land explosion here. He has lived and worked in the area for about 3 years
19
now and still does not, himself, own a home or any land here! So, while things here are great, be prudent.
Lifestyle
The key, once again, is to choose your climate. We elected to live in an area where it mornings are 70 and afternoons are 77-82 in the dry season. During the wet season, the mornings are 65 and the afternoons are 72-77. This corresponds to the weather we loved in Florida. The
reason most people move to Florida is not for the hot summers, but the weather from November to May.
There are no heaters and few hotels offer air conditioners. While neither is really needed, what is needed is dehumidification especially in the village and some of the wetter areas of the highlands. While staying in hotels we have taken our laundry to be cleaned and pressed, picked it up dried and pressed and hung it up in the room only to find in a couple of hours that it is already damp with humidity. Mold and mildew can be a problem without dehumidification, we don’t like this climate and it is a big reason why we elected to buy and build where we did. We took it a step further. We put in central air. People laugh at us for this expenditure. My position is very simple. I can afford the extra cost and I want everyday of the rest of my life to be as perfect as I can make it. If
it isn’t 77 and dry, give me fifteen minutes and it will be. While in Florida, we ran the air conditioning basically 24/7. Here we use it only
2-3 times a week for 30 minutes or so in the dry season. It the wet season we use it 2-3 times/week when we leave the doors open too long and the humidity from an afternoon rainstorm creeps into our home. Then we turn it on for an hour to dry the air. That is it.
No one dresses up here. Some of the local businessmen will wear a tie occasionally but you really are looking at a wash and wear existence. Casual is the standard. Panamanian men rarely wear shorts, I wear them. However, I have been asked to leave a government building for wearing Bermuda shorts. The rule of thumb here is if you are going to go into a governmental or quasi-governmental building or even in the nicer hotels, it is less offensive to wear long pants. Women can wear anything they like. Short skirts are less offensive than are shorts,
20
though many foreigners wear them. Most businesswomen wear pantsuits. Strange as it may seem, you will see many young somewhat overweight women wearing clothes that appear about two sizes too small. Many even wear the bare midriff things that are popular with the rock and roll artists. When you are overweight like many are (I think from too much starch in their diets) these bare midriff styles are not attractive. My wife asked a local friend of hers why these women wear these styles and was advised simply that they are proud of their bodies, regardless of their weight. I am only raising this point, to note
that dress is very casual. Short sleeves, khaki slacks, casual blouses and skirts or walking shorts are the daily dress. No one dresses for dinner except to be warm. A lightweight waterproof jacket is a necessity for evenings about in the rainy season.
The electrical system here is the same as the U.S. No special adaptors needed. Many hotels have a dryer in the room some do not and therefore you should probably bring your own.
Every brand of liquor is pretty much available here some bourbon is rarely found, as are some brands of scotch. All the vodkas, gins, and brands of rum you’ve never heard of are readily available. A multitude of wines are available. There are four main local beers, Panama,
Soberana, Atlas, and Balboa. Most of my friends that drink beer, say that Panama is the best. I think so too, though I’m hardly an expert.
You can buy three beers for a dollar in local grocery stores. Bud is available for about 9.50 a case and local beers are about 8.00 a case.
There are no gun-toting terrorists here, no Sendero Luminoso, no left wing radicals that want to over-throw the government. There is less crime here in a year than in Washington D.C. in a day. Probably the most common crime though still rare is theft.
There are no food or water problems, in terms of Montezuma’s revenge common to traveling in much of Spanish America.
Dining out is relatively inexpensive by U.S. standards. Within Boquete we have a few favorite spots for dinner, the Machu Pichu a Peruvian restaurant, and a French restaurant. My favorite meal at the Peruvian
21
restaurant is a dish they call Langostino Gratinado. It features giant shrimp in a white mushroom sauce with mashed potatoes rimming a giant abalone shell. It is $12.50 and is delicious. My favorite dish at the French restaurant is local rainbow trout in a white mushroom sauce. This restaurant offers dinner for two including a bottle of wine, appetizers, deserts, and of course any of the entrees, for $36.00. It is a pretty good deal! While it may be a little high considering we are in Panama. When compared to U.S. prices it is really almost astounding. Tipping should be limited to 10%. If you tip 20%, for instance, you will not be looked at as generous, more likely you will be looked at as foolish. The newly opened restaurant at Los Molinos is as good as any for excellent all around quality of food.
Vegetables are vine ripened and fresh in the markets. Hydroponic lettuce in a number of varieties is available. While I’ve never been fond of yellow or red peppers, here they are very sweet and fresh and I eat
them regularly. I believe there are about 120 varieties of fruit here many of which are not familiar to me.
Beef here is all range fed and of two basic varieties. Brahma are raised in the lowlands because they are much more tolerant of the heat and hot weather insects. European types that we are familiar with are grown in the highlands. There are no hormones injected, nor are steroids used to enhance the growth. You can be sure of good quality in terms of tenderness and leanness if you choose on to eat the filet. Either type of cattle features good filet. While sirloin, and rib eye is available, it is quite possible that you’ll get a piece that is too tough to chew, even from
the best markets. Stay with filet it is always good tender and lean. Market prices for filet are about $4.29 per pound. We have found an
importer of American Black Angus beef in Panama City. Rib eye sells for $14.50/pound. It is as sweet and loaded with that corn fed taste you with which you are familiar. I consider it a necessity to have some of that once every week or 10 days. So, we buy 10-15 pounds and keep it in the freezer for those craving times.
You will find the people here to be very kind and gentle. Politeness, and consideration of others is the norm. I believe if all Americans knew what I know of the people and the area, there would be thousands more
22
here. I remember recently when someone said retiring here would cause him or her to miss his or her grandchildren too much. My comment was that with the cost of living savings they could afford to fly the grandchildren to visit once a quarter and still enjoy life at a much higher level here than back home. Prior to our marriage, my wife had not been well traveled internationally. Since, she has been to Pakistan, India, Hong Kong, and many other places. Most places we have visited
together would be out of the question as a place to build a retirement life. She fell in love with Boquete during our first visit, as did I.
There are a couple of things that some will find discomfiting. One, some people find learning a new language difficult. I think you should try hard to do so. Think about it. How many times have you said or heard somebody say…”you are in America, speak English.” Well you are in Panama, you are the guest, learn to speak Spanish. While initially it may seem daunting, you’ll get past it. You’ll also find the harder you
try the more understanding people will be in trying to help you. Nearly all stores will have someone that has a little understanding of English and will help you along. Candidly, I’ve found the more I speak Spanish the more people will go ahead and speak English to you. Many locals understand more English than they will let you know, their pride keeps them from trying to speak English. In other words, they would be too embarrassed to speak English as poorly as most expats here speak Spanish.
Government & Banking
The government is a democratically elected one. There is no army since Noriega was arrested and jailed. It was disbanded. I think the years
under Noriega’s rule may have helped the average citizen appreciate their freedoms even more than they might have before. You’ll feel just as comfortable here as in the States. The only thing you’ll find unusual is that there are from time to time with no predictability roadblocks. These are to make sure everyone driving has a driver’s license. It is also imperative when you are driving in this country, until you have your Pensionado Visa, to keep your passport with you at all times. If you were to come upon a roadblock and not have it you could be forced to go back and get it without any accompanying passengers. It happened
23
to a friend of mine. Remember without a passport, they have no way of knowing who you are or what you are doing I their country.
Taxes
If you are a pensionado there are no taxes on your interest income or on pension income. Currently, if you build before September 1, 2010, there are no property taxes for pensioners for 20 years on homes. That tax-free situation is transferable to the subsequent owners for the balance of the term until the 20 years is used. This program was to expire on August 31 of 2010. The government saw fit to extend the time for an additional year. The new plan was to tax only the value of your land (not home) that had been purchased in excess of 30K. In other words, if you bought land for 40K you would have had to pay taxes on 10K of that 40K in the amount of 1.75%. So you would have had a $175 annual tax bill. To put that in some perspective, we were paying only $2800/ year on our property in Florida that was on the homestead plan. It gave us a highly preferential treatment versus people whose primary residence was not Florida. Additionally, our property was severely under appraised. We sold our home for about 4 times the property appraisal. Homeowners insurance on our 4000 square foot home with all granite, hard wood cabinets, solid exotic hard wood doors, 20-foot ceilings, and etc. cost us $242 for one year. This includes full coverage for earthquakes, fire and etc and etc.
Communications and Other Special Living Needs
Wireless Internet is ubiquitous. Prices vary from $60-125/month for 256K. While hard telephone lines are available. Rarely are the newcomers using them. Cellular phone reception is excellent as the towers are all on mountains and line of sight is just not interrupted nor have I found calls to be dropped very often. Cable television is available in Panama City as well as satellite. Now cable and high speed internet is available! You get about 78 channels about 20-30 in English and 1 megabite high speed internet for about $80! However, again as I mentioned earlier if you are a sports geek you won’t have to miss the NFL or Major League Baseball. Both packages are available here at a considerable savings versus the U.S.
24
Car insurance cost us only $635 per year. Health insurance is only about $740 per year for two. (That is what we pay and I am a heart attack survivor.) Unique to this area is the fact that they asked my wife almost no questions. They wanted to know about my health situation and then came up with a fee and my wife added something like $200 to be covered. They weren’t worried about her condition at all. A brief aside, whenever you are talking to any official or quasi-official such as a
banker or insurance person, or governmental official, they ignore the wife; all communications is directed to husband. So, if you are too strong a feminist you will be put off, but rest easy. This is not done to offend. This is just a male dominated society. The women here may rule the home but in business the conversation is directed to the men. In David, 20 miles from my home to the hospital, everything is done but heart and brain surgery. If that is found to be necessary, that will be done in Panama City where Harvard and other elite American medical trainees abound. There is a hospital there that is afilliated with John’s
Hopkins. The $740 annual premium, or thereabouts, gives you what is basically a 70/30 insurance program. They pay 70% you pay 30%. I’ll give you one example. A friend of ours from Naples, Florida moved here just before we did. They didn’t bother with the health insurance program. His wife developed the need for hip replacement surgery. She is about 65. Since he didn’t have the insurance program the surgery cost them $10,000. The care she received by her own reports was outstanding. If they had the health benefits insurance the surgery would only have cost them only $3000. My mother-in-law had this surgery in Naples about 2 years ago and it was $85,000! Quite a difference! Medicines here are about 50% of the costs in the U.S. We have a friend that is asthmatic, the inhalant he buys in the U.S. for one-month supply costs him $165, here it is $56! I’m a veteran and have the V.A. send my prescriptions to a forwarding box in the U.S. I then pay $27 to have them shipped to my door.
Banking here is very secretive. It has been said that where secrecy is involved, Swiss banks are positively gossipy by comparison to Panamanian banks. If the U.S. government comes to a bank here and presents a factual case that shows you are involved in terrorism, money
25
laundering, or drug dealing, Panamanian banks will give them information regarding your accounts. In no other case will they do so.
Also, having a foundation, adds another layer of security to your information. With the exception of the government owned bank, The National Bank of Panama, banks will negotiate CD rates. Usually, you can count on about 1% over the prevailing rates. Some of them are more difficult to negotiate with than others and some will not go as high as others but they will negotiate. I have been called the Ambassador of Los Molinos by the principals. It is more than that. I am fond of the Panamanian country, the people, the highlands of the Boquete area, and Los Molinos in particular.
Hacienda Los Molinos
If you really know the country, and understand what is going on here, love the climate, as do I, then Los Molinos is the icing on the cake. I should note that I am a retiree. You are likely to be interested in the
same things as am I. I don’t want to wait 3-5 years for something that may or may not happen. The world is full of promise makers. Many do not keep them. I wanted to find a place that is ready now! I wanted the area into which I moved to be ready for the style of life that I desired now! This country is no different from any other. There are road plans that may include widening, or paving or whatever that will one day happen. However, if the infrastructure is complete, then that is most desirable. Los Molinos has not only the best climate, dry and warm
without being hot. The infrastructure is in place, and it is growing rapidly because of it. When completely built out, it will consist of about
360 homes in three phases. Phase 2 has begun and already has about 5 homes underway. Each phase will have its own clubhouse, consisting of 5-6 hotel rooms for those times when you are over-run with visitors. Each will have its own pool and heated Jacuzzi. Each will have a small restaurant and bar. The clubhouse that is complete in Phase 1 has spectacular views with a cantilevered bar that hangs over the canyon. Homes here run just about $100 per square foot. There are several models available that you can modify to your own desires. You may also bring your own plans and the company will build it. The restrictions are simply that your home must fit in with the over-all pleasing aspect of the community. That means a real tile roof and
26
Spanish or Mediterranean architectural appearance on the outside. I don’t think that is over-simplifying. There are large green spaces well planted and a couple of lakes with a small waterfall connecting them. The personnel here will go out of their way to keep you happy in every way possible. This comes from the top. As in all well run companies the employees tend to strongly reflect the attitudes of their leaders. This one is no different. The principals are genuinely concerned with your
Welfare and happiness. They know me well, and when we see one another they never fail to ask, “What can we do to make things better here? We know the good things, what can we do to improve!” Those are their genuine concerns. It is gratifying to be here for that reason among many others.
The chief of the construction company is a very well known and respected structural engineer. His name is Camilo Amado. He has consulted with the government for projects when there are problems with governmental projects that need attention. He has been in the
construction business for about 45 years and has done mostly big structures. However, he has been built homes for many years as well and has a daughter, Raquel Conte that probably knows more about home construction than most men in the business! She was graduated from L.S.U. She really will run your project. Jorge Conte is the Managing Director, (equivalent of President) of Hacienda Los Molinos. He was graduated from L.S.U. His day-to- day work is concerned primarily with the development of the sales of the project, legal problems that arise due to a difficult government bureaucracy. The brothers Troetsch, Carlos Eduardo (known to his friends as Chombe pronounced Chombay) and Carlos Enrique, (known to his friends as *** pronounced Keykay) are the owners of the land (along with their mother) on which Los Molinos is built. Chombe is not an attorney but the General Manger and C.E.O. of one of the largest private banks and legal firms in the country. Like Jorge, he was graduated from L.S.U. *** is in charge of the actual surveys and earth moving, roads and etc. that is ongoing. These are really terrific people with which to deal.
Los Molinos is only a 45-minute drive from the Pacific beaches. One in particular is called La Barquetta. It features 26 miles of uninterrupted beaches, like Hawaii the sands are volcanic in origin and are therefore
27
black. It is a beautiful spot. I recognize many may like the beaches. After living in Naples, Florida for 20 years I’m worn out on hot and humid weather. When we get the urge to beach it, again, it is only a 45-minute drive for a picnic. The Caribbean beaches are a little more difficult to get to. It takes about 3 hours due to the necessity of traversing the mountain cordillera zigzagging all the way except for the final hour or so. Repeating the weather here is perfect from our point
of view and the people currently living here and those soon to come are all very laid back and easy going.
Should you decide on Los Molinos, you will understand what the principals say in their advertising. “Now you will know where the rainbow ends.” There are rainbows here very often in the rainy season. It is a topographical phenomenon that makes them seem to end in the canyon on which the development is built. They really do!
Come visit us here and we will be happy to answer any questions you may have. If you have questions you’d like answered feel free to email me at panamacase@yahoo.com, or call 011-507-6-612-4290.