The Future of Panama Retirement

I suppose you’ve been wondering what I’ve been up to lately, enjoying my Panama retirement and reading the news of the long cold winter north of here (feeling just a little of that "schadenfreude" - just a little), specifically in North America and the global economic crisis. I’m sipping my coffee, a coffee grown in Panama, on the slopes of Volcan Baru. It’s organic coffee here. They don’t use chemical pesticides for the coffee, all the weeding is done by hand. It’s a delicious, smooth coffee with a slightly nutty flavour. Mornings in Panama.

If you’re wondering about the effects of the global financial crisis in Panama, the country is actually not doing badly. I’ve been reading that the government expects economic growth and a budget surplus this year. Not like everywhere else. During the last five years in Panama, the economic growth in Panama has been positive. This prospering in Panama was assisted by the booming Panama real estate market, the profits of the Panama Canal, tourism and the booming banking business here in Panama City. However, it is expected there will be a drop in tourism to Panama as tourists cut back on their vacation spending.

The unemployment rate might be soaring in other countries such as the United States, but here in Panama, the unemployment rate was 6.5% last year. In 2004, the unemployment rate sat at 14%. So things look relatively good for Panama. The government here is experiencing a surplus for the third year consecutively – not like the other governments of other countries around the globe. I’ve been reading about this in the newspapers.

However, obviously, Panama real estate is experiencing a slump. Panama real estate was fuelled by North American and European buyers, but lately, they are not coming to Panama to purchase property because of their own declining economies. As a result, prices of real estate properties in Panama is declining. As recently as a year and a half ago, people were buying properties in Panama for $200,000 and then selling them six to 12 months later for double the price. There is now a bounty of high priced condominiums which can’t be sold because the numbers of buyers looking for Panama property is just not there currently.

There has been a decline in the number of ships passing through the Panama Canal. The Panamanian government collects tolls from the shipping that pass through. But because of the world wide recession, there are less cargo ships these days travelling through the Canal. In the meantime, Panama has been expanding the Panama Canal locks to allow larger ships to pass through. This mega project has created thousands of new jobs for Panamanians and is an investment in the future of Panama.

Another good fact is that since end of the Noriega regime in 1989, Panama has experienced peace. Peace and stability are great forces when it comes to a country prospering economically. I’ve got no time for dictators. That’s why I chose to retire in Panama.

There are still people who are suffering economically though, selling fruit on the roadside or stealing scrap metal to resell because economic prosperity has not trickled down to enough to the people who need it. Like many parts of the rest of the world, wealth sometimes remains concentrated in a few hands. The cost of food is going up as well, but this is an international problem.

Problem for all the baby boomers who had hoped to cash in their retirement funds and sell their houses is that most of their retirement funds were invested in the stock market and they lost a lot of their cash. Also, selling houses in North America is not worth it right now because you couldn’t get the price you want for your house. Most of the baby boomers have decided to put off their decision to pack up and leave and buy a house or condo in Panama till they get a better return on their investments. Getting a loan from the bank is almost out of the question.

Looks like a lot of people are waiting for the recovery.

I’m glad I decided to retire to Panama when I did. I’ve been here a few years now, speaking Spanish like a native, living in an apartment in Panama City. I’ve looked around for some Panama properties to purchase, but I’m holding out till I find the perfect spot. I want a house on the beach for my retirement in Panama and with the prices declining for Panama properties because of the lack of buyers, I’m ready.

Different Areas to Retire To Panama

If you are thinking of retiring to Panama, it is an obvious statement to say that you have visited the country several times, travelled around and, perhaps found a location where you are thinking of purchasing property. You, like me, love the country you have visited. On the other hand, you might have visited a couple of resorts and just want to find out what’s out there in the way of real estate for retirement in Panama.

What you need are companies which offer real estate tours of Panama. These companies (and there are quite a few of them – all you have to do is search on the Internet) provide a service to those interested in either retiring in Panama or want to buy a second home or a vacation home or are interested in investing in Panama. They know the country and they know what’s available. Included in the price of a real estate tour in Panama is that you will see some of the hotels and resorts in Panama, some of the beautiful beaches, and then visit the mountainous regions of Panama and get to experience the varied landscapes of Panama. You will be taken to the popular retirement properties in Panama and get a vacation – all in one. These real estate tours in Panama are customized to fit the needs of you, the client.

These companies are not selling property to you but are providing you with a personalized trip which combines business with leisure. On your real estate tour, you will meet people who can assist you with questions regarding residency in Panama, investing in Panama, real estate in Panama or any other question about moving to this country.

Your real estate tour will begin with your arrival in Panama City where you will be put up in a hotel in Panama City to unwind and refresh yourself. They usually have a welcoming session where you will be given your itinerary and they will explain the finer details of the tour.

For your first day in Panama City, they will take you around to various retirement properties in Panama City. These will include some land projects and some retirement condos, some already constructed and others to be built. You will also learn about such subjects as banking in Panama, investing in Panama, laws in Panama such as laws regarding retiring to Panama, residency and the ins and outs of real estate transactions.

Your transportation will be provided on the tour by this company. Your next day might be spent at the beach at a resort such as the Coronado Beach Resort. It is 83 km from Panama City on the Pacific Ocean where you can experience the beautiful location surrounded by the forest, with a golf course, tennis courts, swimming pool, spa services, great restaurants and bar etc. You will relax and meet new people. There is a neighbourhood about five minutes from Coronado, you will see the weekend homes on small streets. There are condos planned to be built here, a park with tennis courts, two pools. This is in the future. Me, I’m looking for something that is already built.

Next on your real estate tour might be a tour of the real estate projects nearby, beachside lots for sale, hotels for sale and homes situated on cliffs with a view of the Pacific Ocean.

Other places you will be shown are the mountainous regions of Panama. You could visit Sora, a popular retirement choice – one hour from Panama City and about 20 minutes from the beach. The climate is cooler here because of its location in the mountains and some of the properties actually have a view of the ocean. The cool mountain air is fresh. You could then drive further up the highway and visit Penonome in the province of Cocle and then on further to El Valle or the Anton Valley. The climate is cooler and it is popular as a weekend escape for the rich among Panamanian society. Stay the night at the Casa de Lourdes Hotel in the Anton Valley, a luxury boutique hotel designed in the style of a villa in Tuscany. Absolutely marvellous setting, sunsets, spectacular views and very romantic.

Try checking out the properties in Boquete in the Chiriqui Highlands which is a popular area among people who want to retire to Panama. You could stay at the Panamonte Inn and Spa located in the valley of Boquete. It’s a small hotel, much like a European pensione. Have a drink and relax by their fireplace in the bar. The gardens are beautiful and the window open up with views of the coffee plantations and the Baru Volcano. There are properties for sale for investors and retirees, vacant lots, pre-existing homes, some with large lots of land and some on smaller parcels of land.

On these tours you get to experience some of the Panamanian culture, folkloric dance, song and, of course, the food. The price which ranges in the $2,000 to $3,000 range includes all taxes, transportation in Panama, the tours and hotel accommodations. You’ll get to meet some people with the same interests as you, retiring to Panama, the friendly people of Panama and experience the life in Panama and its varied landscapes.

Retirement Properties in Panama

Lately, I've been looking at properties in Panama. I’m just sitting here on my balcony, reading the paper – La Prensa, practicing my Spanish, drinking my coffee in Panama City, enjoying my retirement in Panama. It’s a Sunday morning, early, about 8:30. It rained for about five minutes earlier this morning but the day is warming up to it’s usual humid, beaming down on your head heat. I like that, much better. Rather have the heat and humidity than the freezing cold wind in your face and trudging over the snow as it squeaks underfoot. Brrrr!

Currently, I’m renting an apartment in Panama, getting adjusted to life in Panama and perfecting my Spanish. I am searching for a property in Panama, but I’m looking around before I buy because I don’t want to make the wrong choice. I want to buy the right house or condo for me. I actually want beach front property, but that’s just my personal choice. There are real estate agents in Panama who are all leaping up to help me. Tomorrow, I am headed up to Bocas del Toro to look at properties there. There’s plenty of websites available about properties in Panama and if you have a look, you can see there are all prices ranges for property, varying locations all over the country, both beachfront and mountain and city locations. The price ranges I’ve seen go from anywhere like as low as $70,000 and up. Much cheaper to retire in Panama than in the United States and there are deals to be had, for sure. I’ve got an appointment tomorrow with one who is going to show me some of the properties in Panama that are available for me to my exact specifications.

So far, I’ve looked at properties in Panama in Playa Serena, Vista Mar, Santa Clara and Coronado and Tucan Country Club on a real estate tour of Panama. I decided to take to get a good overview of what’s available. I want a beachfront property in Panama, nothing too big, just two bedrooms – that’s all I need. An extra bedroom for an office space and perhaps some of my guests. I could get a three bedroom place, depending on whether I think my kids are going to come down often enough. I’ve already got friends emailing me telling me they are coming down to visit when I get my place.

There are lots of benefits added to retire in Panama and the government of Panama made it pretty easy to do so with the Panama Retired or Pensioner visa – the Visa Pensionado. The Visa Pensionade allows foreigners to get legal residency in Panama if they have a pension or are retired. The minimum age is 18. You have to show that you earn at least $500 US per month with your retirement income and that this income last for life. The complete rules for immigration to Panama for retirees are pretty standard and simple to follow. Sometimes you can get a real estate company in Panama or a Panamanian lawyer to handle all this for you.

The Panama government also allows all kinds of discounts and for retirees in Panama which is an added bonus. I haven’t heard of any other country in the world that makes it this easy for you to retire in their country.

Here’s a list of the discounts you can get if you are a retired pensioner in Panama, age 55 or over:

• 50% off entrance to recreation and entertainment activities, such as theaters, movies, sports and other public productions
• Public transportation
• 25% discount off the price of airfares
• Discounts at hotels and motels
• 25% discount at restaurants
• 15% discount at fast food restaurants
• 20% discount for consultation fees for hospitals and private clinics
• 15% discount for dental services
• 15% discount for optometrists
• 20% discount for technical and professional services
• 50% discount for passports
• 25% discount for electricity
• 25% discount for phone services
• 25% discount for the water bill

So, as far as my decision to retire in Panama goes, I’m one happy guy. The prices for property in Panama are very reasonable, the people are friendly, the weather is great. I can’t complain. It’s safe here and the music is drifting out from somewhere. The sun is starting to beam down hot. Living in Panama is a dream come true.