Richard Detrich’s Boquete, Panama Weblog

I recently stumbled on a Web site for an organization in the UK called “Customer First.” 

I say “Panama Need Not Apply” in jest: this is exactly the kind of concept sorely needed in Panama.  In Panama the concept is “The customer is the enemy.”

Customer First has what they call “32 Statements” which are goals for customer service for a successful company. Since I’m shopping for a lot of items for our new house, so dealing more than I’d like with Panamanian companies where as a “customer” I am viewed as an “interruption”, in the hopes that some of my Panamanian business friends will sit up and take notice, I include Customer First’s criteria.

These are the criteria against which you will be assessed on your journey towards achieving the Customer First Standard. There are 32 Statements in all, split across the three core elements.

CUSTOMER RELATIONSHIPS SECTION

We build successful long-term relationships with our customers

We build successful long-term relationships with other related service providers and suppliers for the benefit of our customers

We identify our customers’ needs at the first point of contact with us

We always ascertain customers’ existing relationships with other relevant service providers before providing services to avoid duplication

Our customers can access other relevant and related services through their contact with us

We always set aims and objectives that specify what our customers can expect from the service we provide to them

We deliver services to our customers within agreed timeframes. We review to ensure they are achieving what we have agreed

Our customer’s needs are reviewed on a regular, on-going basis

All employees follow clear guidelines to ensure we select the most appropriate organisation to either contract with or refer to, in the best interests of the customer

Our employees have access to up-to-date customer information which is updated accurately at regular agreed intervals

We always follow up with our customers after we deliver services to them

Where appropriate we always follow up our key customers after we refer them to other service providers and suppliers

We always follow up and resolve customer complaints or concerns, swiftly

We understand, evaluate and review the long term impact our services have on our customers

MARKET AWARENESS SECTION

Our employees, and all those working on our behalf, understand the purpose and aims of our organisation

We have processes in place to keep our employees up to date with the changes in our industry sector and other related service provision

We develop our services by working in partnership with other relevant service providers

We have overall business objectives that we measure and regularly review

We set overall objectives for service delivery which we regularly review to ascertain how our performance affects our customers

We have processes in place to identify our customer groups and their needs which are reviewed regularly

Potential customers are carefully selected and targeted in any marketing activity

We have processes in place to share good practices with our customers and with other relevant organisations

We support continuous improvement – we are able to demonstrate that we learn from our experience and make improvements to our services as a result

The introduction of every new or changed service is based on a clear rationale

PEOPLE SECTION

We ensure we recruit the best people for the job by using effective and appropriate recruitment methods in line with Equality of Opportunity principles

All our employees understand their role within our organisation and are clear about what we expect from them

Our employees have the necessary skills to effectively understand and meet customer needs

We use customer feedback to evaluate our employees’ performance

We regularly review and appraise our employees and ensure they are developed to perform their job effectively

All employees have appropriate, and recent, training and development to perform their job effectively

We evaluate employee training and development to ensure it has a positive impact on customer delivery

Our employees deliver an impartial and objective service, acting in the best interests of the customer at all times

Whether it’s our local supermarket in Boquete, a building supplier in David, or a major appliance dealer . . . the customer in Panama is always the last consideration of business. Attractive color schemes, cool logos, nice uniforms for the employees, best parking space (maybe the only parking space) for the manager, lots of glossy advertising for goods you don’t have in stock and maybe can’t get . . . these are the important things in Panamanian business.

I met Dr. Robert Schuller while I was pastoring my first church in the South Bronx. Schuller was well know in LA and Southern California, and in our little Reformed Church denomination . . . but that was pretty much it. He was in New York and we had a brown bag dinner with Bob and a number of RCA pastors from New York City. He was his usual effusive self telling us how we could all build great cathedrals . . . provided we had enough “surplus parking”. Right! After he spoke at one of the Collegiate churches. About 150 people turned out, including Schuller and the RCA pastors. Not exactly the crowd he was used to, and the message fell flat.

Well I went back to the South Bronx and wrote him a letter saying basically it’s all well and good for you to say we can all build these great churches, but in the meantime I have a 150-year old church building that’s falling down in the poorest section of New York and yada yada yada, I need money from your rich Southern California church. I never heard from him, and assumed I never would, until 7 months later when I received a 10 pages letter from Schuller. Well that started an interesting relationship. The first station to air the “Hour of Power” outside of Southern California was in New York City. I got word that Bob was going to be in New York to meet with his publisher, so I said, “If you’re going to be on TV in New York you have to understand something about the people here and how they are different than in Garden Grove, California.” So I talked him into a tour of the South Bronx. We took him on rooftops, to “shooting galleries” where guys where shooting up with heroin, to our drug rehab program, to projects . . . he saw it all, and it made a lasting impression.

All that digression to say that one of Schuller’s favorite stories, and one which I love, is about “possibility thinking.” He tells the story of a man who said he was so hungry he could eat an elephant. Another guy said that’s impossible, how can you eat an elephant. The answer: one bite at a time! Which led to Schuller’s famous saying, “Inch by inch, anything’s a cinch.”

What does that have to do with Panama? You guessed it! It’s the philisophical basis for building a house in Panama. And we are making progress!!! “Inch by inch . . . ” but progress none-the-less.

Pergola and stonework on tower . . .

Breakfast bar and paint . . .

Dining room looking toward kitchen . . .

Doors!

Pergola and color samples . . .

Inch by inch . . . we’re getting there!

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Boquete developer Sam Taliaferro is a controversial figure in Panama, and he and I don’t always agree, but I enjoy reading his blog including a current post, “Which is better: Panama or Costa Rica?”

Panama can never really compete with Costa Rican as an ecological tourism destination. Panama has the advantage of a well documented and incredible history of transformation from a 1500’s backwater to the center of the universe in transits for goods and services in the 21st century. It is in her unique combination of modernization, infrastructure, history and culture that make Panama a major attraction as a place to live and live well rather than just to visit. Panama cannot afford to spend millions in marketing to be something she will never become, but she can and should focus on her strengths and attract people to her shores to live here rather than just pass through along with the containers in the canal and money through her many banks.

There are many foreigners who long to live among the forests and monkeys and are willing to share that world with the many visitors that come to gawk at the incredible world of nature. If you can afford to pay for it and are willing to sacrifice some of the many comforts of the first world, then Costa Rica may be the right place for you. If on the other hand you want access to all that natural beauty on a few hours away, but still want to live where goods and services are reasonably priced and in abundance, then Panama may be the right choice. After having lived in both countries I find Panama to be more to my liking.

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We hit a new record of unique visitors yesterday! Well, you are all “unique”, wonderful creations of God, but in Internet terms . . .you know what I mean! Thank you very much!!

Please return daily and also visit my new photography blog - www.BeautifulPanama.wordpress.com

I am a very amateur photographer, but I enjoy taking pictures. WordPress has come up with a new blog format and design which is very condusive to displaying photographs, so I have decided to use it as a vehicle to share some of my favorite shots of Panama, as well as some of my travels. Check it out!

Is the handwriting on the wall for Panama?   Is Royal Caribbean homeporting a major cruise ship in Panama the shape of things to come?  Until the US normalizes relationships with Cuba, at which time you will see a major exodus of cruise ships from Miami to Cuba, Panama seems ripe for the development of cruise ship tourism.  So here comes the plague of ports, “Diamonds International” - sorry ladies.

Panama Diamond Exchange joins WFDB
May 20, 2008 - As gateway to Latin American market, country aims to be major jewelry player

Shanghai, China—The World Federation of Diamond Bourses (WFDB) has accepted the Panama Diamond Exchange (PDE) into its membership ranks.

The PDE, which joins exchanges from Turkey and Australia as the newest WFDB members, gained acceptance into the bourse on May 17, the final day of the 33rd World Diamond Congress held in Shanghai, China.

According to a presentation by PDE President Erez Akerman, the PDE opened in early 2006 and is seen as a gateway to and from Latin America, which includes South and Central America, and also as a means of reaching the islands of the Caribbean.

This area, he said, is home to about 700 million people and 11,500 jewelry stores in 20 countries and 23 Caribbean islands, which generate more than $7 billion a year in jewelry sales.

Akerman said in 2007, the country of Panama itself, which uses the U.S. dollar as its official currency, saw its economy grow 11 percent, a growth rate second only to China.

The government of Panama, led by President Martin Torrijos and Vice President Samuel Lewis Navarro, stands behind efforts to make Panama a player in the jewelry industry, Akerman said, including the construction of a 48-story tower in the heart of Panama City that will eventually house the PDE.

In addition, the area encompassing the PDE has permanent duty-free-zone status, eliminating taxes and duties on transactions conducted there.

“We consider our affiliated membership to the WFDB to be an essential component in our development, and we are fully aware that this is an important element in the Panama Diamond Exchange achieving international recognition,” Akerman said in a media release. “We are equally convinced that the Panama Diamond Exchange will be a valuable addition to the WFDB, for it will open to its bourses’ members the vast and largely untapped markets of Latin America.”

Along this same line, Matthew wrote about a new super world mall being developed midway between Colon and Panama City.

I actually heard of a company called PIMM that is building the largest merchandise mart (larger than Colon Free Zone) and they have the same benefits as a free zone but they are better located, around 1 hour closer to Panama City than colon. and of course its an area that is safe and not dirty!

The project is promising “6,800 showrooms, a convention center, 10 office blocks, on-site condominiums and four hotels soon to be constructed between to City of Colon and Panama City, PIMM will be the largest international merchandise mart in the world.”

However, of the 6,800 showrooms, the cruise excursion bus will only stop at one little hole-in-the-wall offering “recommended” shopping!

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Hang it up Hillary!

Gee Hillary, don’t you know when it’s over? Hang it up. Get a life. Your lack of judgement in being able to know when to stop beating a dead horse calls into question your judgement as a CEO, to put it in your “hiring question” terms. Keep pushing and you will guarantee the Democrats will loose. The Democratic party has an unrivaled record of snatching defeat from the jaws of victory and this endless charade is weakening the party and the chance of victory in November.

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My new photography blog - www.BeautifulPanama.wordpress.com

I am a very amateur photographer, but I enjoy taking pictures.  WordPress has come up with a new blog format and design which is very condusive to displaying photographs, so I have decided to use it as a vehicle to share some of my favorite shots of Panama, as well as some of my travels.  Check it out!

OK, here goes . . . and by the time I’m done there may be a lynching party of local “real estate sales people” and wantabes at my door.  When we first came to Boquete there was one real estate agency, a year later there were two, now they are multiplying faster than rabbits!  There must be two dozen real estate offices in town, if there is one.  And two more popped up while I was away!  So, you see, there could be a lot of folks in the lynching party!

What stimulated this post was that someone sent me a link to a site called Panama Vultures by a guy named Scott Taylor, a/k/a “Mr Vulture” - look that’s what he calls himself - who came to Panama City from Carlsbad, California, and found an opportunity in real estate.  The site appears to me to be a jumble of ads, but it does have a few gems, and this is one . . .

Real estate agencies in Panama are a nightmare!

If you haven’t experienced them yet, consider yourself lucky…very lucky!

Here are just a few reasons why dealing with agencies in Panama can be one of the all-time worst experiences of your life (no kidding!):

There is no MLS, so you have to go to every individual agency to list your one property.

Language is always a barrier.

No calls are ever returned. No emails are responded to.

Sellers have to beg and plead with each agency, one by one, to get their properties listed.

Sellers are responsible for doing all the work (pictures, ads, making copies of keys, etc.) and delivering everything to the agency on a silver platter.

If you’re lucky enough to convince an agency to list your property – which is a small miracle in itself – and then it actually sells…you have to pay the agency 5-10% sales commission even if YOU did all the work!

So Scott’s answer is yet another real estate in Panama Web site, except he has chateaus popping up in Europe on his . . . go figure. But, since I’m working to sell my house, I’m working with local real estate agents and I couldn’t agree with Scott more! I sold real estate - I was a REALTOR, the real thing - in Ventura, California. If need be I would camp out overnight on someones front lawn to get a listing, feed the dog, water the plants - whatever it took! But then again I actually SOLD real estate and didn’t just go through the motions.

So what’s it like to find and buy property in Panama? It can be very chaotic and confusing!

Just to be nice I’ve published the chapter from my ESCAPE TO PARADISE on real estate here on my blog.  Just click above on “Real Estate.”

And, by the way, since we are building a new house on our coffee farm, the house in which we are now living - in Valle Escondido, overlooking the Valley, the stream, and the 9th hole of the golf course - is for sale!

And let me add emphatically, certainly this does not apply to every real estate salesperson or company in Boquete! I have found a few who are professional, who are trying to change things, and who are willing to do some work.
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Catching up . . .

Peter wanted to know how I find time to do this blog.

Well, when you start a blog you have no idea how much time it takes!  If you want to have a daily post - and why would folks come and visit every day if there wasn’t new content? - it takes a whole lot of work and creativity.  I try and do it early in the morning when things are quiet and the dogs are asleep . . . and I could be asleep if it weren’t for the bloggy thingy.

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Panama is more “tranquil” than the US, but, hey, we know that!

According to a “Global Peace Index” released by Britain’s Economist Intelligence Unit the US ranks number 97, behind Kuwait, Nicaragua and Libya. The index ranks 140 different countries according to factors such as military spending and respect for human rights. Iceland and Denmark took top spots, with, as you might expect, Sudan, Somalia and Iraq at the bottom. Panama ranked 48 just ahead of the United Kingdom. Panama’s higher ranking likely reflects the small nations relatively low crime rate and lack of a military force.

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My new photography blog - www.BeautifulPanama.wordpress.com

I am a very amateur photographer, but I enjoy taking pictures.  WordPress has come up with a new blog format and design which is very condusive to displaying photographs, so I have decided to use it as a vehicle to share some of my favorite shots of Panama, as well as some of my travels.  Check it out!

With the tragedies in China, Mayanmar (a/k/a/ Burma), the Central US . . . we wonder what happens in a non-”first world” country when disaster strikes.  It’s a consideration folks have, and ask about, when considering moving to a country like Panama, and an area like Boquete which is largely on the slopes of a dormant volcano. 

First, let’s talk about Panama.  Sometimes I hear people express concern about our living in a “third world” country like Panama . . . Panama is NOT “third world”.  It is a largely “second world” country that is in many ways and areas is rapidly moving toward becoming a ”first world” country.

Second, natural disasters do happen, and they can happen anywhere, anytime.  Some happen with warning such as hurricanes which are now tracked for weeks, allowing time for preparation.  Some happen with little or no warning, such as tornadoes, earthquakes, and tsunamis, the amount of warning being largely related to the country and the investment made in scientific observation, prediction and preparation.  Volcanoes, if monitored scientifically or even just by time-honored folk tradition, give adequate warning.

While we may like to think that a “first world” country with enormous wealth, like the US, would be fully prepared to react in times of natural disasters . . . or even man-made disasters . . . we have all learned very painfully through 9/11 and Katrina that even the US is woefully unprepared and inadequate in the face of disaster even although we know that we can expect even worse than Katrina.

Just this week . . .

LOS ANGELES - The “Big One,” as earthquake scientists imagine it in a detailed, first-of-its-kind script, unzips California’s mighty San Andreas Fault north of the Mexican border. In less than two minutes, Los Angeles and its sprawling suburbs are shaking like a bowl of jelly.

The jolt from the 7.8-magnitude temblor lasts for three minutes — 15 times longer than the disastrous 1994 Northridge quake.

Water and sewer pipes crack. Power fails. Part of major highways break. Some high-rise steel frame buildings and older concrete and brick structures collapse.

Hospitals are swamped with 50,000 injured as all of Southern California reels from a blow on par with the Sept. 11 attacks and Hurricane Katrina: $200 billion in damage to the economy, and 1,800 dead.

Only about 700 of those people are victims of building collapses. Many others are lost to the 1,600 fires burning across the region — too many for firefighters to tackle at once.

A team of about 300 scientists, governments, first responders and industries worked for more than a year to create a realistic crisis scenario that can be used for preparedness, including a statewide drill planned later this year. Published by the U.S. Geological Survey and California Geological Survey, it is to be released Thursday in Washington, D.C.

Last month, the USGS reported that the Golden State has a 46 percent chance of a 7.5 or larger quake in the next 30 years, and that such a quake probably would hit Southern California. The Northridge quake, which killed 72 people and caused $25 billion in damage, was much smaller at magnitude 6.7.

“We cannot keep on planning for Northridge,” said USGS seismologist Lucy Jones. “The science tells that it’s not the worst we’re going to face.” 

Having lived through Northridge, that’s less than reassuring.

Third, now to Panama, and Boquete . . . we know that we live on the slopes of a dormant volcano named Volcan Baru (”Baru” also being the name of one of our Dalmatians).  We know that probably sometime within the next 5,000 years there will be some volcanic activity.  To put our “risk” into perspective, if you live in the Midwest US you might think about the probability of a deadly tornado in your town in the next five years.   Or if you live in the Caribbean or along the Atlantic coast, you might consider the number of hurricanes to be expected this year, and the possibilities than one will be a “direct hit” on your area.  If you live in California, what are the chances this year of wildfire, mudslides and earthquakes?  (They say California has three seasons: fire, mud and earthquake.)

Our biggest concern in Boquete are earthquakes.  Several of the major plates come together not far offshore from where we live.  Earthquakes are not that uncommon here, but unlike the ones we experienced in California they are more like a brief punch (feels a little like a dump truck just dropped a load of stone out front) and not that horrible waving motion that we used to get in California.  (We lived thorugh a couple of Malibu and Ventura fires as well as the Northridge quake in California, so life in Boquete is very traquil by comparison!)  But we take the same precautions here as we did in California: no windows or glass pictures above the beds, knowing where flashlights and shoes are at night, good neighbors, and sufficient supplies on hand should they be needed.  

Disasters can strike anywhere . . . anytime . . . so the key is awareness and preparation.  Under current President Martin Torijjos, Panama has developed a disaster response program.  In a country with only some 3 million people, it may be easier to put a disaster response program into place.  Knowing that Volcan Baru will probably have some activity within the next 5,000 years, and knowing equally that most people will brush off the thought with “not in my lifetime”, Panama has begun to aggressively educate people about “living with a volcano.”  Recent studies in conjugation with the US Geological Survey are helping to understand Volcan Baru.  An initial array of seismic and volcanic monitoring devices have been placed around Baru, and are scheduled to be placed around Panama’s only other dormant volcano.  These devices are monitored not only here in Panama, but by vulcanologist’s around the world and the US Geological Survey.

For more information on Boquete’s Volcan Baru . . .

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My new photography blog - www.BeautifulPanama.wordpress.com

I am a very amateur photographer, but I enjoy taking pictures.  WordPress has come up with a new blog format and design which is very condusive to displaying photographs, so I have decided to use it as a vehicle to share some of my favorite shots of Panama, as well as some of my travels.  Check it out!

Fearing their left wing President Chavez will shape Venezuela in into a highly Communist regime like Cuba, wealthy Venezuelans are fleeing to Panama. Entire Venezuelan companies are being picked up and moved, employees and all, to Panama. International companies that previously had regional headquarters in Venezuela are moving to Panama. Individual Venezuelans, uncomfortable with the direction of there homeland, are purchasing condos in Panama City as a “Plan B” should they wish to leave Venezuela in the future.

Venezuelans, like others, are attracted not only by the beauty, but by Panama’s booming economy and a lively Latin culture. Panama City is the “hot” Latin American capital city with numerous lavish shopping malls and vibrant night life.

Attempts at constitutional change proposals to scrap presidential term limits and limit press freedom during political crises by Chavez make Venezuelans increasingly nervous.

Maria Alejandra Chacon, a journalist from Venezuela, is quoted as saying, “I love Venezuela. I feel happy to have been born in a country that has everything, but there is one important thing called liberty.”

Estimates are that as many as 15,000 Venezuelans have relocated to Panama City in the past two years. Real estate agents in Panama City report that Venezuelans are the hot market for Panama’s jungle of new high rises.

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If you are thinking about Panama, be you from Venezuela, the EU, or the US . . .

You may be interested in these comments of Chuck Dolce of the Sovereign Society who recently held their 2008 Total Wealth Symposium in Panama City.

Panama is truly spectacular. If you’ve never been, it’s a country on the move. Skyscrapers rise up from what was once a depressed Central American country. Skyscrapers are built IN the ocean. Architecturally, the juxtaposition of the new and the old creates almost a surreal effect. It’s 2008 on one side and 1940 on the other.

Panama is a country rebuilding itself both structurally and economically. The third largest economy in Central America, Panama specializes in service industries like banking and tourism. What were once military bases are now malls filled with excellent restaurants, bars and shops. It’s now an offshore haven in the ranks of Switzerland and Lichtenstein. It has been the perfect place to host this year’s conference.

The Paradise that is Panama

. . . [This is] a country that is at once beautiful, booming, affordable and friendly.

Contrary to what some may think, Panama offers a diverse, yet very temperate climate. Temperatures average in the 80s on the beaches and in the city year-round. But in the highlands region, the temperatures can cool down enough at night to require some heating. Panama essentially has two seasons - the dry season which lasts from January to April, and the rainy season from May through December. But the rainy season is more akin to summer in Florida. You have hard drenching rains for a couple hours a day and then beautiful sunshine for the rest of the day.

Standard amenities here are all “first-world” level. From cable TV to Internet to phone service. The country is accessible by air from virtually anywhere in the world. The roads are well-maintained and the stores offer some of the best shopping in Central America. The malls are populated with some of the most recognizable names in the world. And at largely affordable prices.

More Bang for Your Buck Here in Panama

The overall cost of living in Panama is about 30% lower than in the United States. You can get a three-course lunch for two with wine for about US$25 . . . It’s about US$2 in a cab across the city.
A manicure costs around US$7 and you can get a bottle of beer at the store for around 50 cents. A live-in maid will set you back around US$200 a month. Or you can simply get housekeeping services for around US$15-20.

Healthcare is affordable too. An average doctor visit runs around US$35, if you make your appointment the previous day. And the quality of care is excellent. Most medical staff here are trained in the U.S. and the facilities are first rate. Johns Hopkins has just opened an affiliated medical center in Punta Pacifica, one of Panama’s residential areas.

Infrastructure development is booming right along with the economy. Panama experienced GDP growth of over 11% last year and Panama is expected to grow another 8-9% this year. And this is not an “inflation-based” economy like so many other countries. In fact, Panama has no central bank to tinker with inflation! Instead, economic growth is productivity driven.

Home to over 200 banks, Panama is the second largest banking center in the world. Plus they adhere to strict banking privacy laws.

Taxes are reasonable. If you live in Panama, you’re only taxed on Panama-sourced income. Standard deductions are applicable, including medical expenses incurred in the country. There are property tax exemptions as well, including older exemptions that can be grandfathered in when real estate is purchased. And the real estate boom is continuing. City condos can be had from US$100,000+ to luxury resort residences from US$260,000 and up.

And as I mentioned [previously] . . . investment amounts are going to increase soon. How much is anyones guess, but they are going higher. So if you have any interest in exploring residence options in Panama, the time to act is now.

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How much money, Ed asks . . .

I found this blog when looking for information about Boquete and Panama. Most of the other Panama sites are tragic. Your writing is wonderful.

How would I find out how much money I need to live in Boquete? Ed

First, Ed, thanks for the compliment! Now, about the money . . .

You know how it is when you visit some Caribbean island where they don’t speak English and have their own currency . . . you get off the plane . . . grab a cab to the hotel . . . have no idea . . . so you just hold out a bunch of funny colored money (Well, we used to have greenbacks, now, thank you George, we have funny colored money as well . . . who ever thought we’d have a purple $5 bill?) Anyway you hold out the money so the driver can take the correct amount . . . and he takes ALL of it.

Does that answer your question?

I saw a study, now a few years old, that said that the average expat who moves to Panama has about $2,500 in disposable income to spend each month. To get an expat “pensionado” or retirement visa that allows you to live in Panama full time and import a container of household goods duty free, you must show $600 pension income per couple. Not that you can live on $600 a month. We live very comfortably on our combined Social Security and pension income, which is roughly $3,400 a month. Of course we both have cars, have several properties to keep up, maybe spend more than the average couple on medicine and travel a lot.

Cars are a little cheaper to buy here because they don’t have things like catalytic converters and air bags are not required (but available as an option). Houses in Boquete that an expat would find comfortable run from $100,000 to $2 Million. Most new construction has a 20-year property tax exemption which can be passed on to future owners. And yes, since we are finishing up a new house on our farm, my present home in Valle Escondido (private, gated, luxury community, house overlooking the valley, river, and 9th hole of the golf course) is for sale for $459,000 give or take.

Hope that helps!

Tonight I found your website and find it very enjoyable and informative. I’m the lead man on finding info for three couples(+) who are thinking of moving to Panama or Costa Rica. Finding info on Health Ins. has been hard, many statements that it is reasonable, reasonable is a relative term. The David /Boquetearea is our main interest in Panama and I was wondering if you would tell me more about your HMO withlocal Hospital. Such as how reasonable it is, if being over 60 or 80 is a concern(which it seems to be with some Health Ins. Co. there).
Also what do you think is the minimum amount someone could live on there, considering they shopped local markets, lived in or near town in a non gated community type home? Arthur Goussy

Hey Arthur. Let’s assume that other folks may have similar questions.

You may find a better deal on health insurance in Costa Rica, since I heard from a guide that “everyone” is covered. I haven’t checked that out, but you’d have to weigh that against the total picture in Costa Rica . . . and why lots of expats are moving from Costa Rica to Panama. My impression is that the overall cost of living, quality of life (despite the “Pura vida” tourism hype of Costa Rica), and personal safety and crime issues, make Panama the better choice. The economy and economic diversity of Panama are far better than Costa Rica. And Panama uses the US Dollar which generally, although not at the moment, has been a good currency in which to have your money.

I have Medicare but I have to go to the States to use it. I don’t have the extra-cost Part B because when I looked at all the deductibles, etc., it seemed to me I was better off just to seek treatment in Panama where medical care is far more reasonable than in the US. We have all the bells and whistles, even a major hospital in Panama City that is affiliated with John’s Hopkins. Many of our doctors are US-trained and speak English. Hospital stays run about $40 a night.

We mostly self-insure. All the insurance schemes want to limit pre-existing conditions (broadly defined), and by the time folks are 65 almost everyone has some pre-existing condition, and generally that’s the stuff they are worried about. We do have the local hospital’s program which they call “insurance”, but which I would call more of a discount program. You can check the specifics at
their Website.  We know some folks who’ve used it and found it very helpful, and others who’ve tried to use it and not found it helpful.  Fortunately, our use has been limited.  And yes, it goes up as you get older.

Cost of living obviously varies greatly.  There are folks in Valle Escondido who cheerfully pay $25,000 to belong to the golf and health club.  That’s not us, although we still have a home in Valle Escondido (which by the way overlooks the Valley, the stream and the 9th Hole and is for sale).  There are other retirees, including many Panamanians, who live on amazingly little.  We live on my Social Security and my wife’s very limited County pension.  But, our cost of living is a third of what it was in California!

We sold our home in California, bought our place here for cash, so we don’t have to worry about mortgage payments.  Our house here was built under the current law that makes it property tax free for 20 years.

You can live like a gringo here, or like a Panamanian.  Example: I was frustrated that I couldn’t find crushed pineapple and when I did it was almost $2 a can.  My Panamanian friends laughed and pointed out that I could buy a big fresh pineapple for $1, throw it in the blender and have loads of crushed pineapple, enough to use now and to freeze for use later.  It’s just how you think.  Once you get away from our US ideas of everything being prepared, and of course loaded with chemicals, you can not only eat more reasonably but also eat more healthily!

Assuming you have three couples, all friends, but whose children or eventual heirs may not necessarily all be friends, here’s one scenario.

We have a friend whose husband recently died so she has decided to sell the 6 hectares (about 14 acres) they have on the other side of the mountain on the road to Volcan.  Volcan is not nearly as developed or high-priced as Boquete, but it is astonishingly beautiful.  This property, which I would buy if I had the money, is right off the main road withelectric and water (important consideration when buying land here!).  It is gently rolling and has a river that runs through it with several swimming holes and even a little waterfall.  She wants $290K, which is a good price.

I’d buy it pay a few thousand more to subdivide it into four lots each owned by a separate SA corporation.  That makes it easy to sell if you or your heirs later want to sell.  Then I’d build a 1500 sq ft home, which you can easily do for $75 a square meter finished nicely.  And you get a 20 year property tax exemption.

So, now you have a beautiful 1,200 ft new home on about 3 acres of prime land overlooking a stream for $187,500.  I think you can live comfortably with one car on $2400 - 3000 a month, including a liberal allowance for travel outside of Panama.

So, how’s that?  A lot depends on where you live now in the States, what housing values are, and what the cost of living is in that particular area. 

I “recommend” (loosely so) the Riande Airport Hotel in Panama. I am a frequent guest, although you sure wouldn’t know it by the way I am treated. But I’ve concluded they treat every guest withthe same “attitude” so I don’t feel bad. The bell guys who take me to the airport and look after my car while I am gone, are great, the parking is free, and the convenience of a location 5 minutes from the international airport with quick and easy access to Corridor Sur make it hard to beat. And, recently, the hotel has begun a much needed renovation, albeit a minor and relatively cheap renovation and not the massive renovation required.

There are other Riande hotels and I’ve never stayed at any. (Why would I want to given my experiences at the Riande Airport in Panama?)

I arrived home May 8th. The airport shuttle was there almost immediately. When I checked in I received the usual challenge, delivered with attitude - not upscale “attitude” but “DGAS” attitude (nicely put, we don’t give a damn about your business) - “Do you have a reservation?” (If not, we certainly don’t want you in our hotel.) Here goes . . .

Since it’s 4AM I’m up and out of here to beat the traffic through Panama City. Makes you wonder why I stay here, huh? Location, location, location. Any decent hotel that builds by the international airport, offers a modicum of service, a clean and affordable room, airport pickup and parking will make a fortune!

I grant you I’ve just come off of 50 days on the VOLENDAM with Holland America’s truly exceptional service, but still . . .

One of the reasons for Holland America’s exceptional level of service is the Filipino and Indonesian crew who come from a culture where being of exceptional service to another is considered an honor. In Panamanian culture being of service is, well, being a “servant” and while people are certainly willing to perform servant-type roles if needed to survive, it is certainly not looked on as an honor. The Panamanian work ethic largely centers around punching in, putting in your time, and punching out. If Panama is to be truly successful in the tourist and hospitality economic sector there must be a relearning from the top down. At the top corporate executives must understand that the guest is the guest and without the guest there is no business. The standard Panamanian business ethos “the customer is the enemy” simply doesn’t fly in the tourist and hospitality sector in the long term. From the top it has to filter down to the local facility management and the lowest paid employee who, ironically, is frequently the one most in contact with the customer.

So how, you ask, does a hotel like the Riande Airport survive?

A Deloitte report published this week showed that Panama City has the second highest hotel occupancy rate of any city outside of the United States. Panama, which had a hotel occupancy rate of 84.7 percent, was topped only by Perth, Australia. Deloitte says that tourism in Panama increased 27 percent in 2007, much higher than the expected 15 percent increase. In addition to this, Panama City showed an impressive 37.9 percent increase in revenue per available hotel room.

Even in the current rocky economy, Panama is emerging as one of the strongest locations for tourism in the Americas buoyed up by a weak US dollar.

Richard Detrich’s Boquete Blog An Interesting Perspective On Expatriate Life In Panama
April 30, 2008 by patrickwoolford

Richard Detrich’s blog provides an interesting look at the American expatriate life in Panama, specifically living in Boquete. After scouring the internet for interesting blogs on Panama, Mr. Detrich’s blog is a refreshingly honest look at life in Panama, amid a veritable wasteland of commercial and spam filled sites. According to his site, Mr. Detrich is an ordained minister and retired businessman who relocated to Panama with his wife. He often writes about his day to day experiences living in Boquete, as well as his experience owning and operating a small shade coffee plantation in the mountains. His blog is varied and eclectic, with posts on Panama politics and history, photographs of wild orchids, and stories of gruesome battles between spiders and scorpions in his laundry room.

For anyone interested in buying property, building a house in Boquete, or is looking for advice on investing in Panamanian coffee, Mr. Detrich’s Boquete Blog is a valuable resource.

Reading Mr. Detrich’s blog is especially useful for investors interested in Boquete, but also provides general insight for real estate investments elsewhere in Panama. One particularly useful page on his site is an extensive Q&A section that answers many questions people may have about buying property and living in Panama. Some of the questions addressed include “how isolated is Boquete from the rest of the world?”, “Are foreigners allowed to own property?”, and “how is banking in Panama different than in the United States?” For anyone interested in buying property, building a house in Boquete, or is looking for advice on investing in Panamanian coffee, Mr. Detrich’s Boquete Blog is a valuable resource.

Panama Real Estate Investment

Hey, Patrick, thanks!!

OK, I’ve been on the high seas with expensive Internet rates . . . so let me get caught up!

Editorial correction, your grandson’s name is Rian Patrick not Patrick Ryan! Just a reminder for when you meet. George

Thank you George! Your son, my grandson IS Rian Patrick not Patrick Ryan! Chalk it up to too much tequila on the VOLENDAM! Mea culpa!

Do snakes ever appear in or near the house, Richard?

Snakes avoid places where people frequent . . . early on we had one in our outside “deposito” or storage shed. The workers building the house next door tipped me off that they had seen it slither inside. My West Indian woodworker, the same guy who ripped me off for $1000, burned garlic to chase it away. I’d have been better keeping the snake and chasing him away! When we were first cleaning out our little place by the beach after nobody had been there for a few years, Nikki found a baby fer de lance in the corner. But snakes are usually smart and avoid people.

Living in Panama with snakes is like living in New York or Chicago or any other city with dogs and careless people who don’t pick up . . . you watch where you step!

Hello Richard, I enjoy very much reading your blog and perhaps you can help me out with an inquiry that a US visitor ask me the other day where to eat in Boquete/David? Where would you recomend you readers to eat , taking under consideration that safety, location some might not have a car etc? any good restaurants that you can suggest? Thanks, David V

Given the fact that truly Panamanian cuisine is somewhat limited - rice, chicken, beans, salad, bananas or for variety beans, rice, chicken, bananas and salad - not sure I have any great tips. There are a few good Panamanian/Chinese places we like in David. Have yet to find good pizza outside of Panama City - Pizza Italiana when are you opening in David or Boquete?? Boquete has gringo and Panamanian restaurants. A lot of the little Panamanian places offer great food at affordable prices. The gringo places tend to offer great food at gringo prices. Unfortunately new restaurants in Boquete open . . . and close . . . in the blink of an eye. I’ve never understood restaurant recommendations when traveling abroad. To me the fun is in making your own discoveries!

My husband is a retired high school principal and I still have one foot in the school system and one on the curb that separates Missouri from Panama. Since my husband has retired he has been talking about moving to Costa Rica or Panama. We are your “typical” (?) older Americans (56) that wish to live a simpler and more peaceful life among like minded humans without the threat of war, gangs, soaring prices etc. After reading many of your writings I feel like I have found one of those humans.

My husband and his brother are planning a trip to Panama in the next six months and I feel that your website will be very helpful. My question or questions are…our total retirement will be around $1300 per month. We will cash in our annuity to be able to set up our household. Will we be able to live on that amount? Are Americans allowed to work in Panama? For myself, I can’t imagine not having a job! (I have to work on that.) I make homemade soaps and lotion bars on the weekends. Would I be able to sell my products…and mainly, could I order from the internet and be able to receive packages from the states? Does Panama have UPS? LOL! I’m sorry if these sound like dumb questions but as you might guess, I’m the one that is hesitant about leaving my comfort zone. Till now we have just researched Costa Rica and getting what I need sounds a bit more difficult…like working! We are not city dwellers. Will live in rural mid-Missouri where my husband grows organic vegetables and sells them and my products at Farrmer’s Market in the city. Any suggestions would be much appreciated. Thank you~~Garland

Whoa Pilgrim! Lot’s of questions! First, you might really love it here in Boquete or in Volcan since we are a rural farming area. One couple stopped by our home for a glass of wine and to talk about moving to Panama and the gal said, “It’s just like being on the high dive: you want to jump, but you’re not sure that you dare to jump!” Well, nothing ventured, nothing gained.

I would suggest coming down and renting someplace for 6 months or so. At worst it’s a nice vacation experience, at best you might discover your paradise!

You can get a “pensionado” retiree visa if you have at least $600 per month pension income. That doesn’t mean you can live on that amount! Just like in the states there are folks who manage to live modestly and folks, usually Hollywood types negotiating divorce settlements, who feel “impoverished” eeking out an existence on $50K a month! If you like to grow some of your own food, and live somewhat simply, and use your annuity for a house, one car and bring in a container of your household goods (duty free for pensionados), you could do it . . . certainly a lot better here I would think than in most places in the US.

You cannot work as an employee in Panama, however, it is very easy to set up your own business and there are incentives if you hire a few Panamanians. I think in our area there would be a lot of women who would like your soaps and lotions if they were affordable and sold directly. The organic vegetable concept is relatively new and I think that could be profitable if sold directly. UPS incoming is expensive, outgoing it is unbelievably expensive. But there are outfits we use to ship Internet orders to a Miami address and they bring it down weekly to Panama at very affordable rates.

I do a shipboard lecture about this and one of the points I make is that people should “Follow the string!” If you don’t follow the string of an idea you will never know where it might have led. And if you don’t like where it’s leading, just let go!

I actually found your site when investigating cruise ships in 1968 . I’m writing a novel about how two different members of a family deal with grief, irony right. I will read more. Another curious connection , I am an international chef on mega yachts , a little different than cruise liners but we both spend alot of time in style at sea. When I am published I will be sure to send you a link or a book if you’re interested. Kirk

Hey Kirk, I will look forward to it!

Nice notes. Anyone been to David? I live in Costa Rica now, but am interested in meeting online folks from there or who have been there. I contimplate moving there and would like to spend a couple weeks visiting. Tom

Tom, I’m not a big David fan. I go there for utilitarian reasons: shopping, dentist, doctor, etc. But I can tell you that David is booming and I think offers some great opportunities for business and investment. I’ve been on both sides of Costa Rica (Puerto Limon and Puntarenas) this past spring cruise season, and I’ve talked to lots of expats who are anxious to leave Costa Rica because of the high crime problem. You might check out http://www.chiriquichatter.net/blog/ for more on David specifically.

Hi Dick — this is fascinating! I am Henry Kwant’s brother-in-law (Battle Creek, MI). I am 55 and pastoring a church in a suburb of Seattle. I would enjoy being a chaplain on a cruise ship. What does it take to do this? Pastor Pete

Hey Pete . . . “Follow the string” (see above!) It’s a great opportunity to minister to guests and crew alike. Holland America generally always has a priest on board, rabbi for holidays, and a Protestant minister when the ship is at sea on a Sunday. Here’s the link for contact http://www.hollandamericaentertainment.com/jobdescriptions/clergy.asp