Cashing In On a Second Home in Central America: How to Buy, Rent and Profit in the World's Bargain Zone. Tom Hammond Kelly

      Panamanians are educated, with many having studied in U.S. universities. Panama has a 90 percent literacy rate. Several U.S. universities have a presence in Panama, as do institutions such as the Smithsonian, which runs a research center there. The U.S. presence results in many U.S. organizations, clubs and other intellectual pursuits.

      Families have a number of excellent schools from which to choose, and there are numerous American-accredited schools.

      Weather

      Panama experiences no major natural disasters such as hurricanes, tornadoes and snowstorms, and only minor earthquakes and tremors. Panama is marked by two major seasons: the dry season, which is from December through March; and the rainy season, which occurs during the rest of the year. But even during the rainy season, there is usually sunshine for at least a portion of the day. Panama’s highland regions, such as Valle Anton and Boquete, have year-round spring climates for which neither air conditioning nor heating is required. The downside is the climate tends to get humid and muggy in the wet season.

      Familiar conveniences

      Thanks to the Canal Zone, Panama has every U.S. franchise and chain restaurant imaginable throughout the country. There are three North American-style shopping centers in Panama City alone, plus warehouse clubs, movies and restaurants. Inexpensive shipping prices are due to the presence of the Canal as a major freight point. Movies are released in Panama a short time after release in the United States. ATM machines are found throughout Panama since it is an international banking center with no foreign currency transaction fees.

      Quality construction

      Home seekers will be pleasantly surprised by the high quality of Panamanian construction. Homes are well built and tastefully designed. Panama architects attend U.S. construction-industry conventions to keep up to date on the latest in construction styles, floor plans and quality living. Some of the newer developments in Panama cater specifically to U.S. buyers by eliminating maid’s quarters and designing open floor plans and kitchens and smaller formal areas.

      Panama has jumped to a spot near the top of the charts for international second-home buyers and investors. There’s waterfront on two of the world’s great oceans, tropical-forest getaways and a very attractive downtown condo market where absentee owners have found responsible renters to help carry the monthly mortgage. And, many investors have seen double-digit appreciation over the past few years.

      Now, let’s take a look at the first real draw for second-home buyers in an area south of Mexico—Costa Rica.