prices and with all the amenities. Some of the largest include Hacienda de los Molinos, Cielo Paraiso, and Montanas de Caldera. Developments are mainly spread out along the David-to-Boquete highway. The closer you get to David, the closer you are to sea level, and as you get up to Boquete it gets cooler; so you can choose the development that fits your microclimate! Some developments sell homes and lots overlooking steep canyons. Other offer space for horses. It is recommended that you fully explore all developments in order to find the choice that fits you best. Keep in mind distance to Boquete versus David. Boquete tends to be charming, quaint, touristy, whereas David is more practical with the regional airport, small mall, U.S. retail and fast food chains, and health care; but David definitely lacks the charm of Boquete. The cost of living is dramatically lower in the province of Chiriqui than in Panama City (which is already low). Your money will stretch very far for restaurants, services and labor.
Within an hour’s drive of Boquete, yet still in the province of Chiriqui, is an expansive, yet undeveloped, strip of the Pacific Ocean, with some smaller hotels and developments popping up. This area looks promising in the future but currently, access remains a problem. The beaches on this stretch of coast are expansive and dramatic, but the black, volcanic-like sand may not be appealing to some consumers. But many inlets and bays make it ideal for boating and the construction of waterfront communities. The area is not yet on developers’ radar screens and definitely a region to watch.
Chiriqui definitely has variety, with mountains, beaches and a range of microclimates. Nearly every crop imaginable grows, so food is abundant, fresh and inexpensive. People in Chiriqui are known nationwide as being kind and laid-back. As is the case elsewhere in Panama, you will find a foreign presence welcome and will be made to feel “at home.” Perhaps the biggest downside to Chiriqui is its accessibility to international flights.
If there are ever direct flights from the United States to Chiriqui province, the region will more than likely explode with second-home development similar to the Guanacaste province in Costa Rica.
Bocas del Toro
Bocas del Toro, or “mouth of the bull,” has a funky and laid-back, almost bohemian feel to it. Lying in the extreme northwest corner of Panama, this place is for water and nature lovers. If you are looking for upscale, cosmopolitan living, “Bocas” is not for you. If the lyrics to Jimmy Buffett’s “Margaritaville” put you in the proper frame of mind, then you may have found your ideal place to settle. Bocas is a collection of nine islands and more than 200 keys sprinkled about
25 miles off the coast near the Costa Rican border. Christopher Columbus named the archipelago, which today counts 10,000 residents.
A short description of Boca’s natural environment includes luxurious rain forests, sunny islands, beaches that rival the best in all of the Caribbean with coral reefs and crystal water, mangrove islets in what appears to be lakes, Indian villages and government-protected lands dedicated to preserving nature, including the huge Bastimentos National Marine Park. It all makes up an incredible, natural archipelago tucked away in the corner of Panama. If you were disappointed in the Pacific coast, then Bocas will make up for your disappointment. To really know Bocas, you must take a boat tour (in fact, the roads to Bocas Town are only connected to the mainland by a ferry at the town of Almirante). It is a stunning archipelago with small homes, bars and restaurants only accessible by water and beautiful nature scenes—don’t be surprised when dolphins follow your boat and jump in the wake you leave behind. The water is crystal clear, and the area remains unspoiled despite its status as a development hotspot.
Bocas Town, the main village of fewer than 5,000 people, is the hub of activity. It is a laid-back town that is densely packed, with many curious streets and some stray chickens vying for the road with the relatively few vehicles. Businesses, homes and other establishments made out of wood and tin sit on stilts over the calm waters alongside thatched huts. The town is surrounded on nearly all sides by water, thus earning its nickname the “Venice of the Caribbean.” For a small town off the beaten path, it has a lively restaurant and entertainment scene with Lebanese, Mexican and Thai restaurants. A mixture of European and U.S. tourists gives it a true international appeal. English is widely spoken and understood. While Bocas is off the beaten path, you’ll be surprised that cell phones and email work just fine, thanks to Panama’s excellent telecommunications infrastructure. You are only a 50-minute flight to Panama City and Costa Rica is 20 miles away. Bocas has many paved streets, treated water and sewer systems, electricity, telephones, cable TV, a hospital and ambulance service and a fire department. As is the case in all of Panama, there are no hurricanes in Bocas, giving it a big leg up on other destinations in the Caribbean. All signs point to Bocas being a boom place, but things don’t happen overnight in Central America. Investors need to always keep this in mind.
Bocas del Toro is an ideal place to build the single-family home of your dreams where waterfront properties are plentiful and affordable. Several large-scale developments are under construction, such as Red Frog Beach Club, which will have single-family homes and condos spaced over several dozen acres. Special consideration of the environment has been taken, and it will feel like a luxurious Jurassic Park when completed. As is the case in all of Panama, title insurance is a must. There have been several publicized incidents of problem claims in the area, but research and due diligence usually take care of most problems. Unlike David and Chiriqui, there are no plans for an international airport. So the tranquil, remote area should remain popular for years to come.
Tips on buying real estate in Panama
So, you’ve decided to buy a second home in Panama, either for investment, retirement or vacation reasons, and you want to get in on the boom. What do you need to know?
Panama has a surprisingly sophisticated real estate market. Salespersons must be licensed to sell real estate in Panama, and the country has approximately 1,000 licensees. When working with Panamanian agents, first confirm that they are members of the local real estate association, or ACOBIR (www.acobir.com). Members of ACOBIR are some of the best in the country; they utilize a Multiple Listing Service and must adhere to a code of ethics similar to the code honored by the National Association of Realtors. ACOBIR also participates in the International Consortium of Real Estate Associations (ICREA), where all properties are also listed. A U.S.-based broker should be able to locate a reputable broker in Panama. It’s always advisable to work with agents who hold the Certified International Property Specialist (CIPS) designation (see appendix). These professionals are fully trained and have the knowledge and expertise needed to guide you through the transaction.
Some differences and other tips in buying real estate in Panama:
•Appliances are traditionally not included. These are negotiated separately and understand that you will pay extra for these. This must be factored into the home price. Appliances can be purchased at rates similar to those in the United States.
•The rental market tends to be weak in Panama due to high home ownership levels. Do not buy property in Panama with the expectation that you will make a decent rental income—yet.
•Financing is widely available for local and international clients. There are more than 70 banks operating in Panama, and most offer long-term mortgages. For foreigners, the usual terms call for a down payment of 30 percent, sometimes less, with mortgage terms of 30 years. Interest rates vary from bank to bank, yet Panama will come closer to equaling U.S. rates than any country in Central America— another benefit of the long-time American presence.
Lenders
