“What is the cost of Living in Panama?”… Viva Tropical’s Park Wilson and Josh Linnes launched the site in an effort to educate would-be expats on the realities of life in Latin America. They hope to help others have the information they need to make informed decisions when relocating to Central and South America.
Photo Credit: P. Peter
They also wouldn’t mind debunking a few of the false claims made by marketers who are trying to lure folks down to the tropics under false pretenses. Here, Park talks about one of his particular pet peeves.
I guess you see a lot of extravagant claims promising a perfect life in paradise. What are some of the worst?
Park: “Move to Panama and live on $500 a month!” “You can move to the great town of David and live like a King!” I’ve been an expat in Panama for 6 years now, after a brief stint in Costa Rica. Not only am I surrounded by others in the expat community but, as a real estate developer, I’m also surrounded by the folks who are making these ridiculous claims.
Marketers deliver a lot of really misleading messages about moving here, but the ones about the cost of living are the ones that really make me sick to my stomach.
So, it isn’t really cheaper to live in a place like Panama?
Park: No, it totally is! I mean, it can be. I mean…well, it depends.
Let me explain. If you plan to move down here and continue doing and buying all the exact same things that you did in the U.S., you might actually pay more. In other words, if you want the same brand of cereal you eat every morning back home and your usual flash frozen steaks flown in from Omaha, then you can get those things. But at a fairly high premium.
Are you saying people need to be ready to make some sacrifices?
Park: Not at all. Quite the contrary, actually. You will need to make some changes, but I wouldn’t call them sacrifices at all. Let’s go back to the steaks, for example. My family buys filet mignon for $5.50 a pound, and we eat a heck of a lot of it. But it’s local beef, not imported.
We also steer clear of most things in a box or jar, because those things tend to be more expensive than in the U.S. But the way we see it, those things were probably taking a few years off our lives anyway. I don’t consider that much of a sacrifice.
So how do marketers get away with lying to their potential customers?
Park: I wouldn’t say it’s an out and out lie. It’s just misleading. In a country with a per capita GDP of $600 per month, you could probably get by on $500 a month. It just wouldn’t be the standard of living you’re probably looking for when moving to a place like this.
To live on that little, you’d need to live like a local. Eat only local foods, patronize local establishments. We’re talking 47 cent beers, 10 cent bananas, and big bags of rice for a few bucks. You could do it. But you would also experience a huge shift in your standard of living.
If that’s what you’re looking for, then great! Just know that before you make such a big decision.
How do you strike a balance between having the things you’re used to in the U.S. and taking advantage of the lower cost of living in Panama?
Park: It’s all about finding that sweet spot. There are a lot of items in a household budget that can be obtained at a great value in Panama. You just need to pick the ones that line up with your values. Here are a few of ours.
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Domestic help. We have someone who works in our home every day: cooking 3 meals, buying our groceries, doing laundry, even babysitting our kids when needed. All for just $300 a month.
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Fresh foods is another category. We eat so well at our house. But we don’t eat like we did in the States. And because we have help with the cooking and more time on our hands, we don’t have to eat hamburger helper.
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Another place you can save on expenses in Panama is in medical costs. My daughter was born in Panama last year, and we saved $27,000 compared to what we would have spent in the U.S. But even for routine health care, the cost is much lower. Doctor visits are $5. Antibiotics cost $10. Our insurance premiums are also much less, and we even have a policy that works in the U.S. too.
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Travel is another biggie. There’s so much to do, and it’s all so close. We love to go to the beach, take the boat out to nearby islands (including my own project), visit new areas…and it’s mostly all in Panama. We save a lot by traveling within the country.
So, what’s the magic number? If an expat can’t get by on $500 a month, then how much?
Park: It’s hard to say, really. It’s all up to you and the areas where you plan to splurge and save. No one can give you a guarantee on what it would cost for YOU to live in Panama. What’s more important is to look at your own habits and tastes and have realistic expectations about the lifestyle you can afford here.
For me? I spend about a third of what I would in the U.S. And I wouldn’t change a thing.
If you’re hoping to retire to a beach haven overseas, may we suggest Panama? The Latin American country has a great deal of culture to offer, as well as beautiful scenery and fabulous weather. And the Panama beaches are an important part of the package.
Panama has many draws as an overseas retirement location, including vibrant communities, great quality inexpensive housing, and the beaches are some of the best. In fact, one of the best things about the country is that it has beaches leading onto two oceans: the Pacific and the Caribbean. In fact, Panama has over 1,500 miles of coastline!
Panama Beaches
In the past, Panama’s beaches have often been overlooked. Many of them are very rural and remote, and they haven’t typically been popular tourist destinations. However, there are some absolutely gorgeous areas of coastline in the country, and we don’t think that you should overlook them.
If you’re thinking about visiting or retiring to Panama, take a look at these top five beach areas in the country.
Coronado
Coronado Panama
Set only an hour away from Panama City, Coronado is a beach town that is well-loved by expats and Panamanians alike. The beaches themselves are an impressive site to behold. The beaches in this area have fantastic black and white sand, and are great fun to visit.
Away from the beach, the town of Coronado also has a range of leisure facilities including bars, restaurants, shops and a plaza area. This is a very popular area, and has a great expat community. This area is very different from the rest of the beach areas on the list: purely because of how developed it is. Coronado is the destination for you if you want to be able to shop in an American-style grocery store and meet up with friends for a nearby round of golf.
Boca Chica
Photo by Boca Chica Island
The Boca Chica area is wonderful if you’re looking for a rural, romantic spot to spend time with a loved one. The landscape here is made up of hills, valleys, and banana plantations. It also has a perfectly tropical climate. In the past, this was a very remote area, but it is fast becoming the next up and coming spot. The new airport in nearby David will soon be accommodating direct flights to the United States and Canada, which will make traveling here very easy.
The beaches in Boca Chica benefit from fine sand, dark beautiful water, and a quiet, peaceful atmosphere. Factor in the Chiriqui Marine Park, and the coast at Boca Chica is very attractive.
Bocas Del Toro
Bocas Del Toro is an area that’s made up of six islands, along with a number of uninhabited islets. It’s a beautiful part of the country, and is described by Conde Nast as “the Caribbean that time forgot.”
This area is popular with tourists and expats for many reasons. It has a great community, and is also home to some of the most typically beautiful beaches in the whole of Panama.
Here, you can expect to see flawless white sandy beaches and clear, turquoise water. Because of this, the beaches in this area are particularly popular snorkelling destinations.
Santa Catalina
The Lonely Planet has reported that Santa Catalina has the potential to be the next great Central American beach destination.
This laid-back town is mainly populated by laid-back Panamanian fishermen, but it does have a huge draw for tourists and expats alike: great surf! The beaches of Santa Catalina offer incredible surfing opportunities. Because of this, the town is growing, and is developing more and more facilities for expats.
Because of the relaxed atmosphere of the town, it also has a growing reputation for having a healthy attitude. There’s a real focus in the town on healthy food, as well as yoga. Santa Catalina is one of the few places in Panama with this sort of vibe.
Pedasi
Pedasi is a small town set in the outback of Panama. It’s a relaxed, low-key place with a rich history of folklore. If you visit the town, you can expect to be greeted by friendly residents, great food, and maybe even a beach party or two. There’s also something a little out of the ordinary waiting for you at Pedasi. In this area, some of the beaches feature beautiful lava covered sand.
But it’s not all quiet here. There are also a great deal of sports opportunities to choose from. Whether you’re into surfing, scuba diving, sports fishing, or horseback riding, you’ll find something to enjoy in the area.
The one downside of Pedasi is that property prices are quite high here compared to other rural areas with limited services.
Is One of these Panama Beach Areas Right for You?
Panama is a beautiful country that offers a lot more value for money than other more typical holiday or retirement destinations. It’s an inexpensive place to live, and this is true even in some of the more popular coastal areas.
If you’re looking for the ideal beach destination, to visit or even to retire to, one of these five areas might be the one for you.
AJ Smith is an architect from the U.S. who is building a project on Boca Chica Island, Panama for a client. He recently returned from a fact-finding mission in Asia where he studied techniques and styles used there for building exotic and inexpensive dwellings. We thought our readers could get some value from hearing about what he learned overseas. The article is focused on Boca Chica Island, but there is still a wealth of knowledge and perspective for anyone building in the jungle environment. Enjoy!
AJ Smith
1. What techniques have you found that could reduce cost and or beautify a project on Boca Chica Island?
Simple Balinese rooflines can be a great addition to Boca Chica Island. In some cases the roof also becomes part of the wall so there is an efficiency of material but it also becomes the most prominent feature of the building giving it a definitive island style. With many repetitive members, the technical difficulty of construction is reduced. If you are trying to achieve longer spans, site built trusses composed of smaller members can help reduce the need for lots of labor and hoisting equipment.
2. After touring Bali, what materials would be the most cost-effective for a project on Boca Chica Island?
I believe concrete, concrete block, milled timbers, bamboo, and natural roofs can all be cost-effective materials to use on the island. I had initially been hesitant to use concrete because the logistics of mixing large quantities and pouring onsite without the use of heavy machinery seemed daunting. After visiting the Gili islands, a place with no motor vehicles, only bicycles and horse carts, I saw this would not present much of a problem. A great deal of the structures I saw were primarily made of concrete and concrete block. They are able to mix and pour large quantities of concrete by creating mixing pits and careful coordination of lots of manual labor. One of the most impressive examples I saw was a 30 meter long pool poured without a single cold joint.
Many of the wall and roof structures I saw were all composed of small- to medium-sized framing members. Milled timbers generally created the primary structure while bamboo was a secondary framing member. It creates a very clean and simple look that has a strong tropical esthetic. By utilizing this style of framing you can avoid the cost of locating, sourcing, transporting, and erecting large timbers.
Natural roofs were a common feature almost everywhere I traveled in SE Asia, employing a wide variety of materials. In Bali they use a thin light grass that has a very appealing feathery look. In Cambodia they use a short wide leaf, in Thailand a coarse palm leaf is common. I’d like to experiment a bit with palm and grass roofs in Boca Chica to try to achieve a similar look and life span I saw throughout SE Asia.
3. Any new, exciting concept you came across in general that you are excited to try?
AJ Smith
One of the most interesting things I saw was the Lumbung style house. These were traditionally used in agricultural areas for housing and rice drying. They are characterized by a raised pier foundation, an arched grass roof that serves as the walls as well, and are open on two sides. I saw a huge amount of adaptations of this style for bungalows. Subtle differences in roof lines and the addition of short walls create a multitude of layout options and customization. I believe they can be built quickly and inexpensively on Boca Chica but still greatly reinforces the island feel many are seeking. Since researching the structures, my client and I have decided to build a small lumbung bungalow first as we prepare for the larger more technical structures of the project.
4. In Bali you see lots of intricate craftsmanship, was there anything that jumped out at you to try in Panama?
There is amazing woodwork and craftsmanship in Bali. I was particularly drawn to the carved wood screens, paneling, and ornamentation. I would really like to use carved wood screens on some of the open aired structures we will be building as well as some of the ornamental ridge caps. I worry that finding the same craftsmanship in Panama may be difficult. We’ll have to see what our local labor source provides. We may just go with more straightforward elements to simplify the building process. I also researched prefab architecture while I was there and visited a few building centers. Prefab can be a great solution for the island to bring in a high quality of construction but it is not the cost-effective solution. In Bali they will fully build, disassemble, label, package, and ship any design you give them. The main benefit to this would be a quality building, with a high level of craftsmanship, which could be assembled onsite quite quickly. The local labor pool could then focus on assembly rather than having to either find or train them to execute the more intricate joinery and woodwork. Another less expensive option utilizing prefab would be to build the majority of the project onsite using local materials and import select prefab elements like a roof and its framing members, or wood screens, paneling, and doors.
5. If you were your client what would you want to build? (Explain your dream idea for the island.)
AJ Smith
For myself, I would start out very simple and basic but with lots flexibility for future expansion. We are still waiting to see how Boca Chica Island develops. As it begins to become more of a tourist destination I think it’s important to have the ability to adapt and encourage tourism.
My idea would be similar to the project we have planned. I would build a large open aired palapa with a kitchen and bar as a main place to hangout and a small one-bedroom bungalow with a full bath. This would give me the flexibility to add components as I see fit. The addition of a pool and more bungalows would probably follow soon after.
6. Are you taking clients? If so how can people reach you?
I’m always interested in speaking with prospective clients especially those interested in building something off-grid and in remote locations. They can contact me directly via email at [email protected] and see our body of work on our website www.forsitestudio.com
7. We get lots of questions about building in the jungle and how to create space without destroying the environment. Do you see this as a problem? How do you approach this challenge?
AJ Smith
The jungle is a huge natural amenity on Boca Chica and every site is unique because of the power of the landscape. My approach to building within the jungle is similar to remodeling a house. The canopy is your roof, the existing trees and vegetation are like walls, and your views are like windows. You work within the existing conditions to optimize your experience. It is necessary to maximize the shelter and shade created by the canopy but still create good flow within the space beneath. Large old growth trees are a means to organize space within the jungle. The location and design of the buildings directly respond to preserving the old trees while landscaping and pruning begin to define space beneath them and open up views to the surrounding landscape, ocean, and mountains in the distance. Through careful consideration the jungle becomes a great natural amenity creating privacy and a sense of intimacy within the site while at the same time it can create direction and awe to the scale of the expansive setting that surrounds the site and island.
8. The jungle has it own challenges in regards to maintenance, how would you combat this with design?
AJ Smith
Regular maintenance is unavoidable given the site and its remoteness, but thoughtful design can keep maintenance to a minimum. Wood-destroying insects are a primary concern in Central America. A raised pier foundation capped with termite barriers can help prevent termites. Regular spraying can be effective as well.
Careful landscaping directly around the home site can also help reduce maintenance. The jungle is always fighting to reclaim its space so clearing the more evasive rapid growth vegetation and replacing them with ornamental and beneficial plants can help a great deal in controlling animals and erosion.
We know that all projects on the island are going to be exposed to the elements. Wind, rain, and sun can all take their toll on a building. Use of quality materials such as select hardwoods, robust roofing, and high grade sealants can substantially reduce the long-term maintenance required to keep a project beautiful.
Another thing to be mindful of is that the buildings here may be uninhabited for long periods of time. Security from intrusion and the elements should be considered. By utilizing sliding screens, shutters, and other techniques the buildings can be locked down while unoccupied, minimizing potential damage and then quickly opened up when the occupants return.
9. Do you think AC is must have?
I do not think AC is a necessity. A well-designed home can be quite comfortable year-round given the island’s location and the prevailing winds. My preference is to have AC in the bedrooms as a place to retreat on the hottest days with no wind but it may not be utilized the majority of the time. In the end it really depends on the client. If they feel the need for an entire home that is climate-controlled then the power system can be designed to handle the load.
10 How do you think about the energy needs of a project vs. the design? What is the process?
The performance of a building directly corresponds to the amount of energy that is required to comfortably occupy it. We look first at passive design which will optimize the performance of a building before we introduce any active system (power, hvac, lighting, etc.) In the passive design phase we look at regional weather, the sun’s path of travel, and the immediate building site (tree cover, topography, etc). All of these variables then directly inform the design. Window and door locations that capture prevailing breezes and allow for good daylighting, roof overhangs that prevent sun from directly entering the home during the hottest months of the year, and how the home sits on the site to maximize cooling from the existing landscape are all effective ways to implement passive design. The building envelope also is a primary concern. Solid wall and roof composition, good insulation, and high quality windows and doors all directly affect the building envelope and its performance.
Once we feel the home performs as well as it can passively, we begin to look at introducing active systems as minimally as possible. Luckily, in recent years there have been huge steps taken in energy efficient components. We utilize DC power where possible, LED lighting, appliances specifically engineered for off-grid living, and variable speed HVAC systems. By using current technologies you can greatly reduce the power demands of a project and in turn decrease the size and cost of the power system needed as infrastructure.