Volcan, Panama is an alpine village misplaced in the tropics. This little community sits near the base of Panama’s highest mountain, the extinct volcano, Volcan Baru. With a year round temperature ranging between 55 and 78 degrees Fahrenheit, Volcan fits the Central American desciption of such locations as “the land of eternal spring.” Real estate in and around Volcan is available for retirement living in Panama and for farming as much of Panama’s flowers and coffee are grown in the Chiriqui highlands in and near Volcan.

Less known than Boquete, Panama, Volcan is more scenic and has better sense of open spaces than the valley where Boquete is located.

The Volcan area is ideal for hiking and mountain biking for those interested in such pursuits. The area, especially, Volcan Baru National Park, is world famous as a birding destination. People come from all over the world to see birds that you can see in your back yard in Volcan.

If such things a white water rafting interest you this part of Panama has a number of outfitters ready to take you on the Chiriqui and old Chiriqui Rivers where you can find Class 4 rapids during the rainy season from May to December.

Volcan is about forty miles from David, the provincial capital and commercial center of Chiriqui Province. Half the distance is on the Pan American Highway. For someone interested in  an active retirement this location is ideal year round. And, like all places in Panama, the capital city, Panama, only few hours away for first world shopping, entertainment, hotels, and restaurants.

Volcan, in many ways, offers the best of all worlds for residency in Panama.

Retirement in Panama beats the other choices in Central America.

The Latino news outlets are reporting that deposed Honduran president, Manual Zelaya, is camped out on the Nicaraguan/Honduran border trying to convince the border guards to let him enter Honduras and not arrest him. Zelaya was deposed by the military a few weeks ago causing a big flap and a reminder of the civil wars and coups that plagued Central America for much of the 20th century.

Since the ouster of military stongman Manuel Noriega Panama has had a democratic government and laws very friendly to foreign investment, foreign tourism, and foreign retirement with residency in Panama. Unlike Honduras where Zelaya started talking about abolishing presidential term limits on the way to being another “president for life” like Hugo Chavez in Venezuela, Panama just saw the ruling party lose the elections and step aside as Ricardo Martinelli’s administration took over.

Unlike Daniel Ortega, who is back in power in Nicaragua and trying form new regional power blocks, Panama’s presidents tend to stay home and mind the store. When Panama’s presidents visit neighboring country it is often to help negotiate contentious local issues as Panama is respected throughout the region. A case in point is the smoldering vestiges of a civil war in Colombia and Panama’s past president talking the both the government and the FARC rebels.

If you talk to North Americans who have chosen retirement in Panama you hear a recurring theme. They had a vacation home in Belize (or El Salvador or Nicaragua or Honduras or Costa Rica or Guatemala or Mexico) and over time they liked the place less and less. The common complaint about other Central American countries is that the services and infrastructure don’t work and you cannot find common consumer goods. In addition high crime rates are a problem, compared to Panama.

These same Panama retirement types will tell you that every year they have been in Panama they like it more and more. Panama has the Latino flavor and lifestyle, as well as a tropical climate, that people want but also has a working infrastructure. In Panama City the malls have pretty much everything that you will find in a North American mall and typically for less.

Business Week just ran a set of retirement articles. Guess who they refer to as the “New Florida.” Yep, it is Panama.

For anyone who has spent a little time in retirement in Panama there is nothing new in the article. Anyone who has found retirement in Panama knows about low prices, retiree discounts, the gorgeous climate, the laid back lifestyle, and the first world infrastructure.

But, for those who do not know Panama a reputable source such as News Week may convince more people to travel to Panama to take a look.

With Panama real estate prices in “pause mode” there are exceptionally attractive deals right now for the smart investor. Panama has announced a reduction in electric rates which will ripple through the economy helping to keep prices down.

With discounts on everything from doctor visits to airline tickets retirement and residency in Panama is still a deal that you will not want to pass up.

There are a number of reasons for obtaining residency in Panama and all of them require that you proceed legally. However, there has been a little “side business” running a counterfeit document ring from inside of the Tribune Electoral, the Passport Department, the Public Ministry, and the Judicial Investigation Directorate. Apparently these folks have been selling counterfeit passports, identity cards, and drivers licenses.

According to the senior Anti-Organized Crime prosecutor, Jose Ayu Prado, seventeen people have been arrested, some public employees and some foreign nationals. The problem extends beyond Panama in that a Panamanian passport will allow its holder to enter other nations, including the USA and Great Britain.

It is often frustrating to deal with immigration issues in Panama. The system is tedious and often just seems to be a money making machine for Panama. However, to gain residency in Panama whether for retirement in Panama, business in Panama, or to rent or purchase real estate in Panama you need to have the appropriate documents. Anyone who tried to cut corners in getting their residency visa in Panama may have problems as this investigation moves forward.

Whether you are here for retirement in Panama or have traveled to Panama there are a lot of interesting things to do. One of them is to learn to sky dive! Sky diving in Panama dates back to training of the Panamanian armed forces nearly forty years ago. After the overthrow or Manual Noriega Panama has no armed forces but parachuting, or sky diving, remains.

You can sign up for lessons in Panama City and, most commonly, start with a tandem jump that requires only an hour or so of instruction. You jump while strapped in with a certified instructor and experience the thrill of free fall and a parachute landing without extensive practice.

For those who want to go farther do a search for “sky dive panama” and you will find jump schools ready to put you in the air.

The current Time magazine has a very complementary article about the election of Ricardo Martinelli and the associated possibilities for Panama.

This is the sort of free “publicity” that can give

Panama real estate and investment in Panama an earlier jump start as the recession clears.

Those of us here know that Panama’s economy is still growing despite a worldwide recession and that the Panama Canal is well run. We are aware of the possibilities when the

Panama Canal Expansion is finished.

Now Panama just got some free publicity. The article says nothing new but likens Panama to an emerging Western Hemisphere Singapore and talks about giving Miami a run as the “unofficial capital of Latin America.”

It is certain that as credit markets free up with the resolution of a worldwide recession that investment will not only continue in Panama but will increase. The subliminal message of the Time article is likely to speed up that process. Likewise, the article is a great reminder for those thinking of Panama retirement and the purchase of a home in Panama.

So, nothing is different but, yes, it is. We have a new president and the world’s focus will be on Panama and its emergence as a center of Latin American and world commerce.

Panama has a lot of call centers. English is widely spoken here and the laws are friendly to foreign investors. A recent Forbes article refers to “near shore” outsourcing of jobs to Latin America versus off shore outsourcing to Asia.

Regarding call centers India has many English speakers but so does Latin America and especially Central America. The sad fact is that when most of Central America was embroiled in Civil War or run by military dictators or both many fled to the United States where they and their children learned English. As the region has settled its civil wars or moved the issues to the political arena many native sons and daughters have returned home with their English skills.

In the case of Panama many never had to leave to learn English. There is a substantial population of retired military in Panama and the schools have excellent English instruction.

There are two more factors in using Central America, and especially Panama for call centers and other outsourcing. The United States has a substantial Hispanic population for which a Panamanian call center has a ready-made solution in bilingual operators.

The other issue has to do with time zones and with culture. US companies do not need to run night shifts to supervise call centers in Panama and visiting managers have a sense of Panama City being a largely Spanish speaking American city.

We present this discussion not suggest that one start a call center or that one buy property and rent to a call center although these may be good ideas. The point is that prosperity and an interconnection of business interests is flowing South from the United States into Latin America. Whether this be related to tourism or retirement in the tropics or buying Panama real estate starting an expatriate business in Panama City our point is that the interconnection of interests and investment will benefit both the United States and the various countries of Latin America, and especially Panama.

As the world economy pauses during a recession we believe that the wise investor will look to the future and invest in business, real estate, and the future of Panama.

It looks like Panama real estate, commercial real estate, and business are weathering the world financial storm. Revised figures peg Panama’s GDP growth at closer to 4 percent than 6 percent this year but that is still growth. Panama real estate is likely to resume its upward march late in 2009 or early 2010 as the recession wanes.

Panama Banks and the Current World Economic Crisis

Panama’s banks did not go in for sub prime mortgages and, thus, still have money. Credit is still available in Panama although the government had to push through a $1.11 Billion stimulus package to provide liquidity for local banks to lend to local businesses. Banco Nacional Panama put up $400 Million of that.

Panama Conservatism

Recent published figures indicate that while only a small percentage of businesses are borrowing that only a tiny percent are selling assets to make do. Most companies are not taking on more debt right now but also are not laying off workers.

Panama Real Estate

More so than just from foreign buyers looking for a place with natural beauty, Panama real estate gets its value from the economy, the country’s infrastructure. If Panama did not have first word services, a decent road system, and competent construction trades you would not have seen a flood of North American retirees making Panama one of the world’s premier retirement destinations in the first decade of the century.

The prices of real estate in Panama have dipped a bit, especially in the high end, as North Americans are licking their economic wounds and dealing with credit problems at home. However, there are still plenty of buyers looking for great deals in 2009. ABPanama is working to link up buyers with cash with sellers caught in an economic squeeze that was not of their own making.

Panama real estate investment is especially attractive today considering the pause in high end residential real estate prices and prospects for continued appreciation as the recession improves. How long this window of opportunity will last remains to be seen. ABPanama believes that with the mending of the recession over the next year or so that Panama will resume its economic and real estate booms.

The old adage for stock market investors is that the market starts to move half way through a recession. Thus the recent NYSE surges could predict better times in early 2010. However, we expect that a similar “half way” rule will apply here in Panama. The best properties at the lowest prices will go in the next few months.

If you are looking for great deals in Panama real estate investment or just better insight into the local market come to see us at ABPanama. We are bilingual, do business throughout Panama, and have over 23 years experience managing real estate portfolios.

Come and look at real estate in and around Boquete, Panama a city located in the highlands of Western Panama, in Chiriqui Province, near the border with Costa Rica. Because of its altitude (about 1,000 m above sea level) its climate is cooler than the lowlands in Panama.

Boquete has become very popular as a pleasant escape from the lowland tropical heat and for its natural beauty. Boquete, near the extinct volcano, Volcan Baru produces some of the world’s best coffee. Mountains near Boquete, Panama real estate provide outdoor enthusiasts with opportunities for rafting, hiking, mountain biking, and birding just 30 minutes from the city of David, Panama. Eco tourism is especially popular around Boquete.

Panama has become the world’s top retirement destination. With a first world economy and rich natural resources for ecotourism Panama has passed Mexico and Costa Rica for tourism and retirement. The people are friendly and there is plenty of natural beauty. Throughout the highlands of Chiriqui Province, Panama you will have the space and time in which to enjoy both.

Panama has had a run of inflation the last few years that has abated a little with the drop in oil prices. Recently we saw a blog stating that the basis of continued inflation was the high cost of food and drink.

Years ago a friend retired to Las Vegas, Nevada. His comment about cost of living was that Las Vegas is a great place to live and that it is a cheap place to live if you do not gamble!

That gets to what the economists count when they calculate the cost of iving. Living in Panama can be very cheap.

If what you are looking for is a winter home for less or full time living on a budget talk to us at ABPanama. We can steer you to Panama real estate in safe, inexpensive barrios where the natural breeze instead of air conditioning cools your apartment.

If you are retiring to Panama on a budget come to see us.