Chiriquí Chatter

When I read the Yahoo groups, one question that comes up again and again is how the cost of living compares with some area of the part of the world the person is living in. I really think that cost of living is a single item to consider, but let me ramble a bit and maybe I can answer a little of the COL questions while considering comparisons of several things with the US.

First I should qualify that most of my experience in Panama is in the Chiriquí Province, however, most things are pretty consistent across all of Panama. I moved here from The Dallas Metroplex area, so that was my point of reference. One thing a person has to realize is that you can’t make a perfect apples to apples comparison. If you want have everything you would find in Austin, Texas or Miami, Florida or San Diego, California for a lot less in Panama, that just isn’t going to happen. You have to decide what is important to you and what you are willing to give up. Of course another way of looking at it is that giving up some things is good.

One of the first things you are going to have to decide is the climate you want to live in. Most of the places in the US are not perfect year around. I lived in San Diego many years ago and that may be one exception I would make. However Dallas is scorching in the summer and freezing in the winter. I think it got up to 110 degrees this summer. This site will give you a pretty good understanding of the temperatures here in several Panama locations. You can see from it that in David it will be about 73 in the evening to 91 in the afternoon all year. Panama varies depending on whether it is during the rainy or dry season.

If you live in Volcan or Boquete it will seem pretty hot in David. Having lived here for some time now I have adjusted and sometimes feel it is too cool in Volcan and Boquete. Also when I go to the states in August or January, I wonder how I ever lived in the extreme heat and cold.

If you have answered the climate question then you can move on to city vs. country. The bigger cities are David and Panama City. You will have needed to have selected a warmer climate as being acceptable, if you want to life in one of those cities.

You might select Panama City if it is important to you to have access to more cultural things. It also has the best malls; however, the ability to shop has improved in David since I have been here. In Panama City you can find almost any kind of restaurant you might want. It has movie theaters that compare well with those in the US. It is also probably a little more expensive to live in Panama City than in other parts of Panama. The crime rate is going to be higher in Panama City and you will have to be more cautious. It is a large city and has the problems most big cities have.

I visit Panama City fairly often and find David much more tranquil. For the price of about $100, I can buy a round trip airline ticket and go as often as I care to.

If you say you want to live more rural, then you have a few more things to consider. Do you want electricity, water service and phone service? All rural areas don’t have the same level of convenience. If you are a pioneer and find that perfect spot with a great view of the Baru and the Pacific, you may find that getting the services you want a problem. One thing you should never do is buy because the seller said that they are putting in electricity and phone service in the next three months. If you ask question like when will this or that be available, you will be told what you need to hear to close the deal. In most cases what you will hear is not going to be close to accurate.

How about housing. Well if you look at existing Panamanian housing you may be disappointed in that it will be different than the US. Most housing is not built planned for hot water. If they do it might only be in the area where the clothes washing machine might be. Maybe not even then. Washing machines are a luxury and when you can have a live in maid for about $125 a month, they may not be needed. I have a lady come twice a week to clean my apartment and it costs me $8.00 a visit, and she works her butt off.

In the US if you saw a house that needed some changes, you might go ahead and take it thinking it won’t cost much. In Panama most building, if not all, is concrete block and the simple task of adding a few wall outlets or bringing in cable will not be accomplished like in the US. If you or your wife is into esthetics, then the typical Panamanian way of handling these things may look a little crude. Running new cable is probably going to be done by running it along the edge of the wall. A major remodeling job on a Panamanian house may be more costly than starting over.

Do you want gated or non-gated? The gated communities have a couple of positive aspects. If there is a master design you can be pretty sure that what is built next to you is going to be consistent to a certain extent with what you have. You may feel a little more secure. Don’t allow yourself to think that a gated community will provide perfect security. Even the high rises in Panama City that have guards on duty 24 hours a day are not perfectly secure. Guards can be bought.

If you want rural or non-gated, you are choosing to live as a Panamanian and need to be a little more flexible. You can build anything you want, but you can’t count on what might be built next to you. You can always buy more property than you need so you can fence it off and keep your neighbors a fair distance away, but that is getting more expensive everyday. Also if you choose to build, then you need to be certain that the builder can do what you want, to your standard, and within your budget. A good attorney to protect both you and the builder should draw up contracts.

You should be able to build a house of as good a quality or higher quality for less than what it would cost in the US. Land price may not be the same. It depends on where you want to buy. Some land is getting pretty steep. Maybe not when compared to Colorado, but certainly more than it was here four years ago.

If you build, you will get an exemption from taxes for 20 years. Even when you begin to pay property taxes, they will be substantially less than the US.

Ok, you are in your residence. I live in an apartment on David that is probably about 1,500 square feet with three bedrooms, living room/dining room, kitchen with eating area, and two balconies. It runs around $325 a month. I might be able to rent an equal amount of space in a house for less, but it might not be as secure.

Now we can talk a little about the COL aspect. I haven’t seen a comparison, but I would expect that electric rates are not much cheaper than the US and possibly higher. However my electric bill is much less by far than what I had in Dallas. I probably spend around $50 a month. However, I don’t use much AC. Most houses won’t have AC in all rooms. Normally if it has AC it is going to be in the bedroom. You cool the room when you need it and not the entire house. Most houses use gas to cook with because it is cheaper than using electric stoves. This is one of those “If you live like a Panamanian” issues. If you live like a Panamanian, your electric bills will be less than the US. If you use electricity like you did in the US then you are going to have a big bill.

When you use gas to cook, you will be better off to use the small tanks. These are price fixed by the government and the price doesn’t change with market fluctuations. That is what I use and I spend about $6.00 every three months.

I pay about $10 - $13 a month for water and garbage pickup.

I have cable TV from AstroVision and I pay about $25 a month. That provides me more than I can watch. I have CNN International in English, a CBS station, and several other English speaking stations. I also have HBO, Cinemax and the Film Zone. If I need more movies than that, I can go to Blockbuster and rent what ever I want for $2.00. A movie is going to cost me $1.83 or so with the jubilado discount.

I am using Cable and Wireless for Internet and that runs me about $50 a month for 256 Kbps service. I use a Cell phone as my main phone and buy $10 phones (usually twice a month) and always have more time than I use. I use the excess to call the states every now and then.

Groceries are a mixed bag. Some things are much less and some things are much more. I saw some Ben and Jerry’s ice cream in Panama City at El Rey and it was $5.50 for a pint. Breyers Ice cream is also higher than Panamanian brands. I buy Bonlac at PriceSmart and it is $2.99 for a half gallon.

Coke will cost you about 50 cents a can, maybe 45 cents a can at PriceSmart. If you like the Panamanian brands then you will probably spend less than you would in the US. The fruits and vegetables are less and probably fresher. I saw pineapples at the farmers market in Panama City for 3 for a dollar.

Most of the time after you become known to the farmer’s market, they will charge you the same as they would a Panamanian. Don’t be surprised it they decide you can afford more than one of their normal clients.

Clothing, shoes etc. may or may not be less. If you have to have US labels then you are going to pay more for the same thing. They have a lot of good Brazilian, Costa Rican and Chinese products that are very reasonable. Also living her, you only need clothes for one climate. There is no changing wardrobe from summer to winter. It may cost you something when you want to visit the states and don’t have a topcoat in the closet.

Gasoline and car prices are higher in Panama. Also the octane ratings are different from the US. 91 octane here is the equivalent of 87 in the states. 95 is 91 in the US. Panama is on the European standard of octane measurement. Currently the price for 91 octane is about $3.29 here in David. The good thing is that you will drive less. Nothing is that far. It is less than 300 miles from Panama City to David. That pretty much takes you across the entire length of Panama. You can do that for about $50.00. Drive across any state in the US and tell me what you spend.

Medical costs are on the whole cheaper. Getting insurance here after the age of 60-62 may be a challenge, but doctor visits etc is much cheaper. When I used to go to the doctor in Boquete I paid $5.00 for the visit. In David some doctors cost me a little more. I had some single vision glasses made last week in Panama City and it cost me $45 for lenses, frames and examination.

I am sure I haven’t covered everything that someone who is coming here might want to know, but maybe you have a flavor.

I offset any price differences with the things I like about Panama. I love the people. The general Panamanian is a very friendly person. As long as you don’t come across as some “I am better than you are gringo” you will be very well accepted. I never realized how bad Americans acted until I viewed them from the eyes of the citizens outside the US. They get rude at business counters because the attendant doesn’t understand their English. They want everything instantaneously. Well, Panama and most of Latin America runs on a slower clock. If you can’t slow your system down, don’t come here. You will frustrate yourself to death as well as drive the locals crazy.

Tags: Panama