Category: Expat Lifestyle

Salsa music’s in the air.

Dominoes are being smacked down on almost every street corner by the older folks.

Mulattas, and Mulattoes dressed to impress traffic the cobblestone streets below my balcony.

This week, I’m checking in from Panama City, Panama.

So I thought I’d take the chance to compare life in Ecuador vs Panama.

Here goes…

Money: Both countries use the US dollar, which makes life MUCH easier for us greenback carriers. The dollar can drop in value all it wants but the effect is minimal when in a “dollar” country.

Cost of Living: The essentials are cheaper in Ecuador… food, shelter, transportation, whereas consumer goods are cheaper in Panama. Food is noticeably more expensive in Panama with lunches starting around $4 compared to Ecuador where lunches start around $2. Rents for a 2 bedroom apartment in a nice area of Panama city start around $500 but often cost more compared to Ecuador cities where you can find similar rentals in livable areas starting around $300/month.

Real Estate: Panama real estate is clearly on the down-swing following the general world crisis trend. Since 2009, Ecuador is on its way up since mortgages became more accessible to locals and Ecuador began to be mentioned often by the International retirement press. Panama already had their big boom when prices skyrocketed from 2005-2008. Bottom line, it’s hard to find a decent apartment in Panama City for under $100k, in Ecuador that task is still very doable, especially if you know how to look.

Government stability: Panama wins here as with each time I come here I am more reminded of Hong Kong. Ecuador governmental policies seem to always be closing the doors (more on that in a future newsletter).

Public transportation: In Panama most have cars while in Ecuador most people don’t! Consequently, cars are a need in Panama with much fewer public transport options. Taxi rides start around $2-3 here in the City but at rush hour you can see hundreds of people waiting in the streets for buses and trying to catch taxis making it VERY evident public transport is extremely lacking in Panama.

Food: Food is clearly more expensive in Panama as I see prices only a shade below those of the US. The local gastronomy is not nearly as diverse as that of Ecuador… you’ll see a typical Caribbean beans, rice and fried chicken plate in many of the local eateries.

Women/Men: The women and men in Panama are mainly mulattoes similar to the Dominican Republic. The people are attractive with nice figures, and friendly, and seem to treat foreigners well and are not as quick to overcharge them as I see elsewhere. They are more animated and vocal. Today a girl serving me food at a fast food joint struck up a conversation with and asked for my number… that rarely happens to me in Ecuador, people are a bit more reserved until you get to know them.

Safety: In Panama I feel surprisingly safe, walking around at all hours of the day and at night although there are areas we should avoid.

Weather: It hasn’t stopped raining since I’ve been here. From December to April is the sunny season, the rest of the year is quite rainy, typical for the Caribbean. Also, the humidity, at least this time of year, is so thick at times I feel I have to walk with an extra zest just to push myself through the air, not so in Ecuador.

Airfare: It is MUCH cheaper to get to Panama from the US with budget carriers like Spirit Air.

Visa Residency Requirements: Both offer an investors visa but you need to invest a much larger amount in Panama to qualify. In Ecuador invest $25-30k or up. In Panama, $100-250k. Pensioner visas are also available in both countries.

Banking: Far easier in Panama for a foreigner to open a bank account and the banking system is more sound. With $1000 deposit (that you can withdraw later) and a few bank and personal reference letters you can open an account in many of the banks here in Panama. In Ecuador, unless you know someone, banks won’t open an account for you until you are a legal resident.

Overall: I love Panama, and I’m going to miss the Panamanian ladies, but I’ll stick to Ecuador for the milder weather, lower costs of essential items, the food, the public transport and the business opportunity I see right now.

To see some of the top reader comments, check the forum here… and leave your comment too!

If you liked this, you’d love my Weekly Ecuador Insider´s Newsletter, where I spill ALL the dirt about life and investing in Ecuador, you can unsubscribe at any time:

First Name
* Email
	* = Required Field

“So this is how Pablo Escobar felt.”

I thought as I sipped my martini on a yacht floating over emerald-green water talking to the owner and a few other powerful local players.

Referring to Escobar because he was a rich guy living in Latin America, and he’s the first to come to mind… drugs aren’t my thing.

This week I’m checking in from THE ONLY place in Ecuador that attracts “high rollers” or the kind of people that drop $10,000 on a week long cruise…

And it’s the ONLY place in Ecuador with snow-white beaches and a Caribbean-like, turquoise ocean.

Many locals are rich, but it’s NOT off the drug trade… it’s off tourism, because this is a place many MUST see before they die.

But you’ve NEVER heard it mentioned as a possible retirement destination… anywhere… until now.

The Galapagos Islands.

Opportunities are a plenty in the Galapagos.

-Land-based tours. One of the biggest I see involves the new trend of “land-based cruises” or tourists that decide against the conventional cruise boats and decide to cruise by day and sleep at night on land in a hotel on different islands. The good hotels are few and far between, one hotel manager I talked to proudly boasted they have an 80% occupancy ratio and often much higher (They charge over $200 a night and have over 20 rooms).

-The Asian market. The Asian market is a big unexplored opportunity for the Galapagos as I notice more and more Japanese, Koreans and Chinese are coming. It is far, but they would all LOVE this place… the up-close-and-personal animals is not a common sight for them almost anywhere in Asia (this year I spent 4 months working in China).

-Alternative products. In the Galapagos everyone sells one thing, cruises. That’s where the money is. But I’ve found a big lack of alternative ground-oriented products that could be sold as interesting complements to the 4-7 day cruises. For instance, jeep or 4×4 tours would be an interesting idea.

But due to the Galapagos’ status as a National Park there are strict restrictions on foreigners buying property or starting businesses.

Foreigners can only stay 3 months a year on a non-renewable tourist visa making the Galapagos a great “3 months a year” temporary retirement destination but a tricky permanent one.

Also, “Outsiders” can’t buy property in their own name or start businesses.

Locals have a virtual monopoly over the market.

But I found a loop-hole…

Discover it signing up for my Weekly Ecuador Insider´s Newsletter, you can unsubscribe at any time:

First Name
* Email
	* = Required Field

This is a picture I took recently from El Garrapatero beach on Santa Cruz Island in the Galapagos, Ecuador. A must see!

If you liked this Ecuador house hunting tip, you´d absolutely love my Weekly Ecuador Insider´s Newsletter, an essential resource for any serious Ecuador investor, sign up below, you can unsubscribe at any time:

First Name
* Email
	* = Required Field

This week we have a photo of a “leaf cheese”, Hoja de queso from a street vendor in Ambato.

Hasta pronto, Domenick…hey, if you liked this, you’ll love my weekly Foreign Investor’s newsletter for insider tips and opportunities in Ecuador…subscribe below(unsubscribe at any time):

First Name
* Email
	* = Required Field