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Building a new home in Panama

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celtic12345
  2/20/2021 17:44 EST

I am looking to build a 250 sqm single storey retirement home in Altos del Maria. Can anyone recommend a builder or two (and an Architect) that is good, reliable and "realistic" with pricing. Also looking for guidance as what a reasonable $ per sqm I can expect - depending on the type of house, materials used etc. I intend to be on site daily to manage the project as I have some building/renovation experience.
Thanks

ChillinOut60
  2/21/2021 10:45 EST

If you have not bought a lot yet I would suggest buying an existing house.. We live in Altos and built our house in 2009. Even though my husband was well versed in building, had very detailed architectural plans and was on site most days, not everything turned out as planned. But we love living here and living in our house. If you inquire on the Altos del Maria Residents Facebook page you will get more responses. Building here is a very frustrating process. There are quite a ew existing houses for sale. People seem to reach a certain age and decide to go back and be near family. With an existing home you can see what you are actually getting given the terrains here final results are not as always as expected. Let me know when you are here and we can meet up.

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Christian86
  2/21/2021 10:47 EST

If I had to build a home in Panamá or a remote location like Altos de Maria, I would not start by looking for an architect.

I would start by looking for a small experienced crew leader and find one who works along with his crew. You negotiate their daily salary beforehand and buy all necessary materials yourself.

As an architect I would find the person in the municipality of your lot who eventually needs to approve your plans. You want them to be your friend before you start.

Now how is that for valuable information in two short paragraphs?

Panamanreed
  2/21/2021 13:28 EST

You will want to choose your materials well, also. Cinderblocks and tons of cement are the traditional materials here.

I don't recommend that, but it is what the majority of construction know. It would be good to find someone with a broader range of construction knowledge. Cement is a lousy insulator, and it has gone way up in price in the past few years. It is slow and messy.

panamajames
  2/21/2021 14:00 EST

I would love to find a crew or company who builds Yurts, Sandbag homes, or Domes of some sort. I have a farm in Penonome where I would like to build a few of these and perhaps start some organic farms on the land. If anyone has any information in that regard, please let me know at [email protected] Thanks.

PanamaJackie
  2/21/2021 14:35 EST

It's MUCH better to buy an existing home to avoid the frustrations of building a house - especially in such a remote location.

Here's is an article about why you should NOY build a house in Panama

https://panamarelocationtours.com/do-not-build-a-house-in-panama-unless

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Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.
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DaveLikesADM
  2/22/2021 15:06 EST

We've been to ADM several times. I L-O-V-E the place. Clean air, clean water and clean food, great views and people with beaches and amenities in near enough proximity.

The reasons for building a home are simple enough: 1) ADM has many elevations, which determine year round temperature. The existing house you may like may not be in your preferred temperature range. 2) An existing home may not be on the lot you prefer. 3) It may not have the view you prefer. 4) Building from scratch is almost always less expensive. It's the bonus you receive for the headache of paperwork and construction related stress. 5) There is a tax forgiveness program where the first 120K is exempt from property taxes. Existing homes may still be under the old law and have some years of qualification but virtually any existing home in ADM will cost more than 120K whereas building a home may be less than 120K.

IOW, looking into the lot, elevation, views, energy efficiency and property tax specifics are surely factors that may help one decide how to spend one's $$ in ADM.

Christian86
  2/23/2021 01:47 EST

Jackie, thank you for sharing this excellent article of yours.

This is so true and nobody will believe you unless someone has lived here long enough.

And you are only talking about the renovation of a room in your house.

When you are building fresh on an empty lot, you need to be able to safely store your tools and materials or hire someone to stay on the property over night.

Unless you are an expert in the field and cannot think of anything more fun to spend your time, I would also recommend buying something already built.

ChillinOut60
  2/23/2021 10:06 EST

Panamajackie, the article you posted is so true. When we built our house we had to purchase all the materials. Our "builder" just supplied the labor.

We were lucky enough to be within a day trip to Panama City to get supplies. But like in the article we would have to go to multiple stores to get supplies.

As we want new house projects done we now working with a contractor that supplies all the materials and includes them in bid. We have developed a good relationship with them. They aren't the cheapest though.

Additional note, We just started a project which requires a bunch of rebar. When our contactor went to order the rebar at their normal suppliers they were told there wasn't any available that it was earmarked for the new metro line being built.

The contractor was able to get the rebar at another supplier but at a high cost.

celtic12345
  2/23/2021 15:17 EST

Thanks for all the feedback - much appreciated.
Please note that I have been around the block a few times and consider myself very savvy when it comes to life/building/renovations.
Yes, there are horror stories out there but these are often the fault of the owner not just the builders and for some of the things I have read quite frankly I have no sympathy with the owner.
There are certain things an owner HAS to do during a build or reno project and if you don't then you are just exposing yourself to a "horror story".
There are tons and tons of houses that have been built properly or at least to a good standard (with happy owners!) and so if you approach a build or reno the way you should and you have the right builder/contract in place then your project stands a much greater chance of being a successful one!
You will get hiccups, delays, increased costs - got news for you - this happens everywhere folks so you just need to understand/tolerate it and find the solution.
Whilst it is good to be aware of things that can go wrong, people should try to focus on doing the right things to build or reno. People should not be put off by a build or reno - they just need to be careful and make sure no corners are cut - as the saying goes "Good service + fast = aint cheap,
Good service + cheap = aint fast,
Cheap service + fast = aint good"!!! Good advice on this thread from Christian86 (2/21/2021 10:47 EST) & DaveLikesADM.
I am still looking for builders that come recommended.

Christian86
  2/23/2021 22:53 EST

Celtic12345, I respect that you still want to go ahead with your building project despite all the colorful arguments to the contrary.

When you talk about well built houses and designs you like, you should take advantage of interviewing the owners and finding out who they used and their experience.

I have worked with some small work crews between Bejuco and Sora. They do have good skills in many areas, but won‘t tell you their weaknesses. So you will need to be present and observe how they work. In the end it is all trial and error.

Many of my jobs had to be done several times to get it right in my circumstances and knowing that you need plenty of patience in dealing with each situation.

Some work needs to be performed over because you are not using the right materials like diamond brite for swimming pools or galvanized screws and wires, additives like Sika in your cement.

If you do not possess all that detailed knowledge of how to build properly in the tropics, then you need to find one who you can rely on or accept that final costs and potential aggregations will be higher when you need several efforts to get it right and lasting solutions.

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Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.
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panamajames
  2/24/2021 11:07 EST

You are absolutely correct celtic12345. Don't be a afraid to build a house or have construction done in Panama. We have a wonderfully built home in Panama, and we put in a Casita that was extremely well put together and we gave the builder some creative room to come up with some better ideas than we had originally thought of. We reward creativity and innovation. The builder took pride in the work that he did and that is what it is all about. Finding that person who is a bit of an artist and cares about the final product is always the goal for me. There are shabby builders out there but not only in Panama, but around the world. You sort them out. You meet with them, you look at some of their work, you talk to the people that they have worked for. You need to care about the job that you are expecting someone to do for you. The owner can definitely be just as at fault as a builder with no guidance or direction.
Just because he owns a hammer and some building tools, does not mean that he is an Artisan. I spend the time to find good people, whether a doctor, a banker, a carpenter, an electrician, or a plumber. We have recently done some renovations as the house is more than 20 years old, and we picked the right people and we guide them every step of the way. It is not good to give them a pile of money and let them work on their own. We learned that very quickly. Pay them daily or weekly as they go, and be there to help guide the operation. We have found a few slackers over time but we quickly found replacements. One fellow was constantly on his phone. We asked that he leave his phone in his truck and on breaks or lunch time to take care of his calls. Work time is work time. You are the boss and you have to set guidelines. We have had to replace workers but that is not only a Panama thing. It is worldwide.

Azuero
  2/25/2021 19:14 EST

In answer to your question about cost I would plan on around $1000 per m2. Also consider using Pex for plumbing (available from one distributor in PC). The local plumbing is cheap pvc which isn't good, especially under a slab. Finally you need to consider the room. Teja lite is a synthetic tile that a lot of builder use. Unfortunately is cracks and leaks over time. A plycem underlayment and barrier will save you lots of headaches

lisaw333
  2/26/2021 11:10 EST

We built a house 2 yrs ago, and agree that if you could find an existing home that has most of what you are looking for, you are likely to be able to purchase at a price that is better than what you can build for ... we doubt that we could sell our home now for what we have in to it after building and landscaping etc ... the deals are in existing homes, where the seller is no longer in the country, or very motivated to move on somewhere else ...

panamajames
  2/26/2021 14:43 EST

That is exactly what we did. Bought a home that had potential at a very good price and fixed it up the way that we wanted it to be over the years. It wasn't a home to flip, it was a home to live in for the long term. We still renovate weekly. It never ends. Yesterday we put in some new ceilings in the living room. Next week will be the bedroom and bathroom. Then we are sanding down an area in the front lobby and re-painting. It is never ending, but we love the changes that we make. We bought it sight unseen, other than pictures we saw and we had some Panama friends who toured it for us when it came up for sale. We wanted an apartment complex with individual entrances and it had to have a view and be well built. It was perfect. It was originally built by a USA Air Force person who grew up in the Canal Zone and built this place in Boquete as his retirement income property. He could read the writing on the wall that Jimmy Carter would be giving the canal back to the Panamanian people and the Canal Zone properties where he lived as well. Health problems caused him to sell his Boquete retirement property right around the time that we were looking for one. You decide what you want, you send out your message to the universe and you just might get the right answer back. Are you feeling lucky today? Look for your rainbow.

ROKSlide
  2/26/2021 18:57 EST

Photo by Panama James -- for those of you not familiar with Boquete, rainbows of this type are nearly a daily occurrence during the "green" season. Very uplifting.

Crusader27
  3/1/2021 22:56 EST

yikes.. How does a non builder person qualify a crew leader and his individual crew men. Electrican or plumber, Roofer? I have decades in the trades and know it takes some time to qualify people. You have to know their job. Best is take time to visit references. Everything working fine? Were they on time?

Crusader27
  3/1/2021 22:56 EST

yikes.. How does a non builder person qualify a crew leader and his individual crew men. Electrican or plumber, Roofer? I have decades in the trades and know it takes some time to qualify people. You have to know their job. Best is take time to visit references. Everything working fine? Were they on time?

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