Gray & Co. Bienes Raíces Panama housing: purchasing property

Panama housing: purchasing property


Panama housing, purchasing a property, construction, building a house, condominiums, condos, buying a condo, home in Panama, relocation, relocating to Panama, moving to Panama, housing costs, quality control, construction quality, materials

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For me, one of the hardest parts of adjusting to living in Panama was the quality of finishing work in Panama’s construction industry.  Panama housing has quality — in the sense that the primary material used is cement. This means it weathers well in this climate and is not susceptible to termites or the effects of salt air corrosion.

Nonetheless, this also means that Panama depends on:

  • importation of cement (cement made locally is only now becoming available as a by-product of the new copper mines that recently opened in Panama)
  • difficulty and slowness of building with cement, rather than with pre-fabricated models and materials
  • a workforce that is controlled by the unions and which works slowly
  • little use of wood in building – because of the climate and termites

Workmanship quality

But the real issue that I struggled with in Panamanian housing is the quality of the workmanship.  The finishing work – not the underlying work.  I accept – these are mostly «first world problems», because what irks me is:

  • light switches being a couple of degrees off being straight
  • not enough electrical outlets in a room
  • uneven surfaces or finishing, especially walls
  • tiles not placed well – bathrooms & kitchens, especially (cost cutting by using less tile adhesive?)
  • ceilings not perfectly finished
  • paint jobs that are shoddy (or poor quality paint used)
  • failure to do base coats properly, leading to paint peeling later on

The same goes, to a large extent, for the finishing touches on cabinets & woodwork.  Drawers that don’t quite close perfectly.  Runners that are just slightly off.

This lack of precision irks me!

Panama housing options

Because of this, I usually recommend clients purchase what is already built and constructed, rather than from blueprints.  Admittedly, when you purchase from blueprints, it is less expensive than purchasing the completed project.

Purchasing after completion has a couple of benefits:

  1. You see the quality of the workmanship
  2. You don’t get caught up in the promises of «we’ll be finished in 18 months», and the building then takes 3-4 years to complete
  3. Cost overruns are not billed to you as an adjustment in the price when they are finished (which is a clause I have found in all Panamanian building contracts)

You can also run into this problem when you purchase a property and then hire your own architect and builder.  Because while the architect may draw up the best blueprints for the house of your dreams, ensuring that your builder follows these to the letter is more difficult.

Suggestions (Panama housing)

In order to avoid disappointment when looking at housing in Panama, we offer these suggestions:

  • If you are purchasing off blueprints, rather than a completed building – ask around!
    • Check out the quality of other buildings or houses that they have completed, not just the model home
    • Ask on expat forums about experience with this builder or construction company
    • Request a clause in your contract regarding price hikes and who bears the risk of construction cost changes
  • Get an engineer or expert to do a walk-through with you before you decide to purchase
  • Take the time to notice any details that might irk you later in a home or condo that you are buying
  • Check the finishing materials used (especially wood or wrought iron), especially where salt air corrosion may be an issue
  • If you are building your own home, be very careful with the clauses regarding payments to the builder, ensuring that you hold back enough funds upon completion to have room to move.  You need to be especially careful regarding the costs of construction materials, as well as clauses regarding employees and delays caused by rain or by strikes.

 

For more information regarding purchasing property & real estate in Panama – contact us.