According to second home buying expert and writer, Tom Kelly, Panama has retained some of it formerly large American presence after the handing over of the Canal more than seven years ago.

Kelly says that, unlike the other hot spots for ex-pats, Panama's second home market is dominated by investors rather than people buying for retirement or vacation homes. That's despite it being named by International Living magazine as the best place for Americans to retire or live abroad.

Panama City is economically dynamic, a banking and shipping center with a diverse population where English is commonly spoken. But the place of choice for many Americans is Boquete, high up in the volcanic mountains. The climate there is ideal with warm days and gentle nights. There are masses of flowers everywhere, one reason it's known as the land of eternal spring.