Yahoo Finance I’m an Expat in Mexico: Why I Recommend Retiring Here on a Budget
Lydia and Mike Pontius are among the 2 million U.S. retirees living in Mexico.
“As you age, you feel less needed — almost like a burden in the U.S.,” Lydia Pontius said. “In Mexico, you don’t see as many retirement communities because this culture keeps their families together.”
A lower cost of living, slower pace and vibrant, diverse culture also lure retirees to Mexico.
However, make sure the dream of Mexico meets your needs.
“We’ve seen so many people sell everything, move here looking for a cheaper life and now they feel stuck,” Pontius said. “They can’t afford to go back because the real estate prices back home are now out of their reach.”
GOBankingRates asked Pontius and other retirees living in Mexico what you should know before you go.
Also here are four places to retire abroad that are cheaper than the U.S.
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Choose Your Adventure
Avoid living near tourist areas if your top priority is stretching your retirement dollars in Mexico. Property taxes are less than $200 a year, unless you have a large home.
“The rent in Puerto Aventuras is about $2,000 U.S. dollars for a long-term lease on a two-bedroom condo,” Pontius said. “We live in an expensive area for Mexico, but in the [U.S.] we could never afford to live on the water.”
According to International Living, Mérida, Valladolid and the Yucatan region are less expensive than Playa Del Carmen and Tulum on Mexico’s Caribbean coast. San Miguel Del Allende, Guadalajara, Puebla and Oaxaca are excellent choices for expats who prefer mountains and cooler climates.
Price Check
Puerto Vallarta: A home near the beach is $120,000 to $200,000; $600 a month for a one-bedroom condo rental.
San Miguel Del Allende: A house can start at $235,000; $900 to $2,000 a month for a two-bedroom condo rental.
Mérida: A house near the town center goes for $100,000; $600 a month for one or two-bedroom rental; a beachfront rental in the nearby town of Progresso is $500 a month.
Riviera Maya: Most condos start at $100,000 or more here and condos with ocean views start at $125,000.
Playa Del Carmen: A luxury apartment is $1 million for a modern 2,000-square-foot beach-front condo. Rentals are $1,000 a month or less depending on proximity to the beach.
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Groceries
Weekly groceries can cost as much as $125 at the local chain grocery store, depending on where you live. Your favorite U.S. brands will be more expensive than local products.
“As a long-time adherent to a low-fat vegan diet, I find an abundance of affordable and delectable options readily available,” said Ian Lewis, author and publisher who moved to Guadalajara four years ago.
Price Check
Here are some average grocery prices.
$3.25 for 2.2 pounds of avocados.
A little over $1 for 2.2 pounds of tomatoes compared to more than $3 per 2.2 pounds in the U.S.
$20 to $30 per person for dinner at an inexpensive, local Mexican restaurant. The price depends on the dish and if you order a cocktail.
Transportation and Utilities
Transportation and utility costs vary, depending on where you live and the distance you want to travel. Public transportation can run as low as $3.
While taxis can charge up from $5 to $40 one-way, depending on where you live and the distance. Try to bargain before you get in the taxi because foreigners will always be charged more than locals.
Price Check
Here are some suggested utility costs from International Living.
Electricity: Minimal use of air conditioning, electric wash and dryer, space heaters or high wattage appliances can help lower your bill — less than $3 a month on average. Expect to pay top-tier rates equivalent to the U.S. if you use more electricity than the average Mexican household.
Gas: $150 to $250 per year for a couple if you use a solar heater.
Internet and Phone: $21 for high-speed internet and landline service.
Cable: $35 to $45 a month with limited English-language programming. Add streaming services if you don’t want to miss your favorite shows.
Drinking Water: $2.50 or less for five-gallon jugs of purified water sold in supermarkets or through a home delivery service.
What if I Get Sick?
Mexico is ranked among the top 10 countries in the world with the most affordable health care for retirees.
Retirees with a temporary or permanent residency visa can expect to pay up to $850 a year to sign up for one of Mexico’s national healthcare plans. Private health insurance can cost up to $5,900 or more for a comprehensive health insurance plan, excluding additional U.S. coverage.
Mexico’s hospital system ranges from free to private. Most expats prefer private hospitals and healthcare providers.
“Our doctor makes house calls for 600 pesos (about $36),” Pontius said. “We find the doctors and medical staff here to take more time, be more available and give you their personal phone numbers.”
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This article originally appeared on GOBankingRates.com: I’m an Expat in Mexico: Why I Recommend Retiring Here on a Budget
