Tuesday, August 16, 2011

Is living in Mexico cheaper?

Good question. The answer is ....

Yes and no. I mean, how many boxes of Cheerios do you want at $ 6.50 per box? I don't mean the large one. Just scoop up all you want. To me $85 pesos is a little stiff. The good news is that you can get your 2000 SF home cleaned for 150 pesos $11.60 (4 hours).

When one looks around at the food stores like Walmart, Soriana (the biggies), some prices are lower. However, if you want American brands there is usually a 25% premium. One thing to remember is IVA is 16%, but not for med's. The tiengue [tee ANG eh] (out-door market) is a source. They are busy crowded, loud, colorful, and in general, lots of fun. Prices seem to be a little lower. However, one must be careful to check the quality.

If you go to the ATM they charge 1% of the total to change dollars to pesos. All places if they take credit cards at all, will charge 1%. I guess they don't want to eat the bank charge.

Many things in Mexico are less expensive, car repairs, hair cuts, manicures, pedicures, bus rides, and entertainment are probably 25% less. To see a doctor or dentist is about $20.00 a specialist a little more or you can have the government health plan for $400.00 per year. Covers everything including med's. The government subsidizes electricity and fuel (Pemex). Dry cleaning and laundry seem to be about the same.

One exception is all electrical, electronic appliances and furniture at least a 10% premium. Also the quality seems a little off on sum products. Internet/cell/phone service is about the same. We have to buy bottled drinking water at about $25.00 per month, for three people. You may install a water purification system. Mail service is not great, so we spend $250.00 in the states and $400.00 in Mexico per year so we are assured that we get our mail. Cable/satellite, same as the states.

Now let's discuss housing. In our town you can rent a small one bed room one bath Mexican style home, no garage, heat, AC, fans, water pressure and a Mexican kitchen for $150.00 a month. Most Americans would not think of living in such a place. On the opposite end there are a few $1,000,000.00 homes here. As in all places it come down to location, location.

Question: what do Paris, London, and New York City have in common? They're all expensive. Where you move to Mexico from will have an effect on how much cheaper you feel things are. Generally you will spend less for a home here than many places. How much less will depend on your taste, and needs. Do you require pressurized, purified water at the tap? Do you require a bath tub, or will a shower work, OK? Do you need a home for your car to live in? We are not discussing safety here that is a forgone conclusion.

As an example, We are renting a 3 bdrm 3 bath 2200 sf townhouse, with most American features, fully furnished for $800.00 per month. Are there places for $750 to $700 that would have worked? Yes, but having to rent our first home site unseen (we had lots of pictures) This is the route we took. We are happy with our choice.

Can one live on $1100.00 per month? Yes, but not very well. No car for sure. This suits some people just fine. Probably a good minimum for most would be $1,200 to $1,500 for a single person, and $1,700 to $2,300 for a couple. Do we spend more? "yes."

Fuel, for the car, Manga (regular) is about $3.15 a gallon.  It is subsidized through PEMEX, (the government oil company of Mexico). It is all pumped by an attendant. ou do not pump your own gas. Which means that he/she is expecting a tip. This adds a little to the overall cost.

Another conversation one must have is geography. Mexico is a large country, it cost more to live where others want to live, than living where no one wants to live. However, if you are willing to forgo a few comforts, things become cheaper. The closer you are willing to live like the average Mexican lives the cheaper life becomes.

As with with all things, life is a series of choices. Some better some worse.

Remember: God only gives us a certain number of days. I don't plan on wasting the ones I have left .

Until we talk again.

Mike

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