Retirement is something you really have to take into consideration and with the very low cost of living in Mexico these days it is no wonder that a lot of Canadians, Americans and Europeans are relocating here. But how cheap is it exactly to live in Mexico? Is it as affordable as they make it out to be?
Understanding the Differences
It is true that Mexico had hit a financial crisis during the mid 1990’s but this has since changed. Over the years the government has altered its focus and has re-established Mexico as one of the predominant nations in South America. As a matter of fact the country now ranks as the 12th biggest economy in the entire world. This generally places a lot of the costs in the same range as one would find in the United States, Canada, and most European nations.
So, if the prices are generally the same does it mean that living in the US and living in Mexico hits the same expenses? The answer is a little of both yes and no. It depends mostly on what you are after. If you are intent on living on less than $30,000 a year then yes, you can enjoy a comfortable life in Mexico. Most meals in the country cost only half of what they would cost in the US so in the long run you can save a lot of money.
The cost of utility bills is where the cost of living in Mexico becomes incredibly affordable. Water is surprisingly very low, with the usual prices found in the US cut almost completely in half. A twenty-liter/five gallon of purified water will only cost you about $2 to even as low as $1 and a bi-monthly water bill will only cost about $10 or less. Electricity is just the same. In the US, every kilowatt-hour costs about 12 cents but in Mexico it costs about 5 cents.
Lower Real Estate Investment Costs
When it comes to real estate prices, Mexico is quite competitive too. You can find properties that usually cost $650,000 in the US to go down to just about $280,000 to $400,000 in Mexico. If you are to buy a house that usually costs $200,000 in the US, expect it to be at least 30% less in Mexico. This is certainly a great alternative especially for those who are planning to either retire in the country or make some investments in real estate.
Indeed, the cost of living in Mexico is incredibly low when compared to other countries especially the United States. Imagine being able to cut your cost of living to half of what you are spending now. When you are planning to retire, you want to live as cheaply as possible and although this is almost impossible to do in the US, it is not necessarily the case when you retire in Mexico. It is easy to live a comfortable life in a paradise like Mexico without having to deal with a high cost of living.