Why is America retiring to Mexico?
Around 2 million American expats are currently living south of the border according to the National Immigration Institute of Mexico and several other international publications. This number is increasing every year, coming from one of America’s largest demographic populations that are starting to come of age. Even with the political strain between Mexico and the United States, it doesn’t seem to be stopping retirees from crossing the border seeking a more affordable retirement. Retiring to Mexico is more affordable and has several advantages.
Thus, Baby Boomers are in search of a place where they can stretch their dollars, get the biggest bang for their buck, and be able to afford healthcare. The ever-increasing cost of living, the current healthcare debacle, and uncertain economic indicators are forcing one of the largest generations to seek shelter elsewhere. America is retiring to Mexico for all the reasons mentioned. After making a good living but watching their retirement funds falter to inflation, trying to maintain their current lifestyle is a major concern to the boomers.
What attracts Americans and Canadians to Mexico?
Mexico offers many opportunities to live out your golden years with minimal worries regarding financial stability. Mexico has made incredible advancements in Western Medicine and operable technology. To prove it, Medical Tourism is rapidly increasing popularity, not only with Americans but Canadians as well. More and more private hospitals are showing up throughout Mexico. The care that you can get practically mirrors the United States at a third or less of the cost.
Real Estate Market in Mexico
The real estate market in Mexico is on sale. With Mexico still recovering from America’s 2007 housing crisis and the exchange rate very favorable against the peso, it is a perfect time to invest in your future. A home or condo can start at under USD 100,000. It depends on location and proximity to the water and desired amenities. Also, you could select an ideal location and build your dream home for approximately half of what it would cost in the US. Combine that with extremely low property taxes and insurance. Your housing expenses would amount to almost nothing.
The monthly expense for an average size two-bedroom home is approximately $250 to $400.00 a month. That includes electricity, cable/internet/local phone – if needed, drinking water, sewer, and tap water. Of course, that is excluding any rent or mortgage payment. However, this will fluctuate a bit with electricity usage. Electricity rates shift constantly and are according to the volatile market of fossil fuel prices. Therefore, the more you use, the higher the billable rate. Let’s face it. No country escapes high energy costs.
What about food?
Depending on the selection of food or a specific diet, your grocery bill can be considerably less as well. Most of the fruits and vegetables found in the grocery stores and open markets are grown and are farmed in Mexico organically. We highly recommend washing with iodine solution before consumption. We can say the same for dairy products being fresher and costing less as well. Anthony Scopel, who is a travel writer for You, Me and The Dock explained that his grocery bills are half of what they were in America. Besides, he mentioned that their meals tended to be healthier due to little or no preservatives added to the meats and seafood.
When you decide to go out for a bite to eat or a few beverages, staying with the local eateries can be delightful and, at the same time, very affordable. Hence, you can expect to pay around 200 to 300 pesos ($11 to 15 USD) for a fresh fish meal. And, 30 to 45 pesos ($1.5 to 2.5USD) for a beer. However, if you like dining out on or near the water, expect to pay a bit more. Fish entrees served on the beach can range from 350 to 500 pesos ($19 to 26USD). However, in general, this is a lot less than most waterfront restaurants on either coast of the US.
There are always exceptions to the rules. That is to say, not everything is cheaper in Mexico, as everything isn’t the most expensive in the United States. If you are accustomed to a higher cost of living in America and budget your monthly expenses accordingly, then consider retiring to a country where these advantages will benefit you:
- Your dollar has a quadrupled value – approximately 19 pesos to one USD.
- Healthcare is proven to be a third of the cost.
- Finally, housing is so much more affordable – getting the biggest bang for your buck and paying low property taxes.
Why not do what so many Americans are currently doing? Explore your options and see how their hard-earned dollars can go further. Most will find that the tempered weather, great food, and beautiful beaches can be a great way to spend the rest of your life. Paradise is no longer an unattainable dream, but a reality that you can experience now. Retiring to Mexico is the right decision to make.
We specialize in helping Canadians and Americans find and purchase their homes in Mexico safely. Contact us, and we’ll be happy to help you! Remember, at Top Mexico Real Estate… We make it happen!