I’ve been managing Mexican real estate for over 20 years. During these two decades, I can tell you that over 90% of the transactions involved an American or Canadian buyer. Therefore, I have encountered many questions about the lifestyle or the big move to another country. After answering and helping address questions regarding the legalities and expenses involved in closing costs, the following questions are on living expenses. In this article, I’ll attempt to answer the most popular question from retirees. “Can I retire in Mexico with 1500 USD? And how far can my savings last while residing in Mexico?
The Area Can Be Determinant
Each region of Mexico has its average prices and costs, so I thought I would try to compare only a few areas in the southeastern Peninsula of this country. You find the states of Quintana Roo, Yucatan, and Campeche in the Yucatan Peninsula. I chose these as a basic comparative, but the overall data could be applied and referenced to other regions of Mexico.
A Comparison to the USA
When considering retiring in Mexico, one of the first questions that often comes to mind is the income requirements. The good news is that Mexico offers a variety of options for retirees protecting their savings or people looking to reduce their monthly living expenses. The dollar amounts look super impressive while analyzing income requirements and reviewing the low cost of living in Mexico compared to many parts of the United States and Canada.
Progreso Real Estate
Progreso, a charming beach town on the Gulf of Mexico, is one area to review. Homes for sale in Progreso can range from USD 100,000 USD to $1,000,000, plus they are right on the beachfront with ample square footage. But what is interesting is the purchase value is incredibly reasonable compared to beachside communities in Florida, Texas, and California. The closing expenses on a percentage are a bit higher than in our home countries, ranging from 4% up to 8% depending on the property’s value. This always raises the eyebrows of people beginning their research, and it is always pointed out to me. But when they receive the quotes on the average annual property taxes, which could be as low as USD 150 per $100,000 in property value…the real estate investments in property in Mexico start making sense… a lot of sense.
Merida Mexico real estate
Merida, the capital city of Yucatan, is another popular choice for retirees. Known for its rich cultural heritage, colonial architecture, and vibrant community, Merida offers various real estate options to suit different budgets and preferences. Homes for sale in Merida, Mexico, range from colonial-style homes in the historic center to modern condos in the newer developments; Merida has something for everyone. I’ve recently become obsessed with unique older colonial homes. Majestic, proud colonial homes that, although restored, have respected the older architecture and colonial styles. The divided home now has placed some properties at a dollar amount that is affordable and in fantastic neighborhoods. Such properties can range from $150,000 up to $250,000 in attractive neighborhoods, in a property suitable for a retired couple, and allowing for appreciation zones if found within up-and-coming neighborhoods.
Playa del Carmen real estate
Playa del Carmen is a top choice for those seeking a more cosmopolitan lifestyle. With its stunning beaches, thriving expat community, and world-class amenities, Playa del Carmen has become one of the most sought-after destinations for retirees in Mexico. From beachfront condos to luxury villas, the real estate market in Playa del Carmen offers a wide range of options.
Regarding income requirements for retiring in Mexico, the specifics can vary depending on various factors, including your desired lifestyle, location, and immigration status. You must demonstrate a steady income stream while living in Mexico. This could come from pensions, investments, or rental income sources.
Pay Close Attention To The Legal Status
The exact income requirements may also vary depending on the type of visa you apply for. For example, the retirement visa (the Temporary Resident Visa for retirees) requires applicants to demonstrate a monthly income above a certain threshold. Currently at approximately $ 1,50 USD 1,500 monthly. Alternatively, you can qualify for this visa by showing a certain amount of savings or investments.
Cost of Living
It’s worth noting that while Mexico offers affordable costs o compared to Canada and the USA, the cost of living can still vary significantly from one city to the next. For example, living in a popular tourist destination like Playa del Carmen may be more expensive than living in a smaller town like Progreso. There are tens of thousands of tourists in Playa del Carmen versus the small Progreso’s quaint beach. Therefore, it’s essential to consider your budget and lifestyle preferences when choosing where to retire in Mexico.
In addition to the income requirements, retirees must consider other practical aspects of living in Mexico. For instance, healthcare, insurance, and taxes.
Healthcare in Mexico
While Mexico’s healthcare system is generally affordable and high-quality, it’s worth studying health insurance coverage. Just in case something happens, you must cover an unexpected medical situation. I recommend an insurance package to cover emergencies and evaluate whether you can eliminate routine checkups and dental coverage. The reason is that these expenses in Mexico are incredibly affordable compared to northern country’s counterparts. It is worth getting expert opinions on a strategy for yourself and your household.
Final Thoughts: Retire in Mexico
Retiring in Mexico can undoubtedly be a rewarding experience, particularly for those looking to enjoy a relaxed lifestyle. With careful planning and considering the income requirements, you can make your dream of retiring in Mexico a reality. So whether you choose Progreso real estate options, Merida, Playa del Carmen, or other destinations in Mexico. You’ll find a warm welcome and a vibrant community awaiting you.