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Choosing the Right Home for You Abroad Natives who beat drums to drive off evil spirits are objects of scorn to smart Where should you move? The world is big and there may be many places that could fit you like a tee. Unfortunately, I can?t cover everywhere in the world. However, I can tell you about a few places where the cost of living and setting up a household is lower than the US and that encourage immigration and investment including: Mexico: Approximately half of all Americans who moved abroad for a lifestyle change end up in Mexico and who can blame them. Mexico is close to the United States (at its farthest extreme it is no more than five hours away from almost any place in the US), has ideal climate (the Lake Chapala region is considered to have the best weather in the world!), diverse and dramatic landscapes and cities (Puerto Vallarta and Acapulco have stunning beaches that open onto the jungle; the Bajio (Guanajuato and Queretaro state, including San Miguel de Allende) and Oaxaca are clad with romantic, whitewashed colonial town replete with ornate, Baroque churches) and warm, friendly people. The majority of Americans who move to Mexico congregate in a few places: Puerto Vallarta, Lake Chapala, Guadalajara, San Miguel de Allende, and parts of Baja California. However, there are small American enclaves in places like Cuernavaca, Merida, Morelia, Colima, Mazatlan, Acapulco, Cancun, Oaxaca, Guanajuato, Queretaro, and some of the exurban suburbs of Mexico City. Many books extol the virtues of living in Mexico for $600-$1000 a month. However, that is not as easy as it seems. Sure, you can live like a Mexican on this amount (the average Mexican family makes about ? -2/3rds this much and supports a couple kids) by eating Mexican foods exclusively (and cooking on your own), buying local made goods (exported goods cost about the same, if not slightly more, than in the USA), living in a modest homes with bare light bulbs and basic plumbing, and buying or renting a place outside of the large American enclaves (note: for example, houses in Puerto Vallarta, a popular American retirement community, cost twice as much as Mazatlan). ?Going Mexican?, however, is not for everyone. It is harder to adopt to the country if you don?t have many of the trappings of homes, like familiar clubs and entertainment options (for example, Lake Chapala has several options for social life for Americans ? including a local English language play house -- and San Miguel de Allende has one of the best English language libraries in Mexico). In addition, Mexicans, while friendly, may not be easy to get to know (remember they have their own lives) particularly if you don?t speak Spanish well. Conversely, you could find yourself as the subject of their undivided attention, particularly if you live in a small town and act differently than they expect. Moreover, you may tire of the relatively poverty of Mexican lives. However, if you are really adventurous, know some Spanish, and enjoy a simple life living like a Mexican could be a wonderful experience for you. Living in the popular American enclaves will cost you around $1200-$2000 a month for modest luxury (eating out at non-Mexican restaurant a couple times a week, buying some familiar American products, renting or buying a more finished home, owning a car, having a maid come clean a couple times a week). If you want to live in a large home with all the trappings of home, you should expect it to cost about 2/3rd?s the cost of an equivalent lifestyle in the USA. See interview with Judy King from the Big Blue Marble newsletter for more details. Costa Rica Until a few years retiring in Costa Rica was considered the best alternative to Mexico anywhere. Properties were inexpensive and Costa Rica was (and still is) the most stable country in Latin America. Costa Rica also enacted laws (which have been largely rescinded) that encouraged foreigners, particularly retirees, to live there. Over time, the cost of properties has escalated and the rest of Latin America has become more and more stable and attractive. However, there is still a lot to recommend Costa Rica including a large expatriate community, some of the most spectacular natural landscapes anywhere on Earth (there are more species of plants and animals in tiny Costa Rica than in the mainland USA), and friendly people (with a more European style lifestyle than the rest of Latin America, except Chile and Argentina). Most Americans live around San Jose, the capital city. San Jose is a pleasant town in a verdant valley surrounded by mountains. It has a lot of big city attractions, however, it is relatively quiet and not terribly sophisticated (if you want big city life, I?d recommend Buenos Aires, or even Mexico City). Some Americans congregate to the shore, particularly around Tamarindo. Properties by the ocean are not cheap (a modest home costs upwards of $150-200,000 and a condo costs $125,000+). In addition, the country has expensive taxes on imported goods (cars cost two to three times more than in neighboring Panama) and the government has had a hard time making a transition to a liberal, market based economy. However, the country has remained a democracy longer than any other place in Latin America and is one of the few countries in this part of the world that offers its citizens a social safety net. Panama International Living magazine recently named Panama as the best place to retire or live abroad. They wax poetic about the country?s extensive benefits for retirees (including significant discounts ? up to 50% -- on everything from air fares to medical care) and its well developed infrastructure. Panama operates on the United States dollar, the economy is robust, and Panama City is the most sophisticated (Panama has become an off-shore banking capital) community in Central America (International Living reports that it is more like Miami than Central America) replete with one of the most impressive Old Towns in the Americas, an impressive range of ethnic eateries) and high quality condominium towers. One of the cities in Panama, Boquete, high in the mountains has slowly morphed into a haven for expatriates because of its ideal climate and stunning vistas of an extinct volcano and wildflowers. Panamanians call this area ?the Valley of flowers and eternal spring The weather stays around 65-80 degrees year round. Unfortunately, the rest of the country including Panama City is extremely tropical ? hot and humid. The cost of property here is roughly equivalent to Mexico. You can buy a nice 3-bedroom apartment for $100,000-200,000 in downtown Panama City or a small home in Boquete for $80,000. Belize and Honduras Most Americans are attracted to beachfront, island communities?like San Pedro, Belize and the Roatan, Honduras ? which are nearly idyllic tropical paradise complete with a relaxed atmosphere, palm fringed beaches, and sands that look (and feel) like flour. In addition, the natives in both places (though most of Honduras speaks Spanish, the Bay Islands are English speaking) use English as their mother tongue. Unfortunately, the world has caught up with these beautiful communities. Homes and condos are not cheap any more (upwards of $200,000 for a home; $125,000 for a small condo). In addition, since these are islands, the cost of living is also not cheap. Expect to pay about what you would in the states for a meal in a restaurant. The cost of living (outside of the island communities) in mainland Honduras is about ten to twenty percent less than in Mexico. Belize is about ten to twenty percent more than Mexico. Nicaragua While many Americans still fear life in Nicaragua (it has been 15 years since the demise of the Sandinistas), the country has quietly become a haven for expatriates. It is openly welcoming new foreign investment including a legal provision that allows retirees (who are over 45 years old and have a guaranteed monthly income of at least $400 a month) to pay no income tax on out-of-country earnings and to import households goods duty free. The result has been a steady increase both in the real estate market and the number of visitors and foreigners coming to this land. However, the cost of living is still quite reasonable. A nice home can be purchased in the center of Granada, Central America?s finest colonial city, for $150-200,000. You can still buy small, attractive homes within walking distance of the beach for less than $100,000. Argentina With the demise of the once hot Argentine economy in 2002, suddenly Argentina emerged as one of the world?s best tourist destinations. Argentina is blessed with some of the world?s most impressive landscapes ranging from glaciers in the south to Iguazu Falls located smack dab in the middle of the jungle in the North. It is also home to my favorite city ? Buenos Aires?often called Paris at ? the price ? home to some of the globe?s most beautiful people, an extremely hot nightlife; great, cheap red wine; the tango, and many sophisticated neighborhoods (Palermo, Retiro, and Recoleta) that could give Manhattan?s Upper East Side a run for the money for the title of the Earth?s most hoi-polloi communities. While life is not as cheap as it was in 2002, it is still a bargain destination. A fine 2,000 square foot apartment in Buenos Aires?s best neighborhood can be had for $250,000 (a modest, small apartment in a good neighborhood can be as low as $50,000). Many celebrities have bought major chunks of land in Patagonia for under $1 million. In addition, you can still get a good five course meal at a fine restaurant in Buenos Aires, with wine, for under $20 (including tip ? a similar meal would cost $40-50 in San Francisco), inexpensive luxury bus service, hotel accommodations, and other tourist services for ? of the US (with more comfort). Ecuador Ecuador is one of Latin America?s most hidden treasures. Beautiful colonial properties in need of some restoration in Old Quito, a UNESCO heritage site, or Cuenca can cost as little as $50,000. Homes in the Andean market towns like Otavalo go for $60,000. Lovely condominiums with ocean views on uncrowded beaches are available for $60,000 or less. The cost of living is half of the United States. The economy of Ecuador is now tied to the US dollars (The dollar is even the currency for the country). Nowhere on Earth has so many incredibly inexpensive Andean arts and crafts for sale. Ecuador does have some problems with crime and the beaches are considered rustic. No great nightlife or resorts there; instead just miles of quiet, tropical, remote beaches. Thailand Though Thai laws make it a bit hard for foreigners to own property in Thailand, you can get an ownership interest in some lovely beachfront condominiums (1 bedrooms for $40,000) with a view of tropical beaches inexpensively. You can also rent an apartment in some of the country?s lovely hill towns like Chiang Mai and Chiang Rai for as little as $100 a month. No third world country has better health care. The king is dedicated to building first class hospitals. Most of the doctors are trained in the US and Europe. Many Americans, without insurance coverage, go to Thailand for surgeries. In fact, some hospitals have even set up wings that look and feel like five star hotels for foreigners! New Zealand While New Zealand has one of the hottest real estate markets in the world, property are still available for 2/3 of the cost in the United States. Americans who live in New Zealand say that it is like living in the USA in the 1950s. The pace is still slow and people have time to spend with each other. The crime rate is low. New Zealand has some of the most varied and stunning landscapes on Earth. The North is filled with hot springs and volcanic landscapes. The south has glaciers and lush arctic forests. The only problem is that it is hard to get residency in New Zealand. The government, with its high quality socialized health care system, discourages retirees from other countries. It is easier to immigrate if you are young. However, if you have a lot of money (over $400,000) you may be able to get residency here as a retiree. Europe Three years ago many rural properties were available in France and Italy inexpensively (as little as $50,000) if you were willing to do some rehab. Between the fall of the US dollar and the hot European real estate market, the costs of these properties has more than doubled in the past couple years. Some deals still exist in Eastern Europe particularly in Romania and Poland however, neither country has the high quality infrastructure available in Western Europe. Western Europe has excellent health care, great social services, and excellent infrastructure. Best of all, the food and culture is among the best in the world. The cost of properties in urban areas and popular resort towns are expensive throughout Europe, though some properties in places like Croatia, Slovenia, and Malta are available in prime locations for less (about ? of the price) of the USA.
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