Cheapest Place You'd Want To Retire To In Latin
America
Poisson d'Avril, 2009
Panama City, Panama
PLUS:
- Days Of Roman Legionnaires, Vermillion-Clad Initiates, And Paper
Fish...
- "We're So Happy We Took A Chance And Bought In The DR!"...
- Consider Ireland Again?...
AND:
- Where To Source A Satellite Dish...
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How To Retire Overseas
Everything you need to know to launch your new life in the overseas paradise
of your dreams. Real-world, practical, how-to, nuts-and-bolts support.
Full details here.
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Dear Overseas Opportunity Letter Reader,
Cuenca, Ecuador, is the most affordable place you'd want to
retire to in Latin America. Other places may be a bit cheaper, especially
some other places in Ecuador, but you'd be removed from the conveniences of
a city.
Our Latin America Correspondent Christian MacDonald has taken out his
sharpest pencil and tallied the cost of living in this colonial city
carefully.
Christian writes:
"In Ecuador, I believe Cuenca to be the best place for an expat to retire.
It's not the cheapest, but it's the best quality of life for the money.
"At just over 400,000 people, Cuenca is the perfect size. It's small enough
so that you always see someone you know when walking around town and so that
you know how to get around, how to get things done. What's more, people know
and remember you, which makes you feel at home and part of the community.
"But Cuenca is not so small that it doesn't have all the services you need.
It's the provincial capital of Azuay, so you have the state and municipal
offices at your convenience. There are fine-dining restaurants, plus
theater, orchestra, and plenty of festivals and celebrations.
"The colonial architecture, Andean markets, and heritage of the city make
you feel that you're experiencing another country and a rich culture.
"Public transportation is great, both within the city and between cities.
The city buses are plentiful and inexpensive. Taxis are about US$1.50, and a
four-hour ride to Guayaquil is about US$8. Owning a car is an unnecessary
expense and, in fact, a burden for most people. Rental cars are easily
available when you're ready to explore farther afield.
"The expat community is small enough that the general population hasn't
formed a stereotype about what American expats are like, but large enough so
that there's always someone to get together with for company.
"How much to retire to Cuenca? I believe you could live in Cuenca
comfortably on about US$1,240 per month if you are renting a home. This is
for two people. In my budget, I've omitted household help, as, if budget is
the primary concern, you probably won't want it. But if you do, plan on
spending around US$200 per month for a live-in maid.
Here's how my monthly renter's budget for Cuenca breaks down:
- Rent: US$450 (for a new, modern apartment of about 2,600 square feet)
- HOA Fees: US$150 (often paid by the renter)
- Property Taxes: US$0
- Car Expense: US$0 (an unnecessary burden in the city)
- Car Insurance: US$0
- Transportation: US$40
- Gas: US$3 (used for hot water and for cooking)
- Electricity: US$30
- Telephone: US$20
- Cable TV: US$25
- Household Help: US$0 (add US$200 a month for a full-time maid)
- Food: US$240
- Entertainment: US$240 (concerts, theater, and other cultural activities
are usually free)
- Homeowner's Insurance: US$0 (though, if you're renting a house, you might
want to invest in insurance, which would cost about US$54 a month)
TOTAL: US$1,233
"The rental I'm using as an example here is an actual apartment in a modern
building that's less than 10 years old. The apartment is on the fifth floor,
meaning you have a view of Cuenca's downtown and the mountains ringing the
city in the distance from one side. The other side of the building has a
view of the river, with the mountains in the background. The building has a
doorman, groundskeepers, a huge personal storage room, and underground
parking.
"But you could live for less, if so inclined. To cut costs further, you
could rent a 'local'-style apartment for about US$100 per month, with no HOA
fees. This would get you about 60 square meters in an older building with no
doorman or garage, and it would reduce your budget by US$500 per month.
"On the other hand, you could budget as little as US$660 per month if you
own your own home.
"Here's my monthly homeowner's budget:
- Rent: US$0
- HOA Fees: US$0 (often required of the renter)
- Property Taxes: US$21
- Car Expense: US$0 (an unnecessary burden in the city)
- Car Insurance: US$0
- Transportation: US$40
- Gas: US$3 (used for hot water and for cooking)
- Electricity: US$30
- Telephone: US$20
- Cable TV: US$25
- Household Help: US$0 (add US$200 a month for a full-time maid)
- Food: US$240
- Entertainment: US$240 (concerts, theater, and other cultural activities
are usually free)
- Homeowner's Insurance: US$0 (if you own a house, you might want to invest
in insurance, which would cost about US$54 a month)
TOTAL: US$654
If you decide to invest in a car, here's how I'd budget for the related
expenses:
- Car Registration: US$8 (based on a US$23,000 SUV)
- Insurance: US$54 (full coverage on a US$23,000 SUV)
- Maintenance: US$40
- Fuel: US$40
TOTAL: US$143
"If I were to add a small luxury, I'd consider US$100 per month for
in-country exploration. This should allow for four in-country vacations per
year.
"And, if you're buying a house instead of an apartment or condo, don't
forget homeowner's insurance.
"Remember, Ecuador uses the U.S. dollar. So, while the dollar's decline has
caused expat prices to rise in neighboring countries, Ecuador remains stable
for dollar-holders."
Kathleen Peddicord
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----------
"A squad of Roman Legionnaires passed in the street yesterday," writes
Guatemala Correspondent Michael Paladin, "half a block from my
house. They wore red capes, bronze-colored breastplates, gold-colored
helmets with visors, and they carried shields and full-sized spears.
"The ancient Roman banners and standards were inscribed with the letters
SPQR, and the soldiers' helmets bore red crests. In front of the soldiers
marched purple-clad acolytes, to the rear followed a group of
vermillion-clad initiates, preceded by a cloud of incense.
"This is the build-up for Semana Santa in Antigua, the premier Easter Week
event in Central America. With less than two weeks to E-Day, the drums are
pounding on the weekends, and the city is bracing for the onslaught of a
100,000 spectators."
Meantime, today is Poisson d'Avril.
We bring this holiday with us from France, where children celebrate the
start of April by trying to attach paper fish to the backs of their victims
without being noticed.
Most successful is the child who manages to stick a fish to his teacher's
back without getting caught.
Jackson left for school this morning with a backpack full of construction
paper poissons and a fierce grin.
"Kathleen, my husband and I have bought a vacation/rental house in Las
Terrenas,
Dominican Republic, because we read about the area in your
wonderful newsletter. Thank you!
"We're so happy we took a chance and bought our two-bedroom house with
swimming pool just 300 steps from the beach even though we live in the
States and still do not speak (good) Spanish! We rent our house through
HomeAway.com."
-- Susan M., United States
"Kathleen, thank you so much for the
update
on Ireland.
"I assumed from international press reports online that things had
changed greatly in the past several years from what things were like in
Ireland 5 to10 years ago, and I guessed that the timing might be right for
considering the country as a retirement possibility again.
"I'll look forward to Lynn's further report in the
Overseas Retirement Letter."
-- Eileen M., United States
"Kathleen, I have been reading about Central and South America as retirement
locations for several months. I just finished reading your
post from today, in which you explain, "You'd have to invest in a
satellite dish if you wanted your own Internet access [in this remote
region of Panama].
"I cannot seem to locate any service providers for satellite dish Internet
access. Can you send suggestions?
-- Lee W., United States
Take a look here:
VSAT Systems
Tempest
Telecom
TS2 Satellite
Internet services |
