Living Costs in La Serena, Chile
Despite its many advantages (including the relatively low cost of real estate), Chile is not the cheapest option around for retiree expats. But all the expats I spoke with feel that Chile offers great value and that, well…you get what you pay for. At the end of the day, Chile offers a near-First World lifestyle for less overall than you’d pay in North America or Europe.
Many basic goods, such as groceries and some household expenses, cost about the same in the U.S. and in Chile. Eating out in a decent restaurant in La Serena runs US$20 to US$25 per person, including wine. Medical care costs less than in the U.S: A doctor’s visit runs US$60 to US$80, though several expats mentioned that the quality of care for both medical and dental work is not as high as that in the U.S. Health insurance is also scarce (BUPA International was the insurer mentioned most often.)
Two expat couples living in La Serena—one British and one American— discussed their annual budgets with me. Here is what they said:
The British budget, which includes expenses for a car, extensive gardens, and membership at an exclusive golf club, comes in at about US$25,000 a year. According to other expats, this is a frugal budget, as this couple lives quietly. It’s on the low side for active, social couples, but is definitely doable. (See David’s budget below)
The American couple, in contrast, feels that you need US$4,000 to US$5,000 a month to live well…which puts your annual living costs at between US$48,000 to US$60,000.
Their fixed expenses, they estimate, run about US$1,300 a month. These include taxes, home owners’ association fees, golf club dues, Spanish classes, car insurance, utilities and maid. “A typical week,” they told me, “includes each of us attending Spanish immersion class, golf or tennis class, [playing] golf, massage, and yoga. The maid works 20 hours a week. Medical insurance is expensive. Telephone/internet/TV cable service runs US$130 a month.”
In addition, they eat out at least once a week, and have friends over to dinner every week. They travel fairly frequently, both within Chile and in South America (they’ve made four trips to nearby Argentina). They also give time and money to church and charitable organizations in the area. “The real value here,” they say, “is owning a condo on the beach. In California, US$1 million may buy a view—but not a home—on the beach.”
In Chile, you can pay about a quarter of that amount—for a beachfront property. Affordable property, fine wines, temperate climate, dramatic scenery, and a wealth of amenities…La Serena is, perhaps, what California was 40 years ago.
As one British expat said, “I can’t imagine going back [to the UK]. This is home now.”
David’s budget
David, a Briton, sent in the following budget detailing what he and his Chilean wife spent last year. It is actually more than they spent in 2005, one of the last years they lived in the UK. The breakdown, however, is very different. In Chile they spend much less on clothes. They spend about the same on their car and its maintenance—but it’s all for pleasure rather than for the commute to work. And the Chile budget picks up one item that didn’t exist on their UK budget: David’s golf membership.
One additional item: their house. David says they paid about US$222,000 for it in 2006. Today, even with a stronger pound, David estimates the house would cost about US$245,000. That’s about a fifth of what a similar house would cost in the UK—“if you could find one with such a view,” he says.
| Utilities: |
US$1,729 |
| Entertainment: |
US$536 |
| Health: |
US$716 |
| House insurance: |
US$716 |
| General household: |
US$3,609 |
| Medical: |
US$1,079 |
| Car: |
US$1,778 |
| Groceries: |
US$3,934 |
| Golf club fees: |
US$1,849 |
| Telephone (including broadband): |
US$1,077 |
| Clothing: |
US$457 |
| Water: |
US$403 |
| Garden: |
US$2,046 |
| Local taxes: |
US$1,457 |
| Miscellaneous: |
US$3,614 |
| Annual living cost: |
US$25,000 |
Correspondent
Laura Stanley
