Retire to
Ecuador
on $660 Per Month
In Ecuador, I believe Cuenca to be the best
place for an expat to retire. It’s not the
cheapest, but I think 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 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 a number of fine-dining
restaurants, plus theater, orchestra, and
plenty of festivals and celebrations to
enjoy.
The colonial architecture, Andean markets,
and heritage of the city make you really
feel that you’re really 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 $1.50, and a four-hour ride to
Guayaquil
is about $8. Owning a car is an unnecessary
expense, and, in fact, a burden to most
people. Rental cars are easily available
when you’re ready to explore the country
off the beaten trail.
The expat community is small enough that
the general population hasn’t formed much
of a stereotype about what American expats
are like, but large enough so that there’s
always someone with whom to get together
for company.
How much to retire to
Cuenca
?
Allow $1,240 per month if you’re planning
to rent.
I believe you could live in
Cuenca
comfortably on about $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
$200 per month for a live-in maid.
Renter’s Budget in Cuenca, Ecuador
|
Rent |
$450 |
New, modern apartment of about 2600
square feet |
| HOA Fees |
$150 |
Often required of renters |
| Property Taxes |
$0 |
|
| Car Costs |
$0 |
An unecessary
burden in the city |
| Auto Insurance |
$0 |
|
| Transportation |
$40 |
|
| Gas |
$3 |
Used for hot
water and cooking |
| Electricity |
$30 |
|
| Telephone |
$20 |
|
| Internet |
$35 |
|
| Cable TV |
$25 |
|
| Household
Help, fulltime |
$0 |
Allow $200 if a full-time maid is
required |
| Food |
$240 |
|
| Entertainment |
$240 |
Orchestra, theater, and cultural
activities are usually free in
Cuenca |
| Homeowner's Insurance |
$0 |
If you are in a house, I'd suggest
insurance, about $54 monthly |
| |
|
|
| TOTAL |
$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 $100 per month, with no HOA fees. This would
get you about 60 square meters in an older building with no doorman or garage.
This would cut your budget by $500 per month.
On the other hand, you could plan on as little as $660
per month if you’re planning to own your own home.
Home-owner’s
Budget in Cuenca,
Ecuador
|
Rent |
$0 |
|
| HOA Fees |
$0 |
|
| Property Taxes |
$21 |
Based on a
large house in town |
| Car Costs |
$0 |
|
| Auto Insurance |
$0 |
|
| Transportation |
$40 |
|
| Gas |
$3 |
Used for hot
water and cooking |
| Electricity |
$30 |
|
| Telephone |
$20 |
|
| Internet |
$35 |
|
| Cable TV |
$25 |
|
| Household
Help, fulltime |
$0 |
Allow $200 if a full-time maid is
required |
| Food |
$240 |
|
| Entertainment |
$240 |
Orchestra,
theater, and cultural activities are usually free |
| Homeowner's Insurance |
$0 |
If you are in a house, I'd suggest
insurance, about $54 monthly |
| |
|
|
| TOTAL |
$654 |
|
|
Car Owner's Budget in Ecuador
|
Car Registration |
$8 |
Based on a
$23,000 SUV |
| Insurance |
$54 |
Full coverage
on a $23,000 SUV |
| Maintenance |
$40 |
|
| Fuel |
$40 |
Gas
is $1.43 per gallon, and Diesel is $1.03 |
|
Car Total |
$143 |
|
|
If I were to add
a small luxury, I’d consider $100 per month for in-country exploration. This
should allow for four in-country vacations per year. Also, 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 is causing expat prices to rise in neighboring
countries, Ecuador remains stable for
dollar-holders.
Christian
MacDonald
For Live and
Invest Overseas
