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Lake Chapala Area Cost of LivingOverview
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First, before we get in trouble for spending your money, suffice it to say, there is no one size fits all answer to the cost of living conundrum. There are a lot of things that are cheaper in Mexico than where you now live and a lot of 
things that cost more. We touch on some of the financial aspects of retiring in the Lake Chapala area in “Retiring in Paradise, but this is a more in-depth look at what it will really cost. Only the finite demands of your lifestyle can determine your particular cost of living. For example, we use way too much electricity for the size house we have simply because we like a lot of light, have an electric dryer, an oversized refrigerator, a dishwasher and tend to leave the TV and computers on all the time. Having said that our electric bill averages between $200.00 and $250.00 USD for two months, which is not too bad…although we are trying to get better! We know people that spend 1/3 of that and we know people that spend more. 
Housing
First, let's look at housing. Houses in fraccionamientos (subdivisions) and nice sections of the villages start in the high 5 figure range with the average house these days approaching $200,000 USD. We also have no shortage of 7-figure knock your socks off digs for our non-financially challenged friends. Somewhere between $200K and $250K will usually get you a very nice upscale 2 or 3 bedroom, 2 or 3 bath house in a good neighborhood. By comparison, such a dwelling might cost you 2 to 3 times as much on either U.S. coast or more. But, if you're moving from Tulsa or De Moines you might not consider that to be much of a bargain. Another consideration is construction. There are no “stick-built” houses here. Most houses are constructed entirely of masonry products and as such are very sturdy and almost never burn! Every once in a while a bargain fixer-upper pops up which allows you to buy in a nice $150K to $250K fraccionamiento for say 30% to 50% below the
average for the neighborhood. As of now the cheapest commodity in Mexico is labor. And, materials are very reasonable, which would allow you to buy and remodel and have a virtually instant equity gain. This requires some knowledge, some really good friends and a thorough understanding and appreciation of the Mexican concept called “manana!” Your intrepid authors took this route and while there were many “lawyer moments” along the way, we now own a very modern and comfortable house at a fraction of what it would have cost to build new or buy existing in the same condition with the same amenities. And, it's worth about $70K more than our total investment in just 2 years. Again, such “bargains” are few and far between and you need to know what you're doing. Also, you should know that all types of housing are available in the Lake Chapala area from condos to townhouses to garden homes to single family to mansion and any category will fit into the price ranges mentioned depending on location, size and amenities. Just like where you live now, location trumps everything else. Finally, a word about purchasing…you are probably going to want to pay cash because the terms of financing for foreigners will probably not be palatable 
to you…unless you find private owner financing or in some cases builder financing. Mortgages, especially for foreigners, are a relatively new concept in Mexico and the lenders attitude is that after they have eliminated virtually every risk possible, they'll begrudgingly loan you maybe 80% or less of the value and many times require you to collateralize 150% of the value at 8% to 10% interest. Here is some good news! Because of our near-perfect weather heating and air conditioning are rarely installed in even the most expensive housing, although it is increasingly found in commercial buildings. This, of course, represents a substantial savings in maintenance costs. Usually, a couple of electric space heaters will get you through the sweater days and we've noticed that Home Depot, Wal-Mart and others are selling a lot of the unducted air conditioners, although we've never been uncomfortable enough to require one. Costs for other utilities and services will vary and as mentioned above you are on your own with electricity. Our fraccionamiento provides, water, trash collection, street lighting, street maintenance (such, as it is) and common area maintenance for approximately $60.00 USD per month. Telephone service with DSL (high-speed Internet) is approximately $55.00 USD per month and Cable or Satellite TV can run from approximately $30.00 USD to $75.00 USD. Gardeners charge approximately $14.00 USD per half day and maids are approximately $12.00 USD per half day. We employ a gardener for two half days per week and we are the maids! Homeowners insurance is certainly available, but is somewhat optional, as there is really not very much in a Mexican constructed house that can burn and the theft/comprehensive/liability coverage isn't really that good for the price. So, many (I would say most) people tend to self-insure. Real Estate taxes are the fun part. My house is worth ap
proximately $180,000.00 USD and my taxes last year (with the early payment 10% discount) were $88.00 USD (yes, the decimal point is in the right place!). Rentals are also available starting at $200 - $300 USD for a one bedroom and ranging up into the thousands for top-of-the-line big view housing. Many times the rentals are all-inclusive with all utilities paid, maid service and a gardener. But, you can also find bare bones deals. However, if the last 10 years are any indication of the future and with the baby boomers coming on line, Real Estate should be a good investment for the foreseeable future. So, we recommend a purchase if you can swing it!
Food
Now, a subject near and dear to my heart…FOOD! If you stick to Mexican produced or processed food, you will find that prices are very low compared to what you may be used to. The Tiangus (weekly street markets) are usually the cheapest source for almost anything, but especially, produce, meat, fish and more. You have to be careful, but once you get the hang of it, you will find very good quality available in all sorts of fresh foods. Vegetables and fruit are somewhat different and almost always bigger than you may be accustomed to and you will find that beef and pork have a slightly different taste. Also, it hasn't occurred to most folks down here to refrigerate eggs. 
We buy eggs at a couple of places that have them refrigerated, but one wonders if they have had continuous refrigeration. Perishable packaged food like milk, bread, eggs and meats etc. usually will be dated with either packaged dates or sell by dates as you are probably used to. Supermarket chain stores such as Soriano's or Gigante are formatted pretty much like U.S. or Canadian supermarkets with large selections, good prices and tend to be increasingly user-friendly. Mexican canned goods are generally good quality as are other dry packaged products. You will find that frozen 
food selections are limited as Mexicans prefer fresh. However, we have found frozen foods and refrigerated packaged products are also of good quality. Familiar American & Canadian branded and produced packaged products are readily available and can be identified by the import sticker on every package along with a price that might be 2 to 3 times what you are used to. You will also find that many of the smaller stores buy retail at Sam's Club or 
in Guadalajara and resell the products at about twice what they paid. Bottom line is that if you need an American or Canadian food fix, you can probably find it, but you're gonna pay big time!
Consumer Stuff
Consumer 
electronics are available everywhere, but prices will 
probably higher than you are used to, especially in big ticket items like major appliances, Plasma TV's, computers etc. Furniture will be about the same or a little less, unless you choose “muebles rustica” which is traditional Mexican furniture which is very inexpensive. Automobiles are probably about the same, but the product mix is heavily weighted towards smaller vehicles and you will see many models you haven't seen before. But, if you want a Mercedes or BMW or whatever, there are plenty of dealers in all major cities. Gasoline follows world oil prices, but doesn't fluctuate as radically as it does in the U.S. or Canada. Textile and other dry goods products are probably 
the same or less than in the U.S. or Canada and all the hot designer stuff is easily found, especially in Guadalajara or other major cities. Building materials and/or home improvement items are generally cheaper especially if you use local suppliers, stores or large Mexican retailers. Cell phones are ubiquitous and all Mexicans seem to have them, and yes, text messaging is a way of life here also. We have Mexican cell phone service (Movistar) which is less than $25.00 USD per month and we have a Verizon phone with 1000 anytime minutes and 1000 weekend minutes of anywhere in North America (the North American Plan covers U.S., Canada & Mexico) service for around $80.00 USD per month.
Medical & Dental
Healthcare is generally good and readily available at Lakeside. Many doctors and dentists are U.S. educated and compared to prices north of the Rio Grande, they are one of the biggest bargains in Mexico with $15.00 USD office calls the norm rather than the exception. They even make house calls. Anybody remember the last time your doctor came to your house? As mentioned in other areas, private medical insurance is available (at much lower prices than you are used to, but still expensive) from large and reputable carriers and IMSS (Mexican Social Security) is available to foreigners for around $300 per year along with all the trappings of socialized medical systems. We carry IMSS, which we reserve for serious or catastrophic issues, and simply pay as we go for routine medical or dental services. Many people journey to the Lakeside area for major dental, Lasik and/or cosmetic elective surgeries which are available with well-trained highly experienced providers with state-of-the-art equipment 
at a fraction of U.S. and Canadian prices. Cruz Rojo (Red Cross) has a near monopoly on the first-aid and ambulance service in Mexico although private service is available as is helicopter evacuation. Finally, most drugs are available without prescription…the exception being narcotic based drugs of any sort. So, while you can self-prescribe there are some issues. First, of all there seems to be little rhyme or reason for pricing. Dosages commonly prescribed north of the big river are sometimes hard to find or non-existent down here. Finally, there have an annoying habit of packaging in 14 tablet blister packs and the like for medications that we are probably going to be taking for life. Generics are available for many formulations, but be careful because the popular “Similares” that are widely available are just that…similar, but not exactly the same! Wal-Mart has just introduced a wonderful true generics program at incredibly low prices, which we can personally vouch for. Since this is a retirement area, there is no shortage of medical anecdotes…pro and con…but, by and large we think Healthcare is pretty good!
Travel & Entertainment
Domestic travel is very inexpensive and relatively easy. There are many first class airports, quite a few of which are International airports. There are low-cost domestic carriers, but so far, n
o International discount air lines. Luxury bus travel (yeah, we said Bus) here is very popular and the buses, unlike their Greyhound or Trailways counterparts in the U.S. and Canada are new, modern and luxurious, many with live TV, movies, snacks and on-board attendants. Hotels of all levels abound and are every bit as nice as anything you are used to i
n the major cities and resort areas with the very nicest usually under $100.00 USD per night. Golf courses are growing rapidly and getting very competitive in some areas. But, no matter where you are, it will generally cost you less than at home. Tennis courts, both public and private are everywhere as well as U.S. style water parks. Bicycling is a national pastime and probably the most popular adult participation sport, although Soccer or Futbol, as it is called here, is right up there too.We're pretty sure that restaurants were invented here and everyone eats out frequently. A nice dinner in a 3 or 4 Star restaurant with a couple of Margaritas will cost about $25.00 USD for two! Movie theaters are everywhere including Lakeside and in Guadalajara, the latest concept is the combo movie theater/cocktail lounges which are very nice and very popular. The big cities like Guadalajara all have theater companies, ballet and symphony all with reasonable ticket prices. Professional Futbol teams are based in every major city and some not so major at prices a family of four can still afford. Now, the Yucatan and Pacific major resorts offer a high level of recreational and entertaining activities, but resort prices are in effect.
Summary
We think that Mexico is pretty much as advertised…an inexpensive place to live and retire with plenty to do and no shortage of ways to spend money if you are so inclined. The books, brochures, websites and articles touting $500.00 USD to $1000 per month living probably have some validity…as long as enjoying your retirement is not a big priority. However, $1500.00 to $2000.00 per month for a retired couple is very possible and can be very rewarding and comfortable and probably provide a lifestyle that will beat the pants off a couple spending the same amount north of the border. Hasta luego!