The affordable cost of living in Mexico and specifically the Lake Chapala, Ajijic area is one of the major attractions (along with our near-perfect climate) for moving here. It has been estimated that the cost of living in Mexico to less than in the United States and Canada. However, Focus On Mexico has added a section for cost of living comparisons for the entire USA and Canada…
There are people who live here (and own a home) on their U.S. government pensions. However, having said that, the stories that you read that say you can live here on $500 or $600 a month are simply no longer true
Most people moving to Mexico come for the climate and to enjoy an enhanced lifestyle for less. They want to live in the mainstream and get involved in activities, take in local events, do a little traveling, eat out and generally stay active. Lake Chapala offers all that and more.
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Determining Your Cost of Living in Mexico
The cost of living in Mexico or any other country/town depends a lot on the person. What is your cost of living now? Are you planning on maintaining the status quo, simplifying your lifestyle or do you want to live more extravagantly? Obviously, establishing a cost of living is an individual matter.
Cost of Living in Mexico Largely Depends on your Lifestyle
In general, the estimated cost of living for a reasonable lifestyle can range from $1,200 to $3,000 US a month depending on your personal lifestyle, whether you are single or a couple and whether you own or rent. Obviously if you rent, you need to include the cost of renting in this number. To get a sense of the cost of buying, check out our “Sample Homes for Sale” page – which are take from the MLS listings. I will caution you that it is difficult to get a true feel for values when you don’t know the locations or condition of the properties. However, it will give you a bit of insight.
Be assured that whatever monthly income you have for living, it will likely go further in Mexico. Food, labor and goods manufactured in Mexico are extremely affordable. For instance, you can have a maid or gardener for the equivalent of US$2.50 to $3.50 USD an hour. A man can get his hair cut for about $4.00 USD, you can have high speed broadband for approximately $30 USD a month and, best of all, property taxes range around $50 to $250 USD per year! Transportation is another real bargain with bus fare in Lake Chapala around $7 pesos ($0.64 USD). And, if you don’t like to cook, eating out is also a real bargain. You’ll have to see it to believe it.
When you come on a Focus on Mexico Educational program to Lake Chapala, we take you to different restaurants for every lunch and dinner so you can enjoy the variety, quality and low prices of the restaurants in the Lakeside area. Where else can you find an Argentinian 27-oz filet for two for around $170 pesos! Come join us and we’ll tell you where you can find that treat!
A cost of living in Mexico quote:
| Rod Burylo, Chartered Financial Planner from Canadians Retiring Abroad |
| Commenting on the cost of living in Mexico:
“When they venture off the beaten path to these lesser-known communities, retirees also enjoy another one of Mexico’s attractions: a low cost of living. With a wide choice of restaurants (many of them owned by expatriate Canadians and Americans) and with multi-course meals still available for 100 pesos (approximately $6 US/$8 Cdn), it is not unusual to find Expats dining out most nights. For those who like to cook, a basket of goods is generally priced at one-half to one-third of most US/Canadian retail prices. The more ambitious Canadian retirees can pursue another cost-savings aspect of Mexico. Those who take the trouble to establish residency in Mexico (by completing a process of severing Canadian ties and establishing new, Mexican ties), can achieve a significant reduction in personal income tax.” |
I am ready to explore living near Lake Chapala. I am looking for a two bedroom rental with a view of the lake. I will be working in the area. can you send me available rental information. This will probably be a year around home. thank you
Hi Charley,
We will send you a personal reply by email to provide you with some ideas as to where to start.
While the rental market is tightening up, if you are able to rent for 1 year, you should have a decent selection. Many properties – especially those above the main Lakeside road, will have beautiful Lake views as they are elevated by the Sierra Madre foothills.
Look for an email from Focus on this with more info.
Cheers and hope to meet you one day at Lakeside
Michael
Hola!
We are looking to purchase a 3+ BR, 2+ BA home in the Lake Chapala area in the US $100K-$125K price range. Although we have found quite a number of properties listed online by real estate companies that meet our criteria, none (yet) have responded to our inquires for more information.
Apart from safety (a gated community?) and peaceful coexistence, we are looking for a high quality of life with a relatively low cost. US citizens now living in Wisconsin, we own small properties outside the “high rent districts” in Spain and Portugal … although cost comparisons seem to indicate that it’s even more economical to live in the Lake Chapala area, all things considered.
Your thoughts and input, please?
Hi Bruce,
My suggestion would be to take a trip to the Lake Chapala area and plan on spending 1 week to do your search for a property that fits your requirements. While properties exist that fit your description, they are harder and harder to find – and will be likely taken by those who have done their “on-site” research and are ready to move as soon as a possible property comes up, i.e. you would very likely NOT have time to find the property on-line, and then plan a trip to look at it, and make a deal. There is definitely “turn-over” that creates opportunities to find your ideal home, but I think I would recommend that you already know what specific neighborhoods would be acceptable.
Let me know if this is something you would like to do (i.e. come for an exploratory trip) and I will hook you up with some resources to help your search.
Yours,
Michael (michael@focusonmexico.com)
Hi Michaeis finding a 3+ BR, 2+ BA home in the Lake Chapala area in the US $100K-$125K price range realistic?
Thank you, Janet
Sure, it is possible, but will likely not be in Ajijic or Chapala – but likely other towns or outskirts.
Many factors go into identifying the “right” property for you. Best to use a caring real estate agent who will take into account your exact preferences and needs. If you want a referral, email me at info@focusonmexico.com
How much is a house in Chapala Mexico, or in other words, how do I need to retired in the area, my wife and I are searching on the area of AJijic Jalisco.
please respond to us is you have some time.
Sincerely,
Omar and Delia
Houses in the town of Chapala can cost from $75k – $400k+ USD.
Were you asking how much money do you need to retire in that area?
If you can qualify for Residency (i.e. the financial requirements) you can live OK in Mexico.
If you want a more detailed reply, email me at Michael@focusonmexico.com with more about your situation.
You mention Broadband internet service for $30USD per month.
Do you have details? Does the local provider use existing copper phone lines or Coaxial cable, fiber or dedicate lines?
Could you estimate the genuine download and upload speeds?
speedtest.net is a great way to test real speeds
Thanks for your help
Hi Jan,
Internet speed will vary depending on where you live at Lakeside. I think I have fairly normal Telcel connection and the average of my last several speed tests is 8mps download and 1mps upload. There is the hope that FiberOptic service will become available in the not too distant future – as a provider in Guadalajara recently asked Lakeside residents for interest and I believe that received a strong response. I have one friend who travels to a hotel on the way to Guadalajara to use their fiberopt speed when he needs to go high-band width. I did not research this, but I think we are talking about coaxial cable. Telcel has had the monopoly up until recently when AT&T is not in town – so I do expect things will continue to trend better in this area.
Greetings:
I am interested in looking into buying a house in Lake Chapala. My main question is if an American buys a house there do they have the ability to “leave” the ownership of the house, if they should pass away, to their American relatives? Also, if you buy a house there do you also own the land the house is on? Is there any problem at all with selling your house and land later if you choose to move somewhere else?
Thank you for answering these questions for me.
Hi John,
My understanding from multiple talks with our lawyer is, yes, you can leave your house, or other Mexican situs assets, to your family. When buying a real estate property, you can directly name a family beneficiary on the deed if they are direct (spouse, child, parent). If you wanted to leave the property to other than direct family, then the house could be bought through a trust – which can name any beneficiaries.
Yes you own your house and land. We are not in a “restricted zone” (i.e. coastal) or on Ejido Land (Native Indian), so most the common form of deed is Direct Deed – where you own it. Also a good idea to have a Mexican Will that covers just your Mexican assets (will not interfere with a US will when executed properly). And, no problem in selling and moving elsewhere. Very active market here.
Let us know if you would like assistance in house-hunting – we would be happy to help point the way and stand behind our 20 year local reputation.
Yours,
Michael
Is it possible to rent a nice (but not luxurious) 2 bedroom furnished apartment for $400-500/month? That’s my only concern regarding cost of living–everything else I have a pretty good handle on!
Thanks, Webb
Hi Webb,
My first take is “Not likely”, but then I have even recently heard of someone finding such a place right in Ajijic – but it was a shared house. Apartments that might fit that price range could be “casitas” traditionally small units for live in maids or gardeners. Many traditional houses have casitas – but the owners typically use them for visiting guests. But I have heard of several people that are renting casitas. My guess is that you would have to be here and actively looking for such low-cost opportunities.
Outside of Ajijic i.e. in Chapala or Jocotopec, it is more possible to find lower cost housing. The bigger question is, would you be happy living outside of the Ajijic area – where knowing Spanish is more of a requirement – or need for a car increases costs. So your simple question is really not so simple. My best advice is to make an exploratory trip to Lakeside and check out the situation first-hand. Only then will you really understand the pros and cons and trade-offs!
All the best,
Michael
I am looking for an apartment that is furnished.
I am a US Citizen with Permanent Residency in Panama.
Is there work there?
This is a broad question, but basically you cannot do work here that a Mexican could do such as nursing care, etc. There are expat business entrepreneurs here and others who work remotely for foreign companies. Everything would depend on the kind of work you have in mind.
single retired but very capable of helping others. i could handle living in a casita. that would be better than a 110 sq foot room i have now. are there people who could use a handy man in your area?
Hi Kevin,
My guess would be that English speaking handy-man would be in good demand here.
Keep in mind you would need to become a resident in order to work and would need to keep the local labor-rates in mind when pricing your services. Many Mexican handy-men don’t speak much English but the expat population get by with translation apps!
Hi (again) Michael,
Are San Antonio Tlayacapan real estate ownership and rentals less expensive than Ajijic?
Thank you, Janet
Since I live in SAT, I can say that – all things being equal – yes, SMA rents are cheaper.
However, there are many factors that go into “value” when it comes to renting (or buying).
Location (can you walk everywhere or need transport), noise, neighbors, landlord, what is included, who fixes something that breaks down, sun exposure, views, etc etc.
Are there tour packages available?
Hola, Focus provides educational programs on people interested in moving to Mexico – especially the Lake Chapala area.
We don’t do tours for non-program attendees, but rather incorporate them in the education!
If you are looking to move to Lakeside, I hope you can join one of our programs!
Michael