Mexico - 10 Best Places To Retire

Immaculate beaches, piquant food, warm nights, a low cost of living, friendly people, many of whom speak English – are just a few of the many reasons why Mexico makes our list as one of the 10 best places to retire.



If you’re not familiar with Mexico, it stretches from the U.S. on the north to Guatemala and Belize on the southwest, and from the Pacific to the Gulf of Mexico and the Caribbean Sea to the east. Its population is about 106,350,000. Mexico City is its capital.


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The food

If you’ve eaten “Mexican” food in some place like the U.S., you’re missing the real thing. The food you may have eaten is probably “Tex Mex,” or Mexican food as interpreted by Texas chefs who made the food extra spicy. Real Mexican food is spicy but not as hot and has more subtle flavors with piquant sauces such as mole that is made with cocoa.

Mexican cuisine varies from region to region just as it does in most countries. For example, the central region features dishes like Pozole, Menudo and Carnitas, while the southeastern region is known for its spicy vegetable and chicken-based dishes and its coastal cuisine is big on seafood (think ceviche) and fish.

The cost of living

Mexico is one of the world’s most popular places to retire and for good reason. In addition to its hundreds of miles of beautiful, sun washed beaches, Mexico offers a very reasonable cost of living. At the time of this article (July, 2010), the value of the New Mexican Peso was $0.787 vs. the American Dollar and €0.0640 vs. the Euro. This translates into the fact that a single household with four family members will spend only about $370 (€456) a month on grocery items.  Rent for the typical one bedroom apartment is around $185 (€150), and even a 2-bedroom apartment in Acapulco or some other big area generally costs only about $308 (€250) to $370 (€300) a month.

Retiring to Mexico

If you decide to retire to Mexico, buying a home there should not be a problem. You can legally own property in Mexico and it is generally no more difficult to buy a home there than to buy one in the U.S. However, most sales are for cash (check) as mortgages in Mexico are rare.

You will have to do careful research as few cities in Mexico have multiple listing services.  One good idea is to ask for personal recommendations from other foreigners who have purchased homes in Mexico. You should also hire an attorney and discuss with him or her the best way for you to own property. For example, it might be better for you to form a Mexican corporation, hold the property in a bank trust or in your own name. Finally, be sure to contact a title insurance company before you buy your home or land – or ask your realtor to do it for your.

The climate

The Mexican climate varies a great deal from area to area. There are desert-like regions in the northwest part of the country (cities like Ciudad Juarez or Los Cabos) and temperate regions in the northeastern part. Northern Mexico gets relatively cold during the winter months with daytime highs from 39oF to 58oF and gets rather hot in the summer. The country also has semiarid regions, temperate forests in the central part of the country and tropical rain forests in the south and southeast. And hurricanes are common in the coastal cities, especially those near the Gulf of Mexico and the Caribbean.

Visas

If you will be staying in Mexico for 180 days or, you will probably just fill out a tourist card (called a FMT) at the border or when you land at an airport. Will you be staying more than six months? In this case, there are a number of different FM3 visas. You can elect to apply for a rentista FM3 which is a permit to stay in Mexico for one year. You will need to show proof of income, which should be at least $1,000 a month but this will be reduced in half if you own and reside in your Mexican home. You will need to renew this document every year as long as you live in Mexico. If you intend to live in Mexico permanently, you may want to apply for an FM2 (immigrante rentista) visa. However, be aware that the qualifications for this visa are more stringent than those of an FM3. You will need to show a higher monthly income although, again, the amount will be cut in half if you own property there. The FM3 entitles you to many of the rights enjoyed by a Mexican citizen except you can’t vote. It does entitle you to work in Mexico.

The language

 While Mexico does not have an official language, Spanish is the de facto national language. English is usually spoken in border cities and in many of the coastal cities – think Acapulco, Cancún and Puerto Vallarta. Outside these areas, you will find that better educated people (especially young people and the higher class) are likely to be fluent in English. You will also find bi-lingual signs in most of the popular tourist destinations.

The economy

Mexico’s economy is the 13th largest in the world and 11th in terms of purchasing power parity. It has a free market economy in the trillion-dollar class. However, it was one of the Latin American countries most affected by the 2008 recession as its gross domestic product (GNP) has shrunk by more than 6%. 

The Mexican economy does have modern industrial and service sectors that are developing rapidly and there is more and more private ownership. In fact, recent administrations have expanded competition in seaports, telecommunications, electricity generation, airports, natural gas distribution and others.

Mexico is an import-export country with more than 90% of its trade under free trade agreements with more than 40 nations, including the European Union, Japan, much of Central and South America and the U.S.

Among Mexico’s most important industrial activities is the automotive industry. It produces technologically complex components and does some research and development. America’s big three, GM, Ford and Chrysler, have been operating in Mexico since the 1930s and Volkswagen, Nissan, Toyota, Honda, BMW and Mercedes have joined them there.

Healthcare

Healthcare in Mexico is considered to be first rate.  It is provided via public institutions, private entities or private physicians. The private healthcare organizations operate entirely as free market entities – they are available to those who can afford them.  Mexican healthcare, in general, is very good and has been described as comparable to that available in the U.S.  Hospitals in Mexico are equipped to first-world standards with modern equipment and there is at least one in every mid-size to large city. Many of the country’s doctors and dentists were trained in the U.S. Healthcare in Mexico is highly affordable. Plastic surgery and dentistry are popular specialties. One website, internationallving.com, states that on the average office visit with a doctor (including specialists) costs about $25 U.S. and an overnight stay in a private hospital room costs about $35 U.S. And prescription drugs generally cost one-half what the same drugs cost in the U.S.

Cultural activities

Mexico offers an amazing wealth of natural and cultural activities. For example, there is the art of world-renowned painters such as Frida Kahlo, Diego Rivera, Rufina Tamayo and Francisco Toleda. You will also find the architecture of Luis Barragan, the photography of Manuel Alvarez Bravo and music of Silvestre Revueltas.

Mexico has museums and galleries galore. Plus, it’s almost impossible to walk a block through a Mexican city or village without seeing hand made baskets, gold and silver items, textiles, ceramics, woodcarvings and sculptures and other such examples of Mexican arts and crafts.

There is also historical architecture that can take your breath away – that blend the influences from indigenous and Spanish culture. There are amazing cathedrals in Puebla, Oaxac and Merelia, and sacred constructions and historical sites such as the Alhodiga de Granditas  (public granary) in Guranajuato. Mexico City will amaze you with the beauty of the Palacio de Bellas Artes (Palace of Fine Arts) or the Palacio Postal (Postal Palace). And, of course, there is always Chichen Itza, considered by many to be one of the seven wonders of the new world.

Where to retire in Mexico – three cities

Three of Mexico’s most popular cities – especially for those who intend to retire there – are Merida, San Miguel de Allendé and Lake Chapala.

Merida. This city is 200 miles west of Cancún but a world apart. It is at the true heart of the Mayan culture and is a great, value-packed place to buy, as property prices are among the best in Mexico. A colonial home in the heart of town, for example, can be purchased for as little as $59,900 U.S. You can even buy a seven bedroom, seven-bath home with a pool and duck pond for $150,000 U.S. Interested in a “fixer upper?” You can find a small one of 1,000 to 2,000 sq. ft for as little as $30,000 – and both labor and construction costs are low as well.

San Miguel de Allende. This charming town used to be a little retreat where artists went to work and live inexpensively.  The November, 2007 issue of Condé Nast Traveler magazine rated San Miguel de Allende as fifth on the list of top cities in the Americas, and it hasn’t been the same since. However, it is still a wonderful city with a high-towered church, cobbled streets and tidy shops. It also has houses that belong in the pages of Architectural Digest. The city offers a wide variety of restaurants and an eclectic mix of food and there are plenty of clubs offering blues, salsa and jazz.

 While real estate is no longer as cheap as it once was, you can get a 732 sq. ft., two-bedroom, one bath apartment in the Los Farilles neighborhood – with a fireplace, off-street parking, lake views and access to a swimming pool – for around $80,000 U.S.

Lake Chapala.  Nearly 25,000 expats live around Lake Chapala, making it the largest North American expat community in the world.

Lake Chapala is the largest lake in Mexico and has numerous villages scattered along it shore. As many as 15,000 expats live along its north shore and nearly 40,000 live in the state of Jalisco.

As you might imagine, there are plenty of English speakers and even English language newspapers and magazines.

A 968 sq. ft. house in the area was recently on sale for $69,900 – completely furnished. A three-bedroom, three-bath house in a gated community in Jacotepec was recently priced at $149,900. It has a large open concept main floor, a partially covered roof top mirador an open kitchen and one of the bedrooms has 13 feet of closet.  In other words, this is a pretty spectacular house for the price.

You can see why Mexico, with its affordable cost of living, its moonlit beaches, great healthcare, plenty of things to do and see and an expanding economy, is one of the world’s 10 best places to retire.

 





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