| Mexico on $5 a day? Sure, not a problem if | | | | one in the Marina Area of Vallarta, would |
| you can survive on four cervezas during the | | | | cost roughly twice as much. On average, one |
| day and sleep in a tent pitched somewhere in | | | | can safely assume that housing costs in PV |
| the woods during the night. Of course, if you | | | | are approximately half of that in the States, |
| live on the Mexican Riviera, you'll only be | | | | keeping in mind that housing prices have |
| able to afford a couple cervezas a day but | | | | almost tripled during the ten years we've |
| you will be able to sleep on the beach! | | | | lived here. |
| | | | |
| In 1997, we moved to Puerto Vallarta, Mexico, | | | | One difference is that the house and condo |
| known as Vallarta or PV by the locals, and | | | | values have been softening in California and |
| inevitably, when meeting folks in the States, | | | | Florida during the past year, while the boom |
| we're asked why in the world we would live | | | | in PV is expected to continue for at least |
| there. Most assume it's due to the low cost | | | | another ten years. As the baby boomers retire |
| of living in Mexico and that one can do just | | | | and discover Vallarta, the demand for new |
| fine on Social Security. The reasons why we | | | | houses and condos increases, as do the costs |
| have lived in Vallarta for ten years have | | | | for land, materials, and labor, resulting in |
| very little to do with the cost of living. | | | | escalating real estate prices. Forecasts |
| One of the reasons has to do with the | | | | suggest that property values will double in |
| latitude of Vallarta which is the same as | | | | the Vallarta area during the next five years. |
| Hawaii, resulting in a climate absolutely | | | | |
| perfect for golfing, fishing, tennis, hiking, | | | | There are a couple other significant housing |
| swimming, or whatever your hobby is for seven | | | | related differences. The first has to do with |
| months a year, November through May. | | | | real estate or property taxes. The annual |
| | | | predial or property tax in Mexico is about |
| The population of PV, our sleepy little | | | | .1% of the purchase price of the property. |
| Mexican fishing village located on Banderas | | | | Assume you bought a condo in PV for $200,000 |
| Bay on the Pacific Ocean, just surpassed | | | | ten years ago, keeping in mind that it was |
| 350,000 making it equal in size to Anaheim, | | | | twice as much as you could have bought in the |
| California or twice the size of Boise, the | | | | States. It's value today would be about |
| capital of Idaho. Of the 350,000 inhabitants, | | | | $600,000, however it's still on the books as |
| there are close to 50,000 North Americans | | | | $200,000 and it's annual taxes are |
| during the seven month "high season". They | | | | approximately $200. A condo with the same |
| have retired here in order to enjoy the many | | | | cost basis of $200,000 ten years ago located |
| world class restaurants, seven magnificent | | | | in Florida or California could be taxed |
| golf courses, world class deep sea fishing, | | | | anywhere from $5,000 to $15,000 today and |
| modern supermarkets and shopping malls, and | | | | remember, this $200,000 condo would have been |
| night life galore. Most of these North | | | | half of what you could have purchased in |
| American residents of Vallarta have satellite | | | | Vallarta. Also, if you're a resident for more |
| TV with 350 channels, high speed internet | | | | than five years in Vallarta and can show that |
| service, air conditioning, and all the other | | | | it's your primary residence, there is no |
| modern conveniences that could be found in | | | | capital gains tax upon the sale of your |
| the States. Clean water, clean food, modern | | | | property. Annual automobile taxes and |
| hospitals with the latest in sophisticated | | | | consumption taxes are equivalent to those in |
| equipment for first class medical care, and a | | | | the States. |
| high regard for safety will be found here in | | | | |
| PV. Actually, there are very few reasons not | | | | First class medical and dental care is |
| to live in Vallarta. | | | | available in Vallarta at roughly half the |
| | | | cost of that in the States. Skilled |
| We haven't lived here for ten years because | | | | technicians for auto repair, electronics |
| it's cheap! As an example, gasoline is about | | | | repair, carpentry, plumbing, air |
| 8 pesos per liter or $4.00 per gallon. | | | | conditioning, and electrical work are about |
| Electricity is about the same as in the US, | | | | the same as in the States. Of course, there |
| while telephone calls to the States are about | | | | are many non-professionals available in PV |
| four times as much as the same calls from the | | | | that will work for half the price, but you |
| States. Food in the supermarkets is about the | | | | get what you pay for! The one exception has |
| same as in the US; the imported products are | | | | to do with masonry. For a fourth the price of |
| much more, while the locally grown products | | | | that in the States, you can have beautiful |
| may be much less. Imported hard-goods, such | | | | granite counter tops, marble floors, tile |
| as electronics, at Sam´s Club, Walmart, | | | | work such as pools, etc. Another major cost |
| Costco, Home Depot, or Office Depot, can be | | | | difference is that of unskilled labor such as |
| twice as much as the same products in the | | | | maids, gardeners, or handymen. They are |
| States. Automobiles are approximately 20% | | | | readily available for $20 per day but don't |
| more expensive, imported clothing 50% more | | | | expect the most efficient work in the world. |
| expensive, etc. From a residents perspective, | | | | Again, you get what you pay for! |
| NAFTA isn't working too well because all | | | | |
| imported items are taxed to the hilt and cost | | | | In summarizing, the cost of living in |
| substantially more than they do in the | | | | Vallarta is probably somewhat lower than that |
| States. | | | | in Florida and substantially less than |
| | | | California, given similar standards. It is |
| Housing, on the other hand, is generally much | | | | probably higher than Milwaukee, Wisconsin or |
| lower than in the States. Of course, this | | | | Cincinnati, Ohio but there's no comparison in |
| depends on where in the States and where in | | | | life styles. One thing is for certain, we |
| PV, but as an example, a small house in | | | | don't know of any Americans or Canadians |
| Central Florida would compare to a casita in | | | | living in PV solely on their Social Security |
| PV with no view and would cost twice as much. | | | | payments. In order to live on a tight budget |
| A grand estate in Pebble Beach would compare | | | | in Mexico, you have to head inland, away from |
| to a luxurious villa on the hillside | | | | the tourist areas, away from Paradise, and |
| overlooking Banderas Bay and would cost two | | | | can expect a totally different life style. |
| to four times as much. A 2,000 square foot | | | | For the money, Vallarta is extremely hard to |
| condo in St. Petersburg, Florida, similar to | | | | beat, but it's certainly not cheap! |