The Cheapest Places to Live, Part 3
August 23rd, 2006 Posted in International living/working, Long-term travel, Work/Life/Travel Balance
[Editor's note: This post is OLD! Don't treat it as current gospel and ask why prices have gone up. For a new version, see this post: Cheapest Places to Live late 2008.]
I just received my new issue of International Living in the mail today and it contains the annual 2006 Global Retirement Index. Whether you are anywhere close to retiring or not, this is some handy slicing, dicing, and opinionated ranking of countries that are a good value. There are a lot of factors at play in these rankings, so you have to dig into the numbers beyond the overall one to see what’s most important to you. You may not care about retiree incentives, for instance, or you may plan on renting and not care about real estate appreciation. Nevertheless, here is their top-10 overall:
Panama
Malta
New Zealand
Uruguay
Mexico
France
Romania
Argentina
Malaysia
Ecuador
Those who have a copy of The World’s Cheapest Destinations will be quite familiar with some of these. But France? Well, their cost of living rank may be bad, but they got a perfect score on culture, health, infrastructure, and safety. So what if you just look at cost alone? Who comes out on top when they tally a basic basket of goods?
Uruguay
Nicaragua
Honduras
Panama
Argentina
Ecuador
Belize
Malaysia
Chile
Romania
For those not keeping a tally at home, that’s Latin America 8, Asia 1, Europe 1. Their list is far from exhaustive however—International Living only runs the numbers on the places they think are good for retirees. So if you want to just plunk down for a year in Laos, Vietnam, or Turkey, you’ll probably find you are spending a small fraction of what you would at home. If you’re earning anything more than that fraction in income, or have a decent chunk of savings, that’s a winning equation for sure.
Do your own homework, but at $49 a year, International Living is a good investment if you are serious about moving abroad or investing in property in another country. No, I don’t get a commission for plugging them (and any subscriber will tell you they do plenty of their own horn-tooting), but I do have an article about Botswana coming up in their October issue…
This is the last year they are going to rank destinations by country. They figured out that Roatan doesn’t have much in common with mainland Honduras and San Miguel de Allende doesn’t have much in common with Mérida or Mazatlan. Next year’s will zoom in on more specific locations.
Related post: The Cheapest Places to Live, Part 2
Related posts:
37 Responses to “The Cheapest Places to Live, Part 3”
By Lewis Matthess on Sep 28, 2006
I only have an income of $1,400 per month.
Where is a country that the banks will finance with foreighers?
By tim on Oct 1, 2006
Are you talking about getting a mortgage on a house? If so, the options are a place like Mexico, where the banks are used to dealing with foreign buyers, or a private development anywhere that has set up financing deals. You usually have to put more down that at home though: minimum of 25-30%. The other option is seller financing, which is set up directly with the seller, through an attorney/notary.
If you’re just talking about taking advantage of local incentives to move there, however, $1,400 a month is more than enough to qualify. Check into Panama, Nicaragua, Ecuador, or Malaysia, for a start. Lots of others offer programs as well, though maybe not as generous. Regardless, you should live someone for a while as a renter anyway before buying something, unless it’s just a vacation home investment.
By Fire Tiger on Nov 14, 2006
I have stock in a company that will be going IPO likely sometime in January. The company hasn’t yet decided if it will pay dividends or just let the stock appreciate in value. Either way, I’m looking at least at $250,000 (if not double or more that) and dividends/interest off that amount to be at least $1,000/month. I’m looking on dropping out of the rat race and being a full-time novelist. Any royalties I get is just gravy. What I do need is high-speed internet connection to talk over an IP telephone to my US friends and play online games; cheap health care; good cheap healthy food; and cheap rent on a two-bedroom apartment (the spare bedroom for when friends visit) or buy a small house. I have no wife or kids. Ideally, I would like to afford a local woman to come in to clean, cook, and do laundry. I’m not really into culture (my culture is on the net) or nightclubbing (as I don’t smoke, drink or do drugs). Quietness and friendly neighbors are preferred. I’d prefer not living in a congested city but next to a mountain for climbing/hiking and/or rivers for canoeing. If it matters, I’m an American, 42, 6′3″, fit, and white. Any recommendations? Vietnam? Brazil? New Zealand?
By tim on Nov 14, 2006
Wow, you’re going to have a lot of people salivating with that post, wishing they had your decisions to make. High-speed Internet access is getting more common now, but that’ still an issue in some cheap countries. In general, places with a good infrastructure will be better than those without, but it’s a country-by-country thing. Thailand and Malaysia good, Vietnam and Laos not. Argentina and Brazil good in most places, more iffy in Peru and Bolivia. Spend some time at EscapeArtist.com and if you have some time to plan, get a subscription to International Living. There are some good living abroad guides out there too that you can peruse in a library or a big bookstore to check the details. You might want to look into Latin America more seriously than Asia just because you get a 6-month visa automatically in most places and if you can document that kind of income, places like Panama will practically pay you to set up residency there.
By Fire Tiger on Nov 14, 2006
Yes, I will have time to plan. Thanks for suggesting that website and I will look into International Living and around at my local Barnes & Noble. Any specific book I should be looking for? As for Panama, what do you mean by “Panama will practically pay you to set up residencey there”? How long are visas in Asia? I am looking to set up residency in the country I pick. Which countries allow Americans to do so? Do I have to give up my US citizenship to do so? Any good forums for this sort of discussion? Thank you for replying, Tim.
By tim on Nov 15, 2006
I’ve assembled some good resources at worldscheapestdestinations.com and contrariantraveler.com (http://www.contrariantraveler.com/expatriates.html), but International Living is really the best. They slice and dice all this info well on a regular basis, including the residency incentives. A worthwhile investment.
Most of the Living Abroad books are focused on a specific country, but browse around for more general ones on Amazon, starting with this one, called Getting Out:
http://www.amazon.com/exec/obidos/ASIN/0976082276/worldscheapes-20
By tim on Nov 16, 2006
Too many incentives to list here, but any book or e-book on the subject covers them in detail. Pony up a little cash and you’ll be well-informed. If you can document a minimum monthly pension of $500, you can retire in Panama at any age and enjoy their pensionada program. It includes import duty exemption, half-price entertainment, half-price real estate closings, and hefty discounts on a wide range of costs, from transportation to medical consultations.
By Fire Tiger on Nov 16, 2006
Hemingway did a follow-up article of the one to which I previously gave a link. Here’s a link to the follow-up:
http://www.escapeartist.com/efam/64/Retiring_In_Panama.html
By Richard Nall on Nov 19, 2006
I get International Living threw Email i look forward to it,I am very interested in leaving USA,I am looking and reading about everything Mexico to Panama on the East side,Me and wife only have 1300 guarandeed a month thats from Social Security so i guess Panama is looking best at this moment,I am 52 have medical problems but im taking care of them,I would like to know cheapes and best village to live in Panama,and safest because i want be able to bring my own guns,would prefer Beach,I have lived in Nigeria Africa so i have a small understanding of third world living.Lagos,Escravos,Warri ,Pourt Haucort Military problems all the time,i have friends there but to dangerous!
By Fire Tiger on Nov 20, 2006
Richard,
Check out the link I gave in my last comment. At EscapeArtist.com, he has an earlier article about it. The comment I gave that link in was deleted for some unknown reason. There is also the International Living’s Relocating forum you might want to check out at http://forum.internationalliving.com/viewforum.php?f=19 However, I posted there and only get views and no replies. Please let us know what you decide. All info is good info. :)
By Rtn.M.Ashrafuz ZAMAN on Dec 18, 2006
dear sir
pls send me more information about the residency in latin and central america.
do you know which place will be easy for us to stay being a citizen in their.
thanks.
Zaman
By Ruth on Feb 10, 2007
We’ve assembled quite a lot of information on places to live (some are inexpensive and some are simply interesting) at http://www.liveabroad.com/ The site also has a message board where you can ask questions and a blog, which is new.
For the most reliable information on residency requirements, contact the country’s consulate nearest where you live now. Most people who leave the US don’t give up their US citizenship, and most countries that welcome foreigners don’t require you to. If you want to move to another country and become a citizen, look into their immigration requirements, which can be a lot tougher than residency requirements.
By Rtn.M.Ashrafuz ZAMAN on May 23, 2007
Dear Sir
Greetings from Bangladesh Adventure Club.
I,m a lone travel writer so far i travel 54 countries and like to visit Latin and Centarl America soon.
You are most welcome to visit Bangladesh.call me when you there
8802-862 6635,01913 070808
By Nancy Lowery on Jun 26, 2007
Just looking for a more inexpensive place to live, preferably in Latin America. NEED easy golf course/club access, safe and comfortable accomodation, and good weather. Know it can be found. Any clues or recommendations? thanks!
By tim on Jun 27, 2007
Depends on how good the golfing needs to be. You can pay $300 a round on the west coast of Mexico or at the Four Seasons in Costa Rica. Other places you could pay $25 but it’s rougher. Latin America is not big on golfing really; Myrtle Beach is a better value than most places south of the border. You can find at least one course near any of the expat havens in Mexico though and a few one-off developments in Panama and Nicaragua. Not much in Belize. Here’s the wild card that might work best: Uruguay.
By Lisa Santini on Aug 11, 2007
I am disabled with a 5 year old child. Need someplace cheaper to live that he can still get a good education on $1700 a month. Prefer a place near the ocean. What do I need to do to get 5 year old a passport and do laws change with a monir?
By tim on Aug 12, 2007
Lisa,
Passport rules are the same with a minor–it is just only as good half as long. And if you are married, you have to have a notarized letter from your spouse saying it’s okay that the two of you are leaving the country. You may not have to show it, but there’s a good chance you will have to when checking in for your flight.
I can’t advise you on the location–you’ll need to research the sources listed here (and others) to find experts for your situation. I don’t think the education will be an issue, but finding places equipped for the disabled gets far more difficult in developing countries. So that might need to be the starting point to narrow it down.
By Corinne Cox on Aug 29, 2007
Where could you get the information for accessibility in countries? We have a 36 year old physically disabled daughter that will go wherever we retire.
By CHRIS on Sep 30, 2007
OK I GOT MY BOAT LIVE ABOARD GOING TO SELL MY HOUSE MAYBE CLEAR 60K HAVE APROX 15 K OTHER ALL IS PAID FOR PLUS EXTRAS THINKING OF MEXICO OR BELIEZE OUTER ISLANDS NEED A FREE PLACE TO KEEP MY 35′ SAIL BOAT AND CHEAP LIVING WANT TO DO KEYS AND ISLAND ON WAY DOWN THINKING MEXICO OR BELIEZE ANY IDEAS HELP? THANK YOU
By CHRIS on Sep 30, 2007
PS I CAN WORK AM A CHEF ELECTRICAN PLUMBER AUTO MECHANIC AND MANY OTHER SKILLS SO I CAN WORK TO PAY BILLS ALSO ID REALLY LIKE SOME BEACH THAT I COULD BUILD ON AND MAKE A HOME ..
By mario on Oct 21, 2007
I’ve been thinking about Costa Rica. Where does this country rank in the cheapest destinations also what do you think about this country,for some one thinking about living there.
By tim on Oct 21, 2007
Costa Rica is more expensive than many parts of the U.S. when you look at condo prices on the coast. It’s certainly no bargain and is easily double what it costs in neighboring Panama or Nicaragua. Here are some posts from my last trip there:
http://travel.booklocker.com/2007/05/26/prices-in-costa-rica/
http://travel.booklocker.com/2007/06/02/in-costa-rica-maybe-you-get-what-you-pay-for/
By Mark on Oct 22, 2007
I agree – Costa Rica was a hot deal 20 years ago but is now more of a hang out for the rich and famous – Mel Gibson just bought a few hundred acres there and the resorts built over the past decade have been all targeting the uber rich. Check out Panama – it’s getting some press about inflated prices but that really pertains to the hyper-growth in the Panama City condo spec. market. There are awesome buys all over the country and it’s super cheap when you get away from the tourist spots. Plus the locals are very friendly. Check out these sites for more info
http://cheapestplacestolive.blogspot.com/
http://learnaboutpanama.com
By paradise Philippines on Oct 23, 2007
you are lucky to receive stuff like that, me i have to travel and spend some money just to see places and people where I could probably decide to stay with when I retire.
By marion on Mar 10, 2008
HI-WE LIVE IN SOUTH AFRICA,OWN OUR OWN HOUSE AND ARE BOTH HEALTHY OVER 60`S.WHERE COULD WE MOVE TO ,TO LIVE REASONABLY CHEAPLY AND GO ON PENSION(PRIVATE)ANYWHERE EXCEPT ZIMBABWE
By tim on Mar 10, 2008
The world is your oyster, as they say. It depends on what you want and how much you have. Most of Africa is cheaper than where you are now, but not as nice. Eastern Europe is probably on par, much of Latin America and Asia is cheaper. Not a decision to made lightly…
By Annette on Mar 17, 2008
We are in our early 50’s, my husband self employed in investments, so as our kids are getting older, now is the time we can move out of the US. I even get a small disability pension from the government (bipolar disorder problems), so the Panama incentives are exciting. The highlands are where we would go.
Our income isn’t really that great so we are looking to cheaper places. One problem is I have had a bout of skin cancer and the doctor recommends a climate like I’m in now near Seattle. My great love is Britain and Ireland, also Norway, but it is impossible. My husband has the opposite problem: a chronic foot pain feels much better in heat.
What a kerfuffle!
I feel I will need to wear sun protective clothing, stay in during mid day, for almost everywhere cheap is warm combined with the fact my husband wants warmth.
Any comments? Oh, also we have two beagles we will not part with.
By vicki on Mar 22, 2008
My husband is disabled. He only gets about $1,200 per month and we are raising a grandchild. I would desperately love to sell my home, find another place to live, and get out of Texas. A place in the U.S. that is safe and the cheapest (it has to be really cheap) and near medical facilities.
By Moh on Apr 25, 2008
I’m looking for a place in the USA which is cheap enough for 1600 income and a place where I can study for MA in ESL because I have been awarded a schoolarship.
By lee boyd on Jul 11, 2008
my husband and i want to retire and live part time outside of the US but keep citizenship. Give us pros and cons of Panama and any other info. we need to know
By tim on Jul 12, 2008
Sorry Lee, but I’m not a retirement consultant for hire. See the resources listed above and note that it’s a moving target; this post is two years old! Panama has gotten significantly more expensive in that time.
By Kevin on Jul 22, 2008
I moved to Cambodia to retire 3 years ago. Property was very cheap when I got here, but in Phnom Penh it’s getting expensive because of the economic boom. Rent in the city is still very cheap $300 for a 5 bedroom 6 bathroom house now. I love the culture here, because the country is not westernised, no Big Macs sorry and Khmer people are rate the second most friendly people in the world. I lived a couple years before in Thailand and I like the country, but hate the immigration laws and they drive on the wrong side of the road and air-polution and traffic in Bangkok are the worst. Here you can still buy land for $2/sqm 20km outside the city and build a beautiful Villa for less than $100,000.In S.E.A. Cambodia gets my vote weather is great too. HOT. and no hurricanes or tsunamis.
By David on Oct 1, 2008
I have spent some time in Peru, and have talked to other people living in countries as Panama, brazil, costa rica. few others, I see all the time how some sites say you can live good with 1000 dollars a month, this is garbage, and lies, or they really do not know, but it is very misleading,if you want to sit home most of the time, maybe you can live on 1000 a month in some places, people read that junk, and began to believe it, very very misleading garbage,
By Debora Edholm on Oct 6, 2008
Selling my lovely reasonable priced home for 50,000 dollars worth 80,000 in a great neighborhood near San Jose but far enough away to avoid crime and close to good schools. My father is ill and need to return to states. Email me at crtsdye@gmail.com Thanks Debora
By Jim on Jan 13, 2009
I only have $770 a month & about %50k in the bank, where would be a good place to retire where it is safe & nice?
By Bryan on Jan 5, 2010
Im currently seeking a place to retire. I use to teach scuba years ago and wouldnt mind getting back into the sport as a part-time job. However, Im on a strict budget, and have a great desire to live near the beach/water. Belieze has been mentioned as a possible place. Would you have additional information on this question? Thanks
By tim on Jan 6, 2010
Bryan. Cheap+ good diving would be Belize, Roatan, parts of Mexico, Egypt, parts of Southeast Asia, parts of India. Advantages to Latin America are it’s relatively easy to be legal or at least get a long tourist visa and not have to leave every month or two like you do in Thailand or Indonesia.