Bargain destinations and the cheapest places to travel


The Cheapest Places to Live, Late 2008

September 15th, 2008 Posted in International living/working, Long-term travel, Work/Life/Travel Balance

Some of the most popular old posts from this blog are the ones about the cheapest places to live around the world, something I started writing about back in 2003 and then continued each year thereafter.

The thing is, those posts tend to get out of date, except for the parts about seeking out current in-depth resources instead of looking for an easy quick-fix answer. I’ll say it again: if you’re serious about picking up and moving somewhere less expensive, do your homework and invest in knowledge. No, that doesn’t mean you have to attend some expensive seminar with guest speakers in some far-off city, but it does mean you should invest in some good books, e-books, and reports on the destinations that look interesting. Take a scouting trip on vacation. Subscribe to International Living for a while if you’re not sure where you want to end up. (They’ll bug you to death with breathless pitches for products and seminars they make more money from, but just ignore the noise and read the magazine.)

If you go for the free info you find on sites like EscapeArtist.com, make sure it’s current. Panama used to be a fantastic deal, especially for retirees. Now? Not so much. Good incentives still, but much higher prices. Parts of Europe that were a good deal before the euro appreciated by 45% are far more expensive now, especially for American buyers coming over with devalued dollars. If you’re reading an article about how good the buys are in Roatan or Boquete, check the date. You’re probably at least five years too late unless you’ve got a lot of capital. Seek out expat message boards for the country or city you like to get the current scoop.

While most of Latin America has stayed pretty stable against the dollar from a currency standpoint, there are notable exceptions. Commodity-rich Brazil and Chile are booming, with a strong economy and a resulting stronger currency. Prices have risen considerably in both countries over the past two years. Colombia’s currency has risen as the level of safety has improved. Meanwhile, anyone who invested in Venezuela has gotten hosed.

Some coastal areas in Mexico and Costa Rica saw ridiculous speculation spikes akin to the bubbles that have burst in the U.S. In fact, much of what has been driving the increases there is the influx of “crazy California money” from retirees who had sold their home for a frothy price and were perfectly willing to pay a frothy (but lower) price in Puerto Vallarta, Los Cabos or the northern Pacific coast of Costa Rica. Avoid those areas if you’re not flush from a recent sale.

In fact, avoid any place where you seem to see as many gringos as locals on the streets.

So, where are the cheapest places to live now? As always, cheap places to travel are usually cheap places to live, assuming they don’t make it next to impossible to do so legally. (I’m talking to you Indonesia!) If it’s a good value plus they make it easy to become a legal resident, that’s the ideal. To varying degrees, those candidates would be Malaysia, Honduras, much of Mexico, Nicaragua, Ecuador, Argentina, Uruguay, and parts of Belize (for now) for Americans, much of Eastern Europe for Europeans. But check out the other places in The World’s Cheapest Destinations too and remember that for short stays, you can usually get by with a few visa runs. For permanent residency, in some cases you either need company sponsorship or a local spouse. The U.S. and Europe aren’t the only places that are ambivalent about immigrants.

International Living’s new Top Retirement Havens issue is out now and while it’s geared to those who are done working, there are always plenty of examples in the magazine of those who have retired early or are laptop telecommuters who can do their job from anywhere. The only catch is that you usually need to be of a certain age (and have a verifiable income stream) to qualify for incentives. Or you have to invest in the economy there by starting a business. For nine of these countries, you can find overviews of the requirements in Traveler’s Tool Kit: Mexico and Central America.

The new IL report still ranks Mexico the highest overall, but noting that even they only got a score of 77 out of 100. “No place is perfect.” Some places that ranked highly overall, like Italy, France, and Australia, made up in other areas for a cost of living that was high.

In terms of costs for a resident, the data presented in this report is far from helpful. They mostly rely on cost of living reports put out by others, which are based on costs for working executives and state department employees rather than what you or I would spend living somewhere. The answer to, “What does it cost to live there”? depends on whether you live like a local, live in the exact same style you had at home, or somewhere in between. One couple profiled in the magazine lives in a small town in Ecuador for $600 a month. They eat out most of the time because their 3-bedroom apartment is only $150 a month. I’ve gotten e-mails from people living on Utila, Honduras for about the same. But an investment banking analyst sent to Quito or San Pedro Sula may spend five times that.

Based on what I’ve seen in my research, if I didn’t already have a little beach house in Mexico, I would be buying something in a highland town in Ecuador, Montevideo in Uruguay, or some not-overrun town in Colonial Mexico. The funny thing is, I’ve only been to one of the three. The numbers just look like “can’t go wrong” propositions in the others. If you rent though, purchase prices don’t matter. Just find a place you like, settle down for a while, and see how it goes. If it doesn’t work out, move on.

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  1. 41 Responses to “The Cheapest Places to Live, Late 2008”

  2. By Tony on Sep 15, 2008

    Hey thanks for keeping this updated! These things go out of date really quick. I really like this new update (the places that is). On a side note I found a cool website that i think you would like, its called, baraaza.com So check it out, and see if you like it or not :P

  3. By james yarbrough on Sep 23, 2008

    I am retired and wish to live on my retirement someplace other than the states. I am interested in Mexico but do not know where. Somewhere near water. I make $1239.00 a month and would like to know if one could live good, not extravagant but a good peaceful life. Do you have any suggestions? James

  4. By Jorge on Sep 24, 2008

    Hey man thanks for this post! I’m a web developer from Argentina and I can pretty much work from anywhere. I’m looking to move somewhere new (and cheaper!). This is a good starting point. Thanks!

  5. By Grandad on Oct 25, 2008

    James–My daughter and her husband live in a beach town on the Pacific coast (not one of the resort towns) and spend an average of $2K a month on everything. They’re not living like natives and eat out a lot, but they’re not blowing money like free-spending retirees either. I imagine a single person could manage it on your income, but you would need to find an apartment that’s priced for locals and not for “rich gringos.” The longer you’re there, the less you’ll spend probably.

  6. By kish on Oct 26, 2008

    buddy, i have £10,000 sterling and thats it.

    i’ve quit my job cos i pretty much hate it. i’m a dentist. (u understand now…lol )

    so i need a place where i can just buy some time….. any capital city anywhere….

    and maybe find a life or make a living somehow… … ?? any ideas??? any where mate. if u can give me your top 3 destinations… i’ll research em…

    thanks mate, appreciated.

  7. By tim on Oct 26, 2008

    Kish, different places for different tastes. I can’t answer this more than I could answer “What kind of woman should I marry?” Cost of living is only the start. You could read my book to find out which places are the cheapest in relative terms—the broad strokes—but after that it depends on your work situation and what kind of place you’re looking for. There are hundreds of cheap places around the world to live, so the best first step is to pick a region and start looking around.

  8. By scott on Oct 28, 2008

    Readers, please be careful with any assumptions based on all the information you read. I’m just back from Montevideo, Uruguay and I loved it overall. The cost of real estate was quite reasonable — more of a bargain for New Yorkers and Californians than those of us in the great middle of the country. But, the blatant force of two or three other factors startled us. In no particular order: 1. Eating out is astonishingly expensive for undistinguished food in an ordinary pleasant atmosphere — $175US for 3 w/out alcohol of any sort. This is far out of line with the local cost of living, but standard for eating out. 2. Uruguayan Spanish is almost incomprehensible to North American Spanish-speakers. It is actually Castellano or Rioplatesense. In Asian countries Caucasians are not expected to understand local languages. In Uruguay, there is a complete puzzlement that you do not understand what clearly everyone should. 3. Although we consistently encountered extremely gracious and helpful people, Uruguay is a remote country with a highly developed local culture. Despite an appearance of worldliness, it is not a cosmopolitan center, eg, there are practically no Asian (or ‘foreign’ except Italian) restaurants in Montevideo. Bookstores often stock largely Uruguayan books. In general, things are done the way they are done because that is the way they are done and eveyone knows that.

  9. By kish on Oct 29, 2008

    ….:)

    i’m not that fussy…..

    i’d marry any chick for a week or two.

    ha
    thanks

  10. By tim on Oct 29, 2008

    Scott, thanks for sharing your experience in Montevideo. It seems bizarre that meals would be that expensive when they’re so reasonable right across the waterway in Buenos Aires. Seems like you could take the ferry over for dinner and still come out way ahead!

    I’m with you on the Castellano Spanish. I can understand a lot of what I hear in Spain, Mexico, or Peru, but am completely lost when listening to someone from Uruguay or Argentina.

  11. By Sally on Nov 1, 2008

    Hi All,

    I strongly recommend the South Island in New Zealand. I bought a nice house there 2 years ago in Oamaru ($110,000 NZD), five blocks from the ocean which it overlooks. Only negative is that they will only permit me to be there a maximum of 12 months out of every 24 months. Currently I plan to divide it to 6 months stays, which is acceptable but I have to have another country, cheap (NZ exchange rate is excellent, currently 1USD = 1.72 NZD)in which to live the other 6 months and would appreciate info on Cuenca, Ecuador which I have been considering tho never been there. I have very limited funds so rent out my house in NZ when I am not there which, is profitable. Since I have very limited monthly income, I can’t afford to buy a house in the U.S. and pay the taxes and insurance as they have become completely unreasonable in this country. In NZ my property taxes are $1,600 a year and unlimited water, sewer and garbage is included in that charge. I’d live full time in NZ if I was permitted to. Have been going there for several years and it is Utopia to me……..Sally

  12. By Sally on Nov 1, 2008

    By the way, that $1,600 for water, sewer & garbage is NZD!…..Sally

  13. By matt on Nov 2, 2008

    I should’ve come to this site before leaving NZ. I was there and thought Mexico would be cheaper for me. Landed in Ajijic, Guadalaja and find it too expensive for me. I’m trying out maybe somewhere in Chile or maybe other part of Mexico. Leaving in few days and will probably end up in NZ again. Cook Island, or any of the south pacific island will be a good choice.

  14. By heather on Nov 5, 2008

    hello to everyone!!
    I have a few questions, Everyone here seems to travel alot, which i would love to do ,but Im wondering what some of you all do for a living to be able to travel and buy houseing in diffrent countries.. I am soon to be 22 and i have a great job in retail as an assistant manager in a well known store. I make good money .I want to travel but once i left my job i would have no income.. How do you guys do it? I would love any advice or tips. Everyone here seems to know alot about traveling and stuff.. Thanks so much for your time

  15. By tim on Nov 5, 2008

    If you’re young, you don’t have savings and investment/real estate income yet, so you work. I’ve taught English in two countries. Others work as scuba instructors or in other tourism industry jobs. But these days, probably more people just have a job that requires a laptop and an Internet connection. If that’s all your job requires, you can do it from almost anywhere. Move to a cheap country and you don’t need nearly as much to pay your day-to-day expenses. There are some good resources on the website at this link: http://www.worldscheapestdestinations.com/id17.html

  16. By Kim on Nov 19, 2008

    My husband and I have two young (10 and 5) children. We want out of here (the US) We will have some savings this year but are tired of always feeling like its a struggle and have no “extras” to speak of. We know we could go somewhere else and enjoy life with the money that we are making instead of a consatant struggle. I homeschool my children so education system is not a concern. We will do our research but wanted some suggestions to start.

    Thanks!!!!

  17. By tim on Nov 19, 2008

    Kim–I’m going to Mexico for a year with my family starting middle of 2010. That’s easy, close, and reasonably priced. Ecuador is even cheaper and has cooler temperatures in the mountains. But heck, if you’re home schooling you can go most anywhere, so figure out what matters to you and start looking around. I just emphasize Latin America because it’s easy to stay a year or more legally there as opposed to say, Thailand. But there are lots of expat families all over that have done the research and the trial and error. Just tap into that system and you’re set.

  18. By Angela on Dec 20, 2008

    It’s very interesting to read about all your experiences. I have been self-employed most of my life and I recently retired at age 52 because of burn-out. I need to live in a place where I can survive on $1000/mo., so I have been doing research and came across this website. I do not feel safe moving to a third world country by myself. Do you know of any websites where I could find a traveling partner or roommate? What country would be a relatively safe place for a single American woman to retire? Thanks!

  19. By James on Jan 4, 2009

    My in-laws were looking to move to another country and wanted us to go with them. My only concern about moving somewhere is that our daughters are 4 and 1…what places would be good for our children (schooling, things to do). I have just started researching…thanks for any help anyone can give.

    James

  20. By Carolyn on Jan 9, 2009

    I lived in southern Mexico for about two years and it was cheap to live there ten years ago. Living abroad does have drawbacks and from my experience, the police couldn’t be trusted but if you live in a development that is gated or monitored that is the best thing. I didn’t and felt safe enough in my apartment, as the lock on my door was sturdy and the neighbors were wonderful. Don’t leave purebred dogs unattended if you move there, I heard of peoples’ dogs being stolen then returned for a reward/finder’s fee. It pays to watch your back in a foreign country because the rules there are different than ours. I loved living there, despite the issues and the cost of living was way low.
    There is no better food than good, real Mexican cooking. Study up on anyplace you plan to move and think security wherever you end up. Don’t travel at night on remote roads if you don’t have to. Safety first.

  21. By Robert on Jan 17, 2009

    This goes out to Sally our NZ er,
    Cheryl my wife and I have just returned to British Columbia, Canada after 16 years in New Zealand. Not our first choice of an escape from high costs. We lived and worked our entire time in NZ both South Island > Nelson and North Island > Castor Bay on the North Shore. New Zealand is expensive period, median price in Auckland is 450,000 nzd thats median price, our rent in Castor Bay when we left was 1500.00 per month. Food of any kind is far more than here in BC , most goods are imported, and even domestic goods are more. NZ like anywhere else has pockets of underpriced real estate, that would appear a bargain to Western Europeans or Americans, but having said that the South Island ? We left New Zealand as we were tired of the damp, black mould on our ceilings and walls constantly during winter. Most, not all, but most house’s in NZ are not insulated to North American standards if at all, and do not have central heat. The old saying the coldest winter I ever spent, was a summer in San Francisco comes to mind. Don’t get me wrong we loved it, but the weather save Dec till March is not worth moving for. Born in Vancouver I know rain, Auckland rains more. South Island Canturbury and interior sure less rain, but freezing temps in the winter. Would not trade our time there(in NZ) for the world, but all you have to do is go on-line to compare prices , Foodtown, New World are the big grocery stores, aint cheap. Gas when we left was 1.84 nz per litre ? yes it’s less now but still way more than Canada, and wages are much lower in NZ, 40,000 nzd is a decent wage in NZ if you work. Cheryl was a PA to a top 20 company’s CEO and that was it.
    We are off to Ecuador or Uruguay next, on acreage that will make your 110,000 NZ property seem expensive, really. I have resident status, but would only move back If I won a large lottery. My favorite NZ ism, when I was standing on the shoreline in Bluff, with an American friend from Ohio, bottom of the South Island, having ridden our motorcycles through all of NZ’S southland, looking out to the antarctic and the sea and he say’s to me ” God you are at the end of the Earth here, and I said nope, but you can see it from here”

  22. By Matt on Jan 18, 2009

    I am a software developer, and am looking for somewhere very cheap to live while I develop my software and live off of savings. The only two criteria I have are 1. low cost of living and 2. safety. I have been hearing good things about the cost of living in South American countries like Ecuador. Is security a problem in these countries? Thanks for your input.

  23. By Wade on Jan 22, 2009

    Consider Arica, Chile. Unlike the rest of Chile it’s inexpensive, being by itself in the far north next to Peru. 150,000 people, excellent beach, good internet, and a couple can be comfortable on U.S. $700 a month. Arica is a popular summer resort but pretty quiet the rest of the year. It’s in the world’s driest desert but has 2 rivers flowing from the Andes with alot of produce grown locally. Very easy to live on 90 day tourist cards with the border next door. Due to a current that flows up from Antarctica the weather is moderate year’round with highs between 70 and 85. There are good air and bus connections to the reason. Arequipa, Peru is only 163 miles away and La Paz, Bolivia is 7 hrs by bus that travels over 16,000ft high thru the Andes to get there! Arica has nice parts but it’s definitely a desert town, not as pretty as cities further south in Chile but it’s overall low costs will allow me to save up to visit some great places. You can get DirecTV Latin America too which has most of the English channels. Chile’s police force has been named the most respected public institution in public polls. Never try to bribe a Chilean cop! I’ve looked at alot of places and Arica is it for me, then maybe Chiang Mai, Thailand. I hope to retire at 52 in 5 years and can only do that with the lower costs. A stronger Dollar doesn’t hurt either. Greatly enjoyed your book Tim! Look forward to more.

  24. By Wade on Jan 22, 2009

    That should be region, not reason and sorry about the double post.

  25. By charlene on Jan 23, 2009

    I was wondering about Angelea, who said she had $1K to live on and she wanted a safe place for a woman. I’m in the same category. Can you please recommend.
    thanks

  26. By Tina Balch on Jan 23, 2009

    I have a brother that lives in Cebu Philippines and we (me and 4 kids) are thinking about moving there. Do you have any comments, good or bad, about the philippines.

  27. By tim on Jan 24, 2009

    Folks, I wish I could magically answer the specific location questions, but unfortunately I am not an international living consultant. There are dozens of countries where you could live on $1,000 a month if you’re willing to forsake an American/European lifestyle with all the appliances and media. And yes, as far as I know, they all have women in them living out their lives just as safely as the men do. There are expat message boards all over the world (see a few links at the World’s Cheapest Destinations website, but different countries have different ones—or even individual cities if you are talking about Mexico. Best bet is to travel around first, get a feel for the place, make some contacts, then move. I would never dream of moving somewhere I haven’t spent some significant time in first.

    Tina, I have in fact spent a good amount of time in the Philippines and it’s near the bottom of my list. Almost no sense of aesthetics there. I must say that Cebu City is one place I hope to never get stuck in again. The rest of Southeast Asia is far more attractive, and cheaper too. Even Malaysia, which is much cleaner and has far better infrastructure.

  28. By tim on Jan 24, 2009

    James, any sizable city in the world is going to have private international schools (including Waldorf and Montessori) that you can put your young children into. Unless you’re looking at a long-term commitment until they are at elite high-school level, it’s anywhere from $200 to $600 a month in most of Latin America. Compared to the U.S. or England, that’s dirt cheap. Here’s info on a good book to check out (scroll down to the second review): The Family Sabbatical Handbook.

  29. By Sue on Feb 12, 2009

    I am a single, retired female interested in a cheap destination..cannot afford to travel around…is Costa Rica advisable for single women…it sounds very cheap…?

  30. By tim on Feb 16, 2009

    Sue, Costa Rica is cheaper than the U.S., but is in most respects the most expensive country in Central America. You might want to check into my book Traveler’s Tool Kit: Mexico and Central America as it answers all kinds of questions about safety, money, and more.

  31. By Melody on Feb 24, 2009

    This is new to me but is 2000.a month a good
    amount to live on a beach somewhere? I hope so that would be great im so tired of struggling in this economy. Thanks so much for any input.

  32. By John on Apr 13, 2009

    The Philippines Is A Very Corrupt Country.

    It’s People, Police, Army, Political Officials Are Corrupt Also.

    Crime Is Rampant.

    Fees Are Charged Over And Over For The Same Things.

    You Only Can Stay There Initally For 21 Days and then pay extra to stay up to 59 Days Then More Charges For 1 Year, Then More Charges To Extend.

    There Is No Divorce In The Philippines And Foreigners Are Not Allowed To Own Much Property.

    Your Property Becomes Your Spouses Property Unless You Have An Pre Numptial Agreement, Which Is Very Time Counsuming And Costly.

    And Of Course There Are Muslim Terrorists There.

  33. By tim on Apr 14, 2009

    John, I always love a good rant, but c’mon—nothing about the lousy food?

  34. By doloresb on Apr 21, 2009

    I am a newly retired 58 yr old single femaie living the last three and a half months in Guatamala on Lake Atitlan. You cannot find a more breathtaking landscape…the local Mayan people are pleasant and simple and will do anything to help you out…the food is fantastic .. all coming from the land…
    and it has cost me about $1000/mo for rent at my darling little cottage with frontage on the lake and one of it’s volcanoes…including food, transportation costs (launchas and tuk tuks!)internet cafes and an exchange rate of 1 USD = 8.08 Quetzeles.
    I come home to the states in between … spending one month in the summer with my children (cape cod, massachusetts) and then two fall months in Buenos Aires. This is how I make my retirement money go the farthest. Living fabulously on very little.
    I will spend a few months next year in San Miguel Al Allende in Mexico as I just found a darling studio there for $600 a month. Keep looking, keep asking people…and do your research. I have never enjoyed life more than I am now…and I never lived so inexpensively either!!

  35. By tim on Apr 22, 2009

    Thanks for sharing your experiences Dolores. That’s wonderful! I’m spending a month in Guanajuato this summer, just down the road from San Miguel de Allende, and am really looking forward to it.

  36. By Toni on May 17, 2009

    I am a second generation Italo-American female who would love to live in Italy somewhere near the H20 and the Mountains. My family was from Abruzzi but now everything is untouchable.
    Any small semi-civilized towns with temperate weather in the winter months that you could suggest? Thanx

  37. By tim on May 18, 2009

    Italy and “cheapest” don’t go together very well, so I’m not the guy to ask. You need to find a specialized book or site just for Italy to answer that—or someone who knows the real estate market well enough to know where there’s still a hidden bargain there.

  38. By Wade on Jun 1, 2009

    I’ve been reading good things about San Rafael, Argentina. What I find super attractive is due to it’s flat terrain, shady streets, and low humidity most people get around by bicycle. And that’s in an area of 170,000 people. I’ve been concentrating on places that are bike or pedestrian friendly due to a small pension. I’ve mentioned Arica, Chile and another place I’ll investigate is Quetzaltenango, known locally as Xela, pronounced Shayla. Americans are living there on $500 a month. Xela might be one of the very best places to study Spanish, has a new mall with 5 screen multiplex, even a new Wendy’s. Overall I’m leaning towards Argentina, but I’ll go where it’s affordable in 8 years. Hoping inflation doesn’t ruin my plans!

  39. By PETER on Jun 15, 2009

    By Peter on June 15, 2009

    Cheryl & Robert

    First, I have to say, ‘what a good web site!!’. I have lived in Auckland(North shore)for 5 years. I was looking to go to Canada but the ‘twin towers’ stopped all enquieries for me. I have recently been looking again at Canada and in particuar, BC, only to find out, Vancouver has an area by the same name(north shore).
    I would agree with all you say about Auckland.
    I am british and would put the cost of living in Auckland, as a ratio, on a par with living in London UK.
    Housewise, you pay a lot for what is tantamount to a wooden shed. You have continuous adverts on TV and Radio for moss and mold killers. Kiwi’s are by nature very competitive. I find them aggresive verbally and it really comes across in their driving. To be fair, I’m told this attitude is the ‘JAFA’(just a xxxxxxx Aucklander)and not all Kiwis are this way. The country itself has a lot of beauty. Ideally, southern hemisphere summer Queenstown/Arrowtown/Wanaka and northern hemisphere summer in BC. AHHHHHH bliss.

    good luck to all of us looking for our shangrila

  40. By Candace on Aug 6, 2009

    Hi Everyone!! I really love the input from this site! My famiy – my husband, 7yr old, his parents, and myself – are considering moving to Ecuador due to the cost of living being so much cheaper. I do have a few reservations though and was wondering if anyone might have the answers. First, what is the cost of international schools in Ecuador, say Cuenca, or would it be better to homeschool? Second, is it truly safe and worth living there due to our 7yr old? My husband and I both want our daughter to experience a melting pot of people as we both did ourselves. He grew up in USVI and I lived in Panama Canal. Thanks for any input!

  41. By SiempreSuAmor on Sep 16, 2009

    I just got back from Mexico, Playa del Carmen, 2 weeks. It is 40 miles south of Cancun, the beaches are perfect with waters just as clear as Cozumel, only a ferry ride away. Residents pay about US$130/mo for a 1 bedroom apartment some 5-10 blocks from the beach, but most also have homes in cheaper places like Chiapas. A single parent with 3 children can typically live off of US$400/mo in Playa plus still afford to maintain their other property & eat. An owned home in Chiapas cost about US$400/yr. I plan to retire there in 2 years. I’m 31/yo. My current income is about US$9K/mo. I have $30K in savings. So I’ll marry a beautiful Latina then have/with a few kids, get a huge house. The tax returns/dependents alone would be more than enough to live off of for the rest of our lives. See you there!!

  42. By trina o on Oct 30, 2009

    Hello everybody,

    I am in desperate need of your help. I am a mother of four. We are trying to leave the US ASAP. I really want to move to Tequisquiapan Queretaro Mexico. I need to know about renting a 3 or 4 bedroom. My concern is safety and crime. I want to know how the police are and the military. How about kidnappiing etc. Someone please help. I want to make the move sooner than later.

    Thank You

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