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jwander

Aug 3, 2010, 4:16 PM

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Update on cost of living, please.

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We are still on track to move to Mexico in about 11 months. ( but who's counting ).The bad new reports will not deter us. Wondering if we could get an update in the general cost of living. We will set up house somewhere in Colima or Jalisco but not a big town or along the shore, at leaast for the first six months. Have spent a good deal of time there in the last several years. Just looking at general, everday cost trends in foods, utilities, fuels and those sorts of things Thanks.

Jeff



DavidHF

Aug 3, 2010, 4:21 PM

Post #2 of 23 (9007 views)

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Re: [jwander] Update on cost of living, please.

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Not sure what answer you're seeking; compared to a year ago, two years ago, 6 months ago? Everything goes up, gas and petrol monthly, food has been pretty stable, not big increases from CFE this year. Other things (imported) vary with the exchange rate.


gpkgto

Aug 4, 2010, 8:24 AM

Post #3 of 23 (8895 views)

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Re: [jwander] Update on cost of living, please.

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We own our house in the state of Guanajuato and we have an older car.
Our monthly expenses over the last year averaged about US$2900.00. This includes everything-- food, utilities, taxes, car expenses, travel, medical care, etc. etc.


jwander

Aug 4, 2010, 8:35 AM

Post #4 of 23 (8883 views)

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Re: [gpkgto] Update on cost of living, please.

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Thanks for the replies. Just wondering out of the $2900/mo expenses, what are your largest regular expenditures. While that amount is within the higher end of our budget, it does seem a little higher than I expected. Any info would be greatly appreciated.


gpkgto

Aug 4, 2010, 11:30 AM

Post #5 of 23 (8842 views)

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Re: [jwander] Update on cost of living, please.

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I think at least 1/4 of our expenses (for 2 people) are discretionary--i.e. restaurants, Starbucks, entertaining friends and other types of entertaining (booze!), shopping sprees on unnecessary things, etc.--so we have a lot of control. Also, only one of us has reached retirement age, so our income will go up in a couple years. We have been here 10 years and when we first arrived a typical visit to a large grocery store (Walmart, Commercial Mexicana, Soriana) was 250 pesos. Now a typical visit is at least 600 pesos--so be prepared for inflation and the ups and downs of the US dollar.


(This post was edited by gpkgto on Aug 4, 2010, 11:37 AM)


johnv

Aug 4, 2010, 8:37 PM

Post #6 of 23 (8774 views)

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Re: [jwander] Update on cost of living, please.

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According to my carefully kept records there has been a 42% increase in the cost of food in 8 years for me.

There has been an aproximate 25% increase in the price of gasoline in 8 years.

Propane cooking gas: 24%

My housing costs have varied little over that period.

My total living expenses, not including spending money, has risen 36% over 8 years.

One final comment. I think it is possible to live on way less than some of the figures mentioned above, and still have enough money. I am single and live on US$2000/month, and I could live on $1100 if I had to, but I would have very little spending money.


(This post was edited by johnv on Aug 4, 2010, 8:38 PM)


mcm

Aug 5, 2010, 11:47 AM

Post #7 of 23 (8666 views)

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Re: [johnv] Update on cost of living, please.

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The figures that others have cited, regarding price increases in the last ten years sound about right to me.
Keep in mind -- if your income is from the US, the current exchange rate is in your favor -- when I moved here, in 1997, the exchange was around 8 pesos/dollar. Now it is around 12 -- a 50% increase. As others noted, this is coupled with price increases on imported goods, but other prices seem to lag behind a bit.

I live on much less than the examples above, BUT we own our house. So there was a large capital outlay, but now, 13 years later, we've probably recouped our investment (based on what rent would have been). We also spend little to no money on entertainment/restaurants (we are lucky to live near a city where there is an English-language lending library!).

Medical costs have gone up in the last ten years, as has the cost of private medical insurance. Again -- your need to budget for this is somewhat "discretionary", and also the luck of the draw.


cookj5

Aug 5, 2010, 8:35 PM

Post #8 of 23 (8570 views)

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Re: [jwander] Update on cost of living, please.

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My wife and I live in the Lake Chapala area (Ajijic to be precise). We have averaged $2100/month very consistently over that time. That includes everything: all basics + regular travel throughout Mexico, eating out, and miscellaneous expenses. Our biggest monthly expense is rent, which was $500/month the first year, then $550 for the next two years (we moved), and is now $575 on a two year lease. We have a very nice 2 br. 2 bath place in a gated community with a common pool and beautifully landscaped grounds. We have a small 5-year-old Japanese car with great gas milage and reliability which we drive as little as possible. If we chose to live without the car (which is certainly feasible) and without the travel and eating out regularly, we would probably average somewhere between $1500-1800/month.

The key to living an inexpensive but comfortable life in Mexico is the choices you make. If you consciously avoid waste, bargain carefully, and pay attention to the multitude of small expenses that collectively add up, in is not hard to live a happy, comfortable, yet inexpensive life here.

Some things that keep expenses down:

1) Turn off the lights and other power sources when not in use (and use energy saver bulbs). The Mexican electric rate structure severely penalizes excessive use. And rightly so, IMHO.
2) When dining out, go to lunch rather than dinner. Much less expensive, and you are more likely to encounter friends.
3) Buy Mexican brands, and learn how to quickly calculate unit prices to get the best deals. Foreign brands are often much more expensive (30%-200%) while usually not being better in any significant way.
4) Leave the big gas-hog SUV north-of-the-border. If you have to have an auto, bring something down that is gas-thrifty and easy to park on Mexico's typically narrow cobblestone streets.
5) Pursue hobbies that don't cost a lot (golf fees, for example, are very expensive in the area where I live). I hike (free), enjoy digital photography (virtually free after the camera purchase), read (free English library service at the Lake Chapala Society, and low cost books available), socialize with friends (coffee or lunch out is very cheap), explore the wonderful colonial villages in the area (very inexpensive with my high-milage car), go to local fiestas and festivals (free), and engage in a host of other free or low cost activities that keep my weekly calendar full, and highly entertaining.

Those that find Mexico expensive are the ones who insist on quickly purchasing an expensive house (it just seems cheaper compared to the US) and then pouring in money to remodel to the level to their dreams. They just have to have a heated swimming pool and loads of energy devouring gadgets that drive up their electric bills to astronomical levels. They patronize gringo-oriented restaurants with US/Canada-level prices, but generally no better food than you can find elsewhere. They bring down SUV behemoths that are expensive to drive, can be difficult to find repair parts for, and are magnets for dings and dents because they stick out so far when parked. When they shop, they just have to have their favorite north-of-the-border brands and then complain about the prices in the stores that cater to gringos who want these expensive imported goods.

You can live this way, but not inexpensively, and not any more happily than we do.

¡Buena suerte!


jwander

Aug 6, 2010, 3:30 AM

Post #9 of 23 (8526 views)

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Re: [cookj5] Update on cost of living, please.

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Dear Cookj5


Your thoughts are pretty much right on to our proposed budget and desired lifestlye. During our visits over the last several years we have enjoyed many of the things you have mentioned. Our biggest hurdle will be where to settle in for the 1st six months. Almost every place we have visited appeals to us in some way. Thnaks to you and all who gave of their time to reply.


vietnamvet

Aug 23, 2010, 7:27 AM

Post #10 of 23 (7794 views)

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Re: [cookj5] Update on cost of living, please.

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Hello cookj5,
I think you hit it right on the mark. I'm relocating to Mexico (Motul) in Oct, and my purpose for the move is a simpler lifestyle. I may choose to splurge once in a while, but in general, not living beyond my means. Some of the monthly expenses I've seen by expats are what the locals live on in a year. It's saddening to see the actual poverty level of the average citizen, dirt floors, no water connection, etc. What I don't understand is the continued expansion of stores such as, Wal-Mart, Home Depot, and others to Mexico, It's like bringing in a Bloomingdales to the south side of Chicago.


joaquinx


Aug 23, 2010, 9:20 AM

Post #11 of 23 (7762 views)

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Re: [vietnamvet] Update on cost of living, please.

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"It's saddening to see the actual poverty level of the average citizen, dirt floors, no water connection, etc. What I don't understand is the continued expansion of stores such as, Wal-Mart, Home Depot, and others to Mexico, It's like bringing in a Bloomingdales to the south side of Chicago."

Sorry to burst your bubble, but the average citizen does not have dirt floors and has water connections. If you want to shop at a Bloomingdals, try Liverpool or Fabricas de Francia here in Mexico. All those big box USA stores are frequented by Mexicans with a few gringos tossed in. You really need to come down here and visit for a time.




Edited by Rolly to fix a formatting problem
_______
My desire to be well-informed is currently at odds with my desire to remain sane.

(This post was edited by Rolly on Aug 23, 2010, 9:35 AM)


Casa

Aug 23, 2010, 11:44 AM

Post #12 of 23 (7715 views)

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Re: [vietnamvet] Update on cost of living, please.

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I think you must be confusing Mexico with some other country.

The economy of Mexico is the 13th largest in the world in nominal terms; and the 11th by purchasing power parity, according to the World Bank.

I would hardly say that the average Mexican citizen lives with dirt floors and no running water etc (electricity.)

The results for the 2010 Census is not yet available but according to the 2005 Mexican Census

10.2 % of homes nationwide have dirt floors
88 % of homes nationwide have municipal running water
97 % of homes nationwide have electricity
20% of homes nationwide have a computer
63% of homes nationwide have a wash machine
79% of homes have a refrigerator
91% of homes have a television


Again these are the results from 5 years ago. It will be interesting to see what the results of the 2010 Census are.

Given your perception of the "average Mexican citizen" I can see why you do not understand “continued expansion of stores such as, Wal-Mart, Home Depot, and others to Mexico”

(Don’t forget starbucks and wolfgang pucks restaurant and much much more)


chinagringo


Aug 23, 2010, 12:29 PM

Post #13 of 23 (7702 views)

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Re: [Casa] Update on cost of living, please.

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Walmex announced plans to open an additional 300 stores:

http://www.businessweek.com/...regional-cities.html

Seriously doubt that would be happening if the financial rewards were not projected!
Regards,
Neil
Albuquerque, NM



Casa

Aug 23, 2010, 1:11 PM

Post #14 of 23 (7688 views)

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Re: [chinagringo] Update on cost of living, please.

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Seriously doubt that would be happening if the financial rewards were not projected!

Well yes Walmart Mexico is currently out performing Walmart US….


“Walmart overseas sales growth easily outpaced US sales”


“And indeed, shoppers in China, Mexico and Brazil spent more at Walmart’s stores and restaurants than they did a year ago, whereas same-store sales in the US declined 1.8 per cent from the same quarter last year. Same-store sales were up 6.1 per cent in China, 3.1 per cent in Brazil and 2.7 per cent in Mexico.


That growth was “primarily due to a strong underlying performance in Mexico, as well as new store growth in Brazil and China”, said Doug McMillon, the head of Walmart International. He highlighted Mexico in particular, saying that “this sales increase is even more impressive when you consider the Easter calendar change and the comparison to higher sales during last year’s H1N1 [flu] outbreak.


roni_smith


Aug 29, 2010, 8:53 AM

Post #15 of 23 (7305 views)

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Re: [cookj5] Update on cost of living, please.

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Thank you so much for the informative, on topic reply!!

That is very consistent with our planning, which is around cost of housing plus approximately $1,500 a month for a comfortable life. We think we can find housing that fulfills our desires for less than $750 a month, and are tentatively budgeting $2,250 a month. The planned location is Merida, Yucatan.
------
Planning for Mexico Move Blog



Hound Dog

Aug 29, 2010, 2:14 PM

Post #16 of 23 (7241 views)

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Re: [vietnamvet] Update on cost of living, please.

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My experience since 2006 living in Highland Chiapas indicates that roni should have no problem living in Mérida or its environs on the budget he projects if he lives prudently and I wish him luck there. Mérida is a great town and we only passed on moving there back in ´06 because of the hot and humid weather. If heat and humidity are not an issue with you, roni, have at it.


I also wish to respond to vietnamvet´s comment below:

Hello cookj5,
I think you hit it right on the mark. I'm relocating to Mexico (Motul) in Oct, and my purpose for the move is a simpler lifestyle. I may choose to splurge once in a while, but in general, not living beyond my means. Some of the monthly expenses I've seen by expats are what the locals live on in a year. It's saddening to see the actual poverty level of the average citizen, dirt floors, no water connection, etc. What I don't understand is the continued expansion of stores such as, Wal-Mart, Home Depot, and others to Mexico, It's like bringing in a Bloomingdales to the south side of Chicago.


I must add my thoughts to others who have expressed surprise at vietnamvet´s above comment. About half of each year we reside in San Cristóbal de Las Casas, Chiapas and the other half we reside in Ajijic, Jalisco. I point this out because these two disparate parts of Mexico are so different and the ex-pat experience in each area is also so different for those who plan to settle in these respective regions for any prolonged period of time that I thought that vietnamvet and others puzzled by the apparent paradox of middle-class and upper-middle class purchasing power coexisting with dire poverty like that found in Southern Mexico might like to hear from at least one of us residing in both the Lake Chapala ex-pat community and the Chiapas traditional Mexican community who has observed these contrasting lifestyles over time. From my personal experience living in and visiting Mexico extensively from Oaxaca State to the Yucatan Peninsula, I would say that life for the ex-pat in Motul would be more similar to life in Chiapas than life at Lake Chapala but, as is true everywhere, where one lives is only part of the matter and the way one chooses to live is more important if one is seeking an enriching life experience.

Chiapas is the poorest state in the Mexican union and there is widespread and often hopeless poverty there although the reader must avoid assuming that great poverty automatically translates into great misery per se. Many in Chiapas live in poverty so profound that they literally live outside of or are only tangentially touched by the peso economy. Yet, in Chiapas´ three largest cities, Tuxtla Gutierrez, Tapachula and San Cristóbal de Las Casas, one finds numerous big box and upscale department store outlets from Liverpool to Sears to Walmart to Sam´s Club to Chedraui to Soriana and Soriana´s high-end City Club and Home Depot and on and on and; I might add, Walmart and Sears - two American retail stalwarts, appeal to a much more upscale clientele in Mexico than they do in U.S. podunk towns. Why is that, the foreign observer might inquire? Here amidst all this poverty one finds numerous retail outlets meant to appeal to the middle and upper-middle classes. To make the puzzle even more intriguing, there are very; and I mean very, few foreigners living in or visiting Chiapas except on whirlwind tours that pass through town dropping a few coins at tourist oriented joints along the way. The foreign observer might be even more perplexed at browsing about Sam´s Clubs´s enormous new box store in San Cristóbal and noting that the cavernous shopping floor is chock-a-block with colorfully dressed but supposedly penurious indigenous people shopping in large groups and loading up with all sorts of things from cell phones to chiclets sold in bulk they can later have their children resell at a profit piecemeal to tourists down at the city´s principal plaza.

Well, the fact is that places such as Chiapas, with its relatively large and often quite sophisticated middle class, are sometimes repositories of much greater wealth than is apparent to the superficial observer. It is not so much that there is no wealth in places like Chiapas as much as that that wealth that exisits there is less equitably distributed among the population in general than, say, in Sacramento or Council Bluffs or Lake Chapala´s Ajijic. That´s what happens when oligarchies rule in isolation and institutionalize self-serving corruption over the 500 plus years since the arrival of the Spanish. If one´s motivation for moving to Southern Mexico and its cultural, if not altogether geographical, cousin, the Yucatan Peninsula, is a "simpler lifestyle" then my advice is that one adopt a live-and-let-live attitude acting equitably and respectfully toward others within the confines of one´s newly adopted region and determine to mind one´s own garden.


(This post was edited by Hound Dog on Aug 29, 2010, 2:21 PM)


leegleze


Sep 2, 2010, 1:50 PM

Post #17 of 23 (6918 views)

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Re: [Hound Dog] Update on cost of living, please.

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Well said, Hound Dog! As the OP is still in a quandry of where to settle, but has narrowed it down to somehwere in Colima or Jalisco, my experience may be of use to him. For the past 10 years, I've lived 15 minutes from Puerto Vallarta and one block from the ocean, right in the middle of the newly-designated Riviera Nayarit tourist mecca. I am a single female "of a certain age" and just have to feed me and my three critters (a dog & two cats).

I pay $5100 pesos to rent my 2-bed, 2-bath modern home. That is half my income. I am semi-retired, but keep myself busy teaching English 3 afternoons a week, so my job about pays for my utilities. I have a 12-year-old Ford Explorer which is a gas-guzzler, but useful for trips on cobble- and pothole-filled streets, and back into the mountains for daytrips, because it has a high wheelbase. I buy freah local goods, except for a particular dog food which I can only get at the big box stores.

In all, I go out to a restaurant twice a month with friends; I don't drink; try not to use the A/C; and my entertainment is walking the beach with the pooch, reading, television and coffees/BBQs with friends. My total income is under $1100 Canadian. And you know what? I have a great time! Life is beautiful!

My intention, when I reach 65, is to go further back into the mountains and really enjoy life among the locals. Much cheaper too.
~ Roxana in Bucerias ~


gpkgto

Sep 2, 2010, 3:31 PM

Post #18 of 23 (6887 views)

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Re: [leegleze] Update on cost of living, please.

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"And you know what? I have a great time! Life is beautiful! "

I bet you just made a lot of future-Mexican retirees very happy. If you really decide to "go native" in a real Mexican environment, you will qualify as very wealthy. Many "middle class" Mexicans live on less than your income.


sparks


Sep 2, 2010, 4:52 PM

Post #19 of 23 (6865 views)

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Re: [Casa] Update on cost of living, please.

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One reason they may be doing so well here are the wages they pay. Just had a friend go to work for Bodega and for a 40+ hour week she gets $3000 pesos a month ($230us). She's a cashier and has to clean up after.

The minimum wage in the US is probably around $1200 a month and I doubt the cost of product equals the difference

Sparks Mexico - Sparks Costalegre


Casa

Sep 2, 2010, 5:55 PM

Post #20 of 23 (6848 views)

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Re: [sparks] Update on cost of living, please.

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In Reply To
One reason they may be doing so well here are the wages they pay.


Actually the report is comparing current sales figures to previous period sales figures for the different markets, not the cost of doing business, (labour, taxes, property cost utility costs, transportation etc etc) In addition the report does not take into account any changes in currency.

The stores in Mexico have increased sales where as the store in the US had decreased sales in the compared periods.

“And indeed, shoppers in China, Mexico and Brazil spent more at Walmart’s stores and restaurants than they did a year ago,”

Customers in the US spent less than they did a year ago.

Although the labour costs in Mexico are lower than in the US, this increase in customer spending in Mexico is not due to a lower labour cost in Mexico this year compared to last year as the labour cost in Mexico have remained very similar over the compared periods.


roni_smith


Sep 3, 2010, 2:13 PM

Post #21 of 23 (6711 views)

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Re: [Hound Dog] Update on cost of living, please.

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Mr. Hound Dog wrote:

If heat and humidity are not an issue with you, roni, have at it.

We'll give it a whirl, planning to rent for a couple of years. I have lived in the tropics and in the mid-south, but having spent the last decade in the Pacific Northwest, I may have become a weather wimp. We'll find out if we can acclimate. If not, there are other climates in Mexico.

Thanks for kind words.
------
Planning for Mexico Move Blog



Peter


Sep 3, 2010, 2:37 PM

Post #22 of 23 (6695 views)

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Re: [roni_smith] Update on cost of living, please.

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I may have become a weather wimp.


The Central Highlands is a good place for wimps. By choice I live in wimp Central and visit the beach in winter when my wimpometer says overnight lows in the low 40's is more than I can bear.


Hound Dog

Sep 4, 2010, 9:59 AM

Post #23 of 23 (6576 views)

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Re: [roni_smith] Update on cost of living, please.

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Roni writes:

We'll give it a whirl, planning to rent for a couple of years. I have lived in the tropics and in the mid-south, but having spent the last decade in the Pacific Northwest, I may have become a weather wimp. We'll find out if we can acclimate. If not, there are other climates in Mexico.

As with Peter, we are also highland weather wimps after 40 years or so in and about cool and pleasant San Francisco. We got married in Mobile when my wife moved there from Paris on a temporary work visa to teach so she got a quick lesson in U.S. Gulf Coast heat and humidity topped off with a few summertime trips to New Orleans which has the single most dreadful summertime climate in the U.S. with the possible exception of Houston; a place I would not wish upon my worst enemy.

in 2006, having forgotten the dreaded climate of the U.S. Gulf Coast and suffering through a collective brain cramp, we decided that a move to Mérida from Lake Chapala would be a fine idea since that city seemed to be culturally such an entertaining place after five years in Hooterville Upon Sump but after a trip there in the miserable heat and humidity of November (for God´s sake), we headed for the Chiapas Highlands nonstop until we achieved 7,000 feet in altitude at San Cristóbal de Las casas where we quickly bought a house after washing off the Yucatan mildew from our clothes and resolved to revisit Mérida only in the dead of winter which we think may be mid-January to mid-February.

I must admit, however, that Mérida in its colonial center, remains one of our favorite cities in the Americas so maybe we acted in haste leaving Mérida in the dust in search of the nearest highland alpine forest. If memory serves me, that decision was made one day in mid-November when we returned to our hotel after a day of looking at potential houses to buy exhausted from the insufferable heat and humidity of the day and inquired of the innkeeper as to when, in the winter season, we could expect the weather to cool off. His response was; "This is as good as it gets." Perhaps he was just trying to get rid of us but whatever; it sure worked.

I think it´s that 40 years or so in San Francisco´s coolish maritime climate that turned us into weather wimps. When I was growng up in South Alabama, that heat and humidity seemed quite normal to me. I thought clothes mildewing in the closet at home was the norm for everybody before air conditioning.

That reminds me of a story. In about the mid-1990s, we were living in the Mayacamas Mountains between Santa Rosa and St. Helena in Northern California and were experiencing a particularly hot (though dry) spell and, one day I was talking to my sister who lives on Mobile Bay. I told her we had had such a hot late summer that I had had to use the central air conditioning system for ten whole days in August. Her response: "Dawg; in Mobile, we turn on the central air conditioning in April and we turn it off in October. You are complaining to us?".

Regarding the cost of living. Just remember that, in the Mexican Highlands one never needs air conditioning and rarely needs heat which one normally generates with a wood fire or relatively inexpensive propane heaters. Electricity usage is controllabe in the mild climate as is gas usage. Property taxes are ludicrously low and easily covered even with a very modest income. By shopping in local tiendas and tianguis or municipal markets, food costs are minimal and the costs of dining out or seeking entertainment on the town are clearly controllable based upon one´s disposable income. We moved to the tropical highlands with the comfort of knowing that, if we owned the roof over our heads and had virtually no utility expenses beyond our control and a modest annual property tax expense, we could survive no matter how rough times became in the future. Our experience so far has borne out that supposition.


(This post was edited by Hound Dog on Sep 4, 2010, 10:21 AM)
 
 
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