Browsing Posts tagged cheapest places to live

moving-500

If you’re going to move abroad by choice rather than for a job posting, it can seem overwhelming to view the sea of possibilites and narrow it down. Some people use this as an excuse to not take action, others send me e-mails or leave blog comments asking for a short cut answer to “Where should I go?”

Now I’ve got a book I can send everyone to for answers, with some consulting options for those who need it. Here’s an excerpt from there about where to start.

There are three main criteria most pros and cons about a destination fall into. There are head items, which are factual “must-have” factors you can easily substantiate from the comfort of your sofa with a laptop or tablet in hand. Then there’s the question of “What can you afford?” That one’s pretty cut and dry, once you have good information on the costs for basic living expenses and setting up residency. If you’re lucky to pull in $1,000 a month, head to Cambodia, Nepal, or Nicaragua. If money is no object, you can pretty much ignore this part and just look at the head and heart items. Most people fall somewhere in the middle though.

The heart factor is the hardest one to work out remotely. Sure, you can collect e-books, watch Travel Channel shows, check out YouTube videos, and join Facebook groups or message boards for that destination. Really though, none of those things will fully prepare you for how that place will make you feel.

Let’s look at each factor on its own.

Head

If a place doesn’t meet your main criteria for an ideal place to live, you’re probably not going to be happy living there. As a travel writer who visits ten or twelve different countries each year, I often ask myself when visiting a new place, “Could I live here?”

Usually the answer is no for some very specific factual reasons — my head reasons. It’s too cold, too hot, too cloudy/rainy, too isolated, too overrun with gringos, too ugly, too unfriendly to pedestrians, and so on. For others, there may be no such thing as “too hot” or “too overrun with gringos,” They may think a steamy hot place where they can speak English every day with their fellow countrymen and women is perfecto.

Puebla at night

If you have health issues though, this may be the first place to start in narrowing down your choices. If you are allergic to mold, you may want to seek out a dry climate. If you have limited mobility, you don’t want to live in a city built on the side of a mountain. If you’re someone who just doesn’t want to die young, you’re probably not going to want to live in Beijing, where pollution levels are frequently 20 times the levels considered healthy and you can’t see more than two blocks away because of the smog. If you’re a retiree, you probably also don’t want to be in some remote location that’s a day’s drive from the nearest decent hospital. In almost any area where you find lots of people in your age bracket, there will be at least one good medical facility in town and many other larger ones you can get to in a couple hours or less.

What’s on your checklist? Think about climate, culture, food, air connectivity, land connectivity, and apartment/house options. What’s a deal breaker?

Lisa Niver Rajna of We Said Go Travel has lived in multiple countries for three months or more at a time and says it’s important to listen to the signs, to be willing to scratch your plans if something better arises. “We never would have gone to Ko Samui in Thailand if a friend of a friend hadn’t invited me on Twitter. Once we got there, it just felt right. Look for something that fits with you and matches your passion.”

“If it doesn’t feel right, move on. We had planned to live in Panama for six months, but after 13 days we left and were in Costa Rica. When we wrote about our feelings on the blog, we got a lot of negative feedback and people saying, ‘You need to give it a chance.’ But we did give it a chance. We went to five different locations and compared to Thailand where we fell in love, Panama was a big disappointment.” It wasn’t right for them, so they moved on. For someone else, it may be just right.

Wallet

While you may be dreaming of retiring on the Amalfi Coast of Italy, on the beach in the Virgin Islands, or in a nice slopeside chalet in Switzerland, your bank account might not agree with those plans. You need to find a way to combine your checklist of ideal factors with places you can actually afford.

If you picture yourself in a lakeside cottage looking up at jagged snow-capped mountains, you don’t have to spend $100,000 a year in Switzerland. You can move south of Bariloche in Argentina and live for one-fifth that amount instead. If you want to be on a warm-water beach with hot weather, there are 100 choices in Latin America and Southeast Asia that are a fraction of the cost of a Caribbean Island residence.

cheap place to liveFor most of the cheapest places to live, a pair of retirees living off two social security checks or an equivalent pension can get by just fine. In some countries, if you earn $1,500 for one person, $2.400 for two, you’ll be living on far more than the average middle-class local. That may not sound like a lot where you live now, but it will be double, triple, or quadruple what’s considered a good local salary. If you’ve got more than that coming in, you can be choosier about where to go and can upgrade your living standards.

Keep in mind though that there are major variations within a country, especially a big country like Mexico. The more expatriates there are in an area, the higher the prices will probably be: witness San Miguel de Allende. The more of a tourist destination it is, the higher prices will be: witness Los Cabos.

Also, just because you can live on $1,500 a month doesn’t mean the government thinks that’s enough wealth to grant you permanent residency. In Nicaragua a retiree only has to show monthly income of $600 a month, but in Mexico you have to show $2,000 for you and another $500 for each dependent. There are ways around this sometimes if you can show other assets or finagle a work permit, but do keep these restrictions in mind before making big plans.

Heart

The authors of Freakonomics and Think Like a Freak do a regular podcast on NPR and in one episode they answered a listener’s question about how an economist would pick the perfect place to live. Stephen Leavitt said some of his most important factors — what economists would call “amenities” — were access to golf courses, fast food drive-throughs, and houses with big yards. He didn’t care much about museums and cultural activities, but he could never live in a place without easy access to a golf course. In other words, he was meant to live in the suburbs, and specifically an American-style suburb.

Steve Dubner lives in New York City and said his most important factors were the density of ideas, people, and creativity–and the resulting spillover effect. Without being in a big city where people interact a lot, he wouldn’t get any of that. “I could never live in a place without a good diner,” he added.

In the end, they decided that choosing a place to live was only an economic decision when it came to finding a place with the right amenities: childless couples don’t care about schools, but for parents it may be #1. Otherwise, it’s a decision you make with your heart.

beach living

Most “heart” factors can vary a lot even between couples who are on the same page in most other attitudes and ideals. A place may feel “just perfect” to one of them, while feeling like “a total s#*thole” to the other. As you can imagine, this can be the beginning of the end if they ignore these differences and try to plow forward.

For all these factors, it’s worth taking some quiet time with no distractions to talk them through, maybe even writing down the answers mind-map style. When I’ve asked people what they love about a place, there’s often a mix of head and heart in the answers and the heart ones can end up being really esoteric. Some cite a specific yoga teacher, a local hike they love, or the kind of pottery they use in their kitchen. One left the first place she lived because “the coffee really sucks there. I was annoyed every day.”

For couples, talk out loud when you’re traveling about why a place would be a good place to live and why it wouldn’t. The time to argue about what’s important is before you move, not after.

Then go do a trial run to see if what looked good on paper really pans out in person. More on that later…

Hear how other expats are living a half price life abroad on the Cheap Living Abroad site.

I’ve been dropping hints and links for a while now about my next book, asking you to get on the Cheap Living Abroad newsletter list if you wanted to cut your expenses in half just by changing your address. But now I’m less than a month away from release date.

Better life moving abroadI’m officially announcing the “friends and followers” launch date of August 13, a few days before the packages go on sale (at a higher price) for the general public.

The book cover is above, voted on by the newsletter readers as the one they liked best. Here’s the full title and subtitle:

A Better Life for Half the Price: How to prosper on less money in the cheapest places to live.

This will be in e-book form now, in paperback come December. This is not some wimpy short e-book that makes you go, “I paid how much for that?” When it comes out in print it will be some 260 pages long, packed with great general info on moving to another country to cut your expenses in half, as well as specific recommendations where the cost of living is low and the place is foreigner-friendly enough for you to set up residency there. You’ll hear stories and real prices from people already living the dream of a better life for far less money. Even if you skip half of it, the book should save you tens of thousands of dollars.

If you’re just curious and want the book alone, that’s fine.

If you’re beyond the dreaming stage and are starting to put the wheels in motion, the second tier package (“Committed) will have a private Facebook group, webinar replays, a batch of extra reports, and an insiders newsletter.

The top package (“All In”) will include all that plus live webinars, tailored interviews, conference calls, and personal coaching.

I’ll have package details and prices posted a week before the launch.

If you’re not on the notification list yet, check out the full story here.

living abroad

“I’m a ____ from _____ who makes $_____ and I want to move abroad. Where do you suggest?”

I get some variation on this question every week in e-mails and blog post comments, which is a big reason I’m putting out a book in August called A Better Life for Half the Price. It’s about drastically lowering your expenses by moving abroad. (Sign up here to get pre-release updates and post-release tips.) The book will have loads of info on the why and where, while some more comprehensive packages will include worksheets, live webinars, and some personal consulting.

I’m adding that last part to the options, as well as interviews with other expats, because telling you where you should move to is like telling you who will be your perfect mate. Getting anywhere close to the target requires learning a whole lot about you, your wants, your needs, and your ability to deal with change.

Most of all though, it’s about priorities. What’s more important to you than anything? Super-low costs? Perfect (for you) weather? The ability to get by in English? Hot women who will treat you like a stud? Great food? The ability to walk everywhere?

These are just a few things that may be at the top of someone’s list. Then there are other factors that may get pushed to the top whether you’ve thought about them or not.

If you’re gay and don’t want to hide it, Argentina, Mexico, Hungary, and Portugal are great. In Uganda or Nigeria, being gay could put you in jail for a decade or more.

If you are a stoner, there are a good number of cheap countries where the marijuana laws are lax or unenforced. In Malaysia, however, a few joints could get you executed.

If you like a regular glass of wine and to go out on the town for cocktails, Panama, Nicaragua, Hungary, and Cambodia are a dream. Morocco, Ecuador, Turkey, and Ecuador are a nightmare.

living in the tropics

How well will you deal with finding this in your shower?

Then there are the factors that will remove a place from your list. Some people can’t deal with creepy crawlies. Others will remove any place where they can’t drink the water. Some don’t want to live anywhere they have to wear a jacket. You and only you can decide what’s a deal breaker and what’s not.

As with most things in life, doing something worth doing is going to require some time and effort. Some people visit a place for a weekend, pack up and move there, and it turns out fine. In far more cases, a hasty move without any real soul-searching and a trial run turns out to be a bad idea. You can’t get to know the pros and cons of a place on paper without doing a bit of research. You can’t truly know if a place is right for you without spending some real time there being more than a tourist.

There’s lots to love about my adopted home in Mexico, but plenty that could drive someone crazy in a hurry as well. You can say that about pretty much any place in the world. One person’s perfect spot is another person’s “Get me out of here!” Spend some time and spend some money to figure out which is which for you. Unfortunately, there’s no quick answer and no button you can push that will spit out an answer.

But I’m happy to help you get there.

 

cheapest places to travel

$15 in London, $1 in India

Where are the cheapest places to travel in the world? And how does City A compare to City B? How well does perception match reality?

World's Cheapest DestinationsEvery few years I put out a new edition of the book you see to the right and if you’re about to embark on a year-long trip around the world, it’s the best $9 (e-book) or $16 (paperback) you’ll invest in your journey. It’ll give you rundowns on the best bangs for your buck around the world, as well as a quick overview of why you’d go there. It has real prices on what an average person can expect to spend as a backpacker or mid-range traveler in the cheapest places to travel that are worth visiting.

Beyond that though, if you just want to compare Vienna to Prague, or Chiang Mai to Hanoi, there are a couple of other good resources out there I use as a gut check now and then when working on articles or for media interviews.

Numbeo for Wisdom of the Crowd

The first is called Numbeo.com and it’s a crowdsourced platform where people input costs so the system can come up with averages. It’s not perfect of course since it’s dependent on volunteers to take time out to enter data, but close enough for ballpark numbers. They’ve had nearly 145,000 people put info in as I write this.

What I really like about it is it puts things in a ratio perspective, using New York City as 100. You find out, for instance, that renting an apartment in Nicaragua is a 10 on that scale of 100. So if you live in Manhattan and move to Managua, you’ll probably be able to get a place that would cost your $5,000 a month in New York for $500. On the other hand, you definitely do not want to move to Norway or Switzerland unless you’re getting a transfer and a huge raise:many of their cities are above 150 on the scale. Here’s a rundown from most expensive to cheapest.

This site is to compare living expenses though, so while it’s good to see what you’re in for if you want a better life for half the price, the data is mostly populated by expatriates and residents upper-crust enough to enter info in English. So you get some odd skewed results from people trying to live a first-world life in a country that may not have a huge selection of imported items for reasonable prices. Thus the outliers that look expensive but really aren’t for most people, like Caracas, Venezuela. Go to the other end and 24 of the 25 cheapest cities are in India and after that you start getting into some of the other places featured in my book. like Nepal, Indonesia, and Bolivia.

Take it all with a dose of skepticism though. No way in hell that Puerto Vallarta and Durban are cheaper than Cuenca and Plovdiv. It’s good for getting a general sense though of apartment prices, food prices, and what a taxi will cost you. To give you an idea, here’s the rundown on Medellin, Colombia.

Cheapest Places for Backpacker Travelers

While Numbeo wants to know what a lot of things cost, the PriceOfTravel.com site is aimed at backpackers trying to find the best deal. So here’s the basket of goods and services they used to compare A to B on their backpacker index:

A dorm bed at a good and cheap hostel
3 budget meals
2 public transportation rides
1 paid cultural attraction
3 cheap beers (as an “entertainment fund”)

There are inherent flaws in this one too of course, like the beer cost not mattering if you don’t drink and the “hostel” part being pretty meaningless in a country where most everyone gets a private hotel/guesthouse room since it’s so cheap. Some places you walk everywhere and never need public transportation, others may require expensive taxi rides to get anywhere you really want to go.

Pokhara Nepal

The very cheapest backpacker destination?

Again though, as a basic guide it’s pretty good, with 14 of their 15 cheapest being places I cover in my book. Sri Lanka is borderline cheap from what I’m hearing, but if I haven’t been there, so I could be wrong. Here’s their list, with a daily budget amount.

Pokhara, Nepal – US$14.32
Hanoi, Vietnam – $15.88
Chiang Mai, Thailand – $17.66
Goa, India – $18.25
Ho Chi Minh City, Vietnam – $18.27
Kathmandu, Nepal – $18.46
Vientiane, Laos – $21.38
Delhi, India – $21.38
Luang Prabang, Laos – $21.71
Bangkok, Thailand – $21.78
Phnom Penh, Cambodia – $21.95
La Paz, Bolivia – $22.24
Quito, Ecuador – $22.30
Hoi An, Vietnam – $23.26
Colombo, Sri Lanka – $23.87

There’s a clear focus on cities, as you can see. There are far cheaper places than Delhi in India and far less expensive destinations than Quito in Ecuador, but hey, they’ll be a happy surprise when you get there.

When you click on an individual city, what you get is excellent: not just detailed price ranges, but also weather patterns, attraction prices, and a quick overview. Here’s the one from Budapest.

Like I said at the beginning, my book only features 21 countries and you’ll likely explore destinations that are your wish list that aren’t so cheap. But using these two sites, you can figure out that Australia is going to cost you far more than Canada, that London is more than double the price of Istanbul or Seoul.

Living Buenos Aires

Many a traveler has landed in Buenos Aires and within less than 24 hours started to ponder the question, “Could I find a way to live here?” Some don’t just ponder it; they actually move to Argentina.

I spoke with Lisa Besserman, who lived in New York City most of her life and was facing the prospect of looking for a new apartment in Manhattan because her lease was up. “The rental prices were absolutely ridiculous, super-expensive,” she says. “My company was going through some changes and my job position didn’t feel stable. I didn’t want to be spending thousands of dollars on rent without being secure about my job. I was up for a promotion though and proposed a deal with my boss where I would work remotely for a few months instead, at the same pay rate, and I would go live somewhere cheaper. They said yes, so I looked at a map for places with a similar time zone and ended up in Buenos Aires.”

She did her three months of work for her old company, then decided not to come back. She left the job and now she runs her own company in Argentina: Startup Buenos Aires.

A large number of people who visit Argentina seem to dream of living there for a while at some point in their life. Buenos Aires is a major tourism magnet, but that’s just the beginning in a country that has more land than Mexico or Indonesia—but with a much lower population density.

The good news is, it’s relatively cheap here, especially if you’re earning dollars or euros somewhere else. “I didn’t want to have to work two jobs and have a crappy apartment back in the U.S.,” says writer and mother of three Cathy Brown. “I can freelance here and make it work, spending a lot of time with my family.” She lives in laid-back and beautiful El Bolson in Patagonia. About two hours south of Bariloche, it’s a land of gorgeous mountain scenery and some of South America’s best microbreweries.

Living El Bolson

El Bolson

There’s a lot of diversity in these landscapes. Up north you have a dramatic desert on one side and Iguazu Falls on the other. There are seasides, cities and farms in the middle, down to glaciers and freezing cold in the jumping off point to Antarctica.

Once you get settled in, prices can be very reasonable, especially if you have a way of bringing in lots of U.S. dollars or euros in cash. That’s because there are two exchange rates in Argentina’s fragile economy: the official rate and the “blue rate” you can get on the street from money changers. The latter is typically 20% to 30% better than the official one and both are printed in the local newspapers. Getting to your money electronically is almost like a hobby here though: many banks limit ATM withdrawals to around $150, so you end up hopping from one bank to another or using a service like Xoom to take out larger amounts of pesos. Hold onto your home country Paypal account because the banks here are too unstable to work with that service locally; the best bet is to get a debit card you can use to pull money from in Argentina using your original country account.

The Argentina Visa Situation

They’re not real big on rules in Argentina and that includes visa rules. It will probably cost you a lot to enter for the first time because this is one of those countries (like Brazil and Bolivia) that has a retaliatory visa fee policy. Whatever Argentines pay to enter the country on your passport, that’s what you’ll pay to enter theirs. It’s good for 10 years or the life of your passport, however, so after that you can come and go without paying again. Many renew their tourist visa indefinitely, leaving the country every three months for a short hop to Chile or Uruguay.

People who have come to work for an international company tend to get a work visa, but many others just leave four times a year. If something happens and they overstay their visa, it’s not the end of the world. “Argentina is one of the most lax countries for visas,” Cathy says. I don’t want to do anything wrong because I’ve got kids, but I’ve heard from a lot of people that if you overstay your visa, you just have to pay 300 pesos (less than $40 at the official rate)—whether you overstayed a day or five years. They sign off and you’re on your way.

If you’re only going to stay six months at a time, you may be able to renew your tourist visa locally without leaving the country. That’s generally only going to work once though, so it’s best for people not planning to spend the whole year here.

Getting a business visa requires a letter from an employer, a specified time period, and the employer’s acceptance of financial responsibility for the traveler. For obvious reasons, they have to really want you to make this happen. If you get one though, multiple-entry business visas are valid for four years.

Buenos Aires

Buenos Aires

Housing Costs

As in many countries, living in the biggest city is going to cost you more than living in the countryside. For Lisa though, coming from Manhattan made this country seem like a screaming bargain. “I pay $700 a month for my duplex apartment in Palermo Hollywood, a great neighborhood, and it’s a doorman building with a pool. If you transplanted this place into Soho in Manhattan, which is a pretty similar kind of feel, it would easily cost $10,000 to $15,000 per month.”

Naturally the prices drop when you settle in a smaller city or town. While $300 to $500 a month is a good deal in the capital for an apartment, that will get you something furnished and modern in Salta, Mendoza, Cordoba, or Rosario. Where Cathy lives in Patagonia, $350 gets her a four bedroom, two bath house on 15 acres, beside a river.

Lining something up ahead of time is quite difficult though; hardly any agencies list prices online. The best plan is to rent a short-term apartment or stay in an apart-hotel at first so you can take your time looking around. Get recommendations from others (both locals and expatriates) on which agencies are trustworthy and look at plenty of apartments to assess what’s a good value.

If you’re going to buy a house or condo here, figure on paying the whole amount in cash, in dollars. People literally bring bags of money to a closing. In theory you can get a mortgage, but with interest rates running at 18%, you probably don’t want to. You can’t find the bargains here you could 10 years ago since Argentines view real estate as one of their reliable investments and there have also been buyers from Brazil coming in too. If the financial system collapses again though like it did in the early 2000s, who knows?

living in Salta

Other Costs

Leigh Shulman and her family live in Salta, Argentina. They own their house outright and other costs average out to $1,500 a month. “One of the biggest expenses is medical insurance, which is about $300 a month for good care. If you pay $60 more a month that includes plastic surgery once a year!” Private school costs around $100 a month and “we pay our maid far more than the market rate,” still $12 or so a visit.”

Thanks to subsidized electricity, Argentina has some of the lowest monthly utility costs in Latin America. Lisa pays $5-$8 a month for her apartment of around 1,000 square feet. “I thought it would go up a lot when we were running the air conditioning in the summer, but it was only a couple dollars more,” she says.

Cathy Brown pays even less in her small town. “My last electric bill was around $4,” she says. “And that was for two months.”

Leah Shulman and her family live in a large house they own in Salta, but still only pay $10-15 per month in electricity and $8-$10 per month for gas and water combined.

Cable and internet together are $15-$18 per month depending on the package. “In New York City I paid $150 per month for about the same bundle,” says Lisa.

If you like a good steak dinner accompanied by a nice bottle of wine, you’ll be in heaven here. They take their grilled meats very seriously in this country and it’s considered a God-given right to sip wine with every meal. Prices are quite reasonable on both, to the point where a group of people can go out and eat to their heart’s content for $10 a person or less. The things Argentines do well they do very well: barbecued meat, wine, Italian food, coffee, ice cream, and pastries.

The recent financial problems have wreaked havoc with prices and supplies though. When the peso fell by 19% in January of 2013, many store shelves were bare and prices for what was available skyrocketed soon after in local currency terms. The country is a financial basket case and inflation is very high. Who knows what will happen in a few years or even a few months. This is probably not a country where you want to swoop in and buy a place without knowing what you’re getting into. But if you have the kind of job where you can earn hard currency elsewhere and spend it here, this is currently one of the world’s great arbitrage opportunities.

The bottom line? If you’re able to exchange dollars for pesos at anywhere close to the street rate, you can live pretty well in Argentina as a single person on $800 or quite comfortably for $1,000—even in Buenos Aires. If you’re sharing a place, it’s even easier. For a couple or family, $1,500 a month will put you at the upper range of middle class here.



cheap living abroad