Browsing Posts tagged cheapest places to live

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, go find out more here. Otherwise, watch this countdown clock and join me August 13!

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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.

Panama beach

Panama can be one of the world’s greatest places to live on a lower budget than you could in a developed country, especially if you’re a retiree. It’s also a place favored by thousands of very wealthy Latin Americans and business tycoons, however. So whether you find the place a bargain largely depends on where you live and how you live.

As I’ve been mentioning lately, I’m working on a book called A Better Life for Half the Price, about moving abroad to a cheaper destination to lower your monthly expenses. Panama doesn’t figure into my World’s Cheapest Destinations travel book except as a brief honorable mention. While it’s cheaper than Costa Rica, it’s nowhere near as good a value as some other countries in Central America. It is a poster child for publications such as International Living though and has been for at least a decade. That’s for a lot of good reasons:

- It’s a very stable country politically.
- It uses the US dollar as its currency and inflation is minimal.
- The banking system is good.
- Health care is excellent and affordable in the cities.
- Taxes are low, including on alcohol and electronics.
- Regulations are minimal for setting up a business.
- It’s easy to get a residency visa.
- The pensionada program for retirees has terrific benefits.

Panama is no backwater dirt-poor country though relying on what they can grow or dig out of the ground to build wealth. There’s a large middle class employed in all kinds of decent-paying jobs, from call centers to quality construction to the Panama Canal to banking. Most multinational companies have a base here and the whole country is like a big duty free zone.

luxury real estate Panama City

I did an interview that will air soon with Taylor White of the Overseas Property Insider Podcast. He’s stacking cash buying and selling real estate in Panama City, so he subscribes to the philosophy of “You’re going to spend what you’re going to spend, no matter where you are.” For some people that’s true and they didn’t move to Panama City to save money. Taylor spends about as much as he did in San Diego. You can spend a few hundred grand on a fancy condo with a view and there are plenty of temptations in terms of high-end restaurants, clubs, casinos, and beach resort excursions. For many, especially wealthy Latinos, the capital of this country is a “work hard, play hard” city akin to Miami. Living here can cost far less than Miami if you’re careful, but you can easily spend as much as you would there if you want.

There are retirees living in Panama City for less and the live abroad magazines and newsletters continually highlight people getting by on two U.S. social security checks—around $2,400 per month. A typical basket of goods and services is lower here, especially domestic help, transportation, domestic food, wine, and entertainment. Real estate is high for the region though as this is considered a “safe haven” investment for Venezuelans, Argentines, and others.

Outside the Big City

There are plenty of other places to live in Panama, however. Many retirees are attracted to the Chiriqui highlands around David and Boquete or the Bocas del Toro islands. Both these areas have far lower prices to rent or buy.

Panama adventure

Former Texan Richard Kongable lived in a few places in Panama before moving to a rural area near Volcan, on the side of a mountain. I tried a few other places in Panama before settling here,” he says. “I like that I never need heat, I never need air conditioning, and there’’s always a gentle breeze. I’m on the edge of a valley, with a volcano on the left and two rivers. I can see islands in the ocean even though it’s an hour and 20 minutes away.”

Richard rented his house for years for $300 a month and thought he was going to have to leave eventually when the American owner put it up for sale. Instead the owner fell into health problems and needed to sell in a hurry, so with no buyers in sight Richard got the 1,600 square foot house for half price: $25,000. He estimates that his family of three spends about $1,700 a month, including car expenses and about $300 a month for his son’s private school.

Retirees Kris and Joel Cunningham pay $385 per month for a house in a nice middle class neighborhood on the edge of David, Panama and they love it. “We have woods and a river behind us, there’s only one way into the neighborhood so it feels really safe. We’re surrounded by local professionals who are just lovely people.”

The Cunninghams were paying $1,200 per month in Sarasota, Florida where they lived before on their mortgage and taxes. If they had been renting, it would have been more. “The house next to us, similar to what we have now, was renting for $1,500 per month,” she adds.

They have been living on her husband’s social security payment and have a little savings from selling their house in Florida. Kris was about to start receiving her own social security payment when I talked to her, which will double their income and enable them to meet the income requirements for the pensionada program: $1,000 for one person plus $250 for each dependent. “It’s already so cheap though, I feel kind of guilty getting all those extra discounts,” she says.

Kris Cunningham says she has been pleasantly surprised by low costs in Panama, particularly groceries. “Food is definitely a great deal, especially fruit and vegetables. If you spend $20 on those in our local market it will be more than you can carry. We paid two or three times more for almost everything at home, including meat and fish. If you buy what the locals buy and cook, living here is very cheap.”

There’s the key advice that applies almost anywhere in the world: eat what’s local and you’ll probably be both healthier and wealthier. The usual advice that goes with that is to avoid imported products. With some of the cheapest wine and liquor prices in the world here though, you don’t have to make any adjustments in what you drink. This is one of the few places in the world where California wine is cheaper than in Napa Valley and Chilean wine is cheaper than in Santiago. (See this post on prices to booze it up in Panama.)