Ten Practical Things You Need to Know about Retiring in Mexico
Are you thinking of retiring in Playa del Carmen? Getting ready to enjoy retirement next to some of the world’s nicest beaches, the warm weather, the sunshine, great food – it can all be very exciting, but there are some practical points that are worth considering ahead of time, such as the following.
What Mexican Food is Really Like
So, you’ve been to Taco Bell – OK, we all know by now that this isn’t the real thing!
Everyone seems to have their how opinion of what “real” Mexican food is – and there’s a reason for that; Mexico’s food actually varies considerably from one region to another. For example, in the north of the country, they eat a good deal of grilled beef. In the center they like (among many other things) soups, such as pozole, which has large kernels of corn and chicken or beef. In the south they have a kind of enchiladas called “papadzules” (a Mayan name) which have hard boiled eggs inside and are covered with a pumpkin seed sauce.
One of the beauties of Playa del Carmen is that it includes food from all over the country, since workers from all over the country have come to get jobs in the thriving tourism.
Food is not necessarily very spicy. In most cases, the hot sauce is in a dish on the side. Just ask how hot it is before you pile the sauce onto your taco.
The Cost of Living
Playa del Carmen is that ideal balance between costing significantly less than Canada, while still offering most of the products and modern services that North Americans are used to.
Many expats say that their expenses are about half that of back home. This varies considerably according to lifestyle, and – in many cases – expats will live more comfortably, enjoying more little pleasures in life, spending those extra funds they save. In either case, it’s a win-win situation – you either have more money or you live better – or both!
Some “specialty imported” items that Mexicans don’t usually use (like peanut butter) and international-class luxuries (like professional golf) will cost the same or even a bit more. However, bills, taxes, groceries, eating out, traveling and just about everything else will cost so much less that there will be more money available for splurging.
Accessing Funds from Back Home
There are a variety of safe and affordable ways to access funds from a home bank account. Three recommendations are:
Wire transfers – Once you open a bank account, you can have funds transferreddirectly from a bank account in Canada to one in Mexico. If you use online banking, some banks even allow you to set up such a transfer yourself. There is usually a flat fee of around thirty-five dollars, but you can transfer enough to make it worthwhile.
Debit Withdrawals– In Playa, there are a number of modern, secure banks with ATMs onsite. The machines usually have a withdrawal limit of about $500 dollars (6000 pesos). If you just withdraw from any ATM, you will usually incur about five dollars in fees (one dollar from the Mexican bank and four dollars from your Canadian bank.) However, some banks have arrangements with “sister” banks in Mexico so there are no fees – the withdrawal amount is simply calculated by the current exchange rate. Three examples in Playa are Scotiabank, HSBC, and Citibank (called Banamex in Mexico.) If you have an account at one of these banks, this is by far the least expensive way to access cash and it is secure since you can withdraw smaller amounts of cash.
Credit Card – Credit cards are convenient since you can make purchases directly in stores with your Canadian card. Large stores like Walmart, Sam’s, Office Depot, Home Depot (in Cancun), and their Mexican counterparts all accept credit. Many small stores and restaurants in Playa also accept credit cards, since this increases their appeal with tourists. Exchange rates for credit cards are often among the best. Cash withdrawals are also possible, but as far as I know, you can’t avoid fees; consulting with your bank is best. If you have online banking with your Canadian bank, you can pay your credit card from Mexico easily. (Good reliable, high-speed internet is available at low prices.)
Buying and Owning a Home Safely
Many people who decide to live in Playa del Carmen will want to own a home or a condo, at least in the future if not immediately. Average property prices are between $200,000 USD and $250,000 USD. However, good properties that are suitable for expats can be found even below $100,000 USD, depending on your needs. Properties are available on the beachfront, downtown, in Playacar (an upscale gated golf community that is a favorite for Americans and Canadians,) other similar gated communities, on resorts and near shopping areas.
Buying property in Mexico is entirely safe if you work with the right people. Be sure to find a qualified broker with certificates, years of experience and membership in AMPI (Mexico’s only professional association for real estate) and who is experienced in helping Canadians and Americans find and buy properties. If you are planning to rent, look for someone similarly qualified to help you find the right property and navigate the rental contract.
Renting Out Your Property
If you own a property, but you will be in Playa only part of the year, you may wish to cover expenses or even generate a profit by renting it out. If this is your plan, consider the following points:
Tell your agent when you are buying so they can help you find a property with good potential for rental. Not all locations and property types do well for rental.
Generally, within a block or two of the beach and a larger size (three bedrooms or more) is most appealing for vacationers.
If you can find a property where there is a rental pool on site, this makes the process much easier for you.
Resort properties tend to do well since they have an international publicity system well established already. A number of nice resorts around Playa have residential properties for sale.
Otherwise, find a good property management or rental agency. Ask for references and look for professionalism.
Cost of Healthcare
As is the case in Mexico in general, high quality health care is available for very good prices in Playa. While Canadians are used to the free, public system, Mexico offers several advantages, including:
No waiting lines
Much lower prices than for similar service in the U.S. – 50% – 70% lower
Very personalized care – doctors will sit down with you and actually take time to talk about your health
A variety of options depending on your specific condition, budget and preference
Playa del Carmen includes one new, state-of-the-art hospital and several smaller but good hospitals, as well as a number of excellent clinics. An hour away in Cancun there are several state-of-the-art hospitals as well as specialized facilities.
Private health insurance is also available for very good prices.
Mexico also has a hospital system run by paid-for public insurance. A flat rate of about $350 dollars per year covers everything from check-ups and surgery to vitamins and eye glasses. While the system includes more waiting lines and paperwork than the private hospitals, a growing number of Americans and Canadians find it meets most of their needs. For anything more specialized there are always the private clinics and hospitals.
This system has one new hospital and a clinic in town.
Learning Spanish
There are so many expats in Playa del Carmen that if you arrive without knowing a word of Spanish, you’ll survive just fine. Since the area’s entire economy (and existence) is built on tourism, workers in the airport, buses, taxis, restaurants and in many other places will speak English to some extent, and often very well.
Once you arrive, learning Spanish will certainly be a fun and practical hobby to take up, and at some point it will open up more doors to experience certain aspects of Mexican culture more directly.
There are several good Spanish schools set up especially for Canadians, Americans and Europeans.
Your Possessions from Back Home
Playa del Carmen is a long way from Canada; in fact, if you travel by land, it is probably the furthest point away from Canada within Mexico. Fortunately many direct flights are readily available and affordable (see below.) Unfortunately, when you arrive on plane, you will be bringing only a few bags of luggage with you.
What about the rest of your stuff? Especially if you are retiring in Mexico permanently, or even if you are taking the “snowbird” approach (6 months here, 6 months there), you will want to have some or all of your personal possessions here permanently.
Fortunately, this situation has become common enough that there are companies that will arrange such a move. While there is definitely a significant expense to consider, it will be only a one-time expense, and these companies offer door-to-door pick-up and delivery, very careful handling, customs documentation and a variety of plans so you can choose the space & pricing most suited to your needs.
The Price of Plane Tickets& Travel
Because of the popularity of Cancun and the Riviera Maya, flights to Cancun’s international airport are usually the best priced in Mexico, and even compare well to some popular U.S. destinations. Direct flights to Cancun are available from major airports throughout Canada.
Cancun’s international airport is located about forty-five minutes away from the town of Playa del Carmen. Transportation includes private taxis, “collective” taxis and buses. As of early 2013, the regular taxis charged about seventy dollars. The collective taxis are minivans that take about six or seven people charging about a third of what a regular taxi does, per person. They drop people off at their doorstep. For about eight dollars, comfortable coach buses will take you to the bus terminal downtown. From the terminal taxis will cost about five to ten dollars.Taxis even a couple of blocks away from the bus terminal and will cost noticeably less, but arriving after a few hours in the plane and then an hour in the bus, the last thing you’ll want to do is haul your luggage around trying to save two or three bucks!
There are also cars that can be rented, starting around sixty-five dollars. Some companies have locations both at the airport and downtown Playa, where they can be dropped off.
Residency
To over-simplify residency in Mexico, basicallythere are two very broad categories that you will fall into:
You are staying in Mexico for less than six months – If you are Canadian, you will be given the document you need every time you enter Mexico, so this is easy! Even if you come and go, there are no extra steps to take if a “tourist” status is all you need.
You wish to stay in Mexico longer than six months – If you wish to stay in Mexico for more than 180 days consecutively, you will need to obtain a residency visa (either temporary or permanent) before entering the country, at a Mexican consulate in Canada. If you enter Mexico before gaining a residency visa, you will be required to leave the country within 180 days of arrival.
For the purposes of this general overview, it’s enough to say that if you are planning to stay longer than 6 months, you should be visiting your Mexican consulate well before entering Mexico.
Getting ready to retire in Playa del Carmen is certainly exciting! Considering these practical items ahead of time will help you plan and allow you to enjoy the time of transition to the fullest extent!
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