exchange rate – Ex-pats in Mexico

And the winner is…

It was quite difficult and we did a lot of back-and-forth, but Leslie and I have decided on our new home. We had two excellent — and very different — choices. How did we choose between Ajijic, Mexico, and Montpellier, France? Let’s look at the data.

First, what’s so good about Ajijic? I know, some of you think there’s nothing good about anywhere in Mexico. That’s probably because you’ve never been where we’ve been. A good friend and former work colleague was one of those people until recently. We had lunch a few days ago and he said he enjoyed reading this blog, saying, “You’ve made Mexico three-dimensional for me. It was always one-dimensional.”

Ajijic is close to the U.S., so we can get back easily if need be, and friends and family can visit. The cost of living in Ajijic is quite favorable. Coupled with the good dollar-peso exchange rate, that makes Mexico a great place for North American retirees. And the Mexican people are warm and friendly; pass a local on the street and you’ll always hear “buenos dias.” Here are some other Ajijic positives:

Furnished rental housing is easily available.
Climate is mild with few extremes.
There’s a thriving English-speaking faith community.
There are many other expats in the area.
The Lake Chapala Society offers lots of services and events.
There are volunteer opportunities to remain active.
We have established contacts to help with our transition.
Health care is good. Most doctors are trained at the medical school in Guadalajara, which is affiliated with Johns Hopkins.
There are a number of cultural opportunities, both in the Lake Chapala area and in Guadalajara, which has its own symphony orchestra and opera company.

There are some downsides to Ajijic, though. Area roads are not as good as in Europe, and in most places you must drink bottled water. One big complaint is that in some parts of the Lake Chapala area you cannot flush toilet paper. It goes in a trash can instead. We would need housing in the newer areas where this is not an issue. A few other not-so-good things:

Intercity roads are limited.
Public transportation is not great. Intercity bus service is great, though.
Are there too many gringos in the area?
Right now there is uncertainty about the future of the Mexican government. The new president does not take office until December.
Locally grown vegetables must be treated before eating. It’s simple but time-consuming.
Infrastructure in the village is not great, and there is limited parking.

Montpellier also has lots of positives, most notably its energy. There’s a great vibe in this fast-growing city. Cultural opportunities abound — concerts, festivals, plays and other forms of entertainment. Food from local markets is of a higher quality than in the U.S., and there are great markets all over town. Leslie was able to eat cheese and bread in France. Her system has had a problem with both for years, and she was in heaven! Some other good points:

Public transportation is excellent.
It’s easy to reach other European countries we want to visit.
It’s close to some nice Mediterranean beaches.
We have established contacts with people who can help with our transition.
France is a first-world country with excellent infrastructure.
History is pretty much everywhere.
The World Health Organization ranks French health care as the best in the world.

But the cost of living in Montpellier is higher than in Mexico and with the unfavorable dollar-euro exchange rate, the dollar doesn’t go as far. Also, getting to France is a little more difficult and time-consuming, so we might get fewer visits from family and friends. And there’s this:

Furnished housing may be limited, and two-bedroom apartments are expensive and rare.
It gets a little chilly in winter. Last winter they had some snow, although it melted two days later.
There’s a seven-hour time difference from Chicago; nine from Stephanie in San Diego.

We took all that — and more — into consideration and agreed that by Nov. 1, we hope to be full-time residents of Ajijic, Mexico. We’ve already begun getting paperwork together for our permanent resident (retiree) visa application.

There were several factors, but mostly we think it will be easier to transition into living long-term in Mexico than anywhere else we’ve been. We’ve spent a lot of time there over the past two years and we have a network of friends to provide help and advice. Location and cost of living were also big factors. We’ll actually be closer to Stephanie than we were in the Chicago area, and friends and family have an easier time traveling to Mexico for visits. Plus, the dollar goes a lot further in Mexico, and the climate seems to be better. While we loved living in Montpellier, we simply felt Ajijic would be the best bet for our first attempt at being true expats.

That doesn’t necessarily mean we will live in Ajijic forever. Remember, we might decide at some point to get a change of scenery and relocate. Montpellier would probably be at the top of our list.

This blog, of course, will continue! We’ll keep you posted as the process develops.

mariachis-0033 — *Strike up the band! We’re on our way to Ajijic.*

Living overseas, Mexico, Travel

Muchos pesos, no muchos dolares

You may have heard that the exchange rate between U.S. dollars and Mexican pesos is great and getting better. That’s good for us, not so good for people here in Mexico.

money — *Mexican cash is colorful! The smallest bills are $20 pesos. The coin on the left is $10 pesos, on the right $2 and $5.*

When we lived in Westmont, we got a weekly “allowance” from our favorite ATM on Ogden Avenue. Here, I’m getting a little more and hitting the ATM more often, but that’s because we use cash more frequently. Many restaurants and shops don’t take plastic. Likewise, tickets for concerts, lectures and other events.

One of our reasons for living in another country is the cost of living, so let’s talk about that, starting with the cost of food. Here are a few items we bought several days ago at el Comer, known locally as “Mega.” All prices have been converted to USD:

Reynolds aluminum foil roll, $1.13.
Loaf of whole wheat bread, $1.96.
Jumex orange juice, 900ml, 69¢.
Lavazza coffee, 12 oz., $7.37.
Barilla penne pasta gluten-free, 12oz., $4.91.
Hellman’s mayo, 190g, 89¢.
Four gala apples, $2.21.
Olive oil, 250ml, $1.72.

But we buy most of our food at the Saturday organic market just down the street, or at the public mercado just north of the main plaza. We get great produce at low prices. They don’t give receipts and I can’t remember the exact prices, but less than Mega.

*Greens at the Saturday organic market.*

On our way home from the public mercado, we stop in to a carneceria, a butcher shop. We’ve gotten some excellent pork chops, ground beef and mild chorizo there. Better quality and lower prices than Mega.

Why even go to Mega, you ask? For coffee (we really like Lavazza brand, which we discovered in Malta), some paper products, a few other things we can’t get at the mercado.

Restaurant prices — again, there’s a range of prices. The anniversary dinner we enjoyed Monday night at one of SMA’s high-end places cost about what we would pay at our former haunts, such as Bakersfield, our favorite Westmont eatery, or Devon, the great seafood place in Oak Brook Terrace. Lunch today, on the other hand, was just $200 pesos with tip. That’s not even ten bucks for two people having lunch.

Other costs. Dry cleaning, we pay $45 pesos per item, or about $2.20 USD. Leslie got a mani/pedi a week ago and paid $300 with tip, less than $15 USD. I’m scheduled for a haircut tomorrow. They tell me it will be $250 pesos. Got some very nice Mexican wines a few days ago for just over $10 USD a bottle. Our buddy Ken Stevens would appreciate that!

Housing costs are all over the place, but for the most part they are fairly consistent with prices in the Chicago area. One local real estate agency is advertising a three-bedroom newly built home with high ceilings and a rooftop entertainment area. It’s just over 1,600 square feet and is listed for $139,000 USD, but it’s nowhere close to the Centro where you find most of the restaurants, bars, galleries and shops. Still a good price. Centro properties can be more than $1 million USD, but the same agency has a three-bedroom with over 3,000 square feet listed for $850,000 USD. Includes a two-car garage and a rooftop terrace.

Rental rates also vary, depending on location, of course. One agency’s website lists a two-bedroom in the El Encanto neighborhood for only $950 USD a month, but you definitely need a car to get anywhere. The same agency has a gorgeous 2/2 in San Antonio, within a 15- to 20-minute walk to Centro, for only $1,140 USD a month. It includes a garage and rooftop terrace. And nearly all rentals are fully furnished. Some sales are, too!

Two interesting things about real estate here. First, all the agencies list their prices in U.S. dollars, which should tell you who they’re marketing to. Second, there is apparently no multiple-list service like in the States. And we’ve heard the agencies do not cooperate with each other. Go to a local Coldwell Banker agency, for example, and they will only show you their own listings. That might be an issue for our friend, Slav Polinski of the CB office on Main Street in Downers Grove, the best real estate guy in the western suburbs!

One thing we have learned about living in San Miguel de Allende — and Mexico in general, I suppose — is that utility costs are pretty high, especially electricity. In some of the other places we will be living, especially Puerto Vallarta and Mérida, we are being asked to pay extra for the electricity we use.

That gives you an idea of what it costs to live here in San Miguel de Allende. If you have specific questions about what things cost here, just ask. We’ll let you know.

Hasta luego!

Mexico, Retirement, Travel

Sunny San Miguel

Leslie and I have arrived in San Miguel de Allende, about three hours north of Mexico City. This UNESCO World Heritage Site is about 6,200 feet above sea level and has a population of about 140,000 — perhaps 10,000 of whom are expats from the U.S., Canada, Australia, Ireland and the U.K.

We plan to be here through the end of February. And it’s warm! Today (Sunday) the high will be about 75º F. Cool at night, but really pleasant during the day. Low humidity, and no rain for the next week at least.

*The neo-gothic La Parroquia San Miguel de Allende Arcangel is the parish church and the city’s emblem. It is one of the most photographed churches in Mexico.*

Getting here certainly wasn’t easy, and we made it more complicated by trying to save a few bucks on the airfare. First, we flew from Malta to Barcelona and stayed overnight to avoid getting up early and rushing around trying to make close connections. Good move.

From Barcelona, we endured an 11-hour flight to Bogota, Colombia, then another four hours to Mexico City. On the trans-Atlantic leg, we were on an Avianca Airlines Boeing 787 Dreamliner. First time on one of those. Neat plane, and an uneventful trip, but in hindsight it would have been better to spend a little more and go through Miami to Mexico City. You get what you pay for.

We arrived in Mexico City at about 2:30 a.m. Wednesday and stayed over Wednesday night to become acclimated to this hemisphere. Got to SMA Thursday afternoon and settled into our apartment in the Centro area, which has cobblestone streets and narrow sidewalks with neat little shops and restaurants all along the street. We are just above Cafe Monet, owned and run by our landlady’s brother. Click on the link to see their site, then click on “Casa Monet Apartments” to see where we’re living for the next six weeks.

We’ve already visited the Central Mercado for some fruits and vegetables, and on Saturday we went to the Organic Fair just down the street. Judging from the quality of the produce, we’ll be going back there every Saturday. Especially since there are also food vendors selling all manner of tacos, enchiladas, empanadas and other Mexican food for lunch.

*One of the food vendors at the Organic Market. Looking forward to* proxima semana (next week)!

San Miguel has a vibrant arts scene, with tons of art galleries and almost-daily opportunities to see plays and attend concerts of all types. In fact, there’s a jazz festival Feb. 7-11.

Today we attended St. Paul’s Anglican Church, just a 10-minute walk down the main street. Neat old building and a good message from a retired Episcopal bishop — also a U.S. expat.

More next time on costs, but the big thing in that area is the peso-dollar exchange rate. The dollar is getting stronger by the day, and that helps in many ways. For example, in the Mexico City Airport Hilton I tipped a bellman 100 pesos — that’s about five bucks USD. And yesterday, we went to a chain supermarket here in SMA known locally as “Mega” for all the stuff we couldn’t get at the mercado. Put over 1,200 pesos on my debit card! Checked the bank account online today, and with the exchange rate USAA Bank gives us, we paid $57.18 for a basket full of food. Leslie is sure that at Jewell or Whole Paycheck it might have been double or even triple that amount.

As they say around here, hasta luego!