How to Retire in Mexico on $1,500 a Month. Is It Truly Possible?

Financial advice site Investopedia recently reported that Mexico has become a beloved home for more U.S. citizens than anywhere else. It offers a welcoming environment for expatriates, and those wanting to retire in Mexico can also easily find communities of like-minded individuals. With the country’s great investment opportunities, you don’t need to shell out too much, as house prices average around 21% less than in the U.S.

So, if you want to do the same for as little as $1,500 a month, what steps do you need to take? 

In this guide, you’ll find helpful tips about things like:

• – Mexico housing choices
• – Expense management
• – Financial strategies
• – How to start your move

Start planning today to discover why the perfect retirement you deserve in a beautiful country is only a few steps away.

Can I Retire in Mexico on $1,500 a Month?

The cost of living in Mexico in 2024 is currently significantly lower than in the United States. As such, how much you need to retire in Mexico is far less than if you were still living in the U.S. If you’re considering retirement, Mexico offers a wonderful opportunity to stretch that budget much further to comfortably cover your essentials.

As investing in property is also easier due to the lower house prices, you leverage these savings to reduce your outgoings to below $1,500. 

One of the first steps in this journey will be the need to do enough research to find the cheapest places to source things like:

• – Groceries
• – Transportation
• – Utilities
• – Insurance
• – Entertainment

However, using local resources and the advice of your local community, you can often reduce monthly outgoings even further. 

In Playa del Carmen, for example, the average rent for a one-bedroom apartment is around $700 monthly, according to WorkMetrics.org. This price is lower if you’re willing to live a little further from the beach, such as in the neighborhood Ejidal, where the rent is closer to $500, and you can get a larger space.

According to International Living, you are then going to find that the rest of your outgoings will total approximately:

• – Utilities: $180

• – Groceries: $220

• – Transportation: $40

• – Health Insurance: $60

Including the rent, this adds up to around $1,200. You can then budget for entertainment and incidental purchases. However, if you are frugal, these should not go above $300. 

Affordable Housing and Real Estate Options

You may also want to consider buying property instead of renting, which can be a great way to save on monthly rent and give yourself more freedom in the future. 

Depending on your current situation, you may be able to use U.S. home equity to buy a location in Mexico to reduce your need for a mortgage. However, if that is not a possibility, research opportunities for:

• – Finding a Mexican mortgage
• – Sourcing a cross-border U.S. mortgage
• – Finding more affordable property outside of tourist hubs
• – Working with real estate experts familiar with expat needs
• – Exchanging your savings for Mexican pesos.

You may also find opportunities you did not know existed by asking experts, such as Kira at Azul Mexico Realty, for their advice.

How Real Estate Can Support Your Retirement

If you own property in Mexico in addition to the one in which you live, you can rent it out so that it can act as an additional source of income. The proceeds from this property can then supplement what you are already getting from your pension to give you more assurance of having the funds you need.

Buying Property in Mexico to Maximize Savings

There are many locations in Mexico where investing can make a lot of sense. For example, real estate in Playa del Carmen and Tulum can offer a mix of affordability and luxury while also appealing to expats, whose culture you may be more familiar with. 

If you are unsure of the process of buying property in Mexico, consider partnering with a real estate expert like Azul Mexico Realty to simplify each step. We can offer you insights into better areas for living according to a specific budget or give you a better portfolio investment deal. 

Affordable Locations for Retirement in Mexico

As mentioned, Playa del Carmen is an excellent option for expats who want to buy property for themselves or a portfolio. In addition, you may want to research the following locations, depending on your needs:

Tulum

This area has a much quieter environment and is only around 60 km from Playa del Carmen. You can access the local community of Playa del Carmen during the day and Tulum’s picturesque beaches when you need a break.

Mérida

The largest city in Southeast Mexico, Mérida, has a rich culture, with several museums, restaurants, and other areas to explore. The location is also famous for its colonial-era architecture, which speaks to its history, and a unique Day of the Dead celebration due to the overlap of Catholicism and its own local traditions.

Puerto Vallarta

This location has very affordable housing that often appeals to those wanting new options in retirement. Due to a thriving expat community and its tropical climate, many Americans retiring in Mexico have traveled there in recent years to join others who have made a home for themselves.

Most of the region’s amenities are within walking distance, so it has become even more popular for people to visit or invest in as more people have retired.

Live Comfortably for Less in the Land of the Sun

Imagine having the opportunity to retire in Mexico for as little as $1,500. This dream is more than simply realistic. It’s also an exciting, achievable goal you can reach for.

Enjoy a fulfilling and comfortable lifestyle in the Riviera Maya region and find ways to both live and thrive by making smarter financial decisions.

Azul Mexico Realty wants to help you with this ambition by offering support to get you affordable real estate options that match your budget. Contact us today and find the best place, just for you, in a beautiful country.