If you are one of the millions of Americans who have just paid their tax burden to the IRS, you may be wishing that the cost of living in the United States were less expensive. Taxes are at an all-time high, but along with that is one of the best economies the nation has ever enjoyed. Many Americans are retiring with more in their pockets than ever before, but finding that the cost of living is putting them right back in the red, especially if they want to move to a warm climate like Florida, Arizona, or Southern California.

Some retirees are finding that moving across the border to Mexico offers them a higher standard of living at lower costs. They also may commute to see loved ones as easily as they can from a southern U.S. location. They can live in a gated community on a golf course ($70,000 to $80,000) for one-half the cost of a median U.S. home ($135,000), and buy food and services at a fraction of the cost of U.S. goods.

Mexico's slowly emerging financial and developmental renaissance is lowering the risk of investment to Americans and Canadians who are interested in good values for vacationing, second homes, and permanent residences. Developers are aggressively pursuing this market with the enticement of more bang for the buck.

Among the carrots on the stick: Comprehensive medical insurance can be purchased for as little as $200 a year. Property taxes are approximately $40 to $120 a year for an average home. Insurance costs on housing are low -- most homes are made of concrete forms and stucco, with virtually no need for fire insurance. Costs of some goods and services range higher -- such as for long distance service and automobile maintenance -- but food and other services are surprisingly low-cost.

The following cost of living estimates for the Guadalajara area (central subtropical Mexico near Mexico City and Puebla, both cities with multimillions in population) were obtained from Mexico Retirement and Travel Assistance fall/December 1997 issue and converted to U.S. dollars.

AUTOMOBILE

Premium gasoline: $1.69 per gallon
Wash auto: $1.87
Lubricate auto, change oil and filter: $14.82

MEDICAL AND DENTAL

Clean and X-ray teeth: $19.33
Tooth filled: $19.33
Doctor's office visit, including EKG: $40

HOUSING RENTALS

Furnished one-bedroom apartment with living room, kitchen, and bath: $275 to $300 per month
Beautiful, furnished six-room apartment (two bedrooms) in a nice neighborhood: $450 per month
Unfurnished garden-style condominium with pool (two bedrooms, two baths) in Guadalajara's best neighborhood: $550 per month
Nice, modern two-bedroom home in gated community: $600 per month

PERSONAL CARE

Women's haircut and permanent: $19.93
Men's haircut: $3.24

UTILITIES

Electricity: $9.84 per month
Propane gas for cooking: $14.90 per month
Telephone basic service: $15.90 per month
Water for drinking: $7 per month
No heating or air conditioning is required

ENTERTAINMENT

Ticket to movie theater (first-run film): $1.87 to $2.49

MAID

Basic, thorough house cleaning one day (4-5 hours) each week: $6.23 per week

LAUNDRY AND DRY CLEANER

Clothes for two people at commercial laundry (washed, dried, and folded): $8.20 per week
Dry clean trousers or skirt: $1.91

RESTAURANT/EATING OUT

Dinner at excellent restaurant: $12.45
Chicken dinner at good medium-priced restaurant: $5.75
Broiled prawn dinner in Chapala: $7.50

FOOD

The following are prices per pound for fresh meat, vegetables, and fruit, current as of September 1997: Chicken, whole: $0.62

• Bacon: $2.81
• Hamburger: $1.33
• Pork chops: $2.26
• T-bone steak: $3
• Beef fillet: $4.52
• Turkey: $1.30
• Tomatoes: $0.62
• Cucumbers: $0.14
• Potatoes: $0.16
• Cabbage: $0.10
• Broccoli: $0.31
• Strawberries: $0.79
• Oranges: $0.09
• Bananas: $0.15
• Parkay margarine (400g): $1.58
• Flour: $0.24
• Eggs (dozen): $1.08

BOTTLED DRINKS

Six-pack of beer (Corona 325 ml): $1.68
Coca-Cola ( 2-liter plastic bottle): $0.92
Milk (2 liters): $1
Fruit juice (1-liter tetra-pack carton): $1.39
Assorted soft drinks (355 ml. aluminum can): $0.34

Imported Scotch and bourbon are comparatively expensive, costing about what they do in the United States, or more. Domestic alcoholic beverages are relatively inexpensive. The best Kahlua costs $8.59 for a 946 ml. bottle. Passport Scotch (700 ml): $11.33, Don Pedro Brandy (940 ml): $8.56, Barcardi Carta Blanca Rum (680 ml): $4.15, and Smirnoffs Vodka (915 ml): $6.91. Mexico produces excellent tequila, beer, wine, and brandy.

MISCELLANEOUS

Regular grind coffee (1-lb. can): $3.72
Basic subscription cable TV: $19.30 per month
First class air-conditioned urban bus fare: $0.57
Veterinarian consultation: $10

Published: April 16, 1998

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.