[mikel]

Prices are going up on this side of the border too. Life on a fixed income is becoming more and more difficult and yes, some of us are looking into taking a part time job to supplement.

[bajabill]

Yep, cost of everything seems to be increasing these days up here too. Seems a bit weird as it’s been a long time since any of us have seen such levels of inflation. This will likely spur increase rate hikes which will certainly stall the housing markets.

[bajatraveler]

Yes, I think everyone is expecting that.

[JuanSoler]

AMLO was widely criticized for no bailouts and this is what we end up with. This was his doing and he owns it.

[laguera]

Everything is more expensive today here in the USA too. Food, gas, rent. Even our gardner now told us last month the monthly fee is almost double now. I told my husband he need another raise.

[bajatraveler]

My landscaping service did the same thing but I guess it makes sense as they use so much gas in what they do. But it still is a tough pill to swallow.

[JuanSoler]

Rents, home prices, food and used vehicles have all gone way up this year in Mexico. It is surprising to me that the dollar has not been catching up or even ahead of the inflation here in Mexico. That is what many Mexicans do historically is to buy dollars when the peso is deflating and that should push the dollar higher.

[JuanSoler]

According to this article, to live in California a family of four requires at least $3,930 dollars each month IN ADDITION TO what they will pay for rent! So with average rent prices today, somewhere around $5,500 to $6,000 each month. And it goes on to say that to live comfortably that same family of four will need at least $9,560 each month!

I know expat retirees living on that much all year here in Mexico, within a few blocks of the beach.

https://www.interviewarea.com/faq/how-much-money-do-you-need-a-month-to-live-in-california

[six-one-niner]

It is true that the dollar has been stagnant compared to the Mexican peso for the last year but over time it is always the best way for Mexicans to protect against inflation. This morning it went over 21 briefly.

https://www.tradingview.com/symbols/USDMXN/

[pauldavidmena]

My wife and I fell in love with Todos Santos, BCS about 15 years ago. While we haven’t fallen out of love with the area yet, property costs have skyrocketed as we count down the months until both of us retire (end of 2025, tentatively), and we’re suddenly scrambling to figure out what that means in terms of how much we can really afford and where. In other words, just how much gold is needed to sustain us in our golden years?

We had a recent reality check when a house we stayed at in Pescadero back in 2016 – for $440 per night – just listed for $2.6 million dollars. It’s massive – with 3 private bedrooms, a caretaker’s cottage, a pool and outdoor kitchen/bar – and it’s also located in the shadow of the Modern Elder Academy. Overdevelopment has plagued the area since COVID lockdowns encouraged expats to relocate and work remotely. Instead of a rustic beach getaway, it’s now a second home with high-speed internet and two-car garage. The impact on the water supply has been profound, and there doesn’t seem to be any way to unring the bell, so to speak.

So we’re slowly considering other part of Baja, such as Buenavista on the East Cape, but we feel like we’re starting from scratch again – except that we’re now in our mid-60s. On the other hand, the high temperature today on Cape Cod was a less-than-balmy 35 degrees. ❄

[mikel]

Look at the bright side, at least you figured it out now rather than after you bought a home or were halfway through building a new one!

One thing that I have noticed about myself is that what I want/need right now is different than what I wanted/needed ten years ago. I have changed, the world has changed and the places I thought I would end up spending my later years have changed as well.

Personally, I really like Todos Santos and have spent a lot of vacation time there but the vibe has changed over the last several years and it’s lost a lot of the charm it once had. Certainly not worth spending the money it now demands in real estate prices.

We are looking closely at areas along the East Cape as well as Mulege and Loreto. Even thinking about living out of a motorhome for a year or so and spend some time in the different communities before we do put down any serious cash on a long term investment.

[pauldavidmena]

We were back in Todos Santos for the first time in 3 years back in late January through early February. Food prices seemed lower than where we live in the States (Cape Cod), and that experience proved similar in restaurants as well. Housing prices were very high – especially where we stayed in El Pescadero – but my understanding is that inventory is saturated, and that motivated sellers are starting to discount their homes before the tourist season winds down. All in all we remain bullish on the Pueblo Magico for many reasons, not the least of which is that we’ve made quite a few friends there over the years.

[mikel]

That’s certainly a good reason to remain focused on the TS area.

We had pretty much given up on our dream of buying a place in Mexico as the surge in RE prices in Mexico meant we simply couldn’t afford to pay the current prices in the neighborhoods where we wanted to live. Then one day my daughter called, sharing with us that her in-laws had built a home in the Los Barriles area 30 years ago. Her mother-in-law hardly goes to the house anymore since her husband passed in 2023 but she just couldn’t bring herself to sell the place due to so many memories made in the vacation home with her late husband.

When she found out that we were looking for a place in Baja, she offered to let us buy half ownership of the beautiful home for about a quarter of its market value today, putting us back in the game. The only stipulation was that we would pass the property onto to our kids when we die (which we already planned to do).

It’s been a great move for everybody.

[pauldavidmena]

This is indeed a great solution – you get to have that Mexican home you dreamed of, and your daughter’s mother-in-law doesn’t have to part with a home she rarely visits but can’t bare to sell. A classic win-win!

We’ve only been to the East Cape once – to visit George Bergin (a.k.a. Osprey on BajaNomad) and his wife roughly 12 years ago – and don’t have the same sentimental attachment to the area that we do to Todos Santos. We haven’t completely given up, but it would take an incredible stroke of luck to make it happen.

• This reply was modified 1 month, 2 weeks ago by  pauldavidmena.