by LCR The Comparative Cost of Living in Lake Chapala
Compared to most areas of the world, Lake Chapala offers a more affordable lifestyle. The natural beauty, fresh food and diverse scenery, phenomenal weather and activities make life more fun and enjoyable.
Budgets vary depending on where you live in Lake Chapala communities. Some areas, such as Ajijic, San Antonio Tlayacapan, or Riberas del Pilar have some more expensive housing, and other areas, such as Chapala or Jocotepec are typically less expensive.
Typical monthly budget for a couple
Please understand that everyone’s lifestyle is different, so budgets will vary considerably. The main determining factor in your budget will be the cost of housing.
Before we found our current rental home, I was paying $500 Canadian dollars a month rent. Now, that same house rents for $900 to $1200, so I will use that figure in the budget below. You Really Can Live Better for Less in the Lake Chapala Area!
If you pay more rent and have a larger home, your expenses will increase accordingly. If you need air conditioning, your electric bill will usually be higher.
Also, if you live in a less expensive area than San Nicolas, your costs will go down.
If you don’t eat out much, then your costs will go down. etc…..
It’s common sense. A couple can live comfortably on $2,000 USD a month if you are on a $500 USD ($10,000 Pesos) rent like us.
Taxes
If you pay cash and buy a modest USD 180,000 home, you will not have to pay rent and your living expenses will be much lower. Is there a tax exemption? No, but the taxes are very reasonable. For example, if you pay your taxes before approximately February 15 of each year you get a 10% discount. If you buy a $300,000 USD home, the taxes are around $300 USD per year. Homeowner’s insurance is about $350 USD for that house. Pretty amazing, isn’t it?
Average rental cost
Current rents in Ajijic and the area range from $500 USD / 10,000 Pesos to $2,000 USD / 40,000 Pesos.
We have dozens of banana plants, avocado trees, orange and lime trees. Exotic flowers and hummingbirds everywhere. All this and our budget is now closer to $1000 per month. Our home insurance is $200 per year.
I know of many singles in Lake Chapala who are living comfortably on $1400- 1600 USD per month in income including rent payments.
One older single lady we know Marsha, her rent is $550 USD per month for a nice furnished 1 bedroom duplex in a gated community. She says she even has money left over at the end of the month. She doesn’t eat out much, but has food delivered from a local Gourmet company – Twisted Gourmet and still has a rich lifestyle in Lake Chapala.
Some live in spectacular rentals and are paying $1,500 to $2,000 per month USD in rent. Consequently, their monthly living costs are higher however, they too, like our friends CJ and Jerry, have a beautiful home that they rent and even in their pension they are able to enjoy meals delivered regularly and are able to eat out often, and are able to enjoy the local culture on an ongoing basis.
Example of cost table for 2 persons based on a monthly rental basis
- Food: 151 USD/month
- Electricity: 35 USD/month
- Propane gas: 20 USD/month
- Phone + Internet: 20 USD/month
- Netflix: $10 USD/month
- Cleaning: $60 USD/month
- Gardening: $50 USD/month
- Health: $50 USD/month (cost of IMSS insurance per month)
- Medical and checkups: $100 USD/month (basic, checkups, etc…)
- Dental: $50 USD/month (cleanings, fillings…)
- Gas, maintenance and car registration: $140 USD/month
- Car insurance: 25 USD/month (medium size used car)
- Social fund: $140 USD/month (movies, meetings…)
- Meals and entertainment: $150 USD/month (restaurants, movies, social events)
- Other: $99 USD/month
- Housing rent: 800 USD/month
TOTAL: USD 1,900 (with USD 800 allocated for rental)
Lake Chapala has something for everyone.
