Baja: A Retirement Haven
http://www.hispanicvista.com/HVC/Columnist/sosio/032805sosio...
By Sal Osio, JD
March 28, 2005
Almost 200,000 American expatriates are registered as residents in Baja California, Mexico with the U.S. Consulate in Tijuana. At best this statistic
is misleading since it?s not mandatory for Americans to register with their Consular office when living abroad, particularly if they maintain a
mailing address in the U.S. Registration is a voluntary initiative recommended in order to grant Americans living abroad the recognition and
protection of their Consulate should they be in need of assistance. Accordingly, a more accurate estimate may be double the number of registrants, say
400,000 American expatriates residing in Baja.
During the last Presidential elections both political parties estimated that there were over 1 million Americans living in Mexico who were qualified
to vote. In addition to Baja, the more popular venues for American expatriates are Mexico City, Cuernavaca, Guadalajara/Lake Chapala, San Miguel de
Allende, Morelia/Patzcuaro, Acapulco, Puerto Vallarta, Cancun and Alamo. A significant majority of American expatriates in Mexico are retired seniors.
However, there are no official statistics since most retirees maintain a dual residence in the U.S. in order not to lose their Medicare benefits,
which are available only in the U.S. The vast majority of expatriates are from California, Texas and Arizona. And almost all of the expatriates living
in Baja are from California.
The principal lure to Baja by the retired is affordability of housing. In its most simple terms a retired person can buy an ocean view residence in
Baja for a small fraction, 20% more or less, compared to a similar home in Southern California. A $300,000 ocean view home in Bajamar would sell for
$1,500,000+ in the ocean communities of San Diego County. Along the beach communities from Tijuana south to Ensenada, one can find 1,500 SF (3 BR ? 2
BA) homes in the $150,000 to $250,000 price range ? also 1/5th of the price of comparable ocean community homes in Southern California.
Another principal lure is that the cost of living in Baja is a fraction of the same in Southern California. Meat, poultry, fish, sea foods, fresh
vegetables, fully ripened fresh fruits, grains, breads, tortillas and basic food staple items are less than ? the cost compared to California.
Restaurant dining and entertainment is less than ? the cost.
Household assistance is affordable. A seasoned live in maid or practical nurse earns an average of $350-$400 a month. A full time experienced chauffer
$400-$500 a month.
Primary medical care, dental, vision and vanity care, prescription and over the counter generic medicines are less than ? of comparable costs in
California.
Assuming a mortgage free residence in Baja, a retired couple can live well with a budget of $1,500/mo, which is the minimum amount accepted by the
Mexican government to issue an FM3 visa allowing to live in Mexico.
Other principal incentives to the American retiree include the Mexican culture, amigo fellowship, fiesta life style and climate that Baja offers its
residents. It is a lifestyle with a sizzle compared to the more regimented and sanitized American way of life.
Further, the proximity to Southern California, 2 to 3 hours driving distance to Los Angeles, enables the children and grand children of the retired,
ready and convenient access to their loved ones. And this is actually one of the most important considerations to the retired.
Given the above analysis one can readily comprehend why the growing segment of California?s retirement age population is evaluating Baja as their
alternative domicile to the planned desert and suburban retirement communities of the Southern California megalopolis. Over 11%, 3.5 million,
California residents are over 65 years of age, two-thirds of whom live in the Southland. And almost 40% of these seniors are Mexican American.
For the above reasons look for Baja to be the haven for over 1 million California retirees within the next 10 years.
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