Tell me about your "Dream Plan"

[Kiltboy1]

Ecuador and Bolivia are both run by Chavez buddies and now so will Peru. There really are not many stable places in South America suitable for expats. Chile and Uruguay are about the only options and Chile's cost structure is pretty much first world. That only leaves Uruguay. I just hope it remains under the radar for the next five years.

Actually
 
Ecuador is in the best shape it has been in in 30 years. Yes, Correa is a leftist, but not in the same mold as Chavez. Now in Ecuador more people are buying homes, cars, ect then ever before because Correa took control of the banks that were lending $$ at 30-40 % interest and now lending at 7%. There may not be much investment from the USA, but China and Canada are investing heavly in Ecuador and on the coast(Where I have my 3 oceanfront acres to build my home) there are now a super highway from Quito to Manta and all the spectacular beaches on the " RUTA DEL SOL"  This is Costa Rica of 25 years ago. I Love it there .
 
KB

[whitey]

Actually
 
Ecuador is in the best shape it has been in in 30 years. Yes, Correa is a leftist, but not in the same mold as Chavez. Now in Ecuador more people are buying homes, cars, ect then ever before because Correa took control of the banks that were lending $$ at 30-40 % interest and now lending at 7%. There may not be much investment from the USA, but China and Canada are investing heavly in Ecuador and on the coast(Where I have my 3 oceanfront acres to build my home) there are now a super highway from Quito to Manta and all the spectacular beaches on the " RUTA DEL SOL"  This is Costa Rica of 25 years ago. I Love it there .
 
KB

Sounds pretty good, KB!  Is there room for me to pitch my hammock somewhere on those 3 acres? 

[fathertime]

I'm curious what housing costs in SoCal......I live in Estrato 4 with 4 bedrooms, 3 bathrooms and patios front and back, one car garage. I pay the equivalent of $240 US per month for house and all servicios; water, electric, natural gas, telephone, Internet. I have hot water in the showers but don't need heat or air conditioning. I know it's not easy to make a comparison, but just a seat of the pants guess what that would cost in SoCal per month?


My second curiousity question: I am 10 minute walk or $1 taxi ride from the supermarket. Inter-city buses to all the neighboring cities run on 1/2 hour intervals and will stop 3 blocks from my house if I ask. Typical bus trip to Armenia or Pereira from my home is about $5 each way. If I need a car and driver for a whole or half day Gustavo charges me $10 hour for him and his late model Toyota Corolla with a/c. My monthly budget for transportation is about $100 US. How would that compare to the cost of ownership of a late model Toyota Corolla in SoCal when you factor in gas, maintenance, bank payments and interest, insurance, garaging? Just a seat of the pants round number?


By the way, on June 3 I moved to a different pueblo, but I'm still living a better life on less money per year than I used to make in a month in the US.

Hey andy lee!


240 for your set up…that is very reasonable and inexpensive….it would cost at least 2400 if not quite a bit more for that here if a person was paying rent/mortgage


…let me explain my reasoning….in alabama’s case he owns a decent place outright so the costs are probably not too much  and I think he could upgrade an be free and clear if he wanted to a place suitable for long term use with several kids to consider…
the cost of travelling back and forth can be 4k a pop with 3 kids and I can’t see that price going down too much, maybe upward though….i think it would be easier FOR HIM to make fairly easy cash here with his profession then it would be in Colombia, so I’m also taking that into account.
I know people CAN live for less in Colombia, but when considering airfare back and forth, schooling for children, and whatever else a family would like, I’m thinking a person who owns something free and clear here and is comfy enough with the public schools could be better off just enjoying with Socal has to offer….Heck, it seems to me that colombia is best for single men, or married men with babes on the side…anywhoo those are my thoughts on the issue.


Fathertime!

[Kiltboy1]

Sounds pretty good, KB!  Is there room for me to pitch my hammock somewhere on those 3 acres? 

You are always welcome . I will even provide the Pilsner Beer my friend !
 
KB

[Alabamaboy!]

I'm curious what housing costs in SoCal......I live in Estrato 4 with 4 bedrooms, 3 bathrooms and patios front and back, one car garage. I pay the equivalent of $240 US per month for house and all servicios; water, electric, natural gas, telephone, Internet. I have hot water in the showers but don't need heat or air conditioning. I know it's not easy to make a comparison, but just a seat of the pants guess what that would cost in SoCal per month?


My second curiousity question: I am 10 minute walk or $1 taxi ride from the supermarket. Inter-city buses to all the neighboring cities run on 1/2 hour intervals and will stop 3 blocks from my house if I ask. Typical bus trip to Armenia or Pereira from my home is about $5 each way. If I need a car and driver for a whole or half day Gustavo charges me $10 hour for him and his late model Toyota Corolla with a/c. My monthly budget for transportation is about $100 US. How would that compare to the cost of ownership of a late model Toyota Corolla in SoCal when you factor in gas, maintenance, bank payments and interest, insurance, garaging? Just a seat of the pants round number?


By the way, on June 3 I moved to a different pueblo, but I'm still living a better life on less money per year than I used to make in a month in the US.

I paid $139K for my condo. It is a small 1/1 but has enough room for 2 adults and 2 kids. It is in a great location where you do not need a car at all. I rode my bike yesterday to Ocean Beach Pier and it took me 15 min going at a pretty leisurely pace. I just got my electric bill today and it was $32. The water, hot water is included in the condo fee of $243. It has a huge heated pool that says the capacity should be no more than 75 people at once. A huge jacuzzi that has the capacity at 25 people. Great garden areas, ponds, sand volleyball courts, laundry area, gym, BBQ area, tennis courts. The huge swapmeet is within walking distance. They have an unbelievable array of fresh fruits and vegetables at great prices. The local supermarkets Von's and Ralph's are within walking distance. I am getting free internet because I let my neighbor use my parking space. I guess my property taxes come out to be maybe $130/month or so. Cable is like $25 for the basic plan I have here. There are lots of parks and playgrounds within walking distance.

I think the rent on these places would go for around $850/month right now. But of course if I rented there would be no association fees or taxes to pay.

I think if a couple were motivated, they could live here for about $2000/month pretty nicely. As long as you do not have a car and don't need medical services. Although Tijuana is very close by. There is public transportation all the way to the border I believe.

This might be my Dream Plan after all. Maybe even meet up with Ray some day and bury the hatchet. You are in SD right?

[Jeff S]

Lot of great things about Southern California, but low costs isn't really one of them - at least not i my neighborhood. Rents will get you, but like A/B, I need no heater or air conditioner, can walk to the beach, two great grocery stores, farmer's market, dozens of great restaurants, and so on. Going out to eat at nice places can make you gasp at times these days, but it's easier here than most places to scale your expenses up and down depending on your life situation. Plenty of free entertainment and year-round things to do without burning much, if any gas - and safety is never an issue. The only crime I've ever heard of in my neighborhood since I moved here 23 years ago was a few cars had their windows smashed out one night about 10 years ago. A 1/1 here is probably over $1000, and 2/2 with a garage is in the $1700 range.

[InSanDiego]

Alabamaboy, SoCal cost of living is high. However, not as expensive as New York City, or even Washington, DC. I moved to San Diego from the east coast and will never move back...

[no comment]

I have spent a solid 10 days here at the condo in San Diego (Sports Arena area) and I am starting to believe the Dream Plan might just be here in good old SoCal!

This is why I always wonder at the retirement plans of guys decades away from typical retirement age.  Between now and the next decade or more, so much can change in countries' economies or political climate let alone the dreamer's own mind.
Alabamaboy, did you see the story about Brazilians buying up Miami property on gains by their currency? http://www.bloomberg.com/news/2011-06-21/brazilians-buy-miami-condos-at-bargain-prices-after-45-surge-in-currency.html  That city has much to recommend it as far as investment.  It's popular with South American expats, has an international airport and it's a short flight to much of Latin America. 

[Alabamaboy!]

Alabamaboy, SoCal cost of living is high. However, not as expensive as New York City, or even Washington, DC. I moved to San Diego from the east coast and will never move back...

The thing that SoCal has that you cannot get anywhere else that I know of is the weather in a beach city. It is like Medellin weather with beaches within biking distance. Sure the beaches in FL are much better, but the weather sucks if you want to lead an active lifestyle with kids. Those beaches just make you want to lay around and drink beer. But San Diego, OC, LA weather makes you want to exercise and enjoy life.

The bodies at the beaches are great incentive to stay active also. Wow.

But that being said SD is definitely a "BYOC" (Bring Your Own Chica) city. I don't get many looks from good looking single women at the SD beaches when I am 40+ with two kids in tow....usually 1-2 other kids as well (friends of my son). But plenty of beautiful scenery to keep the blood flowing.

[Alabamaboy!]

This is why I always wonder at the retirement plans of guys decades away from typical retirement age.  Between now and the next decade or more, so much can change in countries' economies or political climate let alone the dreamer's own mind.
Alabamaboy, did you see the story about Brazilians buying up Miami property on gains by their currency? http://www.bloomberg.com/news/2011-06-21/brazilians-buy-miami-condos-at-bargain-prices-after-45-surge-in-currency.html  That city has much to recommend it as far as investment.  It's popular with South American expats, has an international airport and it's a short flight to much of Latin America.

I used to live very close to Miami. I went there often. I loved the beaches and the bikinis, but the women there were kind of worthless. The ones I met anyway. There seemed to be a huge percentage of gold diggers there. Even if they were fresh off the boat from wherever, they seemed to get on the gold digger program real quick.  And most of the people I met there were kind of rude and like scammers or something in general. Even though I made pretty good money down there, I was never able to compete with those super rich kids driving Bentleys and Ferraris.  I met and dated lots of super hot women there, but they were not wife material for sure. The parks in SoFL are not really family friendly as far as I can see. When I would lay down there in the grass for a minute or two, you would instantly be attacked by fire ants, mosquitos, other assorted insects....with the very real possibility of meeting up with a snake or even an alligator. A couple houses down from me when I was there, an infant got snatched by a gator from the back yard which had canal access. They located the alligator and killed it with a bangstick, cut the stomach open, the kid was there but dead. That was some crazy stuff. I prefer the laid back SD lifestyle. No hurricanes, earthquakes, blizzards, floods, tornadoes,  bugs, snakes, alligators, nothing.

[no comment]

I loved the beaches and the bikinis, but the women there were kind of worthless. 

AB, I'm just looking at it from an investment standpoint.  I figured the women weren't a factor since you found one in Barranquilla.  Other factors to consider are that Florida has no state income tax, and California has major fiscal problems.  Businesses and residents have been fleeing the state.  I wonder who the state will bleed to pay its debt?

[Alabamaboy!]

Yeah for a strictly investment aspect. I think you are right. As other Latin American countries become relatively more wealthy, they will eat up the Miami real estate. Not so for SD.

[Brazilophile]

What a fantastic thread.    One thing not mentioned here but is a player (at least for me) is the tax benefit received by being a non resident of the US.   I currently live in Dubai and for all American citizens with a resident visa or who have the bonafide resident status, you are exempt from the first $90,000 dollars of income to have to pay tax!     That rate goes up a little each year so for those who have some good investment income, living abroad/overseas can certainly have it's benefits in this regard.     

PS... I'm not an tax man but this directly affects me so I know it somewhat well. 

Flyboy777

The tax benefits of going ex-pat are something that I am planning for as well.  I met several Americans in Colombia who run or work for US software firms but live and work from Colombia.  They get the exclusion so long as they stay in Colombia for at least 330 days.

In 2010, it was $91,500.  On top of that, you can exclude some of the money you get to help you with housing.  The problem for guys who are planning to retire is that the income exclusion applies ONLY to earned income. Investment income is NOT excluded.  The income that is excluded has to come from being an employee or running a business.

You can't go completely tax free though because you will have to pay local income tax.  For most countries, you can't stay all year without a visa that requires you file income taxes.  To avoid local income tax you will have to spend at most 6 months in a country.  If you are willing to spend 6 months in Colombia and 6 months in Panama, a person could earn $100,000 free of all income taxes from anywhere.

[Brazilophile]

Alabamaboy, did you see the story about Brazilians buying up Miami property on gains by their currency? http://www.bloomberg.com/news/2011-06-21/brazilians-buy-miami-condos-at-bargain-prices-after-45-surge-in-currency.html  That city has much to recommend it as far as investment.  It's popular with South American expats, has an international airport and it's a short flight to much of Latin America.

 I read that article.  I live in Miami.  I think the article is mostly propaganda by real estate firms, specifically CondoVultures, to drum up sales activity.  The SoFlo real estate market is dead and getting deader by the minute.  Unemployment is rising.  Rick Scott, the governor, is cutting all kinds of teaching, police, firefighters, and other government jobs.  The jobs that are being created are hotel maids, restaurant waiters, taxi drivers, and other tourism related jobs that pay minimum wage.  NO LOCALS CAN AFFORD TO BUY HOUSES!!!
 
 The property rich foreigners are buying is the luxury condos that no Americans are buying.  Remember that at the time of the housing bust, tens of thousands of luxury condos were being built.  Many developers went out of business, but the half built properties were bought by others and completed.  Those condos have been coming on the market for the past couple of years and they need to get sold.  So the agents are talking up business by saying that all kinds of Brazilians are buying up the best condos and anyone who is interested better pay top dollar RIGHT NOW before only crap is left.
 
 This smells to me like the worthless Abacus mortgage backed bonds that Goldman Sachs sold to pension plans in Australia and Germany.  I'll bet it works out the same way too!  There is a run-off election for Miami mayor in Tuesday.  It is a toss up as to who is the worse candidate.  Miami politicians have been robbing the taxpayers blind and I heard there is a budget deficit of $200 million for 2011.  Eventually the city has to raise property taxes.  What kind of investment will these condos be then?
 

[no comment]

Brazilophile, no doubt the real estate industry wants to promote sales and "news articles" have to be taken with a grain of salt.  Here's a recent one mentioning Colombians:  http://www.miamiherald.com/2011/06/09/2259121/plans-for-new-south-florida-condo.html 
People have to live somewhere, so there's the possibility of renting the unit.  As for the budget deficit, a lot of major cities have that.  Maybe not in Texas.

[Alabamaboy!]

There sure are some good buys there.

The prices are almost at Rodadero prices for beachview properties. It seems like the clock has been turned back to like 1999 there. Wow.