A long time reader wrote me this week regarding the feasibility of living in Buenos Aires on 5200 Argentine pesos per month.
"I’ll be on my own with ARS 5,200.00 per month. I got my savings for start up furniture, payment in advance, etc. Villa Crespo or Caballito will do nicely to keep me off the “So you’re a tourist?” grid. I plan to arrive with a pensioner’s visa in order to avoid the buquebus ritual. Just give me my internet, a little balcony and a bife every so often and I’ll be fine. Is this just wishful thinking or might I have enough to pay my bills?"
At first I was pretty sanguine about it ...of course, you won´t be able to recreate your little patch of yanquilandia for what works out to be about U$D1325 but it depends on what you're looking for and what makes a living a life and what makes a house a home.
I´ve since received a more practical breakdown of all the costs involved during a month of making Buenos Aires your city.
A college student living in Almagro (one of my favorite barrios but farther off the tourist trail than Villa Crespo / Palermo) writes that his small apartment, 2 rooms with a tiny kitchen and bathroom, cost him $1200/mo. in January. Las expensas are $300/mo., gas and electricity about $30 each (while subsidies last), $100 for the obligatory landline. Throw in cable TV and internet, and you´ve just goose'd it by about another $290.
That brings a small, basic apartment in a real Buenos Aires barrio to about $2500 a month... deadly close to half of my reader's budget.
Cooking at home could come to $1000/mo. Dining out anywhere (steak, some trimmings, & some wine) eats up a big piece of $100 as quick as you can.
As our reader seems to be retiring, some health insurance seems to be indicated ...not that basic care can´t be had under national health care. A cheap prepaga like that of my missus and myself, depending on his age, can easily come to $600. Other "prepagas" around town can be double.
So minimum numbers could be a lot more like this: apartment: $2500; food: $1400; prepaga: $600
A total $4500 pesos.
Whaddya think? Is it doable? I know that inflation is a concern ...but I think that inflation here hasn´t been a concern for those whose incomes come in as USDs.
Are there cost-cutting measures that I may have missed?
I´d love to hear your thoughts and I promise to pass them along.
6 comments:
Health insurance goes up about every month.
Everything we do and everywhere we go, prices are up .. over and over.
Even the dog groomer is hiking up his prices,
monthly.
Thankfully, we own our home, I don't think I would want to rent.
What about banking, is he using US banks and ATM's or will he open an account here?
As you know, the visa is only started when you arrive, it takes 3 more years to be done. And that always costs something, they always, without fail ask for something that requires paying accountants, etc.
Will he still have to pay certain things in the US (taxes?)
Finding decent furniture that is affordable might be hard.. Does he speak Spanish, I hope !
My husband said if he can, it will be really tight. And you always need to have a reserve somewhere for emergencies.
Also ... I think inflation here does affect everyone here, even those with incomes in USD.
He would probably , in a lot of ways, live a nicer life here, the wealth of Things To Do, Free music and exploring... but then exploring can be expensive/cars/planes/etc.
That apartment in Almargro costs more than an apartment I know of in Recoleta, with 2 bedrooms, 2 baths and a nice kitchen/laundry :)
I found 2 big real state companies that give you some market references.
The first one works mostly in Almagro-Caballito: El Gran Mogol. You'll see that today they're offering 2 rooms apts in Almagro for $1200 there. (Your student friend must have signed his contract recently)
This other one covers the Palermo-Recoleta area:
Covello Inmobiliaria. The range in prices is wide -as wide as the quality of the locations in both neighborhoods- but an average for the same amount of square meters is around $2300.
Contracts are signed for 2 years and need a co-signer with a property in Capital. The down-payment is usually 3 months rent (month in advance, deposit plus the real state commission). He can also negotiate a bi-annual advanced payment, it may work if lack of co-signer.
As for food prices check:
Supermercado Coto
Supermercado Disco
Hipermercado Carrefour at Palermo.
I agree that inflation is important to be considered, both ways. In pesos, the increases are a daily nightmare and will go on to be. On the other hand, the dollar has been artificially kept almost at the same rate by Banco Central and who knows for how long it's going to be like that... my guess is until next elections. After that, no idea.
But I think it's worth a thought if you're talking a permanent move.
Hope this helps your friend.
My 2 cents...
The actual number depends more on a persons expected standard of living than anything else, doable sure, what one might consider comfortable, not sure. My comment is more on the 'inflation doesn't affect someone earning in dollars as much as someone else earning in pesos'. This may be true to some degree, but I have been here 4 years earning in dollars and inflation is likely chasing me back to the US in the near future. I think real inflation here is even higher than most people realize. A factura in the panaderia next door costs 5 times what it did 4 years ago, that's serious inflation.
Thanks for sharing this... it's very interesting for me, since my son is going to be living in some Buenos Aires apartments for 3 months!! so this info it's very usefull for me, and also I'll show him to read this
thanks again.
Post a Comment