Ola Uruguay Real Estate and Investments

As I always say when writing an article about the cost of living in Uruguay, budgets are relative. When thinking of how much it costs to retire in Uruguay, it completely depends on how you and yours spend. You and I could live in the same city, on the same block, and spend money in radically different ways. You can eat in fancy restaurants, party every night, and have servants at your beck and call; or instead walk the Rambla, go biking into the sunset, and save your pesos for a rainy day. Ola writer Syd recently wrote an article on his frugal Uruguayan neighbor, which reflects one end of the spectrum; at the other end are expats whose lives are an extension of the extravagances they enjoyed elsewhere.

For this article I tried to gather a monthly budget that was “representative” in that it was neither peso-pinching, nor extra-luxurious. It can be described as a pensioners budget, provided graciously by Denise and Wally, a couple who moved to Uruguay from the U.S. They maintain a blog, where you can read about their South American adventures: wallyinuruguay.blogspot.com.

After just six months of thinking about it, they sold their home in the U.S. and moved to a small balneario called Marindia, 5 kms from Atlantida, and 1.5kms from the town of Salinas. Though rushed in their preparation, they are happy and content with their life in Uruguay.

All prices are quoted at 19 UR pesos to 1 U.S. dollar:

Monthly expenses:

Rent

Denise and Wally own their home outright, and do not have a monthly payment. If renting or leasing, add another $500 to $900 for rent or mortgage.

Electricity: $100+

This is the budget buster; electricity is expensive here. Some people choose a peak usage plan, which means you decide what time of day you think you’ll use the most electricity. Wally and Denise didn’t want to be constantly worried about being penalized, so they didn’t elect a plan. Instead they just use it when they want it. They feel they don’t really spend much more than those with a usage plan.

Gas for cooking: $9/month (bottled)

In the coastal regions there is no natural gas for home usage.

Water: $17

Denise and Wally drink municipal-city-provided water (not, well water).

Sewer: $15

Okay, it is not really a city sewer, it’s a septic system called a Pozo Negro (or black well, or a cesspool). It gets cleaned out every other month.

Internet: $46

The lifeblood of an expat. This keeps you connected to the outside world (English news, TV shows, Facebook, blogs, etc.). Different speeds and plans available.

Landline phone: $12

Obviously if you call the U.S., this bill will be higher. Of course there are ways to call home for less, such as VoIP (eg. Skype) or calling cards.

Cell phone: $20

Denise and Wally are not on a plan but instead load up minutes as they need them. My cell plan is around $25 a month with Movistar.

Cable TV: $76+

Depending on the packages you subscribe to, cable can get expensive. Wally and Denise cancelled theirs and now watch TV via their computer. If you don’t have cable, there are only three Spanish channels available through a TV antenna.

Health insurance: $76 (each)

This is a big draw for expats to come to Uruguay. Doctors are well trained, and many have studied in the U.S.

Food: $300 to $500+

Couples can save money by cooking at home and buying food at ferias (or local farmers markets) or grocery stores. Ola writer Suki recently wrote a great article about Living Frugally in Uruguay, which offers helpful hints how to grocery shop, and eat locally and seasonally, in order to save pesos! Syd added that in a carnivorous country like Uruguay (easily one of the most carnivorous I have come across), he and his wife choose to live on a diet that is heavily based on vegetables and fruit. By eating less meat, they are able to save on grocery costs.

Landscaping: $50+  (Twice a month service)

This is the one luxury that became a necessity for Wally and Denise. They have a big lot, and finally got too tired to mow all day.

Pet food: $100+

Depending on whether or not you have pets, you can include this in your budget. The price listed is not a premium brand pet food, but a lower-priced option. I was told that pet care and food cost can not be underestimated in Uruguay. Denise and Wally now have two dogs and one cat. Their care and food is almost equal to the couple’s. (http://wallyinuruguay.blogspot.com/2009/07/trip-to-doctor.html )

Misc.: $$$??? Here is where the numbers get really relative. Love eating out? Golfing? Hosting asados for 20 of your closest friends (where the cost of meat for one night could exceed what you would spend on meat in several months)? Newspaper subscriptions? Gas for car travel? Flights back to the U.S.? Here’s where you decide how much to include for extras.

Yearly expenses:

Car insurance:  $100+ (minimum liability only)

The newer and more expensive the car is, the more the price goes up. You will want comprehensive added.

Car licensing: $105+ (tabs)

Denise and Wally have an old VW Bug so their expenses are low

Real estate taxes (school & property): $525+ (depends on location and value of property)

Uruguay is not as cheap as other places in South America. Two friends of mine, husband and wife, were living in Ecuador and spending half as much as I do here, and I am just one. However, for me personally, the quality of life in Uruguay has been worth the extra pesos spent on lettuce and bus fare. It all takes good budgeting and creative spending, but I think it’s well worth the extra planning.

Are you retired in Uruguay? How much do you spend? Thinking of retiring in Uruguay? What sort of monthly budgets had you imagined? As always, we love hearing first-hand accounts.