Peso Closes at a New Low Against USD July 17

[Mainecoons]

^{To each his own. We don't have to travel to get good weather, it is basically good year round.}

[traderspoc]

the Mexican government in July 2015 has pegged the peso to go to 17,

i am a buyer a 16.80 to the US dollar

may take a while to get there, with lower priced oil flooding in the market, it may get there sooner

but in the long run the peso in a few years will stronger again. since mexico is a very stable economy

loading up and doing improvements on the house.

[michigander]

Is the cost of electricity different in Jalisco? Here (SMA) I pay maybe $20-$25 USD a month.

Back in Michigan my Electric bill never went south of $200.00

I will admit my house NOB was very large, but only twice what I have here. Not 10 times larger.

Of course I neither heat nor cool and that was a big piece of it.

[ComputerGuy]

I don't believe for a second that, generally speaking, a food basket is cheaper anywhere in the U.S. than it is here. Shellfish is cheaper here; steak is cheaper, vegetables and fruit are cheaper (except seasonal, obviously, like corn on the cob). Oreo cookies made in Mexico are cheaper. Maybe chips and soft drinks at WalMart...

In fact, let's look at one item that some people seem to think is cheaper NOB: chicken. I buy whole chickens at WalMart here (yes, not even talking about local markets here) at 32p/kilo. Right now, that's about 2 bucks U.S. So at a pound price, that's what... 90 cents?

[snowyco]

the Mexican government in July 2015 has pegged the peso to go to 17,

i am a buyer a 16.80 to the US dollar

may take a while to get there, with lower priced oil flooding in the market, it may get there sooner

but in the long run the peso in a few years will stronger again. since mexico is a very stable economy

loading up and doing improvements on the house.

As the sanctions on Iran are lifted in 6 months, (pending good results from the upcoming inspections), and as Iran's $150 billion in previously frozen funds are released, Iran has the opportunity to fix their oil-infrastructure issues that currently limit their oil exports to 1 million bbl per day, possibly increasing their output to the pre-sanction levels of 2 million bbl per day.

... prolonged depressed oil prices for Mexican crude => a US economy that cooks along on cheap oil, and continued towering US Dollar strength - as the USD is womping the Canadian looney, the MXN peso, the Euro, the Yen, et al. ...

[giltner68]

Well, I'll give you this, a big bottle of Distalldores(sp?) tequila was $1100p at Wallys when I left, here in TX that exact bottle and brand is $35USD? - no problem losing a taste for that. However, several years ago on the 4th I had a taste for Bush's Baked beans, at that time it was over $800p per medium sized can, this 4th in TX that exact brand and can were 2 for $1.39, so the pendulum swings both ways. And, I don't have any visa costs, mordida is NOT in the budget and as I've continued to say, electricity this month will be $0.10 per KWH for as much as I like 24/7.

But, it's a mix, it depends a lot on your lifestyle, I live today very much as I lived there and it's less expensive NOB. I eat out a lot more here, I drive a lot more here and yet it's a balance.

[ComputerGuy]

Yeah, but you can't compare imported goods when talking about prices. Just try to get a stack of freshly-made tortillas on the streets of Washington for 50 cents a kilo... (and I think you meant 80, not 800 pesos, for that can of Bush's, right? Certainly I saw them the other day at SuperLake for 69p or something...)

[cbviajero]

Well, I'll give you this, a big bottle of Distalldores(sp?) tequila was $1100p at Wallys when I left, here in TX that exact bottle and brand is $35USD? - no problem losing a taste for that. However, several years ago on the 4th I had a taste for Bush's Baked beans, at that time it was over $800p per medium sized can, this 4th in TX that exact brand and can were 2 for $1.39, so the pendulum swings both ways. And, I don't have any visa costs, mordida is NOT in the budget and as I've continued to say, electricity this month will be $0.10 per KWH for as much as I like 24/7.

But, it's a mix, it depends a lot on your lifestyle, I live today very much as I lived there and it's less expensive NOB. I eat out a lot more here, I drive a lot more here and yet it's a balance.

800 pesos for a can of beans,that's outrageous,you'd have been better off getting some delicious frijoles de la olla or frijoles charros at a fraction of the cost.

How much did you budget for mordidas?

[giltner68]

Sorry, been gone too long already, make that $80 per can, my digits slipped, my apology. But that's the point, at essentially $8USD per can at SuperThief vs 2 for $1.39USD it's a vast difference. But, it's good to know Pedro is feeling the competition. Seems like I spend $81p for a 6 of Coors lite that same holiday which is silly of course, I've toured the Coors plant in Golden a number of times and it was a memory trip.

Again, my apology, the digits tend to mix after a few months.

PS: I see my tequila was also off by a factor of 10 - make that 110 a bottle vs $35USD.

[slainte39]

Sorry, been gone too long already, make that $80 per can, my digits slipped, my apology. But that's the point, at essentially $8USD per can at SuperThief vs 2 for $1.39USD it's a vast difference. But, it's good to know Pedro is feeling the competition. Seems like I spend $81p for a 6 of Coors lite that same holiday which is silly of course, I've toured the Coors plant in Golden a number of times and it was a memory trip.

Again, my apology, the digits tend to mix after a few months.

PS: I see my tequila was also off by a factor of 10 - make that 110 a bottle vs $35USD.

Well, I'll give you this, a big bottle of Distalldores(sp?) tequila was $1100p at Wallys when I left, here in TX that exact bottle and brand is $35USD? - no problem losing a taste for that. However, several years ago on the 4th I had a taste for Bush's Baked beans, at that time it was over $800p per medium sized can, this 4th in TX that exact brand and can were 2 for $1.39, so the pendulum swings both ways. And, I don't have any visa costs, mordida is NOT in the budget and as I've continued to say, electricity this month will be $0.10 per KWH for as much as I like 24/7.

But, it's a mix, it depends a lot on your lifestyle, I live today very much as I lived there and it's less expensive NOB. I eat out a lot more here, I drive a lot more here and yet it's a balance.

You are still way off on those imported Bush's beans, just bought some for 60 some pesos a can (large), which if you have to have an dollar price would be about 4.00 USD.

[Jim Bowie]

I think this contest about which area is cheapest is a no win contest. It all depends on the food items and lifestyle of each individual person, and no 2 are the same. So, when one person says it is cheaper here for them to live than NOB, they are the only ones that can know that. And, when a person says it is cheaper for them to live NOB, they, too, are the only ones that can know that. One should not speculate or try to speak for others or the mass. If you try to speak for others, you are just "pissin' in the wind".

[giltner68]

Just a note slainte, as demonstrated, my math isn't always dead on, but 2 for $1.39 still seems a whole lot better and I'm glad the prices have come down over the years. I'll tell you something even more depressing, I love La Sierra beans, when I got to TX I found them exactly the same as in MX - except, they're totally devoid of flavor and taste? - I suppose to meet US FDA standards they have no beef flavor etc. and so they're "as advertised" - beans. So, it's a mixed bag, but I'm not having any problem with pricing here.

[John Shrall]

Agreed that there are way too many variables to win any argument about the perceived cheapest place to live.

All I know is that my property taxes in Dallas ran between $10K and $12K per year over the last 12 years we've lived in Mexico. Here they have been $200 to maybe $500 per year on a similar priced home. The difference could pay for lots of steaks, beans, tequila and gasoline.

The exchange rate closed just above 16:1 yesterday and has been hovering close to that mark today.

[rogerm]

Mr Shrall would you say that the level of city and state services is the same in Mexico as in DallasTexas

[giltner68]

John, my taxes in 2007 in Lakeway were $6K, they're more now, but now I moved 50 miles NW and they're $550 a year. Of course not the same house, but 1.5 acres and a pleasant home in a safe neighborhood where I don't panic if I forget to lock the doors.

Edit: Bigd, my level of services here in Llano County far exceed anything in the Lake area of MX.

[Mainecoons]

Also, at least in our case and others we know, property taxes here have gone up much faster than the rate of inflation at the same time as services have gone straight downhill.

If property taxes keep going up at 30 percent per year as they did last year, and 10 percent for every year before then, it won't take that long for them to be significant. However I wouldn't bet my house on having services from Chapala commensurate with this level of increase. Thus far, it seems more like an inverse relationship.

[John Shrall]

Mr Shrall would you say that the level of city and state services is the same in Mexico as in DallasTexas

The majority of property taxes collected in Texas go to the public schools. While the services may have been better in Dallas than in Ajijic, I'm confident they weren't 50 times better.

There are a lot of other parts of Texas that are a lot more affordable than the Metroplex as has been pointed out. A more modest house would save money too. However if we had stayed in Texas we probably wouldn't have moved from our house. It was a great property in a good location.

If we ever moved back to the US it certainly wouldn't be to Dallas but since we're not planning to leave Mexico there's no use speculating on other states or cities.

[giltner68]

I had to chuckle a bit regarding "services"? - I lived in Riberas, I put in my own street light, I paid to have the street in front of the gate graded (to prevent further flooding of the property) and gravel spread (I'm sure it's a mess right now). I learned early on that in MX you get what you expect and I expected little and didn't even get that, but I loved the house SIMAPA agua and CFE considerably less. I waited 2 months for my last Temporal so the $300 TIP was lost because I couldn't report in to Aduana within 15 days (gee ya think?) and then there's the annual cost of a mailbox to maintain a US address (they deliver to my box here daily, no charge).

The school districts NOB are the killer and we get extremely little for the investment, rocket scientists they are not, politically correct and with great self esteem yes. So, you just move to an area with no kids and the price drops dramatically.

[mexicomoose]

Meanwhile, back on the uh-hem subject, the peso to the dollar rate today closed at 16. Another new record.

http://www.bloomberg.com/news/articles/2015-07-20/mexican-peso-falls-to-record-16-per-dollar-as-commodities-swoon

[slainte39]

Mr Shrall would you say that the level of city and state services is the same in Mexico as in DallasTexas

Whatever those services are, I don't think I would miss them no matter what they were for that kind of money. What do they do up there service wise? deliver coffee and doughnuts in the morning? So here, the road isn't quite as smooth, the street light not quite as bright, or the water delivery not quite as dependable,.....so what? I'm very happy with what I get, so here I stay, and those who prefer the "services" up north, return up north. Pretty simple.

[John Shrall]

The rate closed above 16 today again while spending most of the day a few centavos short of that mark. 16 does seem to be a resistance point. Perhaps the Mexican government is trying to prop up the peso for the moment.

July 20, 2015

The Yucatan Times

Mexico’s peso broke the 16 peso per dollar barrier for the first time in early trading on Monday, Reuters data showed.

The peso, which touched 16.0050 peso per dollar, has hit a succession of lows against the greenback this year, prompting the central bank to intervene in support of the currency.

The weight accumulated a devaluation of only 7.30 percent so far in 2015, according to records from the Bank of Mexico.

In bank branches and exchange, the dollar sold retail went up to 16.22 pesos.

Since beginning the government of President Enrique Peña Nieto on December 2012 until Friday -- it means 31 months and 17 days of this administration -- the peso has depreciated 23 percent, higher than the figure in similar periods in the governments of his predecessors Vicente Fox and Felipe Calderon.

Low oil prices, the fluctuations of the international economy, particularly the United States and the Greek debt crisis also brought negative impact on the value of the Mexican peso.

[lakeside7]

I had to chuckle a bit regarding "services"? - I lived in Riberas, I put in my own street light, I paid to have the street in front of the gate graded (to prevent further flooding of the property) and gravel spread (I'm sure it's a mess right now). I learned early on that in MX you get what you expect and I expected little and didn't even get that, but I loved the house SIMAPA agua and CFE considerably less. I waited 2 months for my last Temporal so the $300 TIP was lost because I couldn't report in to Aduana within 15 days (gee ya think?) and then there's the annual cost of a mailbox to maintain a US address (they deliver to my box here daily, no charge).

The school districts NOB are the killer and we get extremely little for the investment, rocket scientists they are not, politically correct and with great self esteem yes. So, you just move to an area with no kids and the price drops dramatically.

For Mexicans paying for private schools the fees are "expensive". As I recall seeing the Bosco sign in La Foresta 900+pesos a month plus all the other "stuff"

[Plumeau1]

In the town of Ste-Adèle, Québec where I still leave until October 23rd. Before we move to lakeside, the cost per liter of regular unleaded is at $1.19 Can. so multiply by 3.78 LPG and if you drive to Laval or Montreal prices to up from $1.24 to $1.32 to the liter.

Usually by Wednesday you know that the price is rising.

Funny the world prices are going down !

[Sumofabit]

In the town of Ste-Adèle, Québec where I still leave until October 23rd. Before we move to lakeside, the cost per liter of regular unleaded is at $1.19 Can. so multiply by 3.78 LPG and if you drive to Laval or Montreal prices to up from $1.24 to $1.32 to the liter.

Usually by Wednesday you know that the price is rising.

Funny the world prices are going down !

So Plumeau1, how many furlongs per forte night is that?

[John Shrall]

After fighting resistance at 16 earlier in the week, the peso broke some more and closed today just under $16.22. It's probably possible to get 16:1 at the ATM. A Forex report I received late last year predicted the peso to fall to 17 although their prediction was for June. They may not be far off if things continue the way they've been going.