Is it really cheaper to live in San Miguel?
Part IV: Services and Technology
By Jim Karger

In this five-part series, Karger looks at the commonly shared belief that it is less expensive to live in Mexico, specifically in San Miguel de Allende, than in most communities in the United States. It is an important inquiry because many expatriates leave the United States in part because they believe the cost of living in Mexico is materially less. In his fourth article, Karger compares the cost of certain commonly utilized services as well as electronic equipment in San Miguel de Allende with the same services and equipment in St. Louis, Missouri.

It is 6:26 a.m. and I am sitting at Gate 18 in St. Louis’ Lambert airport. In addition to the business purposes of this trip, I took time to secure prices of certain commonly used services as well as technology/electronics. (My thanks to Miss K for doing the same in San Miguel and Querétaro in order that I may make these comparisons before the deadline for this column.) 

The ultimate question addressed in this series is validity of the commonly held belief that it is between 25 and 50 percent less expensive to live in Mexico, and in particular San Miguel de Allende, than in moderately-priced United States cities. Is there factual support for the proposition or is it another myth? Next week, in the final installment in this series, we will do a little “clean-up” in cost areas not yet examined and summarize the findings of the first four articles in this series. 

Services

The services chosen for comparison include various medical, transportation and household services.


Medical

Doctor visit

It will come as no surprise to most that medical services are less expensive in Mexico. Indeed, an office visit to a general practitioner in San Miguel ranges between 400 and 600 pesos, or US$38 to $57 based on a 10.5-to-1 peso to dollar exchange rate (which I use throughout this article). In St. Louis, an office visit with an MD ranges from US$100 to $175, or about three times the price. There are a myriad of reasons, to include the higher cost of practicing medicine in the US. For basic medical services, however, I have found few individuals who have not felt that Mexico was a bargain, and they are correct.

Hospitalization, surgery

For more sophisticated medical issues, many expatriates elect to return to their home countries, either because they have government benefits or because they believe they can get better medical care there. From an anecdotal perspective, I have found, along with many others, that reasonably sophisticated medicine is available in larger cities in Mexico and, indeed, hospitals like Angeles in Queretaro have been impressive in their quality, service and cleanliness. 

The average cost of a room for a night in a good hospital in St. Louis is between US$500 and $750. Hospital Angeles in Querétaro is a mere US$125 per night for a room that reminds me more of a four-star hotel than a hospital. The quality of medicine there has been impressive, and while I have not personally experienced it, friends and family have, and all have described their experiences favorably. One instance involved a hysterectomy through a laparoscope that saw four doctors in the operating room, including two surgeons, an oncologist and an anesthesiologist. The patient was cancer-free but the surgery took about three hours and the patient recovered in the hospital over the next three days. The tab? US$13,500 for the hospital, medicines and physician, which may not sound inexpensive until you learn that the same services in a good metropolitan US hospital would be at least US$30,000. 

Insurance

Because of the reduced costs of medical care, it is not surprising that insurance covering medical care is also less, even when an expatriate has the option of returning to his own country. A good example is my own policy. It covers all medical services for my wife and me with a US$2,500 deductible per person per year. We pay a premium of US$3,200 per year and for that we receive worldwide medical care at any hospital or doctor of our choice. If we elect medical care in Mexico, the insurance pays 90 percent once the deductible has been met and 80percent if we elect to utilize services outside Mexico. The same insurance coverage in the US, utilizing the same deductible and ages, ranges between US$9,000 and $15,000 per year. 

Transportation 

Taxi

The current cost of a daytime taxi ride anywhere within San Miguel (not outlying areas) is 20 pesos, or 25 pesos (US$2.38) with tip. A cab ride in St. Louis averages US$14.30, with a short ride at US$9.81 and long rides at US$28.30, according to statistics provided by Schaller Consulting. 

Gasoline

Regular grade gasoline in St. Louis is currently priced at US$3.00 per gallon, about half the cost of the gasoline I recently bought in Belgium. The current price of gasoline, inclusive of taxes, in San Miguel is US$2.56 per gallon—another bargain. 

Car Wash

A basic automated car wash in St. Louis that includes an interior vacuum is US$14.00. The same car wash in San Miguel is 65 pesos or $US6.19. However, like all services, they are never exactly the same. A good example? I recently ran my van through an automated car wash in San Miguel and one of my rear tires was destroyed by the equipment. Initially, the manager agreed it was a machine malfunction and agreed to pay for the tire. Later, after the manager spoke with the owner by phone, he decided that it was my fault. I mention the experience because that car wash actually cost US$90 and like other notable and costly service failures in Mexico, there is often an equally notable refusal to take responsibility. How much these add to the ultimate cost of services is anyone’s guess. The good news is that one can get a perfectly good (and safe) manual car wash in many locations in San Miguel for about 50 pesos or $US4.75.

Household Services

Maid/housekeeper 

A maid/housekeeper in San Miguel costs 25–40 pesos an hour (US$2.38–$3.80), depending on experience, years of service and references. The same housekeeper in St. Louis charges between US$12 and $20 per hour. 

Gardener

It is hard to find a gardener in St. Louis or any other US city for that matter. Rather, you are more likely to find lawn and garden services. If one pays the gardener 35 pesos (US$3.34) per hour in San Miguel to mow and trim for three hours, the net is 105 pesos or US$10 per session. A lawn service in St. Louis charges US$30–40 to mow and edge a small lawn, which takes about two hours.

Technology/electronics 

The striking difference in the lower cost of services in Mexico, including San Miguel, is met with an equally striking higher cost of purchasing any device in Mexico that runs on electricity. Examples include televisions, home theater systems, DVD players, iPod or MP3 players, cameras, appliances and personal computers/printers.

Using prices from Costco and Sam’s in Querétaro and comparing them with prices for the same items at Best Buy in St. Louis, one finds the following (converted to US dollars). 

 

Televisions Mexico  US
Samsung 42” plasma HD  $1,428 $1,199
LG 50” plasma HD  $2,380  $1,499 
Home theater systems 
Harman Kardon HT 5.1  $1,142  $ 499
Klipsch HT 6.1  $1,428  $ 599
DVD players 
Sony (basic DVD player)  $ 60 $ 45
Sony Blue Ray HD player  $ 809 $ 499
iPod or MP3 players
iPod Touch (16 GB)  $ 571 $ 399
Cameras
Canon Powershot S5  $ 550  $ 399
Appliances
GE Dishwasher (basic)  $ 560  $ 359 
Whirlpool Refrigerator
(side-by-side stainless 25’) 		 $1,428  $ 899
Whirlpool washer 12 kilo  $ 533 $ 399
Whirlpool dryer 12 kilo $ 533  $ 349
Personal computers/printers
HP Laptop TX 1332LA  $1,809 $1,429
Gateway Desktop 3246  $1,428 $ 859
HP Inkjet F4180  $ 114  $ 80 

It is interesting to note that the more state-of-the-art an electronic device happens to be, the more the difference between the Mexican price and the US price. 

Bottom line? Every personal service I compared was far less costly in Mexico than in the US, whether it was for medical care or housekeeping, and everything in between. On the other hand, electronics, technology and appliances average half again as much (or more) in Mexico than the same goods purchased in the US. 

Jim Karger is a resident of San Miguel and writes twice monthly for Atencion. His next column will appear December 7.