Cost of living and the current exchange rate

Brians says on May 8, 2007, 13:51:

Elk could you break out those costs a little for us. How long you lived there? I know you have a lot of experience with other countries in Central and South America and was curious what bought you to COlombia.

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Robert Jorge says on May 8, 2007, 15:32:

That would be great Elk if you could break down your expenses like Brians mentioned. Estrato, each utility, groceries, etc. A few weeks ago, there were people quoting "$2500 US" monthly as reasonable. I think I even saw $3000 and more mentioned. My opinion was that was extremely high - unless living in a hotel, eating out all the time, etc. I lived for much less than half that a month. I was in a much smaller town than Medellin, or Cali, Bogota; but it wasn't a little pueblo either.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

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arthur brode says on May 8, 2007, 16:03:

I survive on U.S.$700/Mo. Rent 2br. Apt. with utilities included 320,000 pesos per mo.

Internet 500k with Coldecon is 145,000 pesos per month

Phone bill 80,000 pesos per month (unlimited local calls plan)

Health Insurance 70,000 pesos per month (government plan)

Those are my major expenditures.Whatever is left over from the $700 is spent on eating out/groceries,cell phone prepaid minute cards,Taxis,which are all inexpensive.



~keepin it street in estrato tres....

http://www.calirentals.net/

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tomtom33 says on May 8, 2007, 16:32:

I live in Estrato 5 in Medellin. My last bills for water, electricity, sewage, garbage, phone, cable TV, and cable Internet(500kps) came to about 418K. The gas will be hooked up soon but shouldn't add much since I will convert from electic water heat and don't cook much. The administration fee is 90K. The property insurance is around 740K per year. The property taxes are around 500K per year. That comes to around 615K per month. I own my apartment.

I am working on health insurance and have been quoted 5 million per year including prescription drugs. I think the drug co-pay is 10%. And I take well over 5 million worth of prescription drugs per year.

I don't know exactly what I spend on chicas. But it tends to be a large part of my budget at 20 to 100K por un rato, more when I don't "pay" for it.

I don't yet own a car, but I may buy something used.

Like Elk, I don't spend a lot of time thinking about the exchange rate. And Medellin is one helluva bargain after Cartagena. My cost of living in Cartagena was about double what it is in Medellin.

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aztec says on May 8, 2007, 16:41:

tomtom33 "I am working on health insurance and have been quoted 5 million per year including prescription drugs."

You could certainly help some of us with a more detailed analysis of what you find about insurance.

Thanks

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tomtom33 says on May 8, 2007, 18:22:

Aztec I certainly will.

I had Coomeva Gold for a year and paid about 1.8 million per year with no drug coverage. The premium was about 600K higher because of my health. I also had to carry the basic plan for about 55K per month. However, the agent was a crook, and Coomeva didn't seem to care. So I dropped it.

Apparently there are all kinds of coverages. I'm kind of shooting blind here, but I heard something about coverage for specialists.

I have a physical scheduled for May 17 for this insurance. I leave for the States on May 23 for the summer. Apparently there is a 6-month waiting period for the coverage to fully kick in. My US insurance is still in force, but I may consider dropping it this fall or next year. I turn 59 this summer and think that Medicare starts at 65.

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Ctg Bound says on May 9, 2007, 03:46:

tomtom33 You are paying to much property insurance, I will give you the contact details of my insurance broker if you want.

My apt in Sab which you have seen to compare with yours, I pay approx 33% of what you are being charged and I have it insured probaly at a higher rate than your apt in Med.

You can talk to him about your health insurance cover as well, not sure that you wil get cheaper there though.

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Brians says on May 9, 2007, 04:18:

Property Insurance This is a good question. What types of coverage do you get ot need. I have to figure this out right now for my place in Medellin. My house in the US covers fire etc.. What coverages are are important in Colombia? For instance since the apartments are brick I assume not a lot of fire cost but earthquake is probably something needed to be covered.

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aztec says on May 9, 2007, 04:52:

I turn 59 this summer and think that Medicare starts at 65.tomto Medicare becomes your primary insurer when you turn 65.(You have no choice on the matter). As you know it will not pay out of country medical expenses. Your current policy then often becomes your supplemental policy.

That is one of the things that causes problems when you live in another country (Except border areas). Essentially that means you need to find an insurance policy that will provide adequate coverage in Colombia.

I would be careful about dropping your current U.S. insurance policy. Many times those policies will cover medical expenses in Colombia. True, you may need to first pay the bills and then ask for reimbursement.

Thanks for the information. In our case insurance coverage is the determining factor in living full time in Colombia. As it stands, we don't feel the basic State insurance is adequate.

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tomtom33 says on May 9, 2007, 04:57:

Thanx, CB. I just paid the annual premium, but I want to discuss this with you for future reference.

One thing (among many others here) has me puzzled. My Cartagena building doesn't seem to have any insurance coverage. I am told that my building in Medellin has insurance coverage. WTF? And, lending credence to the statement that I overpaid in MDE, the annual costa are about the same. And my CTG apt. is worth about double the MDE apt.

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arthur brode says on May 9, 2007, 06:55:

What about dropping Medicare Part B? Is that a good idea? I dont ever plan on returning to the States ,so why continue paying the $88 dollars every month? I was told that i should not drop Part B,because once you drop Medicare Part B its almost impossible to get it back.


~keepin it street in estrato tres....

http://www.calirentals.net/

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Ctg Bound says on May 9, 2007, 07:15:

tomtom33 & Brians tomtom33

I over paid on my first insurance policy here as well, we live and learn, the brokers can put a huge commision on the policy (as anywhere), the second year with the guy I use now reduced it by 60%.

I have used a guy in Ctg who covers me for my personel things and my company assets in Colombia as a whole, so if you give him two properties to cover, he will probably get the insurance slightly cheaper for you.

Next time we have coffee I will bring the information, you may need to remind me though.

As to apt buildings and insurance cover that is down to each building to sort out or not, I find the buildings in Medellin are generally sorted, but Ctg is a differant world and many are not.

Brians

I am covered for everything, earthquake, volcanoes (not that I can see one, but they link it in with the earthquake one), bombs, fire etc etc, it doesn't cost much, so no point being tight.

I put down for 200 million full cover for my apt, I have never bothered with contents cover in my life, as I don't have that many things and they can be easily replaced, the insurance for a year is 322,249 pesos.

If you were only insuring 1 apt, you would have to pay more, but certainly nothing like tomttom33 number.

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gorgonabob says on May 9, 2007, 07:39:

I have just paid 1.5 million pesos a year to Suramericana for property insurance on a 520 million pesos property in Medellin. that also includes an extra 25 million in stuff inside the property.... I thought that was pretty cheap...

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aztec says on May 9, 2007, 08:06:

arthur brode I have continued with both A & B. My situation is complicated because my wife is 15 years younger and it will be some years before she is on Medicare. If you know for sure you will not return to the USA then it may be alright to drop Plan B.

"Note: If a beneficiary fails to accept or sign up for Medicare Part B during the initial or a special enrollment period, premiums may be higher. The cost of Part B may be increased up to 10% for each 12-month period that a beneficiary did not have Part B. Beneficiaries will have to pay this extra cost as long as they have Medicare. If an individual is covered through an employer that has 100 or more employees, when they are eligible for Part B they can defer enrollment without penalty until they are no longer covered by the employer’s plan.

There are three times when a beneficiary will be eligible to enroll in Part B Medicare:
Initial Enrollment Period (the first six months following the 24th month of SSDI payments);
Special Enrollment Period (eight months following the end of qualified employer coverage); and
General Enrollment Period (first three months of each year. Late enrollment penalties may apply)."

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elk says on May 9, 2007, 09:36:

Cost of living in Medellin My personal monthly expenses are as follows: (Estrada 4)

35,000 COP Property tax
24,000 COP Water and sewer
25,000 COP Electric
13,000 COP Gas (I use an on demand water heater
20,000 COP Trash pickup
94,000 COP Telephone and EPM cable television with all movie channels
27,000 COP Broadband 500K to 1.200K (great group rate)
109,000 COP Administration fee
94,000 COP EPS basic medical plan
1,800,000 COP I allow myself 60,000 COP per day for food, spending, transportation etc...

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Brians says on May 9, 2007, 10:40:

CTG Bound Thanks for the input. I am actually having a friend of the family handle it and was curious to see how high his price is. Obviously I don't want to shop it around and I do trust him very much as they are dear friends. However I paid about $400 million for my apartment and figure it should then fall somewhere in between you and gorgonabob. I like to know if it is fair so you guys gave me a good range. Thanks

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arthur brode says on May 9, 2007, 15:21:

thanks aztec .

http://www.calirentals.net/

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bradenmiami says on May 9, 2007, 16:11:

....

The "lovemedellin website" is a piece of crap made by some moron who has only been to Medellin once...you'd be better off reading the Lonely Planet advice from a guy who never even came here!

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scotty says on May 9, 2007, 20:18:

elks budget seems to be very reasonable. I have talked to guys living in Colombia and I am usually quoted between $1100 and $2000 to live a comfortable life. of course that can all change if you get a live in girl or hook up with a woman who has a child.

Get Rhythm, when you got the blues. Johnny Cash

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poco says on May 10, 2007, 20:06:

Taxes and Insurance Medical insurance - 4 people, no drug coverage unless administered in Hospital. 56,000 pesos per month.

Property Taxes 18,000 COP per month.

Homeowners insurance - zero (what's that?)

Meat went from 7,500 per kilo to 13,500 in 10 days the first of May.

I see more inflation on the horizion, plus a 2050 exchange rate. Living in Colombia is at a minimum 60% more costly than it was 5 years ago.

"Violence is the first refuge of the incompetent" - Isaac Asimov

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aztec says on May 11, 2007, 03:53:

Not only in Colombia! Some perspective: FOREIGN EXCHANGE: The euro recently rose to $1.36, a level not seen since 2004, and the British pound recently rose to $2. That makes Europe slightly more expensive than last summer, but a steep 30 percent more expensive than 2000 when the euro and the dollar were roughly equal in value.

Still more economical to visit/live in Colombia.

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Brians says on May 11, 2007, 04:21:

Rubito the use of ethyenol is cause all ag products to rise. Same as in the US. This is a stagflation effect as the inflation is not being caused by demand but finding alternatives to a commodity scarcity or specualtion. The second of which I believe is the cause. Anyway not a good scenario for anyone.

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poco says on May 11, 2007, 09:28:

Meats UP Lots of things are UP. However, meat made the news.

First reports were that Ecuador and Venezuela were paying the higher prices. Next week Bolivia was included.

Then those greedy guys with ranches in the coastal area were the cause.

Next,, it is plain LAZYNESS and greed. Seems no one wants to work in agriculture because it is LOW PAY and HARD work. People would rather go to the cities making the same wages with less work.

A worsening is in the cards. GLOBALIZATION.

I’m not in Colombia now but I saw sharp increases in January 2007. I’ve asked for emails with cost price increases associated with groceries.

May 10th:

los frijoles estan muy caros, ase un mes compre 2400 kilo , hoy esta 4100k

la panela esta muy cara estaba 1500, hoy esta a 2000 y otras cosas mas caras.

Cooking Oil has increased steadily since the beginning of the year.

I have not heard the world price of commodities or fixing of currencies is the culprit. This isn’t something the average person can understand. Better to blame things on tangibles.

Colombia will have a problem when rice and chicken escalates.

"Violence is the first refuge of the incompetent" - Isaac Asimov

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poco says on May 11, 2007, 15:15:

Wish I had some cows The supply chain just wants to gobble up those profits instead of passing them on. I think it's stupid short term thinking. They should be using the stronger peso to help EXPAND.

Unfortunately this is probably true. Charging excessive prices above costs isn't passing it on,, its,,, its,, #!* at ^#$!'d up.

Reminds me of the cement fiasco a few years ago,, except in reverse. Either way, I'd say the producers are profiting and not gradually.

20% plus in a few weeks for some items, 60% for GRASS fed cattle. Gezzzz, I should have bought cows instead of chickens.

Maybe Venzeula has money but WHERE's the BEEF.

"Violence is the first refuge of the incompetent" - Isaac Asimov

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Scott says on May 13, 2007, 13:01:

Saved Cost of Living Posts I have been saving/printing posts on the cost of living issue since 2004. Twenty-six pages from CaliGringo/PBH/ColombianBlog/PlanetLove/EscapeArtist/GoodWife. Now feel that I have a reasonable understanding of the issue and am ready to discard the posts. If they would be of value to anyone, let me know & I will COD mail them to you.

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scotty says on May 14, 2007, 02:35:

corn wish i was a corn farmer. those corn and sugar cane farmers in Brazil are feeling real happy these days, Bush just went down there and put in a big order for corn and sugar cane.

Get Rhythm, when you got the blues. Johnny Cash

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Atrevido says on May 14, 2007, 04:38:

Generic! I thought the name brand/generic spread was big in the US but when my wife took her prescription to the drug counter in Cali the name brand price was $94.000. We said generic! and the price was $6.000.

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PanosL1 says on May 14, 2007, 05:46:

Rubi.. did you get any sleep last night??

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bogjudge says on Jul 4, 2007, 21:09:

Just returned to Boquete Panama from three months in Manizales. I have lived here two years. In the three short months I was in Manizales my $1,500 per month expenses rose to about $1,650 per month. Now of course this includes the cost of living off an ATM and paying the concommitant fees. But I am here to say that I live more cheaply in Panama. First, name-brand medicines were about 30% higher in Colombia than in Panama. I bought generics wherever available and they are really cheap if you can find the right ones. . Second, electrodomestics, unless manufactured in Colombia, were much more costly. Food costs were about equal except for anything imported. My housing costs were quite reasonable in Manizales. Panama benefits from a very cozy trade relationship with China and you see it everywhere. Panama's economy is dollarized. Hence no fluctuating exchange rate to deal with. And I found that grocery stores in Manizales, for the most part, were not nearly as well stocked as those in Panama City and David (a mid-sized city in western Panama). Of course, Colombia is a much more complex nation than is Panama. But the area where there is simply no competition is the girls - Colombia hands down every single time. I will keep going back to Manizales irrespective of the Peso/Dollar thing. Too good to be missed.

What Lies Over Yonder Horizon?

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