12 May 2008 One Comment

Investors in Mexico real estate may be surprised at some of the things that are more expensive in Mexico. While services like housekeeping and health care are much cheaper in Mexico, expenses such as energy, electronics, and telecommunications are actually more expensive according to an article by Baja real estate broker Brian Flock.

Energy

Electricity is about 2-3 times more expensive in Mexico than in the US. Gasoline is about 25% cheaper in Mexico. I used a Mexico electricity usage calculator to estimate my electricity bill in Mexico. I currently pay about $100 for about 1000 kWh a month. In Mexico I estimated this would cost about $182 per month.

Electronics

Electronics are about twice as expensive in Mexico compared to the US. Mexico’s high import tariffs on Asian electronics and the Mexican value added tax are some factors responsible. However Best Buy plans to open stores in Mexico in 2008 according to Chief Executive Brad Anderson, so hopefully that should help lower costs.

Telecommunications

Telecommunications costs more in Mexico, partly due to billionaire Carlos Slim’s monopolistic practices in the telecom industry. However voice over IP services like Skype can cut phone costs substantially. It costs pennies per minute and is free if you are calling another Skype user.