Ivan Gillis

A High Quality of Life Combined with a Lower Cost of Living and Affordable Real Estate are Just a Few Reasons Expat Retirees Come to Ensenada, Mexico

Cost of Living:  Below the U.S. National Average

Located in the state of Baja California, Mexico, roughly 75 miles south of the California border, is the city of Ensenada (population 475,000), a spot that has been popular with U.S. expatriates retirees for years.  With the warm Pacific Ocean to the west and mountains to the east, pretty Ensenada experiences semi-dry, Mediterranean-like weather, making it a comfortable year-round retirement destination.  The cost of living is roughly one half of the U.S. average; water recreation is outstanding; the pace is leisurely and foreigners can purchase property (with restrictions).  It is no wonder nearly 20,000 U.S. expats live here.

Known as the "Cinderella of the Pacific," Ensenada is situated within a protected inlet and is Baja California's leading seaport and a popular cruise ship stop. The city's waterfront is undergoing a transformation as more tourist amenities are built to accommodate the millions of visitors who come to Ensenada each year, seeking out excellent shops and boutiques, restaurants (including Japanese, Italian and French) and hotels, not to mention wonderful beaches and beautiful resort facilities.  This is a bustling city with a modern infrastructure, Internet access, very good (not to mention affordable) health care and all kinds of real estate for sale and lease.

Having said that, this is still Mexico, and the "manana" attitude is still prevalent.  Things happen when they happen, not always according to schedule or one's Blackberry calendar.  Those who leave the frenetic, fast-paced U.S. for a Mexico retirement have to learn to slow down, relax and savor what life has to offer.  Type A personalities do not do well in Mexico and will be frustrated by the leisurely pace, even in a city like Ensenada.

When it comes to purchasing real estate, there are some misconceptions.  It is true that Mexico prohibits direct foreign ownership of real estate within the "restricted zone," the area that extends 62 miles from the Mexican borders and 31 miles inland from the coast (and encompasses Ensenada), but through a Fideicomiso, or bank trust, a foreigner may acquire ownership rights to real estate property within this area.  A bank trust is the most secure way a foreigner may purchase property rights in the "restricted zone" and should not be confused with a property lease.   Property held through a bank trust may be mortgaged, improved, transferred and passed to heirs, but real estate under a lease may only be used for a period of ten years.

Home prices in Ensenada start around $65,000 USD, but expect to pay at least in the low-$100,000s USD for a nice two to three bedroom home in town (less outside of town).  Buyers will find high-rise condo buildings, condo-hotels and small condo communities, as well as hillside homes, beach front homes and ranches.  Gated communities are not as prevalent as in Rosarito, 50 miles north, but there are a few here, including Chapultpec, Estero Beach and Punta Banda, and more are coming.

There are some American developers in Ensenada, and a few developers offer title insurance.  Affordable financing has also become available, using Mexican property as collateral, although seller financing is the most common way to purchase in Mexico.  Property taxes on an average $200,000 USD residence will run about $100 USD a year.

For those less inclined to buy, renting a home is always a popular option, particularly since many of Ensenada's expat retirees are "snowbirds," splitting their time between Mexico and the U.S.   Home rentals start at around $600 USD per month for a 12 month lease; shorter leases are more expensive.  Rental homes often come completely furnished, and the services of a maid or gardener may be included.  And while homes for rent can be found online, better deals will be had through a visit to Ensenada and by asking the hotel clerk, the restaurant waiter, the cabbie, etc. about homes for lease.  Mexican business transactions take place face to face, and the best real estate deals are usually found by talking to the locals.  There is nothing wrong with haggling over prices, either.

Ensenada also has a large RV "snowbird" population.  Some of the RV parks are just patches of dirt, while others boast ocean views, boat ramps, paved lots, full hook-ups, restaurants and more.  Prices range from $20 to $40 USD per night.

Known for its surfing, windsurfing and fishing, Ensenada attracts water devotees of all sorts.   There are a handful of beaches to the north and south of town, all clean but crowded during the high season.  Baja Beach and  Bahia de Los Angeles have tourist amenities.  El Faro Beach is a fun place to camp.    Residents enjoy two 18-hole golf courses, and to ensure that there is never a shortage of things to do, the city hosts several fun events, such as the Baja 1000 (off-road vehicle race), the Baja 500 (again, off-road vehicle race), the New Port-Ensenada Regatta (boat race) and the Rosarito-Ensenada (bike race).   Lots of races.  In the winter, locals partake in gray whale watching.

Ensenada has what nearly every U.S. city has, and at a lower cost.  There are beauty salon, spas, banks, gas stations, pharmacies, car repair shops, veterinarians and all the rest.  Even Wal-Mart, Home Depot and Costco have a presence here.   Expect to pay prices 1/2 to 1/3 less for similar goods and services found in the U.S.   For example, $60 to $100 USD per week will pay for a woman to come cook, clean and do all the laundry (men do not do this type of work in Mexico, not that they do much of it in the U.S., either).  A night out on the town for two, including a sumptuous dinner, drinks, tip and dancing, is around $60 USD.  First run movie tickets are $2.50 USD.  Downtown parking is $1 USD.  Tipping is 10%, not 20%.    It all adds up to a high quality lifestyle at an affordable price.

A few minutes south of town is the second-largest of three known major marine geysers in the world.  This area of Mexico is also known for its wine production, and the Guadalupe Valley, thirty minutes outside of town, is a fun spot for winery tours and art gallery browsing.    Todos Santos Island and Todos Santos Bay are two nearby spots which are teaming with wildlife and worth a trip.

Health care in Mexico, depending on the locale, is generally quite good, particularly in the private hospitals and clinics, and costs are 1/2 to 1/3 of U.S. costs (the socialized medical care system - IMSS - at the clinic level,  however, should be avoided).  Office visits are usually around $35 USD in Ensenada, and doctors make house calls.  The city has a number of good medical centers and hospitals where care can easily rival that found in many U.S. cities.  Keep in mind that Medicare is not accepted in Mexico.  Most expats either pay for health care as they go or travel back to their home country for serious medical care or purchase international health insurance.

As noted previously, considering its location, Ensenada has comfortable, sunny weather.  The average daytime summer high is in the mid-70s, and the average winter high is in the 60s.   Summer average low temperatures are in the 60s, and winter lows are in the 40s and 50s.  The rainy season is brief, January and February.

Regional Ensenada Airport services the city (a new airport is planned), and the paved Transpeninsular Toll Highway (Highway 1), noted for its breathtaking views, is a fast, efficient way to get to Ensenada from San Diego.  Free motorist assistance is provided by Mexico's fleet of Green Angels (Angeles Verdes) from 8 a.m. to 8 p.m.

Now a few words about a potential drawback to Ensenada, and that is that crime along the U.S. - Mexico border has been increasing.  The increased crime, however, primarily involves turf battles between drug cartels and has not targeted tourists or U.S. expatriates.  That is not to say that Baja California does not have crime or that visitors have never been victims; it does and they have been, but the U.S. media often hypes any crime that occurs, making the entire region out to be a new Wild West.   The U.S. Department of State lists a handful of cities to avoid in Mexico; Ensenada is not one of them.  And as nearby Rosarito Mayor Hugo Torres told a meeting of the Mexico Business Center in August, "Baja has not had one reported serious violent crime against its millions of visitors this entire year."  Of course caution should always be exercised in any foreign destination, just as it should be in nearly any U.S. city.