Retiring to a third world county? (apartment, renting, homeowners association)

[Teak]

Originally Posted by msta999

My question is, do you know anyone who has done this? Is it working?

In Malaysia one could live on US$500 per month or less, especially if you stay out of the premier expat ghettos and the few places where the wealthy retirees congregate (Japanese, Korean, UK).

Malaysia has a fairly decent retirement program called 'Malaysia My Second Home'. The requirements to enter are different for those > 50 years in age and those < 50. For above 50, there is either a fixed-deposit route, or a fixed monthly pension route.

On the fixed deposit, one must deposit RM150,000 (~US$42k) in a local bank for one year, after which you can withdraw a certain percentage for the purchase of a house. You must also show that you are financially capable of taking care of yourself, which means, I am told, that you have around RM500,000 in assets (~US$139k).

For the fixed monthly pension, you must show that you have at least RM10,000 per month in pension/retirement income (~US$2800).

Both routes get you a 10-year retirement visa, and the ability to bring one car in tax-free. You can also buy real estate in your own name, not something that too many other SE Asian countries allow. For example, I bought a house on the east coast (few expats) for around US$42k, and it is quite nice and suitable for retirement.

I would love to give you the link to my blog about Malaysia, but rules forbid. You just need to type the following into Google: "Teak Malaysia blog".

[bgreen4080]

i agree with teak it is a pretty inexpensive place to live in...

u can have breakfast in many places for $1 or $2, and by breakfast, i
mean a pretty good sized meal

HOWEVER

the humidity and intense sun can be grueling...

as are the swarms of bugs, mosquitoes..etc


beautiful country though...dense, lush rainforest like vegetation throughout

english is widely spoken, which is helpful

singapore is a more modern, cleaner, BUT significantly more expensive alternative

[bgreen4080]

i heard COSTA RICA is a pretty nice place to live...

supposedly the Singapore of central america...clean, efficient, relatively
good standard of living..


can ANYONE back up this claim?


and Belize is suppose to be like paradise...gorgeous beaches etc

[Tiger Beer]

I have heard pretty much ALL bad things about Belize. Very high crime and very expensive to live, eat, everything. The only positives I have heard about Belize is from DIVERS...as the reefs there are supposedly worldclass. If you aren't a diver, I haven't heard of anyone who enjoyed Belize otherwise.

Costa Rica is very popular...they say it is safer than anywhere else in Central America...on a political standpoint - meaning very stable government, etc. However, everything I've read about Costa Rica is that it is overwhelmed for all kinds of foreigners absolutely everywhere...and driving up prices and they are pricing out locals out of the market, and causing some represent. Mostly just way too many foreigners there throughout Costa Rica.

All that being said, best to go check it out, and see if either one is something that appeals to you personally. Costa Rica in particular...I have never heard anything good about Belize unless the person spends more time underwater diving than on land.

[bale002]

In 10-30 years, there is a reasonable chance that the US will join the ranks of third world countries, while some third world countries might not be a cheap as one would expect.

Is that not one of the goals of globalization, the lowest common denominator of living standards among the billions, "served" by a few global corporations?

Having said that, probably the best route to go is to marry a foreign national of the target country.

My wife and I could probably do what you are saying now, but since we have a child, the big concern is education.

Another big concern is political stability: the US is still more politically stable than most third world countries, but, again, that could change over the next 10-30 years, maybe even sooner.

In any case, to be sure, unless you invest in a business (and have in-country family and/or political connections to keep it relatively secure), generally speaking you cannot rely on the local economy for a decent income, therefore you need a source from without.

You need to check out the individual policies of the target countries, I'd say try some more Central and South American countries along with some of the Asian ones already mentioned. Some of the figures discussed so far seem a bit high to reasonable, you may find less stringent requirements if you keep looking. At any rate, $500 a month sounds a bit too low: in one humble country that I am familiar with, that is just above the average wage in the local economy.

In any case, I concur with those who advise doing your own research, starting with government and serious private sources: CIA, State Department, but also The Economist and the big accounting firms, plus many other private firms, all produce country reports (some of the big accounting firms produce Doing Business In ... reports, even available online for download), plus of course official sources of information of the target country itself (implying that reading the language is a huge asset).

In any case, do not rely on internet sites that are mostly advertisements, and, again, the best source would be a family, preferably that has a series of small businesses, in the target country, otherwise, most likely any partner that you seek probably sees the grass greener on the other side and will want to come to the US, not knowing that it is a country on the slippery slope of decline.

Therefore, no matter what you do, stay or go, life is a risky enterprise.

Do careful research (not just mouse-click research online) and you can maximize your chances of finding a your slice of peace on this earth, at least for a while anyway.

[bgreen4080]

anyone know how the weather is like in Costa Rica??

guessin' that it is blazingly hot...

or Cost of Living there?


lots of american retirees used to head to San Miguel de Allende

in mexico, which has a big foreigner/expat population

[Tiger Beer]

Originally Posted by bale002

generally speaking you cannot rely on the local economy for a decent income, therefore you need a source from without.

This is the MOST important piece of advice in my opinion. I wouldn't want to be dependent on the local economy or local people either of a third world nation for income either. Most target other foreigners with their businesses, but even this you have a lot more insecurity and legal resources than you would in your native country.

I've thought this through extensively, and come to the conclusion that owning property in one's HOME country is essential...and the rent you'd made off of that, you could supplement yourself to live in another country...and if a person was of retired age with retirement money, that would help out immensily as well.

By and large, I just see tons of former U.S. military people all over the world...living on their gov't retirement, etc. Plus they are still quite young to enjoy it - they go in at 18, put in 20 years, and retired for life living the life from 38 to death on the U.S. retirement payroll.

I see a lot of Europeans run businesses in third world countries...usually marry a local and settle in for the long haul. Germans seem to come to mind the most.

When I was in the Philippines, tons of europeans, previous u.s. soldiers, and I did see quite a few older retired Americans as well who had their retirement checks coming in.

If you are still young and no income coming in, it can be real hard to make a living in third world countries. I've made a career out of teaching English abroad...but most ESL jobs aren't paid very well in most countries...but more liveable in Japan and Korea.

[Flibitz]

Can anyone tell me about living in or moving to Equador? Is it a safe place for an American to visit/relocate? Are there jobs there for the average person? What are the Visa requirements, etc?

[bale002]

Originally Posted by Flibitz

Can anyone tell me about living in or moving to Ecuador? Is it a safe place for an American to visit/relocate? Are there jobs there for the average person? What are the Visa requirements, etc?

Like Tiger Beer and I have said, you cannot rely on the local economy for income, there are no jobs for the average person, except maybe teaching English but you would earn subsistence wage.

Again, the best route would be to marry someone from the country who, or whose family, can provide you with at least decent housing, better if they have some kind of family business that you can in some way invest in.

I am not a risk-taker when it comes to personal safety and generally speaking I would say that Ecuador is not a safe country unless you are accompanied by trusted natives who can show you the ropes, so to speak.

Having said that, the visa requirements are not too stringent, it takes money, naturally, and perseverance with a very obtuse bureaucracy, but it can be done.

If you just want to visit Galapagos or whatever, that's fine, but I would stick to the tourist group and not wander off, unless perhaps you are fluent in Spanish, and never after dark except maybe traveling in a licensed private call-up taxi (not one at random off the street).

Good luck!

[Tiger Beer]

Originally Posted by Flibitz

Can anyone tell me about living in or moving to Equador? Is it a safe place for an American to visit/relocate? Are there jobs there for the average person? What are the Visa requirements, etc?

I spent a month in Quito and quite liked it. I wouldn't go to Ecuador looking for JOBS though...unless you have one already from elsewhere which can transfer you there.

I recall when I was there some jobs that paid people to teach english at about $3/hour...but this wasn't a 40-hour workweek job, it usually more like an hour here, and hour there, type of thing. Living on those wages is pretty hard as a foreigner - as everyone will assume and charge you much more for everything and living like a true 'local' is nearly impossible, even if you wanted to try.

It was safe for me in 1998, but I've heard it has changed a lot for the worse over the last 11 years...so quite unsure now.