Is your purchasing power up?

[Wade K.]

Just curious as someone who'd like to try living in Argentina if I could convince my wife. For Americans and others who receive an income from their home countries, as your purchasing power has gone up is it offset by deterioration in the quality of life there? Or has the quality of life remained little changed, but you're able to enjoy it more now? In other words is it worth moving to Argentina now or has the poor economy created too many challenges like social unrest and rising crime? Thanks.

 

[steveinbsas]

Just curious as someone who'd like to try living in Argentina if I could convince my wife. For Americans and others who receive an income from their home countries, as your purchasing power has gone up is it offset by deterioration in the quality of life there? Or has the quality of life remained little changed, but you're able to enjoy it more now? In other words is it worth moving to Argentina now or has the poor economy created too many challenges like social unrest and rising crime? Thanks.

It all depends on where in Argentina you would consider living.

Recent increases in purchasing power have been somewhat offset by increases in retail prices but the net gain is clearly positive.

I've experienced no deterioration in the quality of life where I live.

Where I live it is difficult to detect a "poor economy" and there is no "social unrest" whatsoever.

No one is acting panicked or seem to be terribly worried, and there are usually no lines at the ATM's.

PS: I lived in Capital Federal (Recoleta) from 2006 to 2010.

Since 2010 I've been living on the outskirts of Punta Alta, about 20 KM from Bahia Blanca, and I have no plans or desire to move.

My monthly expenses including electricity, drinking water, LP gas for cooking, and insurance on my house and car total almost exactly $100 USD.

 

[Ries]

I always tell people you should not move to Argentina if your goal is to live somewhere cheaply. You should only move there if you WANT to live in Argentina.
Its complicated, constantly changing, and unpredictable.

In my 12 years owning property here, the exchange rate has pretty well tracked inflation so that most of the time, its been consistently less expensive than my other life in the US- but there are times when its a roller coaster ride, finance wise, where the dollar is worth less, and everything suddenly gets expensive. Not San Francisco or NYC expensive, but still, unstable.

I have found the quality of life in Buenos Aires, for me, on a relatively steady amount of dollars, has consistently improved. Imported electronics have always been way too expensive, and that hasnt changed. But the public transit has stayed very reasonable, while becoming better and easier to use. The availability of good food, both to buy and to eat in restaurants, has gotten better and better. The cultural amenities have gotten better.
My life in Buenos Aires is nicer, easier, and more satisfying than it was in 2007. Some of that, of course, is due to knowing the city better and having many more local friends, but a lot of things have improved.

However, if your wife doesnt want to live in Argentina because she likes Argentina, then I think its a bad idea.
If you want the lowest cost life, this is not the place.
There are parts of Mexico and Central America, or Asia, that will be consistently cheaper.

For me, the art, architecture, music, culture, bookstores, the people and the things they do, are why I am here, and, given that, it has been relatively stable, financially, if averaged over any given 5 year period.
Yes, there has been inflation- but there is inflation in the USA where I live- and food, housing, transportation, and culture, are all significantly cheaper than in the Seattle area where I live part of the year.

You need to come on an extended trip- say a month-and rent an airbnb apartment in an area where you would want to live, and make sure its right for you.

 

[Wade K.]

I always tell people you should not move to Argentina if your goal is to live somewhere cheaply. You should only move there if you WANT to live in Argentina.
Its complicated, constantly changing, and unpredictable.

In my 12 years owning property here, the exchange rate has pretty well tracked inflation so that most of the time, its been consistently less expensive than my other life in the US- but there are times when its a roller coaster ride, finance wise, where the dollar is worth less, and everything suddenly gets expensive. Not San Francisco or NYC expensive, but still, unstable.

I have found the quality of life in Buenos Aires, for me, on a relatively steady amount of dollars, has consistently improved. Imported electronics have always been way too expensive, and that hasnt changed. But the public transit has stayed very reasonable, while becoming better and easier to use. The availability of good food, both to buy and to eat in restaurants, has gotten better and better. The cultural amenities have gotten better.
My life in Buenos Aires is nicer, easier, and more satisfying than it was in 2007. Some of that, of course, is due to knowing the city better and having many more local friends, but a lot of things have improved.

However, if your wife doesnt want to live in Argentina because she likes Argentina, then I think its a bad idea.
If you want the lowest cost life, this is not the place.
There are parts of Mexico and Central America, or Asia, that will be consistently cheaper.

For me, the art, architecture, music, culture, bookstores, the people and the things they do, are why I am here, and, given that, it has been relatively stable, financially, if averaged over any given 5 year period.
Yes, there has been inflation- but there is inflation in the USA where I live- and food, housing, transportation, and culture, are all significantly cheaper than in the Seattle area where I live part of the year.

You need to come on an extended trip- say a month-and rent an airbnb apartment in an area where you would want to live, and make sure its right for you.

Since 2017 I have spent 3 months in Mexico, 2 in Colombia, 1 in Georgia, 1 in Ukraine, 1 in Kazakhstan, and 3 in Kyrgyzstan. Looking back I wish I had gone to Albania, Poland, and Argentina. Argentina for some reason fires my imagination. Most likely I would go to Salta but there are probably a dozen plus places I would consider. It looks like my traveling days are over but I would like to at least get her to spend our winters down there. My concern was with the deteriorating Peso the country might be in or on the verge of chaos. So thus my not so artfully asking are you able to enjoy the increased purchasing power or are conditions deteriorating, with rising crime and protests? Good to hear that life in general is still good. Hope to experience it someday.

 

[bdk1]

Since 2017 I have spent 3 months in Mexico, 2 in Colombia, 1 in Georgia, 1 in Ukraine, 1 in Kazakhstan, and 3 in Kyrgyzstan. Looking back I wish I had gone to Albania, Poland, and Argentina. Argentina for some reason fires my imagination. Most likely I would go to Salta but there are probably a dozen plus places I would consider. It looks like my traveling days are over but I would like to at least get her to spend our winters down there. My concern was with the deteriorating Peso the country might be in or on the verge of chaos. So thus my not so artfully asking are you able to enjoy the increased purchasing power or are conditions deteriorating, with rising crime and protests? Good to hear that life in general is still good. Hope to experience it someday.

If you are only spending the winters and not living there on a permanent basis, I would say it is definitely worth it. Purchasing power in USD is definitely up, so you will likely be able to afford many things that would be considered luxuries in the US or Europe during your time there (such as eating out every day or having a cleaning lady come two or three times a week). I am also now considering spending winters over there as well, which made no financial sense just two years ago when things where a lot more expensive than the Western European country where I was living (except public transport and Ubers, which have always been consistently cheaper).

Crime and protests have always been a thing in Argentina. There are times when it's a little better or a little worse, but I would say it has remained more or less the same for the past 25 years. So I doubt this will be considerably different even if things take a turn for the worse (in other words, it's always been bad even when things were relatively ok).

 

[Rich One]

If you are only spending the winters and not living there on a permanent basis, I would say it is definitely worth it. Purchasing power in USD is definitely up, so you will likely be able to afford many things that would be considered luxuries in the US or Europe during your time there (such as eating out every day or having a cleaning lady come two or three times a week). I am also now considering spending winters over there as well, which made no financial sense just two years ago when things where a lot more expensive than the Western European country where I was living (except public transport and Ubers, which have always been consistently cheaper).

Crime and protests have always been a thing in Argentina. There are times when it's a little better or a little worse, but I would say it has remained more or less the same for the past 25 years. So I doubt this will be considerably different even if things take a turn for the worse (in other words, it's always been bad even when things were relatively ok).

The increased purchasing power due to devaluation, has its severe downside, protests may make your life very hard.

Yesterday a Piquete on the road to the Airport of Puerto Iguazu blocked the road for many hours, tourists and travellers tried to reach the airport on foot. A physical confrontation ensued between tourists and protesters that blocked the access , several people hurt.

The supply line may be discontinued, for foodstuffs , gas, etc. Watch out...!

 

[Ries]

Protests occur in Hong Kong, London, and Portland Oregon. In 12 years, I have seen a fair amount of protests in BA, many right in front of my house. I have never felt endangered or had a financial problem, aside from once or twice having had a slightly longer cab ride to avoid a street closure.

 

[Caribbean Cool]

In response to your question......I did a study using 'official' statistics from the UN or some such place...not from the Argentine government. The time period covers one year starting April 2018 to April 2019. It uses what is an 'official basket of food' purchased in U.S. dollars, for $100.00 purchased in April 2019 at the exchange rate at that time. That same basket of food In April 2019 purchased at what was then the current exchange rate would have cost $77.00.

Pura Vida

 

[Fiscal]

Nanny, Housekeeper, cabify, personal assistant ... basically any form of labor is much cheaper here. And health care and rent. Everything else is about as expensive or more than the US, and usually much lower quality.

 

[steveinbsas]

The increased purchasing power due to devaluation, has its severe downside, protests may make your life very hard.

Probably not so much in Salta, unless your on your way to the airport, trying to get there when the protesters are out in full force.

The supply line may be discontinued, for foodstuffs , gas, etc. Watch out...!

This will happen in many parts of the world during the next decade, as cold weather crop losses drastically reduce the food supply.

Watch out indeed, everyone...wherever you are!