Rennie’s story · interviewed by Almost Retired in Mexico
Living in Guadalajara on a $130 Pension Plus Rentals
Rennie told Almost Retired in Mexico that her pension is about 130 US dollars, and that two rentals in her Guadalajara house plus teaching business English make it work. She said she prepays water for the whole house for about 2,000 pesos a year, and that her monthly taxes come to about 260 pesos.
What it cost them
As stated in the video, August 2023. Prices change; these are theirs.
| House property tax, a year, before discountas she thinks | up to 5,000-something pesos | ▶ 3:40 |
|---|---|---|
| House property tax, a year, with age discounta further discount for paying the whole year at the start | 4,000-something pesos | ▶ 3:40 |
| Water for a year, whole house and all rentalspaid for the year | about 2,000 pesos | ▶ 4:12 |
| Electricity, her flat and the vacation rentaldownstairs tenant pays their own | about 400 to 600 pesos every two months | ▶ 4:12 |
| City bike-share card, a yearcaptions unclear on the exact figure | 400 and something pesos | ▶ 4:46 |
| Minor care at Dr Simi or Aurorafor minor things like a bad cold | free or under 50 pesos | ▶ 6:21 |
| Pre-hospital coverage, a yearas she thinks | under 2,000 pesos | ▶ 6:51 |
| Her taxes, monthlytax on the rental; teaching not taxed, she says | about 260 pesos a month | ▶ 8:28 |
| House purchasebought in 2017 | 2 million Mexican pesos | ▶ 14:32 |
Their situation
- Guest
- Rennie, born in Canada, has lived in 10 countries ▶ 1:01
- Place
- Jardines Alcalde, Guadalajara, Mexico ▶ 1:01
- Pension
- About 130 US dollars ▶ 2:06
- Other income
- A long-term rental, a vacation rental, and teaching business English
- Health cover
- IMSS (paid in about 14 years) plus pre-hospital coverage
- Home
- Bought in 2017 for 2 million Mexican pesos ▶ 14:32
Questions this video answers
How big is Rennie's pension, and what did she do about it?
Rennie says her pension is about 130 US dollars and "nobody can live on that." She says that after working overseas she bought a house with rental potential. ▶ 2:06
How does Rennie make her small pension work in Guadalajara?
Rennie says that between her two rentals and teaching business English online and in person, "it all works and it's surprising how good it works." ▶ 3:08
What healthcare does Rennie use in Mexico?
Rennie says she paid into IMSS for about 14 years while working in Mexico, so she is entitled to use it. She calls it "functional for the basics" and keeps money aside for anything else. ▶ 5:49
Why doesn't Rennie have extra health coverage?
Rennie, a type 2 diabetic, says she can't get extra coverage unless she had a ton of money, because anything can be refused as diabetes-related. She says she covers her own care. ▶ 6:21
How much tax does Rennie pay in Mexico?
Rennie says she pays tax on the rental but not on her English teaching, and that it works out to about 260 pesos a month. She has an accountant help her. ▶ 8:28
The moments, in order
Press ▶ to play the video from that second.
- ▶ 2:06
She left Canada debt-free but with no savings and now gets a pension of about 130 US dollars. She says nobody can live on that, as it would not even pay for a bed.
as stated, August 2023
- ▶ 2:36
After working overseas she bought a house for its rental potential. There is a year-round Mexican-style rental downstairs and her own flat upstairs. She added a wall to turn part of her flat into a vacation rental. The two rentals plus teaching business English make it work, 'surprising how good it works'.
- ▶ 3:40
Her yearly property tax is, she thinks, up to 5,000-something pesos. Her age discount brings it to 4,000-something. She gets a further discount by paying the whole year at the start of the year.
as stated, August 2023
- ▶ 4:12
She prepays a year of water for the whole house, all rentals included, for about 2,000 pesos. Her electricity, which covers her flat and the vacation rental, runs about 400 to 600 pesos every two months. The downstairs tenant pays their own electricity.
as stated, August 2023
- ▶ 5:49
Because she paid into IMSS for about 14 years while working in Mexico, she is entitled to use it. She calls it 'functional for the basics' rather than the best, and says you still need money set aside for anything else that comes up.
- ▶ 6:21
Minor care, such as a bad cold, can be free or under 50 pesos at places like Dr Simi or the Aurora. She had surgery at a great hospital and was fine. But as a type 2 diabetic she cannot get extra coverage unless she had a ton of money, because anything can be refused as diabetes-related. She says it isn't worth having, so she pays for her own care.
- ▶ 6:51
As a backup she pays for a pre-hospital service that costs, she thinks, under 2,000 pesos a year. They send a doctor to her home and take her to hospital if needed, all covered. They also run a clinic and will pick her up if she falls in the street.
as stated, August 2023
- ▶ 8:28
As a business owner in Mexico she files taxes monthly and uses an accountant, because when she tries it herself there is always 'one button I've missed'. She pays tax on the rental but not on English teaching, which she says is not taxable. Her tax comes to about 260 pesos a month.
as stated, August 2023
- ▶ 12:52
Her 1970s middle-class neighbourhood feels like a real community. She knows neighbours by name or by sight, and some of them check on her if they haven't seen her, for example when she had a cold. She values that it is Mexican rather than a 'gringo bubble'.
- ▶ 14:32
In 2017 she bought the house for 2 million pesos. It had been empty for about five years, with a leaking roof and moldy carpet. She was unsure of the conversion (about 125, US or Canadian unclear). The roof turned out to be the biggest repair, and the structure was solid.
as stated, August 2023
Worth knowing before you go
- ▶ 6:21
Minor care, such as a bad cold, can be free or under 50 pesos at places like Dr Simi or the Aurora. She had surgery at a great hospital and was fine. But as a type 2 diabetic she cannot get extra coverage unless she had a ton of money, because anything can be refused as diabetes-related. She says it isn't worth having, so she pays for her own care.
This is their experience, retold in our words, and not medical, insurance or financial advice.