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Moving to Uruguay and Cost of Living

This forum post has messages dated from 12/04/11 through 12/09/11, please be sure to read all the messages. If you feel it is old or outdated, please follow up with a question or comment and someone may be able to update it, or reply with newer information if you have it.


Forum Post
12/04/11 04:26
Arizona

Moving to Uruguay and Cost of Living

Thank author of this post/commentWe are a middle aged couple intending to move to Uruguay. We are arriving in late January and seeking a furnished place to stay for February and March in the Pocitos area or East. We are confused about the cost of living in Uruguay which many websites state is very reasonable and yet all of the furnished rentals we have found are much more expensive than in Scottsdale, Az where we live. Can anyone explain to us why? Other than this, we are excited to relocate to Uruguay!

Comment #1
12/04/11 05:19
TotalUruguay.com
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Gold Member
Thank author of this post/comment"Who says that..."

Does, this website, totaluruguay say that the cost of living is very reasonable? I think in general, no.

When I moved to Uruguay in 2005, I think, yes the cost of living was quite reasonable. For example, I rented a two-bedroom furnished apartment on the Rambla for US$450 + common fees. The lease was for 6 months and the deposit 3 months rent. I ended up staying there for about 20 months.

Then it was time to find an unfurnished apartment... and I found one that was not nearly as a nice, though a bit larger, near the Spanish Embassy, ie: 7 or so blocks from the Rambla for US$500/month plus a 5 month security deposit (any smaller deposit is very unlikely for an annual rental, and some may ask for more in violation of the law).

I wasn't particularly happy with that apartment, but a year later, there only options seemed to be smaller apartments for much more. So I renewed the lease for a second year at the same price. At the end of that second year, the owner wanted a 30% rent increase and I left.

I found a larger, 2 bedroom place on Benito Blanco in a location where there was nothing on the Rambla. That gave me the waterfront view with a huge balcony. The rent was US$650 a month and an option for a second year with a $50 increase. Also with a 5 month security deposit.

EXPENSIVE TO MOVE! -> You don't get your month 5 security deposit from your old apartment back until you are moved out, but have to make the 5 month security deposit on the new place before you get the keys!

At the end of the first year, the owners asked for a $100 monthly rent increase. When I tried to negotiate something, like a new rental agreement for 2 years they decided they want to strictly follow the contract.

Of course that meant at the end of the second year, it was no surprise they asked for a 35% increase. It seems you can get rental agreements for 1 year with an option for 1 year and the rent fixed for that term and after that it whatever the owners ask for.

In 2005 a steak and side dish cost about $125 pesos. A bottled water or soda around $25. The dollar was trading just under $25 pesos the dollar. Or around US$6 for a great meal.

Now that is about US$15, with few dining options much cheaper.

I cannot compare any of that to what has happened in other parts of the world. However, having traveled to various places, I can't imagine how someone would realistically promote Uruguay as "cheap".

However, "cheap" is really a meaningless, ambiguous word. What you consider cheap and what I consider cheap may be words apart.

I think the key is not to compare with another place, be it prices, culture, but rather to explore and see if it is right for you.

I never found it difficult to find furnished apartment. However, there is a lack of English resources and apartments offers in the short term for expats seem to carry a pretty stiff premium, but possibly more realistic deposit requirements.

I suggest people look at Buscando Casa to get a general feel of the rental (or property sale) market.

Expert Page: Quick Tips for Getting Settled in Uruguay


Comment #2
12/05/11 13:57
Rural east Colonia departmento
Thank author of this post/comment"Cost of living"

Those websites which try to sell you things like to say that the ROU is a very cheap place to live... which isn't surprising.

In my view the ROU is sometimes cheap and sometimes expensive depending on where we are in the economic cycle. At the moment we seem to be in expensive mode.

When I first arrived here the peso was weak and the economy was still depressed after the 2002 melt-down. I was coming from the UK where assets were grossly overvalued and sterling was very strong. As a result things seemed absurdly cheap here. 6 years later the UK's economy and currency have collapsed and the ROU's has boomed mightily so compared to the UK, the ROU now looks expensive.

I live here because I love the large degree of personal freedom we have in the campo, the friendly-yet-reserved nature of the people, the lack of silly wars against everything, the lack of paranoia about imaginary terrorists, the clean air, the low population density and many other things which appeal to me. If the cost of living was a major consideration to me, I'd live elsewhere.


Comment #3
12/07/11 09:25
Norwalk, CT
Thank author of this post/comment"what's reasonable?"

"...the cost of living in Uruguay which many websites state is very reasonable"

The key word here seems to be "reasonable". What may be considered a reasonable rent to a New Yorker from Manhattan may not be so reasonable to a person from Scottsdale, Arizona, and so on and so forth. It's all relative.

If you take a look at what's availabe in Montevideo in buscandocasa.com, you'll find out that an average 2 bed/2 bath apt in the Pocitos section rents for no less than 20, 000 pesos (U$1000) per month (gastos comunes = common charges included). To a Manhattanite, this would be a steal. Not so to someone from say Akron, Ohio.

But if you looked at rentals in a different part of town, for instance, in the downtown area of Montevideo, maybe you'll get a different picture.


Comment #4
12/09/11 02:03
Arizona
Thank author of this post/comment"Thanks to all who responded!"

We appreciate your detailed information and especially referral to the rental website. Insider knowledge is everything! There are many attractive features of Uruguay which are compelling us to move so we will just come and find a tranquil little place that we are seeking. Gracias!

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