Expat Tips: The Cost of Living in Lima

According to the newly released report from UBS Bank Switzerland, Lima is the 4th most expensive city in Latin America. But what does that mean when it comes to your cost of living here?

Cost of Living in Lima - Rent

Most people will find that housing - usually rent in the case of expats - will be their largest expenditure. So how much is rent in Lima? The answer is - it depends. Where in Lima do you plan on living? A 2 bedroom apartment in Miraflores or San Isidro can easily cost $1500 per month or much more, especially in a building with ocean view. Houses in the more residential areas of Miraflores, Surco and San Borja can have similar price tags. However, if you take your time and look, there are bargains to be had. It is possible to find a home for rent for $400-500. And if you move into less tourist-centric areas, such as Surquillo or Magdalena, and are willing to have a home that perhaps has a bit less in the way of western amenities, it's quite possible to find homes for $250-400.

Cost of Living in Lima - Food

Your next large expenditure will be food. This is where a lot of people in Lima are pleasantly surprised to find that they can save a lot of money. A full lunch menu with appetizer, main dish and drink will cost about $2. Ground beef is $2 per pound (about $4 per kilo) and a whole chicken costs about $3 - or less at the market. Fruits and vegetables are very inexpensive, and often sold from carts that pass your home. A family of four can be well fed on a monthly food bill of $300-400.

Cost of Living in Lima - Health Care/Insurance

Health care is very affordable in Lima - and the standard of care in private clinics is very good. As an American with medical training, I've been very pleased with the health care I receive in Lima. A trip to the emergency room resulting in stitches for my son cost less than $25. Minor cosmetic surgery cost about $400 - and included the doctor making a house call a week later to remove stitches. Dental care is also quite reasonable - a neighbor had 2 root canals and an extraction for about $100. Fillings cost between $7 and $30, depending on the dentist and location. Health insurance is available, with most plans costing between $25 and $60 per month. However, because health care is so inexpensive, some expats forgo regular health insurance and instead put the cost of a plan into an interest bearing account to have on hand for emergencies. If that is the case, it's recommended that you do buy a plan for cancer treatment, which is generally around $12-20 monthly.

Cost of Living in Lima - School

If you're moving to Peru with school age children, one cost you must factor in is school. State schools simply aren't that good, so it's important to find a good private school. For a good school, expect to pay tuition from $200/month and up. Some of the best schools have costs of near $1000 a month in tuition. Even if you choose a less expensive school, students generally have to buy all school materials and books.

Cost of Living in Lima - Other Costs

Of course there are other costs that may factor into your decision. Utilities are very reasonable - a package of phone, cable and high-speed internet costs about $35/month. For a family of four, we pay about $100 a month for the rest of our household utilities - water, electric and gas for the stove. Clothing is very inexpensive, but large sizes are hard to find. Cars are expensive, and gas is about $4-5/gallon, but taxis and buses are cheap and plentiful. Electronics can be very expensive for newer items, such as flat screen tv's, although recently prices have been coming down some. A full time housekeeper costs about $200 a month.

Despite being one of the top four most expensive cities in the region, many expats find Lima a quite affordable place to live. With its growing economy and affordable cost of living, Lima might be the right choice for you.

Source: Isabel Guerra, Peru's Capitol is 4th most expensive in the region, Living In Peru.com