If you’ve been to Jamaica for a destination wedding or sun-soaked vacation, it may not have crossed your mind to associate this Caribbean island and former British crown colony with retirement. Since its difficult transition to democracy in 1962, Jamaica has undergone many dramatic changes, not all of them positive. In addition to high crime rates and a troubled healthcare system, many educated Jamaicans, who came of age during or after independence, left their home country for better job opportunities in Canada, Europe and the United States. United, part of a “brain drain” that continues today.
However, as the government intensifies efforts to encourage expats to return to their homelands, immigrant retirees are more likely to see the country as a sunny paradise where real estate is moderately priced and often cheaper. than in many cities in the US Added to this are the historical attractions of lush greenery, dazzling beaches, tropical climate and a famous laid-back lifestyle (Jamaica is the birthplace of reggae, after all). And despite a still alarming crime rate (in 2019, Jamaica had the same population as Chicago but almost three times the homicide rate), incidents have been steadily declining since 2010.
Although Jamaica is not at the top of the Caribbean islands for its luxurious retreats, do not assume that it is completely cheap. parts of the island have been ‘discovered’, and the cost of living in Jamaica can vary dramatically depending on your lifestyle. Here are some essential categories to help you do a thorough cost analysis as part of your retirement planning.
Key findings
- Some people are drawn to Jamaica’s tropical climate, beautiful beaches, and laid-back lifestyle when considering where to retire.
- While you can find some bargains in Jamaica, the cost of living can vary dramatically depending on your lifestyle and the location you select.
- Montego Bay, on the north coast of Jamaica, is one of the most expensive areas on the island, where a home could easily cost you $ 1 million or more.
- Jamaica’s capital Kingston is more affordable – the median rent for a one-bedroom apartment is $ 517.
Housing and utilities
Montego Bay is famous for its luxurious beachfront resorts and golf courses, attracting honeymoon couples from around the world. Future retirees are likely to experience a sticker shock when they discover that this resort city costs almost as much to live in two of the most expensive cities in the United States – New York and Washington, DC, of course, for the price of one or two. With a one-bedroom apartment in a posh part of Manhattan (say between $ 1 million and $ 2.5 million), you can buy an entire home, with an ocean view, in the posh Spring Farm neighborhood.
This is just one example of the “location, location” rule that applies in Jamaica, where an exclusive enclave can be significantly more expensive than another nearby island area. In many cases, however, you will find that the cost of housing, whether you rent an apartment or buy one, is very affordable. As of March 2020, a one-bedroom apartment in the center of one of the cities rents for an average of $ 480 per month, while the purchase price of a 1,000-square-foot downtown apartment averages less $ 96,000, cheaper than garage space in some American cities
Jamaica’s capital Kingston is (not surprisingly) more expensive, averaging around $ 517 a month for a rental, $ 121,000 for a purchase. If you are in the market to buy, be aware that mortgage interest rates are higher than in the United States, ranging from 8% to 9%.
Another area for the shock of the utility label, most Jamaicans do not have a dishwasher, washing machine or dryer, not only because of the cost of importing such appliances to the island but also because of the cost of running them.
Food
As import prices have doubled in the last decade, the government of Jamaica declared that the island is in a “food crisis.” The response to this crisis has been a positive upturn in domestic agriculture and food production, from farms to gardens to chicken coops. By sticking to local eggs, cheese, meats, and produce, you can shop very inexpensively; You will find these items generally cheaper than they would be in the United States. One exception is milk – expect to pay around $ 9 per gallon.
Most imported products are still very expensive. However, with the exception of restaurants attached to luxury resorts, you will find that the price of dining out is reasonable. a couple can enjoy a three-course meal for around $ 45.
Transport
While Jamaica has distinct European influences, when it comes to efficient and safe transportation, Europe is not. Most retirees consider a car a necessity to avoid crowded, unpredictable, and often uncomfortable public transportation (don’t expect air conditioning, unless you’re taking a tour bus). While the rates are attractively cheap (and half the price for seniors, called pensioners in Jamaica), don’t expect the vehicles to show up on time. Drivers, infamous for their erratic motor skills, tend to depart whenever the bus is full (read: crowded).
The bottom line
Retiring expats in Jamaica, as well as other Caribbean islands, commonly report that the cost of the little things, or in many cases the lack of them, is an issue. Even everyday items like toothpaste and shaving cream tend to be surprisingly expensive. Stock up when you visit the states.
Other problems are things they did not foresee. power shortages, for example, frequent and unforeseen outages, which means there will be no water, electricity or internet for several days. Word to the wise: invest in a backup generator. Better to have to go to one of the local hotels. that, while nice, would really be a budget buster.