Are All-Inclusive Resorts Worth Your Money (Part 3)

                                              ANALYZING COSTS

Part 1 has been a definition of what all-inclusive means at El Cid Resorts. Part 2 was a discussion on how we mitigated the two major disadvantages of weight gain and sociocultural isolation. This Part 3 is a discussion of the costs. We offer three kinds of analysis. The costs of all-inclusive stays as compared to 1) prevailing market costs, 2) owning a home in Mexico, and 3) costs of staying at home in Viewpoint.

Each is compared to our total cost of ownership of a three months stay at El Cid Resorts for 20 years. We paid $90,000 for this privilege. Computing a total of 1800 days (30 days x 3 months x 20 years), our total cost per day is at $50 at present value.

Comparison to Market Costs

The market value of lodging at El Cid Resorts through Tripadvisor is M$2342 or at a 20:1 exchange rate means US$117. The present value of buffet rates at El Cid are: breakfast M$280, lunch M$$390, and dinner $450, a total daily rate of M$1090 or US$56. This includes all drinks. If you add this to the US$117 daily lodging cost, the total daily cost of an all-inclusive stay is US$173. Compare this to the US$50 daily cost, Our savings is more than one hundred twenty dollars a day!

Comparison to Owning a Home in Mexico

condo ownership in Mazatlan

The average selling price of a one-bedroom condo facing the ocean in Mazatlan is US$180,000. The obvious advantage of buying is that, at the end of 20 years, you still have the asset that is worth, let’s say, the same. But what are the other costs of owning this home? 2.2% of the purchase price is owed to the bank and 4% is closing costs or a total of 6.2% one-time costs. This amounts to US$11,160. The cost of furniture and appliances can be US$5,000. Thus, the one-time total cost is US$16,160. 

Subtract this from US$90,000 and you have to account for the balance of US$78,740.

Estimates of recurring costs are culled from the cost of living estimates for expats living in Mazatlan:  https://www.expatistan.com/cost-of-living/mazatlan. Total living expenses per month would be food, US$300, utilities, US$100, cleaning help, US$300. At three months a year for 20 years, these translate to US$42,000. The balance of US$36,850 can be used for the maintenance of the condo and furniture and appliances, property management fees, and property taxes per year or a monthly cost of US$3,070. In short, it is a zero-sum game.

But do I really want to get all the headaches of owning a home? Definitely not at this age and neither do I want to give up all the amenities and activities I can have at El Cid at no additional cost. We will not have the same level even at the plushest of condos. At El Cid real estate, homeowners have to pay for a membership at the country club. Those cooking and Spanish classes also will cost a lot of money. And I can no longer have that free special birthday gazebo by the sea (headline photo) or the heavy discounts for tours and fishing boats.

Comparison to Staying at Home in Viewpoint

our Viewpoint home base

What if we stayed at home? Our monthly living expenses in Viewpoint are: food, US$300 and an opportunity cost of US$ 2,750 or a total of $3,050 per month. Opportunity cost is what we give up if we do not rent out our Viewpoint home for three months to Arizona’s winter visitors. Multiplied by 3 months for 20 years and it comes up to US$165,000. This more than pays for the timeshare investment of US$90,000 with a savings of US$75,000. These savings we are earmarking for the maintenance of our Viewpoint home. For example, we plan to add an Arizona Room for US$20,000. In other words, it would cost us more if we stayed at home during winter.

Whether we compare to market costs, to owning a home in Mexico, or to staying at home in Arizona, we are at a major advantage by choosing to stay all-inclusive in El Cid Resorts for three months a year. This year, we have chosen to stay in Mazatlan. We can also choose to stay in Cancun or Cozumel. We are even waiting for the completion of the Cabo San Lucas resort and hope that they will also build in Puerto Vallarta. We are so happy we stumbled upon this new way of vacationing past 70! 

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