Cost of living in Chiang Mai is low relative to Singapore. It can't be high because a mid-level manager there may earn just about Bht20,000 to Bht25,000 per month (S$1K - S$1.2K), and the earner is subjected to tax, housing loan expenses on top of food and transportation expenses.
I estimated that my wife and I will need approx. Bht20,000 per month for living and transportation to retire there (not including housing and tax). We will have a fully paid-for house and no income tax by then.
Hence, budget of S$18K/yr would be comfortable.
If I put S$180K in investment with a Compounded Annual Growth Rate of 7%, the sum will double itself every 10 years.
In other word, if I put invest S$180K today, I can retire in Chiang Mai in 10 years time without worrying about income anymore. If I have S$360K today and I put half of it in investment, I can retire NOW (of course provided the house is fully paid).
All in S$500K is all that it takes in Chiang Mai to live like one with more than S$2M cash plus a paid-off landed house in Singapore.
Alternatively, if my wife and I could make S$18K/year there, we could also live there now; actually, either of us will be able to make that by doing freelance projects for 3-4 months in a year. So, semi-retirement is possible.
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Hi,
I am very impressed with your 2 articles concerning Chiang Mai. I have been visiting Chiang Mai for the last 2 years and I love the place and its life style.
I will be going next month again for the LoyKaThong and wondering if you already live there. It will be interesting to meet you there and explore more concerning the aspects of living there.
I can be contacted at ehlim@singnet.com.sg
Thanks
Vincent Lim
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