Although many people end up in Lima, there are other cities that attract foreigners, such as Piura, Chiclayo, Trujillo, Arequipa, Iquitos, and Cusco.

As for Lima, it's a sprawling city and you're sure to find an area that you like. Check out Guia Calles for a layout of the city and its districts. If you're a social butterfly, try San Isidro, Jesus Maria, Miraflores and Barranco as they are close to culture centres and other get togethers. If you have allergies or asthma, head out to the East where it's drier. Winter in Lima means overcast skies, but Chorillos and Barranco seem least affected by the winter fogs. Residential areas, think grass with fences, are to be found in La Molina, Monterrico, Camacho, and La Plancie.

If you're planning to rent, keep in mind that you'll often have to pay at least two months rent at the beginning. And you'll usually sign a six month or one year rental agreement. If you have to break the rental contract, you should give written notice at least 30 days in advance. Make two copies, one for them, then have them sign and date the other one and keep it for your records. For house or apartment hunting, the best thing to do is to ask around and check in the local paper. Usually ads are posted on Saturdays and Sundays. Call quickly as housing gets taken very quickly. Realtors might also be an option.If you're only going to be here for a short time, you might want to try a home-swap.

Prices

Prices of apartments vary. They usually are unfurnished, which means they come with nothing, no stove, fridge, nor water heater. In Lima, expect to pay at least 150USD for an small unfurnished room with bathroom. In Miraflores, prices are high; a room may cost 200 USD and a small unfurnished apartment will be at least 250USD. In the provinces, prices will be slightly lower. If you're not planning on staying a long time, it would probably be best to buy your furniture at the market or second-hand.

Tips for Buying Property

Before you sign for a house/apart/land, always go to SUNARP (registros publicos) to check out its status. You only pay a few soles. It's just in front of the Rebagliati hospital. Make sure there's no mortage (hipoteca) on the property and the owner doesn't have any legal problems. You'll need a DNI, CE or the permission to sign a contract visa. Once you're ready to buy, go to a notary and they will tell you everything that you need.

First step, you will have to sign a Minuta (which is a short document saying who's selling and who's buying) Make sure the notary legalizes the signatures.

Second step, you will also have to sign an Escritura (which is the long legal document that explains everything).

Third step, go together to the Municipality and you each will get two copies of a PU (Public property taxes, ex. water, sidewalks, etc) and an HR (Private property taxes, your property) You will have to fill out these forms so that the property legally changes names. You will also have to pay a fee to transfer the names.

We did the last two steps vice versa, but the important thing is that you do the first step first.

Lastly, about payments. Many people prefer a cheque de garantia (we got ours at BCP and they cost 20USD each) We got two cheques, we gave the owner the first one after we signed the Minuta and the second one after we signed the Escritura.

In addition, after you have bought your house you should take out insurance to protect it. Mapfre is pretty cheap and very reliable.

Exchanging Money

The currency used here is the Nuevo Sol. XE has exchange rates as does the Banco Central. You can exchange money outside of many banks or at "casas de cambio". If you change it outside of a bank, only use official money changers who wear vests. You'll get a better rate than at the bank. Just be careful of counterfeit bills. Also be sure to double count your money before handing it over and use your own calculator. Travellers cheques are difficult to exchange here in Peru, so you're better off simply bring cash to start off with, or withdrawing money from an ATM. If you're interested in stocks, try the Bolsa de Valores Lima.

Bank Accounts

Your employer can open a bank account on your behalf. To open a bank by yourself, most banks require either a DNI (National ID Document-this is for Peruvian citizens) or a carné de extranjería (foreign resident card) plus a copy of your electricity or water bill that shows your address. Interbank and BCP will let you open an account with a tourist visa. Be aware that every time you take out or deposit money, you have to pay the ITF (tax), which is about 0.1%.

Usually there are two types of accounts: Plazo Corriente (Running) and Plazo Fijo (Fixed). A Plazo Corriente account allows you to withdraw money. A Plazo Fijo means that you shouldn't withdraw your money for a certain amount of time which varies between one month and two years. Plazo Fijo gives you a higher interest rate. You can withdraw money from a Plazo Fijo, just ask your bank or caja if there are any penalties. Be careful of banks, as they usually charge a maintenance fee if you have less than X in your account. In my opinion, it's much better to open an account at a "Caja".

Transferring/ Withdrawing Money

If you want to transfer money, you could use the Banco de Credito del Peru, Money Gram or Jet Peru (has a few offices in certain countries) Other banks or cajas may also transfer money, so please check with your home bank and bank in Peru.
Xoom also works through Interbank

ATMs

There are ATMs at all banks. Most banks allow you to make a certain number of withdrawals a month without being charged. After that, you will be charged a nominal fee. If you withdraw money using an ATM that is not your bank, you will also be charged a fee.

Be wary of using your home debit card in ATMs here in Peru. Some banks have agreements, but not all do. Fees are often very high,so check with your bank before withdrawing money here. ING Direct allows you to withdraw from BCP banks here in Peru, not all banks do. You could also open an ING Direct Account and then withdraw funds from an ATM without paying fees at BCP orInterbank and Global Net. Some other banks may also allow you to withdraw funds with no fees, but please check before doing so. Charles Schwab doesn't charge ATM fees, and automatically refunds any charges from the bank where you withdraw money. They also have no monthly fees. Bank of America doesn't charge if you use Scotiabank ATMs

Paying Bills

Bills aren't that expensive. Gas, electric, water, and drinking water bills should come out to less than 200 soles a month. You'll probably have to pay rent, gas, electric, and water bills while living in Peru. If you're renting you will pay the rent directly to your landlord or landlady. Depending on the size of the building that you're living in, you may also pay the gas and electric bills to them.

If you have to pay electric and water bills separately, you can easily pay these bills at banks, some supermarkets, or service branches. On the back of the bill, there is a listing of where you can pay. More and more banks are allowing you to simply log on to your bank account online and pay your bills that way. Ask your bank for more information.

Gas is used for stoves and comes in metal containers. You will have to call the gas company in order to get gas. The first time you purchase gas, you will have to purchase the container and the gas that goes inside. After that, you will only have to purchase the gas.

Drinking water can be bought in litre bottles or in large gallon containers. There are many water companies that offer this service. The first time you order, you may have to purchase a water cooler holder, plus the container and the water. After that, you only have to pay for the water.

Sharon de Hinojosa (naturegirl321) has lived and worked (mainly teaching English) in the US, Scotland, Spain, the Czech Republic, China, Korea, and Peru. As well as teaching short-term in Venezuela and Taiwan.

She has created The LA Job List http://www.thelajoblist.blogspot.com which lists schools, institutes and universities in 19 Latin American countries which offer English teaching positions.

Since living in Peru since August 2006, she wrote The Ultimate Peru List http://www.theultimateperulist.blogspot.com With 60 pages it's a comprehensive guide for those living in or moving to Peru.