Living Costs in the Dominican Republic

[cavok]

but those deposits are in dominican pesos, right?
so the greenbucks are gone and you are under the "evaluations" of the DR-Peso, which is loosing quiet some value over such 3 years time frame.
and the money is tied up for that time frame, you can't go there and use part of it for what ever emergency or such.
at elast that was the case years ago, when i looked on those great interest payment margins.
such is good to invest in, if a lot of spare money is at hand.
someone should never put a vast mayority of the available cash funds into such deposit.

Mike

Yes, that's correct - pesos. With the devaluation rate I was netting 15%. I just reinvested 3% in 10% CD's at BHD so as not to lose principal. All investments have risk(I know people that lost money on their condos here in Cabarete). They had to sell and the only way was to sell at a loss.

You're right, the money was tied up for 3 years, but at that time, unless I wanted to fire sale my condo, my money was, and still is, tied up in my condo. That's why I agree that, in retrospect, renting would have been a better way to go.

I also agree one shouldn't put a vast majority of money in this kind of investment. Like you said, it depends on how much other cash you have available to you if you need it. It also depends on your own tolerance for risk. It's not for everybody.

After the B.C. certificate expired, I bought a 15.9% 7 year "bond" at BHD. That one I was able to sell back to BHD a couple years later at a profit since the interest rates had dropped dramatically.

 

[MikeFisher]

Yes, that's correct - pesos. With the devaluation rate I was netting 15%. I just reinvested 3% in 10% CD's at BHD so as not to lose principal. All investments have risk(I know people that lost money on their condos here in Cabarete). They had to sell and the only way was to sell at a loss.

You're right, the money was tied up for 3 years, but at that time, unless I wanted to fire sale my condo, my money was, and still is, tied up in my condo. That's why I agree that, in retrospect, renting would have been a better way to go.

I also agree one shouldn't put a vast majority of money in this kind of investment. Like you said, it depends on how much other cash you have available to you if you need it. It also depends on your own tolerance for risk. It's not for everybody.

After the B.C. certificate expired, I bought a 15.9% 7 year "bond" at BHD. That one I was able to sell back to BHD a couple years later at a profit since the interest rates had dropped dramatically.

great info.
thats what i've been told about the stuff, but that been updated, years old info.
yes, itis a good extra investment.
anyways,
nobody should ever putall the money in just one project.
not in one condominium complex at the same area, not in one kind of bonds and not in one single business.
spread out, and the stuff is more waterproofed in case of rough times coming up for one of the investments, while the others may still be fine and assist the living.

thanks

Mike

 

[Kipling333]

I have 90% of my investments in one sector overseas and could not be happier or more relaxed about it . I own my own house in the capitalwhich I bought well and renovated and my cost of living here by far the lowest than in any country I have lived in. I am a widower with a housekeeper and a gardener who get about 18,000 pesos each monthly and that is 216,000 per year or under US$5000 . My electricity with two airconditioners is 2000 pesos monthly ,water is about 500 pesos monthly and garbage collection is about 250 pesos monthly . My food and wine is less than 24,000 monthly and petrol is 8000 monthly so with extras is less than 40,000 per month or 480,000 every year which is under US$11000 . So put together ,my cost of essential cost of living here is way under US$ 20,000 so I have a nice lot of money for discretionary spending at restaurants, less than US$50 per head in decent places , golf which is about the same cost as a good club in the USA and travelling.
I think that my essential cost of living in France for example would be three times the amount as Santo Domingo.

 

[MikeFisher]

right on, exactly taht.
BUT,
2K electricity with 2 running A/C's?
you did really blend in and connected the A/C's to the neighbour's elec meter, right?
lol
i do not use any of our A/C's, 3 bedrooms, 2 bathrooms, 1 couple and a babygal,
around 4K pesos elec per month.(24/7/365 reliably available).
otha than that,
you can't get mor for less US$$$ anywhere, specially not in western Europe or the USA.

Mike

 

[Jersey Devil]

Those who are posting about how much they "saved" by buying vs. renting, are not including the fact that if you rent, instead of buy, there is no capital invested,(tied up) in the purchase.
You can pay $200,000 US for a house, that money is now not available to you for other purposes.
If you rent that same house, you STILL have your capital, it's "liquid", and probably much safer, in another country.
That said, I "bought", 20 years ago.
Not as an investment, but as a home for my family now, and into my children's future.
I would much rather have $200,000 tied down in a house, than be renting, with $200,000 in a bank.
WHY?
My wife is a dominican, and that $200,000 would be gone in a year!!!!!!
Dominicans can handle "cash", they MUST SPEND IT!!!!!
A HOUSE IS BETTER FOR THEM, EVEN THOUGH I/THEY, could rent a bigger house for less money, and sit on the $$$$$$$$$$$$$$$$$$$$$$$$
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
This thread could be called,..."How To "DOMINICAN PROOF" your cash"!!!!!!!!!!!!!!!!!!!

So true. Most Dominicans spend without thinking about tomorrow.

 

[NonDormant]

It said that this post began as 'Started by Robert, 02-23-2011 09:47 PM'. Well, I was reading these posts about living in the DR back in 2002/3, if my memory is still good. It was very common then for people to visit the DR, love it, and want to return and live here. For that, they needed data about costs. Back then, without buying, you needed $1200 USD a month minimum for everything, family of 5 for me. $2000 provided a much better quality of living. Rent was $300 for a 3 bedroom apt. in a middle class neighborhood in Santo Domingo. This is Dominican middle-class, not expat. Expat costs more. I was one of two expats (the other guy was German), in the barrio. Yes, the $300 is included in the $1200. HOWEVER, it did not include school fees, since not everyone had kids. We sent our son to El Dominico-Americano, a very good school.

Those dollars, $1200 to $2000 a month, are still valid today for renting Dominican middle-class.

But the most recent posts are about buying versus renting. I have not re-read all of the posts, but a FAIR warning is called for. DO NOT BUY anything your first year. Real estate agents and others here love the stupid expats who come and buy. Since they are used to expensive prices in NY, Europe, etc., they are horribly overcharged. Live, not visit, for a year here before you buy anything.

Actually, the one year rule is good for any NEW place that you want to live. When we moved from Texas to Virginia, I did not know the area, neighborhoods, schools, etc. Buying at the beginning would have been a bad mistake if it turned out that I did not like my neighbors.

Be patient.

 

[will123]

Sorry! I like to know how much is a bottle of bier in the supermarket. small big.
thanks

 

[MikeFisher]

Alter Ego.
something weird.
i get a e-mail notification, that you asked here on the topic about Platanos to be 30 pesos per piece now,
but when i follow the link the last post that shows up is from sept 26th.
i guess you deleted your question or moved it elsewhere??
anyways,
Platanos(i hate them, but the Mrs loves them, lol) are actually here in town 15 pesos per piece at the Colmados
and the other day a nuthead of a veggie-truck wanted 25 (i told him some nice spanish phrases and bought them at a small Colmado for 15.- each 20 meters aside his location).
everything over 20 is a ripp-off, like the fruit and veggies Trucks do for example in the El Cortecito Condominium area here on the East.

Mike

 

[MikeFisher]

Sorry! I like to know how much is a bottle of bier in the supermarket. small big.
thanks

depends what beer brand you are looking for, they are sold in many different sized bottles and cans,
and the prize also depends at which supermarket you plan to do your shopping.

Mike

 

[healimonster]

Sorry! I like to know how much is a bottle of bier in the supermarket. small big.
thanks

It's surprisingly expensive. I think I can buy a Presidente in NYC cheaper than I can in Punta Cana. I don't recall finding a beer in the supermarket cheaper than 100 peso ($2 USD). Contrast that to rum where a large bottle of Ron Barcelo rum can be found for around 900 peso ($20 USD) where that in the states would cost about 1800 peso (40 USD).

 

[bob saunders]

It's surprisingly expensive. I think I can buy a Presidente in NYC cheaper than I can in Punta Cana. I don't recall finding a beer in the supermarket cheaper than 100 peso ($2 USD). Contrast that to rum where a large bottle of Ron Barcelo rum can be found for around 900 peso ($20 USD) where that in the states would cost about 1800 peso (40 USD).

Really I regularly buy a grande Bohemia for 80 pesos.

 

[healimonster]

Really I regularly buy a grande Bohemia for 80 pesos.

That's not beer.

 

[MikeFisher]

That's not beer.

i get american beers(in case you would prefer those, lol) at different spots for 100.- and less per Can/Bottle.
like at the Super in Cap Cana and the Shell Station of the Boulevard del este, at both spots thats the price for the already cooled/ready to drink beers. same for the supermarket La Defensa in Cabeza de Toro.
the German Beer "Thueringer", in thye big half liter Cans, runs for well less than 100.- per Can here, too.

Mike

 

[healimonster]

That's not beer.

Just kidding Bob. It was too easy.

 

[bob saunders]

That's not beer.

More so that Presidente ( rice water)

 

[jfk-tampa]

just my 2 pesos in . pineapple and cantaloupe used to be 40pesos now 90 to 100 . and coffee used to be 85 pesos a lb now its 120 for 1/2 lp and I,m talking about changes in the last yr or 2.ican get chicken at Walmart back home for 2$a pound . things aregetting expensive but just think of allthe winter clothes we don,t buy . and how can you charge for sunshine?

 

[DRob]

Wanted to give this thread a bump, so two questions:

1) Can someone give their costs for preparing a "traditional" Thanksgiving dinner in the DR?

2) Roll Call - I thought an update as to rent along the North and East coasts, Samana, SD and Cibao would be helpful for the incoming last-minute snowbirds. Please mention your general area/barrio, what you're paying, and what that get you (ex. 2 br/2ba with a garage, and amazing view of the valley.)

 

[MikeFisher]

Wanted to give this thread a bump, so two questions:

1) Can someone give their costs for preparing a "traditional" Thanksgiving dinner in the DR?

2) Roll Call - I thought an update as to rent along the North and East coasts, Samana, SD and Cibao would be helpful for the incoming last-minute snowbirds. Please mention your general area/barrio, what you're paying, and what that get you (ex. 2 br/2ba with a garage, and amazing view of the valley.)

never attended/heard of a special thanks giving dinner in DR.
is thanks giving here the same day as the US(this thursday??).
it is celebrated on different days waay apart in different countries.

Mike

 

[drSix]

2) Roll Call - I thought an update as to rent along the North and East coasts, Samana, SD and Cibao would be helpful for the incoming last-minute snowbirds. Please mention your general area/barrio, what you're paying, and what that get you (ex. 2 br/2ba with a garage, and amazing view of the valley.)

$1,700 a month will get you a mansion in Haciendas El Choco, that is in general disrepair!

It's like a well kept women from the Hamptons. Good to look at, got all the right things in the right places, but once she moves in, costs you a fortune and leaves you longing for the simple life.

 

[DRob]

never attended/heard of a special thanks giving dinner in DR.
is thanks giving here the same day as the US(this thursday??).
it is celebrated on different days waay apart in different countries.

Mike

Oh, I meant US-style Thanksgiving. That said, people from everywhere enjoy the food, lol.