planning for life in the DR...

amstellite

Bronze
Sep 5, 2007
565
12
0
In a few years I have the option to retire and my heart is set on the DR., more specifically the northern part around Santiago...I thought about building a house in absencia but I am here in NY right now, and that may be an issue. So I thought it better I rent for a year when I retire, see how that goes , and if I still love it as I do now, and dont miss back home in NY., then I will know for sure and buy.... so question is , what' s a decent rent in the campo area north of Santiago, thinking Villa Gonzales, Palmarejo, Navarette.. where I know some people... nothing spectacular.... one or two bedrooms, single-level, indoor toilet...electricity...not looking to live like Rockefeller, no pool needed! I like the rural life, but access to a large city like Santiago is best for me....
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
113
Please do not build when you are not here. You want to be on site every day you can when you are building. Renting in the area first where you want to build is a very good idea.
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
I would stay away from that side of town. Navarrete is a hot spot.

The East side of town is growing tremendously and a lot of commercial businesses are being built not to mention the connector which will really open up the area. Look at Villa Maria, etc.

Your best bet is to rent for a year. If you can't find a good house at a good price you can always build. Look at my thread building the Dominican way.
 

Hillbilly

Moderator
Jan 1, 2002
18,948
514
113
Just this week in the Faculty Room on PUCMM campus, one of my engineer colleagues had some plans laid out on one of the tables, and Curious Me went an took a peek. Immediately, Curious Me recognized the basic plan, and since the fellow is a friend, we talked and kidded about it.

It was a "typical" country residence. A "4 water roof", large cement pad, with cement blocks up to the windowsills, and the wood up to the roof-line.

Since I am a big fan of this type of construction, I pontificated on the benefits of lapstrake (clinker-built), palm wood sidings, and then he said: "Oh no....tongue and groove pine."

And I kidded him and said: "Cheater!!! It should be palm...clinker built style."

And he said: "No, that is really expensive."

He then said that all told this house, two bedrooms, dining, living, kitchen...would be about $15,000 to $20,000 for his client in NYC...

I told him to "Hold that thought." Honestly, if we close on the house, I just might build me one in Bajon, on the lake of the counterdam on the Mao River...

So, Amstellite, hold on to those thoughts....do the rental, find your place...you might want to look at a place like Guananico, or Luperon or El Estrecho...there are tons of places not full of ex-pats where you can enjoy life not too far from the big city.

HB
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
Just this week in the Faculty Room on PUCMM campus, one of my engineer colleagues had some plans laid out on one of the tables, and Curious Me went an took a peek. Immediately, Curious Me recognized the basic plan, and since the fellow is a friend, we talked and kidded about it.

It was a "typical" country residence. A "4 water roof", large cement pad, with cement blocks up to the windowsills, and the wood up to the roof-line.

Since I am a big fan of this type of construction, I pontificated on the benefits of lapstrake (clinker-built), palm wood sidings, and then he said: "Oh no....tongue and groove pine."

And I kidded him and said: "Cheater!!! It should be palm...clinker built style."

And he said: "No, that is really expensive."

He then said that all told this house, two bedrooms, dining, living, kitchen...would be about $15,000 to $20,000 for his client in NYC...

I told him to "Hold that thought." Honestly, if we close on the house, I just might build me one in Bajon, on the lake of the counterdam on the Mao River...

So, Amstellite, hold on to those thoughts....do the rental, find your place...you might want to look at a place like Guananico, or Luperon or El Estrecho...there are tons of places not full of ex-pats where you can enjoy life not too far from the big city.

HB

Is that price RD pesos per sq meter? I'm assuming the roof is the good insulated corrugated metal?

Also, how many sq meters is the house?
 

pi2

Banned
Oct 12, 2011
961
0
0
Is that price RD pesos per sq meter? I'm assuming the roof is the good insulated corrugated metal?

Also, how many sq meters is the house?
Buy - do not rent -rental wastes money.

pi2
 

Hillbilly

Moderator
Jan 1, 2002
18,948
514
113
CHIP> That was total cost in dollars!
Oi2: Get real! You want this person, who has had more negative experiences, been taken to the cleaners more times, than any other person on this board, to just up and buy a place??? Puleeeze...

Rental until he is sure....then buy.

RE: Rent. Sometimes I am considering a few facts.

I can rent a property worth 6 million for around 15,000 a month or 180,000 a year.
If I take 6 million and put it in the bank at 1%, I get maybe 60,000 a month in income, and even at 1/2% a month I get twice my rental money. I have no depreciation costs.

That makes sense, doesn't it? In the DR you are expected to pay for your house, not like in the States where 5% or 10% down will get you a mortgage at some stupidly low rate: less than 5% anywhere in the USA. In the DR you are going to be paying closer to 20% for mortgages, and as a foreigner they will be harder to come by. And they are generally are for shorter terms.

So, at 65 or 70 years of age, why buy????

You can get something nice, live well, and enjoy life with little worry hanging over your head...

Yes, there are probably some opportunities that might change this scenario. Perhaps some of the readers will post on them...

HB
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
CHIP> That was total cost in dollars!

Must of been a little casa de campo.

BTW, the going rate now for what I quoted would be RD10-12k per square meter depending on finish(tiles or conc floor) and if the roof has any large spans.
 

pi2

Banned
Oct 12, 2011
961
0
0
buying is nearly always best - total control and the house increases in value each year!

pi2
 

Hillbilly

Moderator
Jan 1, 2002
18,948
514
113
Oh really??? Take a look in South Florida, Nevada, and many many other places...or Ireland...and then tell us that "they always increase in value."

You remind me of a little boy....Pi 2 = P P ???? A row of P P holes in the snow!!

HB
 

Givadogahome

Silver
Sep 27, 2011
4,397
2
0
buying is nearly always best - total control and the house increases in value each year!

pi2

So full off poo, but at least you're consistent!

Anyway, Ifound some footage of you living at typical dayat home in Pi2 land.

Go on deny this is you at home,doing your morning workout before getting into pi2 character!

[video=youtube;jJ_-CmwHWPo]http://www.youtube.com/watch?v=jJ_-CmwHWPo[/video]
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
So full off poo, but at least you're consistent!

Anyway, Ifound some footage of you living at typical dayat home in Pi2 land.

Go on deny this is you at home,doing your morning workout before getting into pi2 character!

[video=youtube;jJ_-CmwHWPo]http://www.youtube.com/watch?v=jJ_-CmwHWPo[/video]

That happens to be a great song - and a great movie to boot. Thx.
 

mekkizm

Member
Jun 1, 2004
104
0
16
I agree 100%!!

RE: Rent. Sometimes I am considering a few facts.

I can rent a property worth 6 million for around 15,000 a month or 180,000 a year.
If I take 6 million and put it in the bank at 1%, I get maybe 60,000 a month in income, and even at 1/2% a month I get twice my rental money. I have no depreciation costs.

That makes sense, doesn't it? In the DR you are expected to pay for your house, not like in the States where 5% or 10% down will get you a mortgage at some stupidly low rate: less than 5% anywhere in the USA. In the DR you are going to be paying closer to 20% for mortgages, and as a foreigner they will be harder to come by. And they are generally are for shorter terms.

So, at 65 or 70 years of age, why buy????

You can get something nice, live well, and enjoy life with little worry hanging over your head...

Yes, there are probably some opportunities that might change this scenario. Perhaps some of the readers will post on them...

HB[/QUOTE]



That is exactly what a close family member of mine is doing and EVERYDAY he thanks God that he didnt invest 7 million pesos in a house.. he rents an amazing home in Santiago for about 18,000 a month and thats that!! He gets about 80,000 pesos a month in interest, pays his bills and lives within his means.. weekends at the beach and rivers in Jarabacoa... I think this is the way to go these days!

mekk
 

UGACHRIS

New member
Jan 31, 2010
27
0
0
RE: Rent. Sometimes I am considering a few facts.

I can rent a property worth 6 million for around 15,000 a month or 180,000 a year.
If I take 6 million and put it in the bank at 1%, I get maybe 60,000 a month in income, and even at 1/2% a month I get twice my rental money. I have no depreciation costs.

That makes sense, doesn't it? In the DR you are expected to pay for your house, not like in the States where 5% or 10% down will get you a mortgage at some stupidly low rate: less than 5% anywhere in the USA. In the DR you are going to be paying closer to 20% for mortgages, and as a foreigner they will be harder to come by. And they are generally are for shorter terms.

So, at 65 or 70 years of age, why buy????

You can get something nice, live well, and enjoy life with little worry hanging over your head...

Yes, there are probably some opportunities that might change this scenario. Perhaps some of the readers will post on them...

HB



That is exactly what a close family member of mine is doing and EVERYDAY he thanks God that he didnt invest 7 million pesos in a house.. he rents an amazing home in Santiago for about 18,000 a month and thats that!! He gets about 80,000 pesos a month in interest, pays his bills and lives within his means.. weekends at the beach and rivers in Jarabacoa... I think this is the way to go these days!

mekk[/QUOTE]

That seems like a nice return every month. Is this money taxed? Thats much better than buying a house.
 

pi2

Banned
Oct 12, 2011
961
0
0
If you retire at 60 and live to 90 that is 30 years of the dollar reducing in value and the rents going up. On average rents keep pace with inflatation - interest from bank depositis do not.

Your notional income from a house or codo you own and you are living rent free is unlikely to be taxed.

pi2
 

UGACHRIS

New member
Jan 31, 2010
27
0
0
If you retire at 60 and live to 90 that is 30 years of the dollar reducing in value and the rents going up. On average rents keep pace with inflatation - interest from bank depositis do not.

Your notional income from a house or codo you own and you are living rent free is unlikely to be taxed.

pi2

This holds true if you are able to always keep a renter.
 

pi2

Banned
Oct 12, 2011
961
0
0
If I had rented a condo when I moved here 6 1/2 years ago my rents to date would have totalled about $30 k. The purchase price was ony $41,000. No contest!

In developing countries with rapidly increasing property prices and expanding economies many times better to buy!


pi2
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
For people that are in their 60's and have a limited but stable income it only makes sense to rent unless of course they want to leave a home to their kids.
 

william webster

Platinum
Jan 16, 2009
30,247
4,329
113
of course, in some countries the 'reverse Mortgages" do the trick to keep the elders afloat.

Thats another way to provide retirement income for a vacation home.

Drains the proverbial tank somewhat, but to some, it may not matter.

If you have spent all of your savings educating your children to the point where they are self-sufficient professionals... go ahead and "live it up" in the golden years.

My 2 cents