Here we come...

Cap'n Jon

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Just discovered this informative and friendly forum a few days ago. My wife and I (and small dog) will leave the USA and relocate to the DR(Sosua, Samana or Luperon) as soon as we have liquidated our assets. I visited the north shore several years ago, just sailing through. Now we are ready to start a new life in what I remember as a wonderful country...I have read a number of threads and have a pretty good idea of what's going on there. Here are some questions (excuse me if I am repeating previous threads):
1)Will we realistically be able to receive 15-20% on US$120,000 if it is deposited in pesos?
2) Until we discover which money-creating direction we will take there, is it realistic to live modestly (rent, utlities, food) on the interest generated from that capital?
3)Is the tourist economy strong, or has it really been knocked sideways the last year or so?
4)Is it still possible to buy a "fixer-upper" house in a decent area (NOT a gated community, thanks)for $50,000?
5)How soon after we arrive on a tourist visa can we begin the residency process?
6)How soon after the residency process begins, will we be allowed to go into business?
7)Is there anything like "Public Storage" or a similar secure storage situation for personal possessions? (We won't be bringing a lot - we live on a sailboat, so don't have too much!)

I understand that using a lawyer is imperative and it seems Fabio Guzman is highly recommended.

For those of you who have rolled your eyes at these questions, my humblest apologies...
Jon White
 

Criss Colon

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We wish you all the best!Just take care!

Resent events in the USA,stock market freefall,Enron,Airlines going bankrupt,and other economic "woes",make it clear that you could loose 120,000 very easily in the "States"! It could happen here,only 10 times faster! Have you been reading the DR1 Daily News? I doubt it! Baninter just went "Belly-Up"!Peso is at 24/25 to one dollar! Devaluation of peso about 30% in 12 months,inflatiopn way up too!Leave your money at home! Come live on your boat for 6 months.Or rent a cheap apt.! Things have changed a lot in 5 years! This place could go up or down in the next year or so! Better safe than sorry! Why not take tourists for day/evening sails? Give em some sandwhiches and beer,charge 50 bucks each for the day cruise,and $20 for "Booze Cruise",with a "Cash Bar"! That sounds good to me! Getting paid to do what you love to do! I will come and "Crew" for you!

I am now living in the DR(8years next month!)because while vacationing in Curacao in 1958 my parents took us on a "Day Cruise" with a couple from Chicago,who sold all,bought a boat, moved to Curacao,and started taking tourists to an inland beach for a day of swimming and a "picnic" lunch.I was 12 years old.I knew at that moment that I would "retire" to a "tropical Island"someday! I didn't expect to get married,work harder than I did in the US,and have 3 children,but here I am!
When do we set sail?Cris Colon
 
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MommC

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Also the overabundance of AI's has "killed"

all the small tourist related businesses in many of the "tourist" areas. Each year that we come down there's less and less of them.
 

mainer

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1. I wouldn't do it.
There are other investments that you may want to look into. Ask bushbaby or jazzcom.

2.Yes, that kind of interest on that kind of money and you will be okay.

3.don't know

4.yes. We have found several in the Sosua area. We found one just past Cabarete for 30,000

5.Same day, if you want

6.don't know

7. don't know

Best of luck to you.

The Mainers
 

Cap'n Jon

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Chris - H'mm, sobering thoughts. Yes, I read about Baniter problems, but (naively it seems) thought they were just about one bank. from what you say, there may be some worms in all the apples. we would love to sail down and do day charters there (we've done it before), but thought it likely that the business was all sewn up with other operators. Do you think there's a market for this on the north coast still? We have a catamaran, not big, but we could accomodate 6 people comfortably. Are there places to operate from? Are there still enough tourists there? It sounds like the DR, as everywhere these days, is in a period of flux and concern for the future. Oh well, what better place to be concerned about than being in "paradise" ?

Momma C. Is the reason small businesses are going under because there are substantially less tourists, or because new small businesses are competing too well?

Mainers - Thanks for your reply and best wishes.

Where do you guys put your money/ In the bank or under the mattress!!??
 

MommC

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Well Cap'n......I wouldn't say there are less tourists!

Just that there are less tourists on the streets.
AI's and tour reps tend to try to keep them in the resorts and sell tours,souvenirs etc. directly to them. They don't recommend going out of the resort except on one of their Sponsored tours.

So yes....there are less tourists!

Not too many snmall businesses "tourist" related at least, opening up and many that were thriving even 5 yrs ago have shut down.

Where do we keep our money.....??? Safe at home in moderate risk investments either in Canada or the US mainly.
 

mainer

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"Mainers - Thanks for your reply and best wishes.

Where do you guys put your money/ In the bank or under the mattress!!??"

All of our money is in the US in various investments. We were just about to invest some money in a high interest account in Banninter about a month ago. I mean, we had it transferred from a CD and everything. We met with Jazzcom, and he talked us out of it. We are considering other investments here, but haven't decided on anything yet. We will only invest in US dollars.
 

Cap'n Jon

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Thanks for the head-up. We'll reconsider our investment strategy. I have read on various sites that money invested in US$ still returns about 10% in the DR and also there is no worry about deflation of the peso. What about 90-day commercial paper? I would be curios to know what you will decide to do...Thanks for answering my question. See,s like those responding to me really have a feel for the realities down there. I got a long email from Ascot Advisory Services which paints a quite rosy picture...
Cheers Jon
 

ricktoronto

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Jan 9, 2002
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Unless you have vast experience and lots of $$4

Stick to banks that you know and trust and in US$ and not Commercial Paper. CP is just a short term IOU from a commercial borrower. In North America it is rated and this at least helps you buy it based on independent ratings. I doubt the same is true in the DR, sorry to say, and I can think of a handful of CP issuers I would trust down there. (e.g MAYBE the Jiminez/ Presidente/Brugal folks) .

Also in N. America you have bankers Acceptances which is CP subsequently endorsed and guaranteed by a commercial bank -lower return but safer with 2 counterparties agreeing to repay. I have not heard of BA's in the DR.

You read about Baninter, so find a bank that will stick around, and settle for good or adequate US returns. The risk of peso devaluation is SO high that the indicated returns may be outstripped by the loss of the pesos vs. the $ ,which we have seen with the decline from 16.5 to 24-26 since last October.

So a 8% US CD would have been a +4% return in 6 months vs. -38% in pesos.

A 50% decline in 6 months is not quite matched by a 24% per annum rate on a deposit. (e.g. 50% loss minus 12% interst earned)

Frankly if and when I retire in the DR I will probably keep my money offshore - Bahamas or Cayman or at best some in US$ with ScotiaBank or Citibank in the capital. Buy RD$ as required. I recognize there may not be 10% US deposits in Cayman but default risk is minimized. Effectively eliminated.

Not that that a DR baed US or Canadian subsidiary is a guarantee, viz: Banco Quilmes and Argentina which was a ScotiaBank subsidiary.

Risk and return are correlated.
 

MommC

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AAS must be wearing those rose coloured glasses we keep talking about!

The picture isn't "rosy" right now but the scenery sure is pretty and the climate is great!!
Listen to Jazz, BB, and a few others here and they'll steer you in the right direction!

By the way ....there is one business we noticed lacking here that we thought someone could make a go of it. We were discussing it a few days ago (hubby and I). Damned if I can remember off the top of my head what it was tho'!! Since we aren't interested ourselves it was one of those things that you "suddenly" notice, discuss, then promptly forget.
I'll post it for you if it hits me over the head in the near future!
 

Cap'n Jon

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ricktoronto - Thanks for comments and advice. We will keep our $$ in the US and not transfer funds until we are in the DR and have a better feel for the situation. We invested money in Panama for a year and had no worries, but that was before 9/11, Enron etc. And really, what guarantees are there ultimatley - look what happened in the US with the S & L debacle...We have a bunch of gold coins, which besides looking beautiful, are tradeable commodities etc. - they make us feel like real pirates on our sailboat!

Momma C. Yes, the main reasons to relocate are weather, scenery, people, less stress etc. Money is secondary. My wife and I have created money in many different ways in New Zealand, Mexico, England and even Afghanistan! So we know the universe will point us in the right direction...Where do you live? How long have you been there? Do you and your hubby work? Am I being too personal...?
 

MommC

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Ok the "reply/quote "button works!!

Cap'n Jon said:
Momma C. Where do you live? How long have you been there? Do you and your hubby work? Am I being too personal...?

We live 4-5 1/2 months in the DR-the rest in Canada! I'm retired due to medical condition, hubby works in our small business in Canada where he's "sometimes" gainfully employed!:)
We've been coming to the DR since 1990......and live in Juan Dolio, which is a tourist town on the south coast when we're here.
Any other questions??
 

MommC

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It's locksmithing Cap'n!!!!

Probably the most frustrating thing we've encountered here is the lack of good locksmiths or at least the lack of good key-makers!
Our condo has had new locks put on the entrance doors and twice there were 60 keys made that DIDN'T work.
They finally had to remove the locks and take them to a place in Santo Domingo to have keys made.
I don't know how many people in the building (ourselves included) have had keys made at different locations and NONE of them work!! We also had a specific type of lock in mind for the gates and couldn't find them here anywhere. We searched Santo Domingo but they didn't exist here.........