"Reasonable Income" - Cost of Living

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Wafudude

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Jul 19, 2007
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Hi everyone! I am new to this forum and have enjoyed picking through the threads for the last hour or two. It looks as though people are prepared to give an honest opinion, which is good, so please don't be too harsh with my question:
I notice that a lot of advice is given to "rent for 6 months to a year" before buying and also that you really need to have a "reasonable source of income" in order to live in the dominican Republic. This is obviously sound advice but my question is (and it's been a long time coming I know)... With no mortgage to pay...what is the general concensus of the figure that represents "a reasonable amount"? My wife and I are looking at various options around the Caribbean for an early retirement and the Dominican Republic is one of those options.
Many thanks!
 

SamanaJon

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Jun 20, 2007
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What's the cost to live...?

A very difficult question to answer for anyone, as each persons standard of living is distinct. Since nobody has given you a reply, it trust they are thinking the same...

I can only refer to my particular case and outline the expense I incur routinely and I have left out Mortage/Rent as you indicated (cost are annualized and given monthly below):

Hired help ....................... $9,000/ea. person
Fuel (gas,LPG,diesel)......... $12,000
Electricity........................ $10,000
Food...............................$16,000
Beer................................$3,600
Rest. (1/week)..................$4,500
Insurance(auto)................$1,000
Insurance (all others). .......$5,000 (ARS Humano Platinum Plan & Dental for 1)
Misc. Household expenses...$1,500 (pool chems., maint items, fertilizer, etc.)
Tel/internet.....................$4000 (2 cels.)
Auto maint......................$2,000 (oil service, tires, repairs, brakes, wash)
Misc. expenses.................$5,000

I drive to Santo Domingo (from Samana) weekly and live ~20km out in the countryside. My electric bill is based on my usage at home for 2 people and 2 live-in domestic employees (rate of 13 pesos/kwh). Beer is 4 cases/month. Eat out once per week (nothing fancy). Full coverage medical and dental for one person (not two). Again, I have left out the cost of home/apt (assume you will pay cash for your place, as I did). Misc. expenses cover all out of pocket monthly expenses (newspapers, beggers, coffees, tolls, sodas, colmados, candy, parking, gun permit etc.)

I also did not include any of my travel expense to the USA (done frequently) or cost of lodging in Santo Domingo when I travel. I do not go to bars/discotecs and live a quite lifestyle. Hope this helps.
 

SamanaJon

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All my figures are monthly (based on annualized cost)... beer is Presidente Light small ones in case @$900 pesos per case or $900 x 4 cases per month = $3,600 pesos per month.. again my figures are mine..this is what I spend approx... it is really a bit more..
 

planner

.............. ?
Sep 23, 2002
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I will add my two cents and give you my figures: I rent I do not own, 2 bedroom large apartment, unfurnished:

Rent...............................$6,000
Hired help .......................$1,200 (1 day per week to clean)
Fuel (gas,LPG,diesel)......... $5,000
Electricity........................ $2,000
Food...............................$4,500
Beer................................$0
Rest. (1/week)..................$700
Insurance(auto)................$75
Insurance (all others). .......$595 Group coverage, with dental
Misc. Household expenses...$500
Tel/internet.....................$3,500 Highspeed inet and 1 cell
Auto maint......................$500
Misc. expenses.................$500
Entertainment...................$1,200

I travel in and around Puerto Plata and the north coast, go dancing 2 times a week, live fairly simple. I have an a/c but our electricity is at 3.12 per KW. We have a backup generator but never run the a/c on it.
 

BushBaby

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Jan 1, 2002
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Where, how and what brand of beer are you importing at $75.00 a case?
(Four cases a month for $3600 annually)
Just to clarify & so that some newcomers don't get scared witless at these figure ,.... we are talking RD $ (pesos) here NOT US Dollars!!

One US dollar = (variable but +/-) RD $33.00!
(My, your electricity is expensive down there SamanaJon - My top whack rate is 11.00 per KwH but as I keep my consumption below 700 KwH per month I pay the variable rate of UP to RD $7.00 per KwH. i.e. around RD $3,500 per month!!)

~ Grahame.
 

Hillbilly

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Jan 1, 2002
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I find $9000 for help to be outrageously high!! They saw you coming!!!

We pay our lead cook and housekeeper very well, and she makes slightly less than $5000 a month, Plus food. Her assistant gets $150 a day up to 6 days a week. The part time gardener gets $300 a day. No live in help...

And by local standards, we pay well. Our cook has been with us for more than 15 years. But, and this is important, we are not ex-pats.....

HB
 

SamanaJon

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Jun 20, 2007
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Ok Guys & Girls..read carefully.... I pay my help well at $8,000/mo. They have been with me 6 years, plus Christmas Sueldo of 1 month. That makes 13 pay months/year + I give them each $600 per month for Cel cards (I bought them each a cel long time ago). They pay their food. I provide them electricity, water coffee, sugar, laundry detergent, bath soap and toiletries. Again the figures are monthly, but I have annualized my "gastos". No, they did not see me coming, Hillbilly. I give them raises about every 1.5 years. That is very decent pay for workers in this area. I do not live in town... and now it cost 50 pesos for the guagua to Samana each way. If my help did not live on the property, they would have to pay transportation and @$5000/mo sueldo, it doesn't leave much to eat with....btw my property ~ 18,000 m2 which all is cared for (no monte). I don't expect everyone to have these expenses, but they are real for my situation. Again HB, I do pay well by Dominican standards.

Yes Grahame, my electrical service is extremely expensive @$13/kwh (basically $0.40/kwh USD). It is Luz y Fuerza, a private electric utility who provide 24 hour service. It is still less expensive than operating my diesel generators (have two). I have two a/cs (18,000 BTU/ea), pool, 2 refridgerators and 1 chest freezer, and two water pumps (two independant water systems, a submersible Myers well pump and a cistern water pump) and I do have an inverter but rarely use it, as the electrical service is excellent thus far.

Oh I almost forgot, my three dogs eat 2 large bags/month (54 lb) dogfood plus medicine, another $3,000/mo. needs to be added to my list.
 

drtampa

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Oct 1, 2004
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New Ulm, TX
"We are not ex-pats"?????
Asuncion is not an ex-pat.
However, eventhough you have been gone for 45 years, you were born in America (mom - North American, dad - Central American), reared in America, educated in America, speak American and act American (all good qualities).
Based on the above, I'm certain that Asuncion hired the help.
 

Lambada

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Mar 4, 2004
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We are expats, I think you'd agree, HB? Our cleaning lady gets 2,400 pesos per month plus 100 pesos a day in transport costs plus snack lunch. She works 3 mornings a week so for comparison purposes it works out at 200 pesos a morning. She does the cleaning, not the cooking, which I do. I consider her to be well paid & more importantly, so does she - she's been with us 12 years. And she's worth every peso! :) If you were to total up her hours to a fulltime job it would work out similarly to what SamanaJon pays, except that we never would have a fulltime person because there is only so much cleaning needed! However, during her morning our cleaning lady has no down time: other than her snack lunch, she works continuously. Fulltime staff by the nature of a full days work have more down time.

I don't know that it's so much 'they saw you coming' but it might be that those of us who pay above the odds do so deliberately, with eyes wide open, knowing what the price of essential food items is and wanting to help out if we can. I agree that it is higher than many Dominicans would pay but it doesn't necessarily mean we are foolish. Could be something to do with our political philosophy..........but I won't get into that! :)
 

gringo1

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Feb 23, 2007
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I think renting is agood idea before buying and or building here, especially if you haven?t spent much time here. The various areas of the island can differ greatly, as well as property costs. Generally, other than Santo Domingo and Santiago, the more developed in tourism an area is, land prices follow in price. But rentals continue to be inexpensive compared to stateside prices. And costs of construction are a fraction as well. But just like anywhere, this place a little while to get the hang of and testing the water depth first is usually better than diving in head first.
 

piranha

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Jul 20, 2007
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Cost of living

Hi there. I am a new member to DR1, currently living in the UK but moving out to the DR in the next 2-3 months. Firstly, like many others, I?d like to say a massive thank you to DR1 and all you forum members ? the site is hugely helpful and massively appreciated! Keep up the good work!

I do still have a few questions though and I have posted a few different messages across the forum ? I hope you guys don?t mind and I really hope that you can help me out. I have spent many hours reading through the whole site and message boards thoroughly - and used the search button! - in the hope that I don?t waste anyone?s time or ask the same questions yet again!?


Cost of living:
I appreciate that there have been many discussions and more than a few slightly-too-vague ?how much does it cost to live in DR? posts in the past. However, I am drawing together information from many different places in the hope of getting some realistic feedback without covering the same old ground. Some if the information that is already on the forum regarding costs appears to be out of date and elsewhere this topic may have been covered but the responses varied hugely. So here goes?


For your reference, I am a single guy, living on my own. I will be out at work 6/7 days a week (7.30-5.30), so I will only be home in the evenings. I will own a budget car that is paid for. I will be able to eat breakfast / lunch and dinner at my workplace. I will socialise a couple of evenings a week, involving a reasonable meal in restaurant and a few beers. I am looking to rent a 1 or, if possible, 2 bedroom apartment in the Punta Cana / Bavaro area with the following facilities: fully furnished, all appliances (washing machine, refrigerator, oven etc), air conditioning, fast internet, telephone, cable TV, shower, burglar alarm, inverter / generator and parking - in a secure & safe complex / neighbourhood.

All costs are per month.

Rent (Inc maintenance fees) US$650
Food US$100
Fuel (TBC - Subject to mileage)
Electricity (Inc air con) US$50
Telephone US$15
Water ???
Health insurance (Fully comprehensive) US$70
Dental costs US$15
Shopping (Clothes etc) US$50
Motoring (Servicing & maintenance) US$50
Entertainment (Socialising) US$300
Motor insurance ???
Home insurance (Comprehensive) ???


And if not included within US$650 Rent:

Cable TV US$20
Internet (High speed) US$60


- Please tell me, are my figures above realistic?

- Are there any other expenses which should be included that are missing?

- Any realistic estimates on the ????? sections would be most welcome!


Many thanks.
 
B

batich

Guest
My opinion is a bit different from the mainstream.

If you are enough independent financially and can live without income from any real estate growth - do not buy nothing ever. Neither land for construction nor ready homes.

Yes, some people may make money from investing in RE. But some may not. May even lose.

So, investing in RE is just another risk or stress for you. And especially investing in DR.

If you are wealthy enough - RENT only. At some point rent might go up or maybe not. Sure.
But who cares if you have money?!

Only with rent you have the real peace of mind. You just do not care.

Whatever happens to the building where you live, or to the country in general or to its economy or to its political system - it does not affect you.

Insted of repairing roof you take your laptop and rent another house.

Instead of trying to sell your property if a big and unregulated development started nearby that destroys the environment - you take your laptop and rent in a diffferent unspoiled place.

Instead of hiding in the basement during riots and public unrest (that are very possible in a poor corrupted country like DR) trying to save your property - you take your laptop and go to Luperon Airport and to sunny Florida to watch from there and to wait when it is over.

Right, without investing in RE you might miss another profit opportunity. But listen, you cannot grab all the money in the world. And no matter how much you accumulated you cannot take your money with you to the other world.

So, what is the point to come to a relaxed and laid back and lazy place like DR and keep yourself in the rat race and stress like in NY??!!

To my surprise I met some stressed out people even in DR!

You arrived to paradise, why to create the hell in your life?!

Rent them all and leave them behind without a single regret and without losing a dollar if something goes a wrong way.

Own nothing but a laptop and a Visa card in your pocket!
__________________________________

If you are poor and cannot afford JUST TO LIVE this is a different story.

You have to buy and to invest in RE in hope to make some extra money to help you survive.




Hi everyone! I am new to this forum and have enjoyed picking through the threads for the last hour or two. It looks as though people are prepared to give an honest opinion, which is good, so please don't be too harsh with my question:
I notice that a lot of advice is given to "rent for 6 months to a year" before buying and also that you really need to have a "reasonable source of income" in order to live in the dominican Republic. This is obviously sound advice but my question is (and it's been a long time coming I know)... With no mortgage to pay...what is the general concensus of the figure that represents "a reasonable amount"? My wife and I are looking at various options around the Caribbean for an early retirement and the Dominican Republic is one of those options.
Many thanks!
 

La Mariposa

Bronze
Jun 4, 2004
1,843
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I find $9000 for help to be outrageously high!! They saw you coming!!!

We pay our lead cook and housekeeper very well, and she makes slightly less than $5000 a month, Plus food. Her assistant gets $150 a day up to 6 days a week. The part time gardener gets $300 a day. No live in help...

And by local standards, we pay well. Our cook has been with us for more than 15 years. But, and this is important, we are not ex-pats.....

HB

I find the $9000 outrageously high too.

We pay a hired help $1500 monthly for once weekly(cleaning the house, doing the laundry and cooking).

As for the part time gardener we pay $350 a day but you should see our chinas, mandarinas, toronjas, chinolas, mangos, limon, agrias. We even have platanos, rulos, guineo. And how about our huerto with rabanos, rucula, nabos,verduras, tomates, pepinos... We are not dominicans but we are considered as natives by the dominicans. Don't think that the $350 is too much.

Oups, I forgot the yuca, all the flores and so on and so on..
 

planner

.............. ?
Sep 23, 2002
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Piranah - I think your electricity is low - A/C uses a lot. And your phone will most likely cost you more. I assume you are referring to a cell phone. I would budget 100 for electricity and 50 (or more) on phone.
 

MommC

On Vacation!
Mar 2, 2002
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We only live there 5-6 months per year however we maintain our Canadian lifestyle while there, including golf club membership, restaurant meals 3x per week, travelling to various parts of the island, groceries,'entertainment', 4 wheel drive vehicle, A/C, cable, cell phone, internet, daily maid, etc.
Only thing we don't have is medical insurance (next time for sure!:-0).
So not paying rent (we own) we spend CAN$2000 - CAN $2500. per month while there - or approx. what we spend at home in Canada.
In pesos it works out to about RD$26000. - RD$30000. per month.
 
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piranha

New member
Jul 20, 2007
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Would really appreciate your feedback & thoughts...

Sorry to be a pain, but further to my earlier post. I would really appreciate your feedback on my specific circumstances and potential costs. Please!

All costs are per month.

Rent (Inc maintenance fees) US$650
Food US$100
Fuel (TBC - Subject to mileage)
Electricity (Inc air con) US$50
Telephone US$15
Water ???
Health insurance (Fully comprehensive) US$70
Dental costs US$15
Shopping (Clothes etc) US$50
Motoring (Servicing & maintenance) US$50
Entertainment (Socialising) US$300
Motor insurance ???
Home insurance (Comprehensive) ???


And if not included within US$650 Rent:
Cable TV US$20
Internet (High speed) US$60


- Please tell me, are my figures above realistic?
- Any other expenses which should be included?
- Any realistic estimates on the ??????


(For your reference, I am a single guy, living on my own. I will be out at work 6/7 days a week (7.30-5.30), so I will only be home in the evenings. I will own a budget car that is paid for. I will be able to eat breakfast / lunch and dinner at my workplace. I will socialise a couple of evenings a week, involving a reasonable meal in restaurant and a few beers. I am looking to rent a 1 or, if possible, 2 bedroom apartment in the Punta Cana / Bavaro area with the following facilities: fully furnished, all appliances (washing machine, refrigerator, oven etc), air conditioning, fast internet, telephone, cable TV, shower, burglar alarm, inverter / generator and parking - in a secure & safe complex / neighbourhood).


Thanks very much.
 

piranha

New member
Jul 20, 2007
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US$100 per month on food might indeed be totally unrealistic, however please bear in mind that, as I said, I will be able to eat breakfast / lunch and dinner at my workplace - for free. Hence the low figure.

US$750 = US$375 each. That's nearly ?200 each per month. I don't spend that much on me now in the UK! Is it really that expensive?

Thanks for the reply, by the way.


Any feedback on all of the other questions and my questions??
 
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