Living Costs in the Dominican Republic

[MikeFisher]

I think robbiee speaks in more general level, as I have seen a similar trend. Yes, currently you can buy EUR very cheaply, and Europeans who come here are "poor", but if you stay long term in either place, you see the real difference. The DR applies new taxes to consumer products all the time, nevertheless there is not much difference in anything public.

We have done quite a few calculations, and if we got our facts right, the only things cheaper in the DR (compared to some EU countries) are housing, water and some fresh produce. Of these three, only the fresh produce comes with comparable or better quality.

With some conditions and disclaimers, the electricity in the DR is also cheaper, IF you stay below the 10 peso threshold. Once you go there, then forget it. Also the quality obviously does not compare.

The pricing in La Sirena has become ridiculous (for domestic and imported products) and since we also need to buy baby-products, pricing there is just more ridiculous, with terrible quality. Will need to switch to Amazon.

Coffee (1 lb Santo Domingo regular) was 156 DOP or something, now the cheapest I have found is 200 DOP in colmado, 210 DOP in supermarkets.

the most significant point, for a foreigner to move to the DR, is to calculate in which CURRENCY he/she makes a living.
if life earnings/salaries/profits of biz, pension etc etc are earned in US$, well, then for very most products and services we have the same prices since many years, no significant changes/rises.
of course it looks very different/the opposite, if such person has a income in DR-Pesos, then the person is loosing a significant portion of purchase-powers every year.

Mike

 

[PeterInBrat]

$50k for a condo in or near Cabarete, where?????

Plenty of postings on the Facebook page, Everything Cabareta

 

[robbiee]

and all services are also cheaper in DR.
Find me a mechanic n Europe that will fix your scooter for few dollars like in DR...

the only things cheaper in the DR (compared to some EU countries) are housing, water and some fresh produce. Of these three, only the fresh produce comes with comparable or better quality.

 

[drSix]

Because I'm here...


Renting a 2001 Honda CRV for US$500 a month.

 

[Gringonazo]

I'll play along. We've been here since January, so I have some pretty good averages (Santo Domingo):

Housing (3 bed/3.5 bath apartment 175 sq.mt./1880 sq.ft., maintenance included) US$750 ($RD 33,750 although we pay in USD)
Electricity (We run an 18,000BTU Unit in our bedroom about 9 hours per night) $RD 5,200
Elementary School (3 days per week, Pre-K) $RD 7,000
Wife Cell Phone (250 min, 2.5G Data, Orange) $RD 1,650
My Cell Phone (500 min, 2.5G Data, Orange) $RD 2,800 (My employer covers this)
Domestic Help (3 days per week) $RD 6,800
Internet/Cable/Home Phone (100mbps Tricom) $RD 6,500
Gym (Body Shop because it's the closest, my wife and I) $RD4,850
Groceries (Wife, 5-year-old son, I) $RD 24,750
Misc (including eating out) $RD 9,000
Car Ins. (one-time cost of $RD 14,000 for year) $RD 1,167 (broken down for monthly consideration)
Health Ins.--I have no idea; my employer covers this; I don't have to submit for reimbursement, Humano Plan Max, Covers the 3 of us
Gasoline (Average has been 2-3 fill-ups per month, employer covers) $RD 6,000 (2002 Honda CRV)

Income Taxes were not calculated into these totals nor were charitable contributions

Total $RD 109,467 or $RD 2,433 (at a 45/1 conversion rate)

 

[MikeFisher]

Because I'm here...


Renting a 2001 Honda CRV for US$500 a month.

that's a steep rental price for a very old car.
that's renting from a private person, right?
what kind of coverage is included in that rental?

Mike

 

[drSix]

that's a steep rental price for a very old car.
that's renting from a private person, right?
what kind of coverage is included in that rental?

Mike

Yea, private person. I've never seen any rental advertised for less.

 

[MikeFisher]

Yea, private person. I've never seen any rental advertised for less.

of course not.
advertised rental would offer much much newer vehicles, new enough to be covered by a full insurance.
i suspect in your case, with a 14 years old car, what ever breaks will be fixed on your costs,
and by that age you always have something to fix,
like shocks, engine parts, new battery, tyres, alternater, starter engine etc etc etc.
or does your rental include that all such is done by the owner?

Mike

 

[franco1111]

I just paid 150 pesos for dozen eggs the other day. Gallinas dying here or something???

 

[pkaide1]

I hope that tourists leave the island one and for all. It used to be paradise before tourists start arriving by the masses.

Everything used to be cheap. What is going on is the casual and effect of stupid tourist paying first world prices for mediocre properties.

I am starting to think that Rum and too much heat affect people brain. Most of you come from countries where you have 24 hours electricity, water, paved street, and excellent school system second to none and suddenly you come to a third world country and pay ridiculous prices for property that you would not buy in your own country. Is this the rum doing the purchasing?

Just wondering!!!!

 

[SKY]

The DR always has been a renter's paradise. It still is for people that are willing to look carefully and bargain well. There are Condos that sell for 350K and can be rented for 800 US. Also large house's that owners do not want to leave empty and will rent real cheap to the right person.

Rent don't buy. My 2 cents.

 

[windeguy]

If I had an $800 monthly rental cost, it would take 12.5 years to equal what I paid for my house which I bought 13 years ago.
I am ahead by purchasing rather than renting even if I walk away from my house. Decide what works for you.

My "real" dollars.

 

[franco1111]

I hope that tourists leave the island one and for all. It used to be paradise before tourists start arriving by the masses.

Everything used to be cheap. What is going on is the casual and effect of stupid tourist paying first world prices for mediocre properties.

I am starting to think that Rum and too much heat affect people brain. Most of you come from countries where you have 24 hours electricity, water, paved street, and excellent school system second to none and suddenly you come to a third world country and pay ridiculous prices for property that you would not buy in your own country. Is this the rum doing the purchasing?

Just wondering!!!!

Here's what you can do to fix this: tell your government first to quit promoting tourism. Not going to happen - too much money to be made. Not a good thing necessarily, but it is the way of the world. (Run for president?)

 

[pkaide1]

My government has nothing to do with DR. I am expat like everybody else. I am not Dominican.
It is just my personal observation since I've been visiting DR for a long time.

Here's what you can do to fix this: tell your government first to quit promoting tourism. Not going to happen - too much money to be made. Not a good thing necessarily, but it is the way of the world. (Run for president?)

 

[donP]

Owning vs. Renting

If I had an $800 monthly rental cost, it would take 12.5 years to equal what I paid for my house which I bought 13 years ago.
I am ahead by purchasing rather than renting even if I walk away from my house.

Same here [with different numbers though... ]
I have always owned (in Europe also).
Renting is not an option for me.
On our finca we enjoy privacy, tranquility, spectacular (sea) views, an unpolluted environment and a laaaaaaaaaaarge 'garden'. :classic:

Dealing with a landlord? Paying rent? No, thanks.

donP

 

[franco1111]

My government has nothing to do with DR. I am expat like everybody else. I am not Dominican.
It is just my personal observation since I've been visiting DR for a long time.

My mistake. You talk like you own the place :classic:

Still, the government is promoting tourism which is why so many people are coming here.

 

[drSix]

Not sure if this has been posted here, but I found it helpful

La Sirena Catalogue

 

[Criss Colon]

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"!!!!!!!!!!!!!!!!!!!

 

[cavok]

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"!!!!!!!!!!!!!!!!!!!

That's why I keep almost all my money in the US in my name only. My wife and I have a joint acct here, but not enough to worry about. I just transfer USD here as I need it.

I bought, too, but I wish I had rented. There are plenty of investments that pay 5%-8%. I could have invested the money and basically lived here for free off the interest. For 3 years I got 18% on a Certificate of Deposit at Banco Central. If I had put what I paid for my condo in that one investment alone, I could have lived here for the last 9 years in a nice condo off of that interest alone. Hindsight is always 20/20.

 

[MikeFisher]

That's why I keep almost all my money in the US in my name only. My wife and I have a joint acct here, but not enough to worry about. I just transfer USD here as I need it.

I bought, too, but I wish I had rented. There are plenty of investments that pay 5%-8%. I could have invested the money and basically lived here for free off the interest. For 3 years I got 18% on a Certificate of Deposit at Banco Central. If I had put what I paid for my condo in that one investment alone, I could have lived here for the last 9 years in a nice condo off of that interest alone. Hindsight is always 20/20.

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