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The Undiscovered Paradise  With less than 16% of the tourist population coming from the US, The Dominican Republic remains an undiscovered paradise.  If you ask most Americans about the Dominican Republic, many cannot locate it on the map.  For those that have discovered it while on vacation, many have decided to call it home. Well, there's nothing wrong with falling in love.  This is especially true when one has a love of crystal clear water, sugary white sand beaches, and the beautiful mountain scenery unique to the Dominican Republic.  It's sufficient to say that I am smitten with both the country and the people. In addition, when adding the costs of property to our discussion, the Dominican Republic is still one of the best real estate bargains left in the Caribbean - if you know where to look. Not only is the Dominican Republic situated on the largest island in the Caribbean, it is also offers some of the most diverse topography.  From the snow capped mountain region in Constanza to the sun drenched beaches of Samana or Barahona, the Dominican Republic offers something for everyone.  Whether you want the beach lifestyle or the cosmopolitan feel of historical Santo Domingo, you truly can have the best of everything. But before you put your lovely three-bedroom colonial in New England on the market, let's talk about some realities and expectations. The Fact and The Fiction One problem we all have is that we are human.  That is to say, we sometimes think with our hearts and not our head.  A little of that is good now and then, but not when it comes to real estate.  There are wonderful experiences to be found when one lives in a place like the Dominican Republic, but there are some drawbacks as well.  In addition, anytime we move to a place where the culture and the language is different, we need to learn the ropes and understand that living in a Spanish speaking island nation is not the same as living in Topeka, Kansas. Let there be Light There is an electricity problem in the Dominican Republic.  That is to say that there is electricity, just not enough of it. All your appliances from the US that run on 110 or 220 will work fine.  In some places, however, the power can go out every day for up 7 hours a day.  Not always enjoyable when you are in the middle of Monday night football (yes there is CNN, HBO, CINEMAX, and a whole slew of other programming in English). In addition, since many water systems rely on electricity to pump water into the house from the main water system, you may find yourself unable to shower at 6:00 AM in the morning.

John Schroder has over 15 years experience on Wall Street and currently provides assistance regarding Investment information for the Dominican Republic ( Commercial paper & Certificates of Deposit), Offshore mutual funds, Real Estate and Apartment Referrals, residency assistance, and company representation. To contact John Schroder: Telephone 809-334-5387 or 809-756-1917 Email: info@ascotadvisory.com Escape From America Magazine Magazine Index  Learn Spanish  More on the Dominican Republic  Submit an Article  Subscriptions are Free

Before you take the for sale sign down, it's not as bad as it sounds. The fact is that the government has been actively working on upgrading the generation systems and has recently purchased additional power systems for the country.  In addition, privatization of the electric company should speed things up (Coastal systems from the US and a consortium from Spain & Chile have been bidding to buy the government owned electric company). But it is something you want to be aware of when looking at apartments or other real estate. A booming business in the last few years has been the sale of battery inversion and household generator systems. Chances are that you will want to have reliable electrical service on demand.  This being the case, you must factor in the cost of a battery inverter, which is an automatic backup system that kicks in once a power loss is detected, or a gasoline powered generator when looking at either the rental or purchase of a home.  These systems generally cost in the area of $ 2,000 or less, but are an additional expense to be calculated.  If you are looking for apartment rentals, keep a lookout for a building that has a "planta full".  This means that the building has an independent system for the entire building.  Believe me, if the advertisement does not say it, do not bother asking about it.  The good news is, that while this is a problem at the moment, it will not be five years from now.  Do not be afraid to purchase a property whereby you currently need a power backup source.  Luxury apartments that have a "planta full" carry a premium with respect to rental costs, but that will change as the power needs improve going forward.  Also, as the electricity situation gets better, so called non-luxury properties or homes in secondary middle class neighborhoods will increase in value because there will be a level playing field will respect to amenities.  There are some beautiful apartments and homes that simply sell for a deep discount because of the location (and therefore lack of attention by the electric company). 

It Costs More in English

If you have any high school Spanish skills rumbling around the back of your brain, now is the time to use it.  The fact of the matter is, you will not find many people in the Dominican Republic that speak fluent English.  I do not care what your travel agent told you. Yes, of course the desk clerks at some larger hotels speak English. But do not expect to have any in depth and profound conversations in your native tongue.  The fact of the matter is, you will have a hard time at the airport, with taxi drivers, with the corner "Colmado" or convenience store and with the general population at large.  This also includes many well-educated professionals such as bankers, lawyers, the folks at the Telephone Company, etc, etc. 

Now, with that said, just be aware that you will pay more when you encounter someone in business that is catering to the US tourist. This is especially true with real estate people.  Anyone marketing property in English knows that most Americans do not know the local market and really have no easy way of finding out. The rental costs of apartments and real estate will, in some cases, be quoted in double to what a Dominican would pay for the same thing.  Just keep this tidbit of information in the back of your mind.  Some Dominicans think Americans are "loaded" and have no problem paying higher prices than the locals.  Remember - do your homework and brush up on your Spanish. It will cost you, if you don't. 

Home Sweet Home

So you have decided you like the Dominican Republic and want to get settled in.  Where do you look?  Good question…….here's the answer.  That depends.  It depends on if you want to live near the beach or directly inside the city. It also depends if you like music or not.  What I mean by that is, Dominicans are very fun loving people.  They like their music.  I like their music. But not every-night and not until 4:00AM in the morning.  You will find a very cozy 3-bedroom house for rent in some working class or middle class neighborhoods that rent for $ 185 per month at current exchange rates.  No, that is not a typo, I  did say $ 185 per month.  Very clean, very nice, with a front porch. The catch is, your chances are pretty good that your neighbor is aspiring to become a Disc-Jockey and would like the whole surrounding area to be aware of his music selection skills.  In all honesty, you could get that in any middle class neighborhood in the US. The difference is, in the US, the other neighbors will probably also complain about the noise and the police will come to address the problem.  Late Friday-Night block parties are the norm is some districts. If you like that, then you already have your real estate focus narrowed down.  If you want conservative neighbors and a quiet atmosphere, that leaves you with another set of places to focus your search.

. C L I C K   H E R E .

There really is a big spread in prices for both rentals and real estate sales.  Like real estate everywhere, it is a function of location and amenities. There are decent places to live for $ 200 per month with regards to rental rates.  There are very nice homes for sale in good neighborhoods for less than $ 40,000.  It really all depends on what you want and what you are comfortable with.  Like everywhere else, bargain hard and pay cash if you can.  Non residents cannot get local bank financing. 

Here is a selected and recent list of real classified ads for apartment rentals and properties for sale in and around Santo Domingo (all translated from Spanish).  Prices are Monthly for rentals.
This certainly is not everything and is a cross section of prices in what I would call acceptable areas.

Apartment Rental, Furnished, 2BR, 1Bath, Central Air, Parking, Telephone, light.  $ 650 US

Apartment Rental, Unfurnished, 3BR, 2 ½ Bath, Generator for Bldg, Quiet, secure. RD 10,000 Pesos (about $ 625 US) 

Apartment Rental, Unfurnished, 2BR,  2 Bath, Patio in Ceramic, Intercom, Planta.  RD 8,000 Pesos  (about $ 500 US)

Apartment Rental, Unfurnished, 2BR,  1 Bath, Doorman,  Full 24 hr Electricity  $ 385 US 

House for Sale,  3,000 sq. meters near the beach , 3BR, 2 ½ bath, 2 terraces,  Fruit Trees, floors in Marbol , 2 dining rms   Asking $ 100,000 US

House for Sale,  5 BR, 3 Bath, Patio, Cistern, covered parking RD 1,250,000 Pesos (about $ 78,000 US) 

House for Sale,  3 BR, 2 ½ bath  Terrace, good area in The city, swimming Pool.    RD 1,400,000 Pesos   (about $ 87,500 US)

Apartment Rental, Unfurnished, 3BR  Brand New , 2nd floor apartment.  RD 2,500 Pesos  (about $ 160 US)

House Rental, Unfurnished, 3BR,  2 bath,  Swimming Pool,  two Water tanks, A/C.  RD 8,000 Pesos   (about $ 500 US)

Penthouse Apt for Sale  2BR, 2 bath  Private Parking RD 450,000 Pesos (about $ 28,200 US)

Apartment for Sale, 3 BR, 2 ½ Bath  Excellent Area, Bldg has Full Generator RD 1,580,000 Pesos   (about $ 100,000 US)

Apartment Building for Sale,  6 Apartments in building in the Zona Oriental.  RD 3,200,000 Pesos (about $ 200,000 US)

Room for Rent,  Furnished Room,  Private bath, independent entrance  RD 2,000 Pesos monthly   (about $ 125 US)

House Rentals   Unfurnished, 3BR, Various Areas, Realtor has Various Apartments  From RD 2,000 -
RD 3,000 & RD 4000 Pesos ( $ 150 US & up )

I Want My MTV

One of the most common questions I often get concerns lifestyle and living expectations. I get the impression that most Americans think the Dominican Republic is still in the dark ages. While there are some things that are not as common or plentiful as the US, one can easily find Heinz ketchup, Post cereals, Heathy Choice frozen meals, General Electric appliances, Liz Calirborne clothing, Levis jeans, Tommy Hilfiger, Burger King, Pizza Hut, and of course……MTV.  Keep in mind that while most American and European products are easily available, they certainly will cost more due to import taxes imposed by the government.  If one considers substituting local products, which are of good quality, your costs might actually be less expensive than what you would pay in North America. 

Telephone and Internet access is also available and quite good.  56K Access is currently available as is Digital cellular telephone services.  Cellular telephones due tend to be quite expensive, even though the prices are coming down.  I would suggest the purchase of a cell phone in North America if you want a cell phone.  Even if you think you will only be visiting for a short while, I can suggest the various pre-paid cell phone calling card plans that both telephone companies offer.