"musings" AKA long.
My musings and trying to keep things in perspective.
I believe that the D.R. will see many more people on fixed incomes and dudgets looking to move here. As the Baby Boomers retire (and find that they can not afford to maintain the same lifestyles) and young people find that the cost of living has stretched their budgets to the breaking point (use to work to live has become working for gasoline and heating fuel). This appears to becoming more apparent as the U.S. economy is going through a dramatic shift that is having global effects.
Expats that come here must spend money to survive, lots or little, it all helps the Dominican Republic and provides an outside cash flow. But we are guests in this country and are not granted or provided with all the rights and resources that are (as little as they may be) available to the Dominicans. Many Dominicans, not all, are happy to have a gringo as a friend with the gringo learning that they may be looked at more as a possible source of income opportunity and the unknowing new ones can get picked clean in a very short time.
Income does not make the person but may influance that persons way of life and is a matter of personal choices and trade-offs. A person on a budget dependent on a set income can cut the spending only so much before disaster occurs. Being an expat in a "developing" country and counting on a fixed minimum budget without a secure exit plan, in my opioion, is very foolish. Coming with children under those circumstances is, in my opionion... (you fill in the blanks). Does not mean that it can not be done but be very real about such relocation.
Our house in northern New England in the U.S.:
5 years ago heating oil was 63 cents per gallon and we would use 400 gallons per winter month. $252.
Now heating oil is $3.11 per gallon and costs $1,244.
Cord wood for heating was $90 and is now $250 per cord. 10 cords for the winter from $900. to $2,500.
With rising costs, property taxes, food, gaoline, insurance and everything else, our overall living expenses more then tripled in 10 years. Our budget didn't care.
We made choices and started our plans to move to the Dominican Republic 12 YEARS AGO.
In the last 5 years in the Sosua area:
Ocean front lots went from US $24 to $200 per square meter.
Nice 2 bedroom apt. in Sosua from US $45K to $160K.
Bar beer from 20 pesos to 50 if you luckey with the average being 100 pesos. (tourist prices)
Overall, we are much better off living in the D.R. then staying in our U.S. place with a cost of living outflow reduction of more then 75%. However, if we came down today, rather then starting 12 years ago, we could not afford the ocean front lot nor some of the other investments that we have made that will help us continue our lifestyle. We have not touched our retirement funds and we do have an exit plan if needed. And yes, we still work.
This last week we had to make some choices with some not planned for. Need to replace 8 inverter batteries (US $800). Need 200 gallons of diesel for gen. ($800) Need 4 new tires for car. ($600). U.S. taxes due. (None of your business. lol) We also had the rest of our stuff in the U.S. packed and ready to ship ($$$) and will have to pay the D.R. taxes. Our budget is shot for the next few months. We DID plan and have the resources to provide us the options of changing our budget and make choices that allow us to keep going. We do not have to make the choice of heating fuel vs everything else as we would in the States and will not freeze in the D.R.
Budgets are great ONLY if income vs costs stay the same. If replacing a refrigerator, inverter batteries, having a cop shake you down or find you cash/computor missing due to a pick-pocket or your new best freinds came by.. If this will bust your budget for the next 3 months with nothing to draw on, you are in big trouble. Your landlord, most likely, will not care. Nor will the electric, phone, cable or DSL people. Thinking that you can find a job that will pay anything close to what you made back home is a dream. Very, very few can find a good paying job and it does not matter your degrees, education, training or experience. Even if you are willing to clean rooms or a house, you would find it almost impossible to compete with the locals. (Would YOU clean my house; windows, floors, toilets, cleaning up cat "stuff", laundry/ironing/mending, dishes... on ladders and on your knees.... 5 half days a week for U.S. $44.78 a week, food not included? And be happy and smile?)
I think that most of the expats that have been successful in business have had some experience in that business, researched, worked hard, have lots of patience and have dad the extra money to invest in that business with back-up assets/cash if needed Some came with enough cash to get themselves established in an area, meeting others and earning respect from others that led to employment.. but still had an exit plan if needed. I am also reminded of a few that moved here after selling everything thay had and spent MOST or ALL they had on their dream of a little beach bar. Some became their own best customers; drunk, broke, stuck here and fade away to??? Most of us that have been here awhile have seen an expat or two on the streets begging. No home, no food or even enough to get them to their embassy to try to get help.
As a closing and personal note. My wife is a positive person and everything will work out all by itself. For years she said that I was the negative person. I research and analyze everything to look at all the "what ifs", real or not. We now both agree that I am a realistic person. I will not fool myself be seeing things with only a positive or negative attitude, that the grass is greener, and rose colored glasses that blind me from what is real. Like it or not.
Best of luck and eyes wide open, Ringo
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