Over the past few years we’re seeing a trend. The DR has always been a real estate destination for Americans and Canadians; however, we now see more people than ever buying in the DR. It’s not just about warm weather. Here are the reasons people are leaving the United States and Canada for the Dominican Republic:
Prices in the US and Canada has skyrocketed in the past few years. Groceries particularly have gone up… a lot. The cost to feed a couple or a family has risen to a point where it impacts the bottom line. Groceries in the DR are much cheaper than in North America. While imported brands may be similar or even more, the prices for fresh vegetables and fruit; meat; local products; and dairy is considerably less.
Having a nice lunch or dinner in North America is not reasonable anymore. Add in a few glasses of wine or a cocktail, and it’s $100 before you know it. Restaurants in the DR are MUCH less expensive. A couple can have a very nice dinner in Sosua with drinks for $30 US, or on the beach in Cabarete for $45-$60 US.
Although we’ve seen prices jump in the DR, it’s still much more affordable than North America, and you get much more property for your dollar – in a gated community with lots of perks.
Health Insurance, Dental & Prescriptions
For our American buyers, the cost of health insurance is substantially lower. You can cover a couple for $1400-$1800 per year. This includes hospital visits, some prescriptions and some dental as well. Going to the dentist is much cheaper as well. A crown in Canada is $1600 CDN. It’s about $500 US in the DR. Prescription prices are also much less than in North America, and if a pharmacy doesn’t stock one, they will bring it in for you.
Ugh… that dreaded word. Unlike the US and Canada which taxes you on your worldwide income, the DR government only taxes you on income you earn while in the country. And even then rates are much lower; however, for most buyers this rarely even applies as most don’t work in the DR. Many work from home, but the work is not directly related to the DR or part of its taxation system.
Property tax is also much, much lower, and if you only pay on amounts over approx. $150,000 US and then 1% of the government assess value of the property.
Services & Schools
People find that they can get big box shopping, boutique shopping, and even Amazon delivered. They don’t lack anything they have in North America. Need a plumber, electrician? How about a massage – even at your home? In the DR you don’t bag your own groceries or pump your own gas. More service for less money.
There are three excellent international schools right in Sosua.
Weather and Quality of Life
Of course, getting out of the cold is still a major driving factor. However, buyers find that their quality of life changes significantly when they get to the DR. Health improves due to the humid climate; the active community welcomes them and they feel at home; they find that they are more relaxed; they’re happy about all the things there are to do; and even if they bring a family – everyone seems to find a niche they never expected…and now wouldn’t give it up.
These are a few of the reasons people are leaving the United States or Canada for the Dominican Republic. What are yours?
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