Early Retirement – Retire Overseas A Richer Life At A Lower Cost Of Living

Retire Early Lifestyle Interview Part 5Early retirement is closer to reality than you have been led to believe.  When you retire overseas many of the costs that you have become accustomed to back home simply melt away.  I will give you a few examples later in this post so that you can begin to put a pencil to paper and see for yourself.

But first, lets wrap up our interview series with Akaisha and Billy Kaderli of the Retire Early Lifestyle blog.  In this 5th part of our 5 part interview series, the Kaderli’s touch on the following:

  • Can you get by without a car when you retire overseas
  • Why should you interact with and befriend the locals
  • What is your best security measure as an expat
  • The GREAT MYTH… the locals hate Americans
  • Why common sense is essential
  • Were the warnings about your safety reasonable
  • How is fear overtaking the Western nations
  • Can flexibility and an open mind get you off the couch

Check the Part 5 video and our cost of living discussion below.

Part 5 of our 5 part interview series with the Retire  Early  Lifestyle team.

 

What about cost of living when you retire overseas

We will share our perspective based on our life here in Cabrera on the North Coast of the Dominican Republic.  Our cost of living savings here on the North Coast of the Dominican Republic are similar to many of the offshore retirement havens that you might want to explore.

Lodging Expenses

Amazing Quality Homes

Amazing Quality Homes

Whether buying or renting a place to live, you will probably find that costs are lower in your new offshore home than they were back home.

For example, to build a custom home here in Cabrera you could expect to pay approximately $70 per square foot or a little more, plus the cost of land.  You can find homes to buy starting at around $75,000 and up.  Compare that to construction costs of $150 to $200 per foot, or more, up in the States.

Monthly rents can run as low as about $3oo per month and up, depending on size of the property, amenities and the luxury you desire.

But, as you know, home construction or rental costs are only part of your lodging expenses.  Utilities, insurance, maintenance and property taxes all play a part in the total cost.  You will probably be pleasantly surprised with all of these costs.  For example, property taxes on a $200,000 house will probably be less than $200 per year.  If you select your property to take advantages of the almost constant trade winds, you may also find that you can kick the air-conditioning habit and eliminate much of your power bill.  Of course, here in the tropics you will never need to invest a dime in heating.  You will probably also save a considerable amount on insurance costs, or at least you can if you choose.  Here in Cabrera most of the homes are solid concrete, or at least concrete block filled with concrete, so there is virtually nothing to burn and they are built to withstand almost anything nature will throw at them.  Many people here go uninsured or only have a catastrophic coverage and enjoy the savings.  Finally, maintenance.  While tropical weather can sometimes play havoc on your property, in general the concrete construction is relatively immune and simple to repair and these construction workers in our area can work miracles in concrete for very little money.

For many Americans and Canadians from northern climates, the savings on insurance, property taxes and heating oil are more than enough to make the move worthwhile.

 Healthcare Cost Savings

Dominican Republic healthcare

Dominican Republic Healthcare Is A Bargain

Another prime opportunity for a lower cost of living is in healthcare costs.  In interview after interview of other expats, we have confirmed that healthcare costs here on the North Coast of the Dominican Republic are a small fraction of similar services up north in the United States.  In fact, it is generally cheap enough down here to go self insured, but why would you when full coverage insurance is so inexpensive.  For example, total cost for full coverage health insurance down here runs about $800 PER YEAR for a family.  That’s right.  Only $800 per year.  But, even if you do not choose to purchase an expensive health insurance plan, you can expect your health insurance costs to be very low.  For example, one of our expats recently needed emergency room care due to an accident down here and the total cost (no insurance) was $170.  A similar visit to an emergency room in a small town in America only one month later cost over $12,000.  Is that ridiculous or what.  Other expats report similar savings on things like heart bypass, gall bladder, compound fractures, and the like.  And best of all, they all reported that the care was first class by competent doctors and caregivers.  See some of our video interviews if you want to hear what they have said about the care.

This post is getting long, so I will share more about other cost savings in a future blog post.

But for now, it’s Barry in the DR off on our next free discovery tour of the North Coast.  Wish you were here.  Best adventures.

Share
Gary March 30, 2015 at 9:36 pm

Hi Barry, a very delightful conversation you had with the couple. They seem like very nice people and found you and them had good chemistry. They seem to be very happy in their chosen lifestyle abroad and have no regrets at all. I like their attitude in having relations with the Guatemalan people and not isolating themselves only amongst gringos. I know you feel the same as them on this. It was a very easy flow conversation with useful information. I will visit their website and learn more. One thing I would like you to ask them on your next conversation is how they did it financially. Even though the cost of living is a lot cheaper in Thailand and Guatemala than in the US you still have to pay for things.

Keep up the great videos. I’m looking forward to your next ones.

Comments on this entry are closed.

Previous post:

Next post: