DR Real Estate

[joeyboots]

With the current financial situation in the US as it is, and the close relationship with DR and the carribean. Any opinions on the effects of this on the current real estate market in DR? Is now a good time for a land grab over there? I have observed some web site prices falling a bit and some recent additions. If I go in person and pay cash I wonder if I can strike a good deal. What do you think?

[Cheeno]

With the current financial situation in the US as it is, and the close relationship with DR and the carribean. Any opinions on the effects of this on the current real estate market in DR? Is now a good time for a land grab over there? I have observed some web site prices falling a bit and some recent additions. If I go in person and pay cash I wonder if I can strike a good deal. What do you think?

I do not know. But I would like to know as well.

I know that if you plan to buy land, an apartment, or home, you will need a lawyer and meet the right people.

A Canadian friend of mine bought an apartment near the Malecon Center in Santo Domingo. I visited his apartment and it is quite nice.

I visited Santo Domingo over 30 times and have stayed at Hotels (e.g. Hilton, Mariott) and I have said to myself, "With all this money spent on hotels, why not just buy an apartment?".

[PapiQueRico]

I do not know. But I would like to know as well.

I know that if you plan to buy land, an apartment, or home, you will need a lawyer and meet the right people.

A Canadian friend of mine bought an apartment near the Malecon Center in Santo Domingo. I visited his apartment and it is quite nice.

I visited Santo Domingo over 30 times and have stayed at Hotels (e.g. Hilton, Mariott) and I have said to myself, "With all this money spent on hotels, why not just buy an apartment?".

Cheeno, I'd suggest you wait on that until you've spent some time in other countries also. A week in Colombia might give you buyers remorse.

[Cheeno]

Cheeno, I'd suggest you wait on that until you've spent some time in other countries also. A week in Colombia might give you buyers remorse.

Hey PapiQueRico

Thank you for your feedback. I greatly appreciate it.

P.S. The Badgers game was ugly.

[PapiQueRico]

Hey PapiQueRico

Thank you for your feedback. I greatly appreciate it.

P.S. The Badgers game was ugly.

Dude,
The entire Badgers season has been ugly!!!!!!!!

When does basketball start?

THE GRATEFULL RED...............................

[Man gone Nuts]

I expect some serious price drops in the next 6 months to 2 years and will wait a bit myself before seriously looking. Not that bargains can't be found now but it would help to already be living there to facilitate "being in the right place at the right time" to take advantage of these bargain situations as they arise. If you have "cash" then you are already better prepared than many.

With the current financial situation in the US as it is, and the close relationship with DR and the carribean. Any opinions on the effects of this on the current real estate market in DR? Is now a good time for a land grab over there? I have observed some web site prices falling a bit and some recent additions. If I go in person and pay cash I wonder if I can strike a good deal. What do you think?

[Jimmydr]

2 bedroom Condos were as low as $20,000. Should hit that low again. make sure you have a great lawyer and a real deed.

[WickedWillie]

The market on the North Coast is stagnant to say the least. No-one is buying and for sure deals are to be had especially for cash buyers.
This has been the situation for over a year now and IMO will continue for a long while yet especially in light of the global financial problems.
I know many realtors here and whilst I personally have little sympathy for them, they all are having a tough time.
I know one well known RE company that has sold only 1 villa in the last 3 months and another who has not even seen a prospective buyer since July/August.
Also I put my villa on the market last December and have had only 1 viewing to date and another guy I know has had his villa on the market for 3 years and has dropped his price by $100k.
So for sure it is a buyers market and now or in the immediate future is probably a good time to buy.
Never even consider paying the asking price for anything here and negotiate hard. Cash is king

[Man gone Nuts]

Good answer Willie!

The worse the US and world economies get the better the deals to be had.

Definitely negotiate hard, pay cash where possible but be patient and be prepared to walk away from a less than optimal situation.

Getting to know the "players" and the sellers can really be a bonus. You never know when someone will become desperate to sell quickly at a bargain price.

Having an good lawyer is essential as is a real title IMO.

[Beads]

Its funny to hear about how the DR real estate market will not be effected by the US economy issues. This rumor is mostly fueled by developers and people with real estate investments trying to make money and hide the facts. The whole world seems to now be catching the effects of the US economy problems in one way or another.

How can a country with such huge economical ties to the US not be effected by our current economy?

I guess we shall see.

[Kevy]

Its funny to hear about how the DR real estate market will not be effected by the US economy issues. This rumor is mostly fueled by developers and people with real estate investments trying to make money and hide the facts. The whole world seems to now be catching the effects of the US economy problems in one way or another.

How can a country with such huge economical ties to the US not be effected by our current economy?

I guess we shall see.

exactly, they have been saying prices won't drop in Canada for 2 years now. It is just denial, prices are dropping, at a slower pace than the US, since we don't have the same sub prime mortgage situation, but the resulting ecomonic slowdown will definately affect prices here.

Many condos I rented in the DR were always for sale, but at very high prices. As long as the owner could/can afford to keep them, there isn't any motivation to sell unless they get their price. Now it is just a matter of waiting until the owner is motivated. I know of one condo that was put on the market as the owner was having trouble back home. That will probably be a trend that continues.

[weyland]

This is an important issue for me.

The last year has been disastrous for me. Instead of being in the DR by now as I had expected, I am stuck in the UK with the almost impossible task of selling my house. Even if I am very lucky and do sell it, it will be for 80% of last year's value. Add to that the value of sterling against the dollar and DR peso has fallen to 80% and you can see my income from investments will have fallen by 36%. Fortunately my state retirement pension is unaffected and my two small private pensions are partially protected otherwise I would be flogging my ass in Classico's if and when I eventually arrive.

However I am relying on two factors to brighten my gloom.

1) When I do have cash from my house sale to spend I expect to acquire more shares for my money after the fall on the Stock Exchange and hope they will revive in the medium future.

2) The credit squeeze and real estate crisis has not really hit the DR yet. Vested interests, whether the government or the real estate marketeers, are trying to claim that it will not hit badly. I don't want to wish any more problems on that country which has enough already, but I am selfishly hoping that there will be significant falls in real estate prices by the time I am ready to immigrate.

All the issues which WickedWillie describes are endemic. It is very hard to judge real estate prices from abroad because there is no developed property market in the DR in the North American or European sense. The websites are full of fantasy descriptions and fantasy prices.

I will rent when I arrive and take my time to look around. My feeling is that DR property prices will hit the bottom next summer during the "off" season. I just hope I will be there to take advantage. In any case, at my age there is not the same advantage in buying as against renting. I have no-one I need to leave property to once I am dead, though any ISOC members who buy me drinks and meals on a regular basis may be remembered in my will.

[Jimmydr]

This is an important issue for me.

The last year has been disastrous for me. Instead of being in the DR by now as I had expected, I am stuck in the UK with the almost impossible task of selling my house. Even if I am very lucky and do sell it, it will be for 80% of last year's value. Add to that the value of sterling against the dollar and DR peso has fallen to 80% and you can see my income from investments will have fallen by 36%. Fortunately my state retirement pension is unaffected and my two small private pensions are partially protected otherwise I would be flogging my ass in Classico's if and when I eventually arrive.

However I am relying on two factors to brighten my gloom.

1) When I do have cash from my house sale to spend I expect to acquire more shares for my money after the fall on the Stock Exchange and hope they will revive in the medium future.

2) The credit squeeze and real estate crisis has not really hit the DR yet. Vested interests, whether the government or the real estate marketeers, are trying to claim that it will not hit badly. I don't want to wish any more problems on that country which has enough already, but I am selfishly hoping that there will be significant falls in real estate prices by the time I am ready to immigrate.

All the issues which WickedWillie describes are endemic. It is very hard to judge real estate prices from abroad because there is no developed property market in the DR in the North American or European sense. The websites are full of fantasy descriptions and fantasy prices.

I will rent when I arrive and take my time to look around. My feeling is that DR property prices will hit the bottom next summer during the "off" season. I just hope I will be there to take advantage. In any case, at my age there is not the same advantage in buying as against renting. I have no-one I need to leave property to once I am dead, though any ISOC members who buy me drinks and meals on a regular basis may be remembered in my will.

If the recession gets worse, and the million Dominicans living in the US slow down with sending cash back or go back, its not going to be very safe there??

[WickedWillie]

It is not strictly accurate that DR real estate is full of fantasy prices. Yes for sure many do indeed fly a kite but a good "real value" indicator is to get the DR govt appraised land value per sq meter (there is a govt website for this covering the whole country and if anyone wants it I'll try and find it) and the new construction costs per sq meter (insurers here recently gave me a price of US$600-700 per sq mtr for quality construction). Add in all the incidentals like location, area security, swimming pools and landscaping and that should give a rough indication of the base value.

[weyland]

It is not strictly accurate that DR real estate is full of fantasy prices. Yes for sure many do indeed fly a kite but a good "real value" indicator is to get the DR govt appraised land value per sq meter (there is a govt website for this covering the whole country and if anyone wants it I'll try and find it) and the new construction costs per sq meter (insurers here recently gave me a price of US$600-700 per sq mtr for quality construction). Add in all the incidentals like location, area security, swimming pools and landscaping and that should give a rough indication of the base value.

Plus which power line it's on, what the neighbours are like, etc, etc. There are just too many variables to judge without living near or, better, in the property for many months or knowing someone you trust who does/has. I have heard many stories of properties being sold for 60% or 70% of the advertised price.

[Jimmydr]

Plus which power line it's on, what the neighbours are like, etc, etc. There are just too many variables to judge without living near or, better, in the property for many months or knowing someone you trust who does/has. I have heard many stories of properties being sold for 60% or 70% of the advertised price.

You need to be in a gated community or they will break in alot.

[weyland]

If the recession gets worse, and the million Dominicans living in the US slow down with sending cash back or go back, its not going to be very safe there??

Good point. There is always that trade-off between low costs and security (Colombia for example). Security will be my no.1 criterion when I move there.

[Jimmydr]

Good point. There is always that trade-off between low costs and security (Colombia for example). Security will be my no.1 criterion when I move there.

And if it gets bad, the Haitains will loose their jobs to Dominicans and then they will leave.

[weyland]

You need to be in a gated community or they will break in alot.

Not necessarily if you have a good set of neighbours. I know several people living in Torre Alta for many years who have had no security problems. But they aren't mongers. If you are seen taking in different girls three times a week it is hard to get on terms of trust with your neighbours. Partly because of "respectability", especially if the Dominicans have children, and partly because they know putas have chulos and could pass on information to bad people. Even harder if the girls coming and going are Haitian!

[Jimmydr]

Not necessarily if you have a good set of neighbours. I know several people living in Torre Alta for many years who have had no security problems. But they aren't mongers. If you are seen taking in different girls three times a week it is hard to get on terms of trust with your neighbours. Partly because of "respectability", especially if the Dominicans have children, and partly because they know putas have chulos and could pass on information to bad people. Even harder if the girls coming and going are Haitian!

My ex novia lived in a crowed area, the family went out, they broke in during the day and no one seen nothing. This was in 2001 when times were good.