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?
:confused:

[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?
:confused:


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

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. :smile:

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 :biggrin:

Thank you for your feedback. I greatly appreciate it. :)

P.S. The Badgers game was ugly. :(

[PapiQueRico]

Hey PapiQueRico :biggrin:

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?
:confused:

[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. :rolleyes:

[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. :rolleyes:


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.:eek:

[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.

[Summit]

Hey PapiQueRico :biggrin:

Thank you for your feedback. I greatly appreciate it. :)

P.S. The Badgers game was ugly. :(


Ahhh...you guys from Wisconsin?:)

[Summit]

What about hotel-condos? (either newly built as a condo or condo conversion). Any of that for sale in DR? I think that would the best bet for mongers...when you are back home it could generate some income, plus have the added benefit of hotel security, etc...

[Cheeno]

Ahhh...you guys from Wisconsin?:)


PapiQueRico and I used to live there. Did you also live in Wisconsin? :smile:

[weyland]

What about hotel-condos?
What's a hotel-condo? I assume a group of condos in one building or development sharing joint services like nightwatchmen, cable TV and broadband internet, bar, restaurant, swimming-pool, room-cleaning, laundry, what else? If so, sounds like Harbor View (Puerto Plata) and perhaps Las Cañas (La Mulata) to me.

[Summit]

PapiQueRico and I used to live there. Did you also live in Wisconsin? :smile:

Born and raised!;-) Farm boy from Washington County...just north-west of Milwaukee. Moved to the Tampa Bay area after college (UW-Milwaukee). What about the two of you?

[Summit]

What's a hotel-condo? I assume a group of condos in one building or development sharing joint services like nightwatchmen, cable TV and broadband internet, bar, restaurant, swimming-pool, room-cleaning, laundry, what else? If so, sounds like Harbor View (Puerto Plata) and perhaps Las Cañas (Las Mulatas) to me.

It can be as you describe it...anything like that in or near Santo Domingo? I'm thinking more like a high-rise hotel where the hotel rooms have been sold to private owners. The best scenario would be a fairly new building where the condos all have a kitchen, one bedroom, one bath with an adjacent suite that has one bedroom and one bath. A minimum of: front desk operations, security, swimming pool, laundry. I would say broadband internet is a must as well.

Only in PP or LM? What price?
Thanks!

[ajax718]

I would only buy an apartment in a gated community.

When I have spoken to Dominican friends here in US, they have told me it is too much of a problem having a house. You have to pay someone to be there all the time. If you do not live full time in the house, people will look to break in, including people who you think you can trust such as neighbors.

I don't see the subprime mortgage mess directly effecting real estate in DR, such as bank meltdowns, since properties are mainly bought with cash, not with mortgages. I do see real estate prices going down since less foreigners will have spare cash to buy, and Dominicans in US having less money as well. IT is a buyers market now and appears to be for atleast the next year and a half. If looking to buy property in DR, I recommend continuously checking for whats for sale and waiting for a seller who is motivated (desperate) to sell.

I recommend establishing residency in DR so you can form a corporation and put the property in the corporations name so you will be protected from being sued. Also, get a good lawyer who can take care of the paperwork and check on the deed of the property. Real estate scams involving fake deeds are not uncommon in DR from what I have heard

[Kevy]

I would only buy an apartment in a gated community.

When I have spoken to Dominican friends here in US, they have told me it is too much of a problem having a house. You have to pay someone to be there all the time. If you do not live full time in the house, people will look to break in, including people who you think you can trust such as neighbors.

I don't see the subprime mortgage mess directly effecting real estate in DR, such as bank meltdowns, since properties are mainly bought with cash, not with mortgages. I do see real estate prices going down since less foreigners will have spare cash to buy, and Dominicans in US having less money as well. IT is a buyers market now and appears to be for atleast the next year and a half. If looking to buy property in DR, I recommend continuously checking for whats for sale and waiting for a seller who is motivated (desperate) to sell.

I recommend establishing residency in DR so you can form a corporation and put the property in the corporations name so you will be protected from being sued. Also, get a good lawyer who can take care of the paperwork and check on the deed of the property. Real estate scams involving fake deeds are not uncommon in DR from what I have heard


The effect will be be people need money to pay for their mess back home and will have to sell their vacation property, even if they bought it with cash.

[HAMMERHEAD]

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??

I have already heard from my friends they scared with the way the U.S.

economy is going they will be slowing down or cutting off sending money

back home to D.R.

[Jimmydr]

I would only buy an apartment in a gated community.

When I have spoken to Dominican friends here in US, they have told me it is too much of a problem having a house. You have to pay someone to be there all the time. If you do not live full time in the house, people will look to break in, including people who you think you can trust such as neighbors.

I don't see the subprime mortgage mess directly effecting real estate in DR, such as bank meltdowns, since properties are mainly bought with cash, not with mortgages. I do see real estate prices going down since less foreigners will have spare cash to buy, and Dominicans in US having less money as well. IT is a buyers market now and appears to be for atleast the next year and a half. If looking to buy property in DR, I recommend continuously checking for whats for sale and waiting for a seller who is motivated (desperate) to sell.

I recommend establishing residency in DR so you can form a corporation and put the property in the corporations name so you will be protected from being sued. Also, get a good lawyer who can take care of the paperwork and check on the deed of the property. Real estate scams involving fake deeds are not uncommon in DR from what I have heard


I just bought a piece of land when I found it and used a lwayer I knew. I am 2 for 2 with good lawyers.

[Cheeno]

Born and raised!;-) Farm boy from Washington County...just north-west of Milwaukee. Moved to the Tampa Bay area after college (UW-Milwaukee). What about the two of you?


PapiQueRico and I went to school in Madison. :smile:

There is a massage parlor called "Geisha House" off East Washington Ave in Madison. Have you been there?

Didn't UW-Milwaukee make it to the sweet 16 a few years ago? I remember they faced Illinois and it was a close game. :smile:

[Cheeno]

It can be as you describe it...anything like that in or near Santo Domingo? I'm thinking more like a high-rise hotel where the hotel rooms have been sold to private owners. The best scenario would be a fairly new building where the condos all have a kitchen, one bedroom, one bath with an adjacent suite that has one bedroom and one bath. A minimum of: front desk operations, security, swimming pool, laundry. I would say broadband internet is a must as well.

Only in PP or LM? What price?
Thanks!


There is a luxury apartment located right next to the Hilton Hotel off George Washington Ave. in Santo Domingo.

24-hour doorman, concierge, garage, valet parking, swimming pool, fitness center, marble floors, mahogany doors, granite counter tops kitchen, cedar lining in closets, top of the line bathroom, maid’s room, etc. all in front of the ocean.

A two-bedroom cost around $345K. But of course this is negotiable.

[Summit]

PapiQueRico and I went to school in Madison. :smile:

There is a massage parlor called "Geisha House" off East Washington Ave in Madison. Have you been there?

Didn't UW-Milwaukee make it to the sweet 16 a few years ago? I remember they faced Illinois and it was a close game. :smile:

Have not been to Madison in a while. I know my way around the capitol building though:wink: Yes, UWM made it pretty far in BB that one year...why I'm not sure. I went back to my old campus a couple years ago after 20 years and very little has changed...including the city itself (other than Miller Park and a fairly nice casino...with craps and everything...dont get that down here in Florida). Its like the Shire in Lord of the Rings:lol:

[Summit]

There is a luxury apartment located right next to the Hilton Hotel off George Washington Ave. in Santo Domingo.

24-hour doorman, concierge, garage, valet parking, swimming pool, fitness center, marble floors, mahogany doors, granite counter tops kitchen, cedar lining in closets, top of the line bathroom, maid’s room, etc. all in front of the ocean.

A two-bedroom cost around $345K. But of course this is negotiable.

Thanks Cheeno!!! I'll have to look into it when I get there. Sounds like what I'm looking for. How do you know all these things?...you live in DR?..or visit quite often?

[Cheeno]

Thanks Cheeno!!! I'll have to look into it when I get there. Sounds like what I'm looking for. How do you know all these things?...you live in DR?..or visit quite often?


You're welcome MiamiBeachGuy :biggrin:

I have visited Santo Domingo several times.

I miss Wisconsin a lot. The Brewers made the playoffs this year. :smile:

[Jimmydr]

A two-bedroom cost around $345K. But of course this is negotiable.

You got to be out of your mind to pay that in DR!

[ajax718]

I remember when I stayed at a Dominican friends house in Santo Domingo, 3 bedroom 2 bath with another apartment next door, in a quiet middle class neighborhood. The price was $80,000. This was 3 years ago.

Paying $345k for an apartment in Santo Domingo is only worth it if you already have millions in the bank

[Jimmydr]

You can rent a place for $500 a month or $6,000 a year. No reason to pay more than $50K for anything.

[WickedWillie]

You can rent a place for $500 a month or $6,000 a year. No reason to pay more than $50K for anything.

The first part of that statement is true if you are just looking for a place to hang your hat but if you see DR real estate as a forward investment opportunity then buying at $345k or $50k or whatever may make sense.
RE prices have skyrocketed in the DR in the last 3-5 years and many many people have made good money.
a few examples I personally know about.
Bought for $130k in 2005 sold for $295k in 2006 - Ocean Dream Cabarete
Bought for $20k in 2004 sold for $115k in 2007 - Orilla del Mar Cabarete
Bought for $525k in 2007 sold for $765k in 2008 - Harmony Cabarete

I could go on and on.
Are things a little different right now...absolutely yes...but longer term who knows.

[3somefan]

The first part of that statement is true if you are just looking for a place to hang your hat but if you see DR real estate as a forward investment opportunity then buying at $345k or $50k or whatever may make sense.
RE prices have skyrocketed in the DR in the last 3-5 years and many many people have made good money.
a few examples I personally know about.
Bought for $130k in 2005 sold for $295k in 2006 - Ocean Dream Cabarete
Bought for $20k in 2004 sold for $115k in 2007 - Orilla del Mar Cabarete
Bought for $525k in 2007 sold for $765k in 2008 - Harmony Cabarete

I could go on and on.
Are things a little different right now...absolutely yes...but longer term who knows.

Boy, those seem like some very profitable short term investments! Thanks for sharing this with us Wicked Willie! It is nice to have some who can give us this firsthand knowledge.

[Summit]

I remember when I stayed at a Dominican friends house in Santo Domingo, 3 bedroom 2 bath with another apartment next door, in a quiet middle class neighborhood. The price was $80,000. This was 3 years ago.

Paying $345k for an apartment in Santo Domingo is only worth it if you already have millions in the bank

I think Cheeno said $345k was the "asking" price. It might be possible to get it for $250k cash since the market is very soft now...maybe even less? If its right next to the Hilton and has all the services and protection required, that might not be too bad. I think it would be crazy to buy a house in any neighborhood there for any price ($80k) f you go there for a short time each year...I'm sure it would be broken into and maybe lived in while you are gone? I own a house in North Miami (middle class neighborhood)...when its not rented for a while, it gets broken into from time to time. Really pisses me off!!!

[Cheeno]

I dont miss Wisconsin at all. Except the yacht racing I used to do on many of the lakes. People here in south Florida cant believe I was a farm boy who milked cows, planted and harvested crops, picked rocks, fixed fence, cut thistles, shoveled shit:) When I was in college I used to watch Miami Vice every week...never thought I would end up down here!

I do miss listening to the Brewer games with Bob U. announcing.
Wow, I just had deje vu.


Hey MiamiBeachGuy :biggrin:

It must have been a big change for you. Moving from Wisconsin to Miami. Wow.....

The only thing I hate about Wisconsin is the cold winter. I think it's even colder in Minnesota.

Take care and good night. :smile:

[MrHappy]

I remember when I looked at a villa in Casa Linda, and I thought it was too expensive at 59K. I believe that was back in 2000.

Now you can't touch one for less than 170K or so..

Miamibeachguy, you need to pick up one of the real estate publications when you come down, at least for SD and the south coast.

There are literally thousands of apartments and houses for sale, all over the spectrum.