If you want to become a resident of Venezula, I believe you have to renounce your citezenship from the country you are from.
Is this correct?
Is this correct?
- Thread starter cobraboy
- Start date
Real Estate Values: Buying Opportunities?
Thanks, much more understandable :cheeky: It is just that I could not for the life of me understand the story part.
There is a problem with putting money into the hand that comes out. Better to work a way that the hand does not come out..
As a psychiatric nurse, I feel I am perfectly positioned to give an opinion on real estate purchases... in case anyone can't see it, there's a tongue firmly in a cheek somewhere close by.
I changed jobs frequently through out my career and have a pretty lousy pension heading my way. Now, in a decent job, I could access a reasonable pension scheme, but at 40yrs old, I'd need to stick a load of cash in on top of my normal & employer contributions to play catch up.
So I decided real estate was the way forwards instead. We've got one property that we rent out in the UK as well as our home. The probability is that both the investment in DR & the second property in the UK will be long term, rather than selling and guessing the next 'hot spot'.
So, why DR?
1. I wanted to avoid 'all eggs in one basket', so a different country to the UK. Add to that the fact that we can use the place ourselves.
2. After the best part of three years researching (I didn't have the capital available then... just the plan) I narrowed it down to two countries, DR and Cape Verde Islands. CVI opened an international airport at the end of last year, is likely to be accepted into the EU within five years and the government (with EU support) is investing in tourism as its main economy. Real estate there is VERY cheap still but booming. At the moment, only a handful of Portuguese go there on holiday, soon they'll have direct flights from most of Europe.
4. DR won because it is the fastest growing destination for British tourists. I believe that a great many of them will start to move out of the AI's after they've visited once or twice and become more 'confident' about doing their own thing. Secondly, because I see a major problem in about a decade or so... see point '6'.
5. I decided that Cabarete was the best place for us to invest, partly driven by the fact that kitesurfers extend the season, reasonably close to the airport and the 'cool' vibe of the town. Partly, to be honest, it is somewhere I can happily spend time myself. Partly because there are diverse markets all coming together, snow-birds from Canada, baby-boomer retirement folk, younger holiday makers and the surfers, so more chance of attracting a market.
6. The problem... I'm in the apartment right now. It cost me less than ?250 (about US$500) for a return flight from the UK. With cheap flights like that, it's little wonder the DR is a 'hot' destination for us Brits. Add to that the strength of the pound v dollar and it makes it a very attractive investment location if you have pounds to spend. So what happens if/WHEN air travel becomes much more expensive, possibly putatively so? The Brits will return to holidaying in Europe or North Africa for their sunshine fix. HOPEFULLY, that will leave the North Americans coming here, so we will still have a market even if we never come here ourselves. And Cape Verdi Islands? If flight prices rocket, who will be able to go there?
There is one thing I would like to know about with regard to the US economy. I've asked this a few times of different people and never really got an answer other than 'hadn't really thought about that, it would hurt'... In UK interest rates are currently about 5.5% in the US they are (or were) down at about 1.5%. Most home buyers borrow as much as they can afford to repay each month. In the UK, a 1% interest rise will increase a family's repayment by about 20% but the same increase in the US will raise repayments 75%. A couple of percent rise in interest could (presumably) see the housing market in the US crash? Or am I missing something fundamental? Now, if that happens, would we see people bailing out while they can and coming to places like DR or selling up second homes in the DR to prop up their ailing position back home?
I changed jobs frequently through out my career and have a pretty lousy pension heading my way. Now, in a decent job, I could access a reasonable pension scheme, but at 40yrs old, I'd need to stick a load of cash in on top of my normal & employer contributions to play catch up.
So I decided real estate was the way forwards instead. We've got one property that we rent out in the UK as well as our home. The probability is that both the investment in DR & the second property in the UK will be long term, rather than selling and guessing the next 'hot spot'.
So, why DR?
1. I wanted to avoid 'all eggs in one basket', so a different country to the UK. Add to that the fact that we can use the place ourselves.
2. After the best part of three years researching (I didn't have the capital available then... just the plan) I narrowed it down to two countries, DR and Cape Verde Islands. CVI opened an international airport at the end of last year, is likely to be accepted into the EU within five years and the government (with EU support) is investing in tourism as its main economy. Real estate there is VERY cheap still but booming. At the moment, only a handful of Portuguese go there on holiday, soon they'll have direct flights from most of Europe.
4. DR won because it is the fastest growing destination for British tourists. I believe that a great many of them will start to move out of the AI's after they've visited once or twice and become more 'confident' about doing their own thing. Secondly, because I see a major problem in about a decade or so... see point '6'.
5. I decided that Cabarete was the best place for us to invest, partly driven by the fact that kitesurfers extend the season, reasonably close to the airport and the 'cool' vibe of the town. Partly, to be honest, it is somewhere I can happily spend time myself. Partly because there are diverse markets all coming together, snow-birds from Canada, baby-boomer retirement folk, younger holiday makers and the surfers, so more chance of attracting a market.
6. The problem... I'm in the apartment right now. It cost me less than ?250 (about US$500) for a return flight from the UK. With cheap flights like that, it's little wonder the DR is a 'hot' destination for us Brits. Add to that the strength of the pound v dollar and it makes it a very attractive investment location if you have pounds to spend. So what happens if/WHEN air travel becomes much more expensive, possibly putatively so? The Brits will return to holidaying in Europe or North Africa for their sunshine fix. HOPEFULLY, that will leave the North Americans coming here, so we will still have a market even if we never come here ourselves. And Cape Verdi Islands? If flight prices rocket, who will be able to go there?
There is one thing I would like to know about with regard to the US economy. I've asked this a few times of different people and never really got an answer other than 'hadn't really thought about that, it would hurt'... In UK interest rates are currently about 5.5% in the US they are (or were) down at about 1.5%. Most home buyers borrow as much as they can afford to repay each month. In the UK, a 1% interest rise will increase a family's repayment by about 20% but the same increase in the US will raise repayments 75%. A couple of percent rise in interest could (presumably) see the housing market in the US crash? Or am I missing something fundamental? Now, if that happens, would we see people bailing out while they can and coming to places like DR or selling up second homes in the DR to prop up their ailing position back home?
Coming from a family of real estate investors, I don't know where the 1% interest rate in the US came from. The ONLY place I see it is "teaser" rates, with an adjustment to actual rates coming within months. And why someone would qualify for a high LTV at the upper income limit with a teaser rate is asking for financial disaster.
The teaser rates are a function of competition among lenders. Nobody ever gets a 1% fixed rate 30 year mortgage. Doesn't happen. Perhaps there is not as much competition in GB for mortgage $$$. Maybe the supply/demand equilibrium is quite different there.
There ~may~ be a slump in the US housing market if/when interest rates push upwards. But, IMO, it would be short term. Keep in mind the ever increasing population drives the demand side of the equation; it is rising at a faster rate than the increase in housing supply. As long as that that remains constant, housing values won't drop in MOST markets long term.
There are very few mistakes one can make in real estate that can't be fixed with time. Just don't buy in declining inner-city neighborhoods, residential or commercial.
Thanks for that, it's sometimes a bit difficult to see the real perspective from a long way off!
What about Santo Domingo?
Are property prices currently rising or falling in SD? Which way do the people who know more than me (all of you) expect them to go?
How easy is it to rent in the Zona Colonial to reliable people?
Are there any pitfalls I should be aware of?
Are property prices currently rising or falling in SD? Which way do the people who know more than me (all of you) expect them to go?
How easy is it to rent in the Zona Colonial to reliable people?
Are there any pitfalls I should be aware of?