New Member looking to buy in the DR-Advice

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jricks76

New member
Feb 11, 2011
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Hello All,

My wife and I have been visiting the DR for a few years now and love it. We have decided we are going to look into possibly buying on our next trip in May.

My question(s) is this...

I have of course scanned all the websites listing properties, they all seem to be advertising the same bunch of properties and most I find the asking prices to be a bit unreasonable, especially given the current market and the fact that many properties have been on the market for a year or more. (including a lot of listings on DR1) I have been following DR1 for quite some time and have seen posts indicating is ok to offer much lower than asking price in some cases as low as 100k below asking. Is this true?

As we have been there many times and have several local friends I am aware that there is a different price for "rich" foreigners, and being on the ground ready to buy is different than internet searching.

We are looking somewhere within 15 minutes drive of Sosua or Cabarete. I have seen properties that need about 15K US worth of work for as low as $60k US and as high as over $200K US that don't need any work. Seems out of wack.

Any advice is greatly appreciated. Having been following this board for awhile I know some great insight comes from it's members.

If anyone knows someone who is looking to sell and is reasonable please drop me a line. also is anyone familiar with Serenity Del Sol in East Cabarete? Is it a decent place?

Thanks to all in advance, look forward to being a contributing member as well as a neighbor!
 
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windeguy

Platinum
Jul 10, 2004
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Properties can stay on the market for a long time. The houses are paid for in cash and the owners wait for their price. If you find someone desperate to cash out that is another story. As far as I am concerned, I think you should offer what you want to offer.

I have no idea what you mean by prices being out of whack from the way you described the 60K versus 200 K prices. Need more information about what you are asking about.

I have never heard of Serenity Del Sol and I live in Cabarete.

Everyone will advise you to rent for 6 months before you buy. Visiting is very different than living here.

Where are you from?
 
Robert

Robert

Stay Frosty!
Jan 2, 1999
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windeguy said:
Everyone will advise you to rent for 6 months before you buy. Visiting is very different than living here.
Click to expand...

The #1 piece of advice!

Rent, get to know what's what and more importantly who's who.
Being hear and living, you will hear of deals or get to know who needs a quick sale. Info you will never find online or if you live in another country.
 
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jricks76

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Feb 11, 2011
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Renting before buying

I appreciate the advice - and we very well may do that if possible. We have taken extended trips for several weeks before and rented where we went to the grocery store, got around town and experienced a little of what is is like to live in the DR.

I am from the U.S. by the way.

I mean if a house is asking 60k and it needs 15K or so in upgrades/repair and the same house that doesnt need repair is aking $250K, something is out of wack. Is the house worth $75-100K or 200-250K? I guess it is worth whatever someone is willing to pay.

We are not set on buying on this trip, just dedicated to exploring the idea and looking around. I know there is no substitute for spending time their to find out who the serious sellers are, and who is just sitting and waiting for a high price from some tourist. I thought maybe someone on here knew of a serious seller.
 
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LTSteve

Gold
Jul 9, 2010
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Real Estate Dr

Hi:

Just like in the States location is everything and that will determine a lot of the pricing. If you are not going to live in the DR all year round I would recommend not buying a house, which is on a free standing property. Security is a major consideration when buying property here. I live in Las Terrenas and split my time between here and the States. I live in a condo complex with gated security. I can confidently lock up and leave for any period of time knowing that I don't have to worry about the place. I have owned my place for 5 years and never have had a problem. If you buy any property you need to consider the following: What is the security available? What is the quality of the water and the water pressure available? You are not drinking the water but if you are washing dishes or clothing you want it to be relatively clean to the eye. The electricity costs and availability? Do you or your condo development have a generator back up system? If you are comfortable with the answers to these questions than you will be happy with the property that you purchase.

S
 
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windeguy

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Jul 10, 2004
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I also found the link to Serenity del Sol. It is the area that was once referred to as "The Miracle Mile" on the way to La Boca. I can only guess that the Miracle Mile project got put on extended to permanent hold.

I can't say I would recommend the area because you would have an ocean front location where it isn't safe to go in the water. Lots of undertow in that region. And if they have not paved that road and the ones accessing it from the main highway, it is just an undeveloped dirt road with pot holes and mud when it rains.
 
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windeguy

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Jul 10, 2004
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Now what would you pay?

jricks76 said:
I mean if a house is asking 60k and it needs 15K or so in upgrades/repair and the same house that doesnt need repair is aking $250K, something is out of wack. Is the house worth $75-100K or 200-250K? I guess it is worth whatever someone is willing to pay.
Click to expand...

Now I understand the question about basically the same house in two states of repair. The difference in price could be one of a really motivated seller versus one looking for a profit. There are no multiple listing services here so it is difficult to gauge the worth of a given property. Your statement about it being worth what someone is willing to pay is about the best answer.
 
Robert

Robert

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Jan 2, 1999
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jricks76 said:
something is out of wack.
Click to expand...

Not just something, but most of the country if you're a newbie.

windeguy pretty much covered it. Bottom line, it's very hard to find motivated sellers if you are outside of the country. You will be amazed at some of the steals and deals people pick up, just because they are here and people know they are looking.
 
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amparocorp

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Aug 11, 2002
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i always go by the square meter rule when figuring value. i'll take 20 or more properties in a specific area and figure out the average cost per square meter. i find some of the properties on the internet, some from the newspapers. after you do that a few times it is relatively easy to figure out if a price is fair, somebody's dream, or so low that there must be a catch 22. be sure to get a real lawyer.
 
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sandk

New member
Sep 20, 2010
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Buying in the DR

We moved to the island last April...and learned a lot in the process. The responses you've gotten are pretty much spot on. I've sent you a PM with some info you might find helpful and would be happy to talk to you more if you're interested.

Best of luck whatever you decide to do!
 
cobraboy

cobraboy

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Jul 24, 2004
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Keepin mind that RE in the DR is fairly illiquid. I wouldn't call it an "investment." Once you own it you're pretty much stuck.

It's very, very difficult to make a financial case of buying instead of renting, especially with the tenant laws skewed so much toward the tenant.
 
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AndyGriffith

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Mar 11, 2010
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cobraboy said:
Keepin mind that RE in the DR is fairly illiquid. I wouldn't call it an "investment." Once you own it you're pretty much stuck.

It's very, very difficult to make a financial case of buying instead of renting, especially with the tenant laws skewed so much toward the tenant.
Click to expand...

Yes and No. Yes, depending on the property, price-location, real estate can be very illiquid in DR. However, an apartment in a good location (that locals are looking for) at a near fair market price can be liquidated within a short period of time. Again, it all depends on the culmination of the circumstances.

In terms of advice on buying RE in DR. Most important thing is a clean title. I recommend a title in the owner's name and no inheritance issues. A title in a corporate or any other name is a real hassle for the buyer. You can go to the Jurisdiccion offices and check the title through a computer system they have there now. First check that, if no issues, then put in for the certificacion paper work.

Location and Price: You need to do your homework and get deep into the area you have interest in. Walking, talking, learning. Going out with a real estate agent just isn't going to cut it. They will show you overpriced properties that keep you away from the better deals.

It is a lot of work to get up the learning curve, but hard work can sometimes pay off handsomely. Best of Luck.
 
J

jricks76

New member
Feb 11, 2011
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Difficult decision

I appreciate all the advice from everyone. I have learned the following...

Properties stay on the market an abnormally long amount of time waiting for a certain price. they can do this as the properties are owned outright. Problem is (as I see it) no one apprears to want to pay these prices, as I have seen the same properties advertised for almost 2 years. Seems these folks may be wasting their time.

A few mentioned once you own it could be potentially difficult to sell. (possibly not per Andy's post) This could also be due to the situation I mentioned above concerning the price. Hard to sell b/c they are asking too much. It makes the DR look unattractive to potential buys and/or investors who would otherwise be interested. I know this not to be the case outside of the RE world having been there many times, shopped at grocery stores, etc....

It seems the best choice for us is to rent for awhile and wait to jump on an opportunity when it comes or similarly buy a one bedroom condo for a decent price (good location, management, etc...) and stick with that for awhile and wait for the deal.

Hmmmm.
 
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windeguy

Platinum
Jul 10, 2004
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Yes. Those are two good ways to proceed. Renting first probably being the best option unless you also want to own a condo.
 
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mountainannie

Platinum
Dec 11, 2003
16,350
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elizabetheames.blogspot.com
There are also condo hotels for sale... at least in Las Terrenas...

I know that Colibri and Aleisei are both condo hotels.. in that they rent the unit out for you when you are not there.

Colibri is well established and well run.. the other is newer but on the same stretch of beach.. and, I think, from the same builder./manager...

do not know if these sort of things exist in other towns..

but that would be another option for you if you were not planning on moving right away full time but wanted to get a foot in the door....
 
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jrhartley

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Sep 10, 2008
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if its around la boca there would be a problem with standing water and mosquitos when there is a lot of rain
 
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