- Thread starter nas
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Why so many properties for sale in DR
We were rather oblivious to everything being for sale until the first time our son-in-law came with us to Santo Domingo. Every time he saw a sign he said "Se Vende". He said it a lot, haha. It was the extent of his Spanish. We decided that year that everyone is selling and no one is buying - anything.
AE
AE
If you are dumb enough to pay the asking price, they are rising dramatically. Dominicans put up property for sale all the time at a ridiculous price. If someone comes along and asks to pay half of the price they will sell, as it is worth even less.
What do they have to lose? It is like another poster said, everything is for sale here. At the right price for the seller.
A lot of sellers are just testing the market. But there are properties that do sell. Below asking price but not like half the price that some people are suggesting on this board. Plus if you know how to rent it out, for instance via advertising on dr1, then you can get a nice steady return to. I am reffering to the Santo Domingo market. The better areas of Santo Domingo. I dont know about Bavaro, PoP etc.....
I have been told by a long time ex pat that Santo Domingo was really BUILT in the last twenty years ..others can speak to that.. I am in an old condo building . in Gazcue.. and it is perhaps 50 years old. So all those new buidlings that you see,. all were just built. And the building keeps on going. I think lots of Dominicans trust real estate much more than the banks (and no wonder)
People will put thier apartments or houses on the market and simply wait for the market to come up to it. There is no real enforcement of paying real estate tax by the year .. in other words, you are not going to have the property seized and sold by the tax man if you do not pay. Folks will let the taxes accumulate and pay them off with the sale money.
Most of the apartments are owned outright.. they are not paying interest on mortgages. So it does not cost much to keep them.
I am surprised at what you are saying about NYC.. Do not think that you can buy anything in Manhattan, at least, for under 300k...Here you can buy a new two bedroom for under 150k.. .
People will put thier apartments or houses on the market and simply wait for the market to come up to it. There is no real enforcement of paying real estate tax by the year .. in other words, you are not going to have the property seized and sold by the tax man if you do not pay. Folks will let the taxes accumulate and pay them off with the sale money.
Most of the apartments are owned outright.. they are not paying interest on mortgages. So it does not cost much to keep them.
I am surprised at what you are saying about NYC.. Do not think that you can buy anything in Manhattan, at least, for under 300k...Here you can buy a new two bedroom for under 150k.. .
True regarding taxes and that often there is not a mortgage and also low condo fees especially if the buidling has no elevator and no generator. There is one specific area of Santo Domingo where I have looked and negotiated buying for the last 3-4 years. I know it very well. I have seen quite a lot been sold under asking price but not that much lower. I also in the same area have seen some apartments with a for sale sign on since 3-4 years. Same location but often not a nice well managed buidling or it is a two bedroom with just one parking and bad security. My point is the good properties sell. The bad ones dont until they lower price to maybe about half of that areas market price. I think there are some here on dr1 who are staring themselves blind on those bad properties with for sale signs on long term. Be careful that you may not see the forest for those bad trees standing in the way. The good properties sell after 3-6 months on the market.
What do most of you recommend? Buy a cheap place for under 100k or rent a place? I've followed these forums. Some say do not buy because if you want to leave you're stuck with property you'll have a hard time selling at a reasonable price. Others say buy now before prices go up.
Here in Gazcue, it is true that the bright and shiny new buildings seem to sell out quickly.. often even before construction is finished. I think that the first Torre on the Malecon with Pasteur did that. And it is also true that apartments in older buildings such as mine.. which will need some serious work in plumbing and electricity upgrades and painting the walls and shining the floors, also stay on the market longer. But I disagree with your characteristics of the new ones as "good".. since.. well.. many of the news one at put up in a split second and have lots of glass.. which looks great but oh how hot that is going to be!!! How high the electric bill.. AND since we have not had a major quake recently, we do not know how they are going to stand up. During the Haiti earthquake, the Malecon Center was the only building which I know of which had any damage.
I would never fall for the "buy now because the prices will go up" stuff.. it is fear based.
Buy only when and if you have decided that you are going to live here forever and find a place which you love AND it is a better deal to buy than to rent.
For instance, the apartment which I am in would probably sell for around $135000 but I pay only $550 rent and the rent is now controlled. Since the landlady has owned the property forever, probably bought it when it was new .. for perhaps 40k, she is getting a very good return on her investment.
Use the formula of paying 8% of the value per year and you will know if you have a bargin. Since I am paying 4.8% on the current value of this apartment and my money is getting a better return invested elsewhere, I am a happy renter.
I did not necesarily mean new buildings being the "good". Actually more often I would characterise older and weel mantained and managed as good. I myself look more at apartments in the older buildings. I also know the Gazcue area quite well. There you see more the tendency of trying to sell at over market prices as the sellers seem to think someone may turn up and pay what they want. Maybe it has happened in the past.
Maybe real estate is like that all over the world. Here there is less transparency so you have to be more careful. But I do see apartments that are sold and then rented out and generating a steady return. It is not fantasy. You have to know what you are doing of course. I am not saying it is easy. But it is possible.
There is the story of the guy selling oranges on the side of the road. Someone comes up and asks, "How much for an orange?"
"1000 pesos."
"1000 pesos? Are you crazy? How can you possibly expect to get any business?"
"Yeah, but this way, I only need to sell one a day.."
I've seen properties for sale for years with someone holding out for their asking price. As long as they "appreciate" faster than the taxes, they can hold onto them forever, but the actual value is arbitrary.
"1000 pesos."
"1000 pesos? Are you crazy? How can you possibly expect to get any business?"
"Yeah, but this way, I only need to sell one a day.."
I've seen properties for sale for years with someone holding out for their asking price. As long as they "appreciate" faster than the taxes, they can hold onto them forever, but the actual value is arbitrary.
yep! it ain't easy ...but it is possible
http://dr1.com/rentals/my_lists/prop_v.php?id=202[/URL]
I would agree that manhattan prices are out of range for most people in the US. When I spoke about NYC was also including the boroughs (Queens, Brookly, Bronx ... ).
Beside, in NYC (Manhattan) one could acquire a nice 2 bedroom from under $US 500K. We are talking about the capital of the world, if you will.... running water, electricity 24/7, service (garbage, safety, police, etc.)
In our beloved DR (Santo Domingo) we are lacking these basic things... yet the lack of these necesities are not reflected in the prices.
Take Florida, including Miami, for instance. Due to the mortgate disaster prices went down consirably.
I also agree that most homes / apartments are owned; no pending mortgage.
I would have to agree that it might be possible that people would rather put their money in properties than in banks.
Would the increase in so many properties for sale would have something to do with the fact that expats invested in retirement homes in DR and for one reason or another they want out?
Beside, in NYC (Manhattan) one could acquire a nice 2 bedroom from under $US 500K. We are talking about the capital of the world, if you will.... running water, electricity 24/7, service (garbage, safety, police, etc.)
In our beloved DR (Santo Domingo) we are lacking these basic things... yet the lack of these necesities are not reflected in the prices.
Take Florida, including Miami, for instance. Due to the mortgate disaster prices went down consirably.
I also agree that most homes / apartments are owned; no pending mortgage.
I would have to agree that it might be possible that people would rather put their money in properties than in banks.
Would the increase in so many properties for sale would have something to do with the fact that expats invested in retirement homes in DR and for one reason or another they want out?