The truth about the real estate in the DR

Jun 18, 2007
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On this forum we're getting bombarded (spammed)with pictures of projects in the DR and how profitable these are SUPPOSED to be. In some of these projects I was involved myself and I know many people who have bought into these. Projects that were pre-sold but after 5 years they're not even finished yet.
Projects that were marketed at 1st world prices but are build like 3rd world.
Quite a few people have lost money and some even their shirt!!!
Personally I would not invest one penny in the DR even if I would like the country which I don't but that is beside the point.
I would like to get the truth out so that people will know what they're really getting themselves into.
I'm just one person who might even see it wrong all though I don't think so but what are your experiences or thoughts?
 

belgiank

Silver
Jun 13, 2009
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My thoughts are very simple...

- who in his right mind invests in a country he has not lived in for at least 6 months...
- if that somebody has lived here for 6 months, and still invests in a pre-construction project should be put in a lunatic asylum...
- any company starting a construction project should, by law, put the money into an escrow account, so everybody knows it will be finished...

A lot of the beautifull country-side and beaches are destroyed by unfinished projects. As a matter of fact, they are an eyesore, and loads of tourists comment on it. Just drive from POP airport to Cabarete... it is such a shame...

BelgianK
 

Chip

Platinum
Jul 25, 2007
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Santiago
One, I would say never invest in something you can't see or at least know someone who has bought from a builder and has a good experience.

Two, construction here in the DR when done right(residential) are better built than 99% of the homes in the States, I don't know about Europe.

Three, homes contracted to individual consultants to build on property already owned will always have the best results, financial and otherwise.

Many times people are enticed by homes or condos at below market prices. This is generally a scam and happens in the States too as one of my former clients is in Federal prison in Texas, John Stuart Jakows.

As my dad used to say, "if it appears to good to be true, it is".
 

nyc dad

Bronze
Jul 28, 2011
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Dear Frank and Kimb:

Let me address your concerns,on this beautiful morning,in NYC.I'm gonna keep it basic,so that "you guys" can process the information.Frank,there's numerous airports with numerous flights leaving,you don't like it? leave,no hard feelings.I'm sorry if you lost money,but weall appreciate you came to vent your frustration here.There's a building being constructed next door to my residence in Queens,NY. 6 apartments,two per floor,"luxury construction".Now,my dear Frank,it's been almost two years,and I can tell you that the workers show up once or twice during the week,and believe me,it's not because the have other projects going on.The big boss running the show,told me he's "dragging it out" because this is his "last job".Now,I don't know anything about real estate laws anywhere,but my 5 year old son would know not to pay for something that is not build.I believe it's pretty basic,find a reputable law firm, (like the one mentioned on DR1) a builder,look at their past projects and with those basics,I feel you should be in good shape.Frank,you can't blame the country as a whole because you didn't do your homework baby.I don't care how good it looks in blueprint or computer graphics,if it's not erected,if I haven't secured a good real estate lawyer,if I haven't looked into the builder,plain and simple "I'M NOT BUYING!!!!!!!!!!!!"Now for big ol' Kim,don't worry,hubby contract is almost up(if not start looking for those wonderful boarding schools) May you enjoy your tea today at 86 degrees.(this article was not double spaced,nor checked for ortography or spelling because I know how much you like that) Enjoy your eyesore*


*El autor no es pro-Dominicano,Pro-Pichardo,Pro-nada.I'm just here to help those unhappy expat save money and repatriate back to their origins where nobody complains.
 

tao112

New member
Jul 6, 2011
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"Buy land because God ain't making any more of it?

[FONT='Trebuchet MS', Verdana, Arial, sans-serif]Everyday the population of santo domingo increases, The numbers of wealthy dominicans increases too...I have been living here on and off the last 10 years and every year i see more and more wealth, jeepetas , new condos, new malls, shops and so on (it cant be just 1 owner of all this)

This country got tons of potential regarding real estate...compared to some neighboring countries , like puerto rico, panama, bahamas and see what you can get with 100.000 u.s. you get nada! Here you just got to do your due dilligence well, get a reliable construction company (it does takes alot of time) with a good track record and with 6-10 previous finished construction projects and odds will be with you.

You be retiring rich like me before you know it..flipping 5-7 apartments a year ! making 15.000-25.000 u.s per apartment in this country is not so hard at all




[/FONT]​
 
Jun 18, 2007
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[FONT='Trebuchet MS', Verdana, Arial, sans-serif]Everyday the population of santo domingo increases, The numbers of wealthy dominicans increases too...I have been living here on and off the last 10 years and every year i see more and more wealth, jeepetas , new condos, new malls, shops and so on (it cant be just 1 owner of all this)

This country got tons of potential regarding real estate...compared to some neighboring countries , like puerto rico, panama, bahamas and see what you can get with 100.000 u.s. you get nada! Here you just got to do your due dilligence well, get a reliable construction company (it does takes alot of time) with a good track record and with 6-10 previous finished construction projects and odds will be with you.

You be retiring rich like me before you know it..flipping 5-7 apartments a year ! making 15.000-25.000 u.s per apartment in this country is not so hard at all




[/FONT]​

Exception to the rule!
 

nyc dad

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Jul 28, 2011
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Then Frank,I would honestly apologize.In repply to your question,yes,my wife
always tells me not to assume.:squareeye Friends???

Nyc daddy you should read a little better, I did leave and I stated that I would never invest in the DR which I have never done therefore I have never lost money there. Don't assume, they never thought you that?
 

CaptnGlenn

Silver
Mar 29, 2010
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I seriously doubt any one is making a lot of money flipping apartments or any R.E. ANYWHERE right now. There might be some small, random, very obscure, VERY specialized exceptions to this; but world wide it's a buyer's market due to the economic crisis. Since buying my condo nearly two years ago, (just completed this past October), there have been reductions in prices in various completed projects in the neighborhood. Granted, these are the left over units, obviously a little less desirable than those snatched up right away, but still reductions. That being said, the newest complex nearby, still under construction has had two price increases already. I do feel over the long run, it will be a good investment, but that's not why I bought it. I wanted my own vacation home.

As for Chip's second claim to quality of construction... I simply laugh out loud. Our project is one of the better ones, with competent engineers and construction management, and I've seen several small but telling examples of the quality of how things are done. Basically... half assed. If it goes together correctly, fine... if it doesn't, just try to "make" it fit, with the most important tool being a hammer... the bigger the better. Standards as to mechanicals... (plumbing, electricity) are a joke. Having grown up around the construction business in the U.S. and having worked in it myself in my younger years, I can tell you that our building codes, while being a major pain in the ass, do serve their purpose... insuring that building is done properly. And the codes have gotten even more strict over the years. Also, the majority of the trades men, (i.e. carpenters, masons, electricians, plumbers, etc.), are real professionals, know their trades and crafts, and for the most part take some pride in doing the job RIGHT. Are there exceptions to that??? Sure. But here good construction is assumed and the screw-up is the exception; in the D.R. half assed construction is assumed and the good job is the exception.
 
Jun 18, 2007
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A copy of a post on page 220 of the thread: Juan Dolio- South Beach of the Caribbean

Another project in Juan Dolio? They're completely nuts!!! We sold our apartment in Marbella. It was on the market for almost a year and we had to sell it 20k USD below price.
Market is completely saturated since it is limited to Dominicans. During the year that our apartment was for sale, there were no foreigners to visit it. Anyway, why would a foreigner
invest money in DR? Chances you might get cheated are huge.
Maybe all those RE projects serve for the laundering of narco money.
 

pi2

Banned
Oct 12, 2011
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RE in the DR generally offers very good value and there is every prospect of price rises as the economy grows. Better developments are built to very high standards in beatiful grounds. Solar free energy is available over most of the DR and property taxes are very low compared with other places in the Caribbean. Cost of living is very moderate. Actually over the island as a whole there are few abandoned developments. Of course in the World climate of very low interest rates property can make an excellent addition to a portfolio.

pi2
 

CocoBoy

New member
Feb 23, 2012
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frank's opinion, not necessarily the truth

Personally I would not invest one penny in the DR even if I would like the country which I don't but that is beside the point. I would like to get the truth out so that people will know what they're really getting themselves into.

Once again it is amazing that someone who admittedly doesn't like the country, presumably doesn't live in the country posts to "get the truth out" about the country. This is nothing more than a slanted opinion and should be stated as such. If frank's previous "involvement" wasn't positive then maybe he or his advisers are somewhat to blame. The DR isn't the only location where unfinished projects litter the landscape. That's because speculation anywhere has it's risks.

For the real estate investor that likes the country and what it offers (and doesn't) and who is prepared to perform the proper amount of due diligence, there is no reason to shy away from the Dominican Republic. Personal research, and finding knowledgeable, honest local consultants to assist in evaluating a local market is crucial anywhere. In all real estate markets throughout the world, there are investment opportunities that range from very good to very bad. Undoubtedly, the DR like many similar locales in the tropics has a disproportionate number of unscrupulous "developers" that are anxious to prey on those with the impulsive desire for an exotic location. But, no real estate investment anywhere should be made impulsively. And speculative investments, although offering potentially higher returns are unarguably the most risky. If it sounds to good to be true....
 

Chip

Platinum
Jul 25, 2007
16,772
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Santiago
As for Chip's second claim to quality of construction... I simply laugh out loud. Our project is one of the better ones, with competent engineers and construction management, and I've seen several small but telling examples of the quality of how things are done. Basically... half assed. If it goes together correctly, fine... if it doesn't, just try to "make" it fit, with the most important tool being a hammer... the bigger the better. Standards as to mechanicals... (plumbing, electricity) are a joke. Having grown up around the construction business in the U.S. and having worked in it myself in my younger years, I can tell you that our building codes, while being a major pain in the ass, do serve their purpose... insuring that building is done properly. And the codes have gotten even more strict over the years. Also, the majority of the trades men, (i.e. carpenters, masons, electricians, plumbers, etc.), are real professionals, know their trades and crafts, and for the most part take some pride in doing the job RIGHT. Are there exceptions to that??? Sure. But here good construction is assumed and the screw-up is the exception; in the D.R. half assed construction is assumed and the good job is the exception.

I was making references mostly to the structural.

Still you must have missed my qualifier "when done right".

Finally, a Dominican house built following the plans done by an engineer is stronger than most of the homes in the States from what I've seen.

greydread is that you following me around....again???
 

zoomzx11

Gold
Jan 21, 2006
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Of course they are stronger. Its concrete vs wood or at least a wood roof, the weakest point and the first thing to go in a hurricane. When it comes to quality consruction the DR is a joke. Why does the concrete leach water (filtration)?
Its not mixed properly and not vibrated to ensure uniformity and eliminate air bubbles although its still much stronger than wood but that has nothing to do with quality.
When the big earthquake hits SD or Santiago we will have the definitative answer as regards the quality of construction in the DR. I bet they all fall down. Hope there is not a large loss of life when it happens.
 

Chip

Platinum
Jul 25, 2007
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Santiago
Of course they are stronger. Its concrete vs wood or at least a wood roof, the weakest point and the first thing to go in a hurricane. When it comes to quality consruction the DR is a joke. Why does the concrete leach water (filtration)?
Its not mixed properly and not vibrated to ensure uniformity and eliminate air bubbles although its still much stronger than wood but that has nothing to do with quality.
When the big earthquake hits SD or Santiago we will have the definitative answer as regards the quality of construction in the DR. I bet they all fall down. Hope there is not a large loss of life when it happens.

Concrete has very little tensile strength but a great deal of compressive strength. The steel is the "reinforced" part of a "concrete reinforced" structure. Often times the failure of a concrete structure is either a concrete that has lost it's bond due to not enough cement or salt contamination or not enough rebar or it's not tied together properly.

With regard to the mixture of concrete and curing, the methodologies used here are the same as used in the States. Therefore, I expect that when we have a big earthquake that most of the concrete 1 and 2 story homes will make out ok. Not all, but most.
 

zoomzx11

Gold
Jan 21, 2006
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Who's talking one and two story homes here? Its the hi rise structures that will sustain damage in the big one. When anyone talks "concrete " we are talking the mix, the rebar, the pour and the joining. I suspect that the rebar is lacking(its expensive) , the mix is poor and or using salty water or salty sand stolen from the nearest beach. The joining may or not be right but if the others are lacking that alone will not be enought to maintain integrity. As far as one or two story homes those people can just run outside and will be ok. People working and living in hi rises will be the test cases as far as just how good the construction industry did its job. How many of the hi rises in the SD and Santiago are built to earthquake code? My information is none. Its too expensive.
 

Chip

Platinum
Jul 25, 2007
16,772
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Santiago
Who's talking one and two story homes here? Its the hi rise structures that will sustain damage in the big one. When anyone talks "concrete " we are talking the mix, the rebar, the pour and the joining. I suspect that the rebar is lacking(its expensive) , the mix is poor and or using salty water or salty sand stolen from the nearest beach. The joining may or not be right but if the others are lacking that alone will not be enought to maintain integrity. As far as one or two story homes those people can just run outside and will be ok. People working and living in hi rises will be the test cases as far as just how good the construction industry did its job. How many of the hi rises in the SD and Santiago are built to earthquake code? My information is none. Its too expensive.

I believe we can assume you are guessing unless you can point out structures that have failed or you are a builder and have witnessed this.

I am a builder and am getting a construction administration degree from PUCMM and I can assure everyone here on the board that there are rules and regulations governing construction methods and materials.

I would also recommend anyone considering to build to hire a professional with references and only buy materials from the larger ferreterias.

Finally, it is heresay only that it is common for homes built and designed by professionals to have problems with inferior materials or lacking sufficient rebar.
 

Robert

Stay Frosty!
Jan 2, 1999
20,574
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Finally, it is heresay only that it is common for homes built and designed by professionals to have problems with inferior materials or lacking sufficient rebar.

Not according to two architects friends that have a combined 40+ years of building here in Santo Domingo.

I sat down one day with Miguel Benscome, great insight into the multitude of building errors, lack of code etc. If you know anything about high end homes in your end of the DR, then you should know this architect he's from Moca.
 

Criss Colon

Platinum
Jan 2, 2002
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After watching the "Plaza De La Salud" being built,from the "Ground Up",I have no faith in any construcion project in this country! AND,it was built with government supervision,or shall I say,LACK OF SUPERVISION???????
CCCCCCCCCCCCCCCCCCCCCCCCC
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
Not according to two architects friends that have a combined 40+ years of building here in Santo Domingo.

I sat down one day with Miguel Benscome, great insight into the multitude of building errors, lack of code etc. If you know anything about high end homes in your end of the DR, then you should know this architect he's from Moca.

What would your friend say the percentage of substandard homes would be and what would you say the major structural deficiencies are?

Also, if this guy is a builder I honestly might have to take it with a grain of salt based on a common selling technique here in the DR is "la calidad cuesta". This is a very common term here used frequently to sell one's work as superior all the while insinuating that all other work is inferior and thus charge exorbitant prices.

Still I'm interested in the "percentages" the next time you have the opportunity to talk to him.