investment opportunity

mountainannie · Jan 19, 2013

Had a talk with my neighbor and it seems that my landlady wishes to sell this apartment. They are going to talk. Since I actually quite like my landlady and wonder what she is going to use to buy her food after her sons have divided the sales price between them.

I suggested that perhaps there might be other options.

Since I adore the place and am not in a position to buy.. if anyone is looking for an investment property in Gazcue with a tenant in place who pays in dollars, please send me a PM

mountainannie · Jan 19, 2013

I think the aparment .. well.. ok the own downstairs sold in 92 for 80,000 US.. I think that the three bedroom (the one I am in is two) sold a couple of years ago for 117,000.
I now pay $600 which is just about market. i would be open to increasing the rent if there were an honorable landlord who made a bit of a capital investment in the wiring. and plumbing.. Perhaps a few thousand.

the rule in the States that is used by the thumbs is that a rental unit shoudl recover the purchase price in fifteen years.. but that was before the Fall,.

PeterInBrat · Jan 19, 2013

The rule I used to sell a US rental a few years back was 72 times monthly rental(6 times annual), so a place renting for $600 should be worth $43,200 ballpark for actual value, in the US. In the DR though, they tend to price things based on if you spend more on the property and then its future value. A condo I lived in Sosua at $400/month sold a while back for $40,000 which I thought was bonkers for what it was. Once you start buying things based on an assumed future value, you are getting into a boom/bust situation.

If a rental won't cover mortgage, depreciation and then some profit, I can't see why anyone would want to into a property.

cobraboy · Jan 19, 2013

Most RE investors use a 10% cap rate. So the monthly rent for a $120,000 property would be around $1000mo. + pro rata taxes.

MA, understand that if you have a lease it's reallyreallyreally hard to evict you of you keep paying rent, and you'll have time to find another place.

MerengueDutchie · Jan 19, 2013

cobraboy said:
Most RE investors use a 10% cap rate. So the monthly rent for a $120,000 property would be around $1000mo. + pro rata taxes.

MA, understand that if you have a lease it's reallyreallyreally hard to evict you of you keep paying rent, and you'll have time to find another place.

In Europe it's a little less at around 8-9% - inflation and risk free rate are lower..

I would assume in the DR it would need to be higher - given that inflation and risk free rate are higher..

So prolly around 12-14% per annum would make sense.

However from your living situation I understand that current rent wouldn't cover mortage, cost and a little profit, so imo the market is upside down on this... renting is better than buying, which is what you're doing.

MA keep sitting tight - as long as you have a lease and pay on time you'll have some protection

yapask1 · Jan 19, 2013

I know places previously rented by gringos - modern small villas suitable for 1-2 persons at $250 a month plus a little investment in painting to your style etc. Mixed gringo / Dominican community about 1 1/2 miles from beach, 1/2 mile from shops in LT.
Small garden space ideal for growing tomatoes etc.

yapask1

cobraboy · Jan 19, 2013

yapask1 said:
I know places previously rented by gringos - modern small villas suitable for 1-2 persons at $250 a month plus a little investment in painting to your style etc. Mixed gringo / Dominican community about 1 1/2 miles from beach, 1/2 mile from shops in LT.
Small garden space ideal for growing tomatoes etc.

yapask1

yabadabadu, MA wants an urban life in Gazcue, not the boondocks of LT...

Lothario666 · Jan 19, 2013

I guess I must have been dreaming early this morning.

I could have sworn that MA posted a thread complaining about her landlord and that her lease had expired 3(?) yeras ago which was for $550 a month and she has been paying $600 a month without the lease. If that thread "did" exsist this morning, sounds like there was trouble brewing at the place. Seems that I recall there was something maybe about someone wanted to see the place and was willing to pay $700 a month.

Is it getting to the point that one may need to make copies each day when they come to DR1 just to keep from going crazy?

I'm starting to question my own sanity being on DR1.

"R"

yapask1 · Jan 19, 2013

Yes , maybe ma is trying to sting the landlord. Yes, there have been posts removed - you are not imagining it.

yapask1

wuarhat · Jan 19, 2013

Lothario666 said:
I guess I must have been dreaming early this morning.

I could have sworn that MA posted a thread complaining about her landlord and that her lease had expired 3(?) yeras ago which was for $550 a month and she has been paying $600 a month without the lease. If that thread "did" exsist this morning, sounds like there was trouble brewing at the place. Seems that I recall there was something maybe about someone wanted to see the place and was willing to pay $700 a month.

Is it getting to the point that one may need to make copies each day when they come to DR1 just to keep from going crazy?

I'm starting to question my own sanity being on DR1.

"R"

I had the same dream this morning at 9:00.

yapask1 · Jan 19, 2013

Yes, in previous posts she went to prison for days for driving away from a petrol station without paying the bill! Needs to stay away from drugs....

Good moderator to delete all the thread.

yapask1

Gregory Wales · Jan 19, 2013

Using your formula, I agree, renting is better than owning. From my perspective as an owner, the renter is enjoying the property at 50% the actual value.

Any other opinions are appreciated.

cobraboy · Jan 19, 2013

Gregory Wales said:
Using your formula, I agree, renting is better than owning. From my perspective as an owner, the renter is enjoying the property at 50% the actual value.

Any other opinions are appreciated.

YOUR value, maybe, but not the market's value...which is all that matters.

If I bought the house we live in I'd in essence be paying 3-4 times as much for owning it than renting it. Makes no economic sense.

yapask1 · Jan 19, 2013

With me paid 41k dollars nearly 8 years ago. Worth much more now and no rent over the years. 1 BR near beach with shared swimming pool.

Total rate of return about 12 percent - plus very good security and maintenance - no landlord that wants the property back.

Sold in Spain at a profit that paid for this pad.

But each persons circumstance is different.

yapask1

MerengueDutchie · Jan 20, 2013

Gregory Wales said:
Using your formula, I agree, renting is better than owning. From my perspective as an owner, the renter is enjoying the property at 50% the actual value.

Any other opinions are appreciated.

cobraboy said:
YOUR value, maybe, but not the market's value...which is all that matters.

If I bought the house we live in I'd in essence be paying 3-4 times as much for owning it than renting it. Makes no economic sense.

Alas, this is how the market has developed... renting at the moment is economically more sound, plus you don't have the worries that come with owning a property..

I'm sure that either prices will come down or rents will be going up..

Cobra is correct, the value is determined by EVA.. cash value of future cash-flow

The outlaw

is also correct but maybe should formulate at "50% of what current owners have paid"..

yapask1 · Jan 20, 2013

Yes, rents are rising in other cities in the World ; in London maybe 25% in many areas over the last 2 years. Before it was anticipated to get 5% or so in rent plus 5% or slightly more in capial appreciation over the years. Now with capital values not increasing so much rents are increasing. A sensible rent for a $100,000 appartment in SD maybe $1,000 a month.

Very good value in a nice disrict. In NY and other World cities $2,000 - $4,000 a month.

Maybe op should offer $800 for a good lease.

yapask1

mountainannie · Jan 21, 2013

Lothario666 said:
I guess I must have been dreaming early this morning.

I could have sworn that MA posted a thread complaining about her landlord and that her lease had expired 3(?) yeras ago which was for $550 a month and she has been paying $600 a month without the lease. If that thread "did" exsist this morning, sounds like there was trouble brewing at the place. Seems that I recall there was something maybe about someone wanted to see the place and was willing to pay $700 a month.

Is it getting to the point that one may need to make copies each day when they come to DR1 just to keep from going crazy?

I'm starting to question my own sanity being on DR1.

"R"

there was that thread.. think that the mods were just protecting my reputation...

I am wiling to pay more. Happy to be a renter and stay as a tenant. Just wish that the landlords here recognized that it is a job. I have been a landlord and a tenant lots of time. It is work. And some landlords do it and some do not.

i just have one who does not.

I will llook for another apartment and get a lawyer and help the landlady sell this place,

as long as we simply proceed legally

mountainannie · Jan 21, 2013

PeterInBrat said:
The rule I used to sell a US rental a few years back was 72 times monthly rental(6 times annual), so a place renting for $600 should be worth $43,200 ballpark for actual value, in the US. In the DR though, they tend to price things based on if you spend more on the property and then its future value. A condo I lived in Sosua at $400/month sold a while back for $40,000 which I thought was bonkers for what it was. Once you start buying things based on an assumed future value, you are getting into a boom/bust situation.

If a rental won't cover mortgage, depreciation and then some profit, I can't see why anyone would want to into a property.

In Asheville NC the formula was different. I have already invested thousands.. say four or so.. in bringing the place up to the standard of habitable. bought a new fridge and stove knowing that i would have to replace the non working old wrecks that were here when i left.

NOW it may be worth 700 and I am willing to negotiate.

She may really want to sell.... she can get more money if she has a peso interest account/.

So .. again.. if anyone is interested in being my landlord.. this apartment is for sale.

mountainannie · Jan 21, 2013

the landlady will not be able to show it. Only I can show it. It still needs about 3 thousand worth of work on it which I am willing to have done and deduct from the rent./.

honest tenant .. looking for honest landlord

mountainannie · Jan 21, 2013

PeterInBrat said:
The rule I used to sell a US rental a few years back was 72 times monthly rental(6 times annual), so a place renting for $600 should be worth $43,200 ballpark for actual value, in the US. In the DR though, they tend to price things based on if you spend more on the property and then its future value. A condo I lived in Sosua at $400/month sold a while back for $40,000 which I thought was bonkers for what it was. Once you start buying things based on an assumed future value, you are getting into a boom/bust situation.

If a rental won't cover mortgage, depreciation and then some profit, I can't see why anyone would want to into a property.

this is never going to cover the mortgage with only one year of fixed rates. This is going to have to be for someone who has the cash to invest.

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