Real Estate Investment

Barnesy

New member
Feb 23, 2004
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I've just joined this site, as I couldn't believe how much sense the posters were actually making! So I'd really appreciate some decent advice...

Anyway, I'm a UK res, living and working in London but looking to invest in some rental property in Cabarete. The idea being I can take advantage of the strong current GBP / USD exchange rate, make a bit of cash on renting it out and have a great place to go windsurfing!

But I've just been reading posts about the state of the DR economy (interest default etc...) and total lack of faith in 'Hippo'. And I'm wondering if this kind of investment in the DR is such a good idea right now? I reckon I probably have about an 18 month window before the USD starts coming back against the GBP.

Am I likely to get more for my buck if I wait a year? Secondly, any general comments on this kind of investment (major pitfalls etc...) would also be of great value.

Thanks.
 

Ken

Platinum
Jan 1, 2002
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Keep in mind that over the past 6 to 8 months property has been appreciating in the Sosua/Cabarete area. Americans have been buying in record numbers and property values have been appreciating.
 

Barnesy

New member
Feb 23, 2004
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Ken,

I guessed that might have been happening, but I'm doubtful now on whether it's such a surefire winner!

I realise it's an extreme scenario, but the government defaulting (if they do) on interest payments stinks of an Agrentina situation. Not something I'd want to be involved in unless real estate prices then plummeted!

A friend of my father's recently bought a 5-acre mansion in Argentina for about ?40k!
 

Ken

Platinum
Jan 1, 2002
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If the DR did get into an extreme situation, hard to say what would happen. But for now, real estate prices have nothing to do with the exchange rate. Properties are selling in dollars, and it takes fewer dollars to buy a nice property on or near the ocean than it does in Miami, the other Caribbean islands, etc.

No matter what happens, the DR will still have sun, the beaches will be as nice as they ever were, and there will be no change in the wind for windsurfing.

As far as being a "surefire winner", is there such a thing when investing?
 

Barnesy

New member
Feb 23, 2004
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Agree that there's no such thing as a genuine surefire winner - but it's all relative, right?!!

I guess I'm just a tad nervous about the unpredicatbility of what could happen given recent events elsewhere. You are right about the weather being one constant, though. Well, barring tornados, earthquakes....
 

Escott

Gold
Jan 14, 2002
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www.escottinsosua.blogspot.com
Wait a year, you will probably get everything at half price or maybe 10 Cents on the Dollar.

3.3 hours direct flight to NY 1.5 hours direct flight to Miami. Half hour from international airport and growing like crazy. Wait a year for Cabarete and you will do just perfect!
 

Camden Tom

Bronze
Dec 1, 2002
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I think what Escott is saying is.....

.......wait until next year and you can pay an extra 50%.

Escott, he's a newby, play nice. :classic: