Buying/Selling a Condo

[bluenose]

Looking for comments - So, if you buy a condo at pre-construction price (which in this case would be $35,000. less than when completed), and in a few years IF you decide to sell it, and list it at the going rate of what you would have paid NOT pre-construction, how can you loose money? My opinion is that you cannot, however, as always, we do not know how long it will take to sell.

Yes, I know the nightmares and scams of some pre-construction deals with developers, but the one I am talking about is a very reputable developer. I have watched him construct 6 different developments over the past 8 years and all have been completed with no problems.

Comments and experiences from others please?

 

[windeguy]

I understand the developer has a great track record, but this time in history is not a great one for new construction to be started.

If the discount is $35,000 to get in a pre-construction, what is the projected sale price? Is that a 10% discount or a 20% discount for example?

 

[belmont]

And are condos he sold 8 years ago currently reselling for more today? Doubtful.

 

[bluenose]

Thanks for replying windeguy -

Your comment "this time in history is not a great one for new construction to be started", enlightens me - these are the type of things I welcome to gain more knowledge.

Actually, the construction is roof tight, expected to be completed by Aug-Sept of this year, doing the Model Suite now.

The discount would be approximately 20%.

 

[SKY]

They were giving nice discounts in Cap Cana also. If you bought there you cannot sell for 50 % of what you paid. And that was one of the premier developments. " A word to the wise is sufficient", as my father would say.

 

[belmont]

Purchasing preconstruction in the DR has to be one of the riskiest transactions one could imagine. In anyother real estate transaction one would require delivery of clear title and an inspection before releasing any funds from escrow. Yet in a preconstruction transaction, for a hypothetical discount, people are wiling to front the builder up to 75% of the price based solely on his word that he will deliver the project. Better to put that money on a color in roulette. You have better odds of winning.

 

[bluenose]

Thanks "SKY" - Very good point!!

 

[bluenose]

I have to agree with you "belmont" - Thanks for commenting.

 

[bochinche]

i have, so far, never been tempted to buy "pre-construction".......... know some in the business and could be possible in the future

obviously there is a big difference buying "pre-construction" in the north of santo domingo and, say, balcones in las terrenas for example.
any chance you could give us a clue as to where your "pre-construction site is near, or who the developer may be?
or perhaps an answer to belmont's question about the resale value of the previous constructions.

not poking my nose......only hoping to solicit more comments from what is an interesting thread.

 

[bluenose]

The complex is "Estrella del Mar" in Corticito/Bavaro. Developer/builder is Daniel Guerrero.

In response to sales of previous condos for resale - I do not know what price the resales went for.

 

[pi2]

And are condos he sold 8 years ago currently reselling for more today? Doubtful.

Many have about doubled in value. In my condo development a condo offered to me 7 years ago for $100k was sold a few weeks back for $250k.
Many appreciate at 10% + per year.
pi2

 

[Criss Colon]

He forgot to tell you where his condo is located,it's in "La La Land"!
Hard for a sane person to get there!
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[belmont]

He forgot to tell you where his condo is located,it's in "La La Land"!
Hard for a sane person to get there!
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Condo Board having a meeting:

 

[Expat13]

He forgot to tell you where his condo is located,it's in "La La Land"!
Hard for a sane person to get there!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

Yes be very careful of "pi in the sky advice" it may be impossible for the average earthling to experience.

 

[pi2]

Property is most times very good: I sold one condo for six times its purchase price. Now condos seem to be doubling every 6 years in the DR.
If somone has serous doubts we can structure a wager. The records are there what I paid and three agents can vouch for present value.
pi2

 

[Criss Colon]

Key phrase here,"And three "agents" can vouch for the present value"???????????????
WELL,THAT would sure make me feel soooooooooooooooooooooooo much better!
The seller ALWAYS overestimates the true value of their property.
They want the "Pi in the DR Sky" price.
The ONLY way to tell the real value of anything,is to Sell It!
Until the sale is closed,and the $$$$$$$$$$$$$$$$$$$ are in your bank account,anything else is pure speculation.
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"Wanna buy a "Bridge",it's worth a fortune!!
Really!
Honest!
No $hit!

 

[bluenose]

An added "note" - there are 44 condos in this complex I am talking about and 20 are already sold pre-construction. This info is not just from the developer, I personally know a few people who have bought them.

 

[SKY]

"You can lead a horse to water but you can't make him drink."

 

[pi2]

An added "note" - there are 44 condos in this complex I am talking about and 20 are already sold pre-construction. This info is not just from the developer, I personally know a few people who have bought them.

The better developments sell out very quickly.
The demand for rentals is increasing all the time.
The economy in the DR is developing very fast. The new gold mine will come on stream shortly and contribute a further 15% to exports. Plus agriculture has made a great leap forward in the last 7 years.
Up market developments such as balcones del atlantico have been a huge success!
Caribbean Vacation Resort & Beach Hotel | Balcones Del Atlantico - Balcones Del Atl?ntico

pi2

 

[Criss Colon]

"In Your Dreamworld"!
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