The Russians?
. Russians can at times fool you as some can look somewhat "trashy", but believe me, if they made the money back "home" to be able to ditch it here... making money in Russia is NOT easy (y'all go an try!).I remember 6 years ago, after the influx of money from Brits storming the Spanish RE-market from the late 90's on started to thin... everybody started to bet on the Russians! They did their thing alright... and just as they had appeared, they disappeared. It didn't safe the Mediterranean RE market of Spain either, now did it. It only gave it a nudge for a short time, mostly only based on FALSE hopes and "the Russians are buying this'n'that" STORIES. As they buy, one day the sell, some moving on just with a little whiter money.
Actually, the reasons behind the lack of price adaptation witnessed around here, is a bit more complex than that to understand, in my opinion, as there are MANY reasons.
Much also has to do with ignorance among the self-declared "professional comunity too, and the lack of the elsewhere common business wisdom which teaches us, that now and then, one has to cut losses to be able to move on.
Locals DO NOT cut losses, so they like to think, at least. Let's not forget that many locals "invested" in overpriced DR-RE too... and not just DomYolks but many local would-be business people and families who get money from abroad.
Believe me, I know just as many Dominicans who bought or had built wayyyy too expensive and now have been sitting on RE for years... hoping for a Gringo Palomito to come to their rescue... but until then:
Ai, y e facil, y yo debo perder? Nooooo! So, the loco asking price STAYS as aging 4-Sale signs slowly fade. It's called, flying a kite.
Then, there are those who argue that; "but, but... down the street they are "selling" for 450 thousand Dolares"! Well, TRYING to sell for YEARS, shall we say... with NO sale, often, now showing either. It's a misconception which is not only found flying high among locals but among burnt foreign would-be investors too.
The North Coast and much of the DR RE market is after all nothing but a NICHE market with no records, where asking prices can turn out a multiple of what effective but "secret" transactions really have been.
2000 sq. ft homes around USD 100K? I know enough which have changed hands at these prices! That's one more reason, many of us warn from RE-agencies-based buyer guidance and not to get into the buying mode before having lived here for many months.
Once you KNOW the places, the REAL prices, who NEEDS to sell NOW, because they run out of money so bad, they can't afford to repaint that 4-Sale sign.
And believe me, you can BUILD your 2000 sqft. home, 1000m2 lot included and still be around that price, once you KNOW!
Meanwhile, the window shopper's RE-agencies asking prices, remain fueled by the hopes that me, you or anyone else stepping off an airplane at Gregorio Luperon Int'l will prove the Gringo Palomo stories RIGHT, even if only just ONCE more.
Like CB said, if it's easy to buy, it will be tough to sell. That's your DR North Coast RE-market, right there.
... J-D.
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