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Wanting to Buy a Condo in Punta Cana Area
My sum is the same as yours:
Deposit 42,000 with bank compounded:
2.5%
7,000 dollars.
42+7 = 49 !!!!!!!
I discount the rent I receive by 50%!
Your financial analysis ???????
If I live in the property - not rent it and otherwise I would have paid 3oo a month the figure is far more favorable than I quote.
It's not a good idea to raise money on DR property. On UK property you would pay 4% only.
It's much cheaper to buy than to rent if your timescale is more than 5 years 90% of the time.
In 1985 I was offered a great plot of 2,500 dollars in DR - I missed that one.
10% cap rate is nonsense - Europe mortgages are 2 -4%.
pi2
Deposit 42,000 with bank compounded:
2.5%
7,000 dollars.
42+7 = 49 !!!!!!!
I discount the rent I receive by 50%!
Your financial analysis ???????
If I live in the property - not rent it and otherwise I would have paid 3oo a month the figure is far more favorable than I quote.
It's not a good idea to raise money on DR property. On UK property you would pay 4% only.
It's much cheaper to buy than to rent if your timescale is more than 5 years 90% of the time.
In 1985 I was offered a great plot of 2,500 dollars in DR - I missed that one.
10% cap rate is nonsense - Europe mortgages are 2 -4%.
pi2
About the Europe mortgages of 2 to 4 %, you have to add to be fair that those are the variable ones which means that they are subject to change every year and up then in this case because lower then 2 to 4 %? Don't think so.
Yes, but the case is still intact. When Worldwide inflation is high rates will increase. Still, all things being equal DR prices will rise with inflation.
I for one don't want to pay nearly $4,000 a year to rent a property that a couple of years ago was worth 50K.
I can also be asked to move out at short notice.
Yes there may in hindsight be better invstments. If 2 yars ago I invested all in coffee futures - or 5 years ago gold ?
pi2
I for one don't want to pay nearly $4,000 a year to rent a property that a couple of years ago was worth 50K.
I can also be asked to move out at short notice.
Yes there may in hindsight be better invstments. If 2 yars ago I invested all in coffee futures - or 5 years ago gold ?
pi2
Us too are not the kind that want to rent the whole of our lives, its a waste of money, all the improvements you make to the house is wasted money because once you move, they are not yours anymore, always have to deal with a landlord is not our most wanted thing also, we like to be boss in our own house.
And we want to buy or build because we are Belgians and there is a saying that Belgians are born with a brick in their stomach
And we want to buy or build because we are Belgians and there is a saying that Belgians are born with a brick in their stomach
Accomplishes nothing UNLESS it rises at a rate substantially higher than inflation.
Read up on Dominican landlord laws. One can NOT require a tenant to move out on a short notice. Many genius first worlder real estate investors have found out the hard way.pi2 said:
Your investment in PC has risen at 8% a year IF you can sell it at those prices. In the same time inflation in the DR has run about 7% per year.pi2 said:
Tell me again about the ROI?
No wonder you all act so uncomfortable. It's those damn waffles.And we want to buy or build because we are Belgians and there is a saying that Belgians are born with a brick in their stomach
No in dollars inflation has not take place.
5 years ago a grande beer on the beach was 10o pesos now the same : peso rate 30 to now 38.
Inflation rate - 4%.
Fish fillet was 150 lb - now 120 lb.
Pizza 220 pesos now same price.
etc. etc.
pi2
Actually nickel prices are down because supply outnumbers demand. Housing prices don't always work the same way. I bought a house in Jarabacoa but my situation is different than most. My wife has a business and she wanted a place close to it, and we wanted to have room to put up a teacher or two from out of country or visiting family and still have privacy. My wife also has an extreme aversion to renting or borrowing money. Mission accomplished. I understand both points of view and agree that both can be right or wrong depending on many variables. Renting first makes sense to me. If you are staying long term buying makes sense, but all this depends on income, sense of belonging....many other factors. Do what's best for you, but don't whine if it doesn't work out.
Like I said, finance and economics is not your thing.
You seem to confuse "exchange rate" with "inflation rate" like you confuse "cap rate" and "mortgage interest rate." Not the same, and they don't necessarily trend in the same ratios.
My figures came directly from the Central Bank; THEY report a substantial inflation rate in the DR.
If you weren't a relative newcomer you'd understand the inflation that has really wracked the DR.
Enjoy your great investments. Buy more.
I've just taken possession of my new condo in P.C. (el Cortecito). The place is BEAUTIFUL and the dream of a lifetime. It cost more than I originally intended to spend, (by my choice), but in my mind, as of this moment, worth every penny and the small patches of irritation.
AS an investment? I guess only time will tell, but I would not recommend it as a short term investment, OR if you think you might need to suddenly sell due to insecure financial situation ... over the long run I feel it will likely be a good one. BUT... this is a place for ME, in a place that I really enjoy, and I don't view it as a money maker. I am NOT naive enough to think it will in any way be a sure bet though, and I would not approach such a purchase unless I was able to pay for it without relying on income from rental which I have no intention of doing right now, (although I'm pretty confident if I were to rent it, there would be at least a little offset of operating costs.)
BTW... this afternoon I just finished going through the photos, and will post them online soon.
The Capt'n... (and the ADMIRAL is sitting here too. LOL)
AS an investment? I guess only time will tell, but I would not recommend it as a short term investment, OR if you think you might need to suddenly sell due to insecure financial situation ... over the long run I feel it will likely be a good one. BUT... this is a place for ME, in a place that I really enjoy, and I don't view it as a money maker. I am NOT naive enough to think it will in any way be a sure bet though, and I would not approach such a purchase unless I was able to pay for it without relying on income from rental which I have no intention of doing right now, (although I'm pretty confident if I were to rent it, there would be at least a little offset of operating costs.)
BTW... this afternoon I just finished going through the photos, and will post them online soon.
The Capt'n... (and the ADMIRAL is sitting here too. LOL)
That's who I'm using in this search!...thanks for the confirmation of my choice though.
Mark