That's a nice ROI (Spanish RE). Yes, I live in Miami and know a few individuals who bought at the height of the bubble in Miami and Ft. Lauderdale around 2004-2005, and they lost their down payments (at least those that gave down payments since back then they were giving 100-120% financing). And yes, I agree with you that there are investments around the world where you can turn a higher profit than 15%.:classic:
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Wanting to Buy a Condo in Punta Cana Area
That's a nice ROI (Spanish RE). Yes, I live in Miami and know a few individuals who bought at the height of the bubble in Miami and Ft. Lauderdale around 2004-2005, and they lost their down payments (at least those that gave down payments since back then they were giving 100-120% financing). And yes, I agree with you that there are investments around the world where you can turn a higher profit than 15%.:classic:
Roughly at the same period I invested in a Spanish property 'off plan' partially constructed. I sold on completion with a real rate of return of 40% after 2 years since at the end of the construction period I had only paid 30%.
Now of course Shanghai, HK etc. are looking considerably less attractive and of course some investors have lost 100% on property in Miami - GM shares etc.
Now the property you mention could be worth considerably more than the price paid - even with supplements.
A condo near the beach and airport can be a better living and letting proposition.
pi2
Also, forgot to mention that according to my relative the home has not appreciated more than 5% in the previously mentioned time frame (i.e. about 10 years).
Also, forgot to mention that according to my relative the home has not appreciated more than 5% in the previously mentioned time frame (i.e. about 10 years).
There is much variation in how much property pricess have risen in the DR.
Property in Dominican style and with appeal seems to have done well : condos close or on the beach ditto; land with ocean view etc. ditto.
Bayahibe, Samana, Punta Cana have been hot spots.
Punta Cana is obviously attractive for beaches and airport.
pi2
Its much BETTER to BUY in the Punta Cana area then RENT if you are on the "right side of the street", have a "private Beach Club", are in a "RESORT DEVELOPMENT" and you keep your purchase price in the $150 to $170k area. OVER TIME vs RENTING you "should" at least break even if you compare it to the "rent wasted" over a 10 year period and you end up with NOTHING.
I stress the "time factor" and "convenience factor" as opposed to Renting someones pile of schit..
You also have to keep in mind that on this forum you are going to get feedback from those that couldn't afford to buy anyways(some) which produces a biased opinion. There is something about Home Ownership over Renting that also provides peace of mind.. My opinion is based on spending 3 to 4 months a year in the DR... Its TRUE that much RE in the DR is illiquid, but even you got 75% back after 10 years you will still be ahead... BUY BUY BUY!!! Of course this is my own BIASED opinion and Congrats to those who have bought anywhere in the DR and are living their dreams...
I stress the "time factor" and "convenience factor" as opposed to Renting someones pile of schit..
You also have to keep in mind that on this forum you are going to get feedback from those that couldn't afford to buy anyways(some) which produces a biased opinion. There is something about Home Ownership over Renting that also provides peace of mind.. My opinion is based on spending 3 to 4 months a year in the DR... Its TRUE that much RE in the DR is illiquid, but even you got 75% back after 10 years you will still be ahead... BUY BUY BUY!!! Of course this is my own BIASED opinion and Congrats to those who have bought anywhere in the DR and are living their dreams...
What about the ones that bought and found out later they did not own. A lot of swindles over here my friend.
I'm sure for modest properties with deslinde the risk is minimal on completed units when good professional advice is taken.
Buying off plan or staged payments is riskier.
I'm sure that buying a good property for the medium / long term is often sound.
pi2.
What about the ones that bought and found out later they did not own. A lot of swindles over here my friend.
I agree there are tons of swindles.. Before I bought I followed DR1's buying guide, used Guzman, and must have read every post on this site regarding RE twice, and spent 2 years researching different areas, builders, etc. Truth is I received an eduction here from so many. Even the controversial CB is a wealth of good information, smart guy. I also once offered Robert a small Commish for his freely dispensed advice, and he said "don't worry about it".. The dude is A1.
Pi2,
My advice would be, to get something you want that would make you happy, regardless of the potential investment value. One of the reasons the markets blew up is because amateur investors started speculating in RE. Many truly believed the value of a property would "magically" increase by 50% with the addition of granite countertops and 42" cabinets.
Unfortunately, that wasn't the case. At least not for very long.
It appears you have some experience with "flips" (putting down a contract for and subsequently re-selling a property prior to the closing date) and "turnovers," (the home improvement stuff so popular with the HGTV crowd) which are VERY different from holding a property long-term. It's nowhere near as easy as it looks, especially if you're leveraged (meaning: you owe somebody somewhere money for a loan you took on the property).
If you're buying for you and your personal enjoyment, cool. Have fun, and all the best. If you're buying because you think it'll "pay for itself" and/or generate a nice little margin for you, understand that's a very different proposition, one in which loads of people bet on, and relatively few actually find profitable enough to be worth their while.
And that's in Miami, with rock-solid, perfectly predictable RE laws and procedures, a bustling population and a relatively stable, mature tourism industry. The DR is a different animal, so caveat emptor to the greatest extent possible.
While you're figuring it out, RENT.
My advice would be, to get something you want that would make you happy, regardless of the potential investment value. One of the reasons the markets blew up is because amateur investors started speculating in RE. Many truly believed the value of a property would "magically" increase by 50% with the addition of granite countertops and 42" cabinets.
Unfortunately, that wasn't the case. At least not for very long.
It appears you have some experience with "flips" (putting down a contract for and subsequently re-selling a property prior to the closing date) and "turnovers," (the home improvement stuff so popular with the HGTV crowd) which are VERY different from holding a property long-term. It's nowhere near as easy as it looks, especially if you're leveraged (meaning: you owe somebody somewhere money for a loan you took on the property).
If you're buying for you and your personal enjoyment, cool. Have fun, and all the best. If you're buying because you think it'll "pay for itself" and/or generate a nice little margin for you, understand that's a very different proposition, one in which loads of people bet on, and relatively few actually find profitable enough to be worth their while.
And that's in Miami, with rock-solid, perfectly predictable RE laws and procedures, a bustling population and a relatively stable, mature tourism industry. The DR is a different animal, so caveat emptor to the greatest extent possible.
While you're figuring it out, RENT.
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just curious but why do you bring up russian cities when you mention direct flights? are you russian? and just how many people do you think are going to travel from the DR to your next HOTSPOT russia? i dont think very many unless they belong to the russian mafia. and your talk of many people having good gains in the US is just plain bull. show me 1 person who sold at a profit and you can find millions who have lost their homes and millions more who find their homes worth less than when they bought them.
That's easy - US, Spain, Germany, Ireland have a net surplus of housing in most areas.
UK, Russia , DR need much housing - this is good for rising prices, rents etc. Russia has huge raw material resources and gold mines like the DR. Good stock market growth - still in the opinion of many undervalued.
I personally know one person who sold at a good profit in Florida 3-4 years back and now lives in the DR most of year.
Anyone who has been in their house for 15 years in the US with the exception of a few areas - Detroit etc. is sitting on a profit. This includes many baby boomers approaching retirement and scaling down. In fact some up-market retirement communities have suffered little price drop over a long period. Sarasota has had many sales over the past year over $300K.
So a condo in DR and by way of a change or to rent - one also in Russia?
So a little condo on the Black sea coast of Russia?
pi2
There is much variation in how much property pricess have risen in the DR.
Property in Dominican style and with appeal seems to have done well : condos close or on the beach ditto; land with ocean view etc. ditto.
Bayahibe, Samana, Punta Cana have been hot spots.
Punta Cana is obviously attractive for beaches and airport.
pi2
Yes, you are correct. The house is a decent home in a Dominican neighborhood; but like you mentioned, it does not possess something out of the ordinary and there-- maybe-- lies the difference. The lot where it was build is nice but with no views (mountain, sea, etc.).
R.E. isn't the only uncertain investment... actually almost any investment has some risk. If you really want a wake-up call, take a look at your 401k statements. LOL (laughing through my tears)
R.E. isn't the only uncertain investment... actually almost any investment has some risk. If you really want a wake-up call, take a look at your 401k statements. LOL (laughing through my tears)
For Sure Captn !
I once bought an 18th. century seaside cottage in a street called 'Love Lane' It was in poor condition and I paid accordingly.
I started doing work after a week there was a smell!
Next the sewerage was rising though the floorboards.
I contacted a supposedly good firm to survey and renew the drain pipe. Just for the camera survey was $$$$.
In the end I found two local firms who worked together to put in a new 20 meter pipe under the house.
It worked.
Beautiful property in the end and sold at a good profit after national advertising emphasing the unique nature of the uniquel property with ocean view from the 3rd. floor.
Yes nothing is certain. You may invest in bonds and the rate of inflation may be 20% - it has been for short periods in a number of countries.
DR is rapidly emerging as a modern country with World class roads and developments. My opinion is that the risks involved in purchasing good property in the DR are not zero but are well down the risk scale.
Plus the sun shines almost all the time and the beach is nice at least 340 days in the year!
pi2