Do some rage googling to find out the definition of "cap rate."10% cap rate is nonsense - Europe mortgages are 2 -4%.
pi2
Accomplishes nothing UNLESS it rises at a rate substantially higher than inflation.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.
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: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.
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:Yes there may in hindsight be better invstments. If 2 yars ago I invested all in coffee futures - or 5 years ago gold ?
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
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.
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.
Tell me again about the ROI?
No: there is a saying 'buy on the dips' - many foreign investors are buying property in the US at the moment.
There is a new bill being presented to make it more attractive.
Many people who bought in London UK last year on the dip are looking at 30% profit in 1 year.
Interest the banks are paying relative to inflation is now negative. DR economy is growing stronger - gold mines opening up - nickel prices up - agricultural produce price up e.g. coffee 50% up! - bananas etc. up - energy investment such as wind farms and HEP are now paying off.
S.
Like I said, finance and economics is not your thing.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
Contact Cheryl Rinehart at info@DR4Sale.com for the best connections and honest dealings in Punta Cana!
For some reason I was advised to rent when I moved here 6 years ago. Bad advice. I'm so glad I bought!
In a couple of years the complete purchase price will be repaid from rent saved.
People were saying such things - can you afford to loose half your money etc. etc.
Yes now in the DR condos start at $30k. But the cheapest is not always the best. It used to be 15K.
For sure cement, labor, wood etc. will rise in price.
Good luck with the purchase!
Punta Cana is becoming the international hub of the Caribbean!
My previous post was deleted - perhaps for mentioning other sites - sorry - I'm a newbie!
pi2