Why so many properties for sale in DR

[Papa Benito]

Duh!

Think about it.

 

[nas]

I thought that was the case, but I just wanted to know if people were thinking about the same thing.
So, it turns out it is not so simple to detach oneself form the life abroad to go back and settle down there. Indeed, very sad!
That's the dormant dream of all expats....

Thanks for the insight on DR (Santo Domingo) Real Estates. I confirmed a few facts!

 

[RacerX]

Here in Gazcue, it is true that the bright and shiny new buildings seem to sell out quickly.. often even before construction is finished. I think that the first Torre on the Malecon with Pasteur did that. And it is also true that apartments in older buildings such as mine.. which will need some serious work in plumbing and electricity upgrades and painting the walls and shining the floors, also stay on the market longer. But I disagree with your characteristics of the new ones as "good".. since.. well.. many of the news one at put up in a split second and have lots of glass.. which looks great but oh how hot that is going to be!!! How high the electric bill.. AND since we have not had a major quake recently, we do not know how they are going to stand up. During the Haiti earthquake, the Malecon Center was the only building which I know of which had any damage.

Not just earthquake damage. I lived in Miami in 2005 and was there for Hurricane Rita and Wilma. Many of those high rises on Brickell Road with the glass facades sustained much damage as the glass panes all blew out and hit the street.

 

[aarhus]

Hurricanes and earthquakes. That is really the worst case scenarios. Of course it can happen. We are on an island in the Caribbean. I myself experienced hurricane Ivan on another island some years back and of course like a lot of us felt the terrible Haiti earthquake. But actually you are mentioning another reason why a landlord can generate a steady income on his property. The landlord takes the risk and the tenant avoids the financial risk of a natural disaster while enjoying the sun that is for free and the abundance of tropical fruits.

 

[nas]

Hurricanes and earthquakes, umh! If I recall correctly, David was the the last strong hurricane that passed through the island. It was really felt. Then, we didn't have the so many highrisers, as today. Although Dominicans build strong homes, these new apartment buildings haven't really been tested. It might be safer to be in a home.

 

[bob saunders]

Hurricane Georges did considerable damage, killing 200 plus people.

 

[mountainannie]

I would agree that manhattan prices are out of range for most people in the US. When I spoke about NYC was also including the boroughs (Queens, Brookly, Bronx ... ).

Beside, in NYC (Manhattan) one could acquire a nice 2 bedroom from under $US 500K. We are talking about the capital of the world, if you will.... running water, electricity 24/7, service (garbage, safety, police, etc.)
In our beloved DR (Santo Domingo) we are lacking these basic things... yet the lack of these necesities are not reflected in the prices.

Take Florida, including Miami, for instance. Due to the mortgate disaster prices went down consirably.

I also agree that most homes / apartments are owned; no pending mortgage.

I would have to agree that it might be possible that people would rather put their money in properties than in banks.

Would the increase in so many properties for sale would have something to do with the fact that expats invested in retirement homes in DR and for one reason or another they want out?

I cannot say that we are lacking either running water or electricity or garbage pick up where I live.

I doubt that real estate for sale in SD is from expats..most expats do not settle in the city but in the coastal towns.

Rather ,, there is just building, building, building... all that money to be washed and put somewhere.. and there are simply not enough folks here to buy them yet. Especially at the prices on the new construction.

 

[Expat13]

I would agree that manhattan prices are out of range for most people in the US. When I spoke about NYC was also including the boroughs (Queens, Brookly, Bronx ... ).

Beside, in NYC (Manhattan) one could acquire a nice 2 bedroom from under $US 500K. We are talking about the capital of the world, if you will.... running water, electricity 24/7, service (garbage, safety, police, etc.)
In our beloved DR (Santo Domingo) we are lacking these basic things... yet the lack of these necesities are not reflected in the prices.

Take Florida, including Miami, for instance. Due to the mortgate disaster prices went down consirably.

I also agree that most homes / apartments are owned; no pending mortgage.

I would have to agree that it might be possible that people would rather put their money in properties than in banks.

Would the increase in so many properties for sale would have something to do with the fact that expats invested in retirement homes in DR and for one reason or another they want out?

Heres a nice little cost of living website; i included the comparison between NYC and SD

 

[Expat13]

Heres a nice little cost of living website; i included the comparison between NYC and SD

Sorry
Cost Of Living Comparison Between New York, NY, United States And Santo Domingo, Dominican Republic

 

[nas]

Sorry
Cost Of Living Comparison Between New York, NY, United States And Santo Domingo, Dominican Republic

This is good information. The cost of living in DR has to be much cheaper than NYC. The numbers on the rentals and purchase might be a little mis-leading.

I agree with your 100% on the building explotion... There must be a huge supply of apartments, far exceeding the demand.. We had the same boom in New York, to be specific and look where we are now.... a lot of those properties are either vacant or going through the foreclosure process.

I also understand, that building boom in DR is based in "cash" money... no banks involved.... I guess the owners could list those properties with a high price tag, since they do not have to worry about selling....

I wonder if the demand would ever catch up... Those prices are too stiff (US $500K and up). Not many middle class local Dominicans would be able to afford them.... So that leaves the expats and other foreigners as the target population.

I have a friend who lives in Arroyo Hondo... He claims to have running water, regular garbage pickup and electricity up to 90%.. Does this sound right to anyone?

 

[mountainannie]

This is good information. The cost of living in DR has to be much cheaper than NYC. The numbers on the rentals and purchase might be a little mis-leading.

I agree with your 100% on the building explotion... There must be a huge supply of apartments, far exceeding the demand.. We had the same boom in New York, to be specific and look where we are now.... a lot of those properties are either vacant or going through the foreclosure process.

I also understand, that building boom in DR is based in "cash" money... no banks involved.... I guess the owners could list those properties with a high price tag, since they do not have to worry about selling....

I wonder if the demand would ever catch up... Those prices are too stiff (US $500K and up). Not many middle class local Dominicans would be able to afford them.... So that leaves the expats and other foreigners as the target population.

I have a friend who lives in Arroyo Hondo... He claims to have running water, regular garbage pickup and electricity up to 90%.. Does this sound right to anyone?

First,. I live in Gazcue and have regular garbage pick up.. electricity 95% of the time and running water (via a tinaco on the roof with water coming into the building twice a day from the city)...

There are TONS of apartments in SD for less than 500k!!! really... There are tons of apartments in SD for less than 200k,, go to super casas or in dominicana or look at the listings on Listin Diario....

Plus .. i think it is absolute hookum that SD is 65% of the cost of living of NYC. Hell, Asheville, NC is about that.. and this is way cheaper than Asheville. I would peg it more around 40% ... Those tables are silly,,, something I discussed on another thread.

Now,, just figure that you buy a lovely two bedroom apartment here for $4 million pesos or $150k.. you will have NO real estate taxes.. and so your "condo" fees will be very low, only for water, trash and common space electric and cleaning. Where I live, the Condo fees are $1500 pesos // US $40 a month.

Now, for example, my sister has a little house in RI, with about the same space as my apartment and her TAXES (which includes trash ,, police, public education, etc but NOT water or sewer) are $300 a month!!!!!!!

 

[nas]

Mountainannie, you are absolutely correct....
I've seen okay apartments starting around 5M, but I've been looking at Luxurious apartments.
I also understand that if you leave in an apartment, most have the essentials included.

So far, I've never seen an apartment for 5M that I could say, wow! I've been to Supercasas.com. It is a great site with plenty of nice, yet very expensive properties..


I've been also thinking about homes, not apartment. For homes I am also focusing on Luxurious ones.
My taste is a little skewed.

I am beginning to understand that most poeple are opting for apartments due to the convenience and low maintenance vs a home.

I really appreciate your thoughts, I am learning a few things.

Thanks!

 

[mountainannie]

Mountainannie, you are absolutely correct....
I've seen okay apartments starting around 5M, but I've been looking at Luxurious apartments.
I also understand that if you leave in an apartment, most have the essentials included.

So far, I've never seen an apartment for 5M that I could say, wow! I've been to Supercasas.com. It is a great site with plenty of nice, yet very expensive properties..


I've been also thinking about homes, not apartment. For homes I am also focusing on Luxurious ones.
My taste is a little skewed.

I am beginning to understand that most poeple are opting for apartments due to the convenience and low maintenance vs a home.

I really appreciate your thoughts, I am learning a few things.

Thanks!

Many apartments will come with a built in stove, perhaps.. but beware of electric stoves as they are much more expensive to run than gas.. And most NEW places will not come with the "linea blanca" which can mean a stove and fridge or perhaps a washing machine. Many will not even come with light fixtures....

If you want luxury, we certainly have that. But note, please, that you will need STAFF as in

housekeeper. cook, gardener, watchman

i mean.. what would the neighbors say if you were to (GASP) be seen cutting your own lawn?

And a small pool.. I mean, 7 strokes and turn, can cost over $150 a month in electricity for the pump.

Do not forget the pool boy!

(So you will be up to four/five staff.. at 10,000 pesos a month.. because you do not want to be el gringo cheapo... so that is another 1,000 a month)

Keeping up with the wealthy Dominicans is a LOT more expensive than keeping up with the Joneses

please come!! Lots of folks need the work!

 

[nas]

Annie, you have great insights! what can I tell you?
You are giving me a lot to think about...

I have read other threads you've contributed. You make a lot of sense.

I am glad I joined this forum. I am getting quite an education...