I want my house!!!

[Miro]

To W. Webster, in Canada, you can get a fixed rate mortgage fo as little 6 months up to 12 years, or a veriable rate mortgage. The rate is tied to the the Bank of Canada Prime rate which has changed very little the last ten years. In the DR it seems its what ever they can get from you. I am on my second house in the DR.Paid cash for the first and 7 years later sold it for 1/2 of what I bought it for as the resale market here is very poor. I have built my second house little by little, have no loan, and about $70,000 dollars in it, and also have a house (paid for) in Canada. On my first house I would have been better off renting for the seven years. I know it is everyone' s dream to own a house, but in the DR, do more research Shalena!!
'

 

[SKing]

Well, thanks for all of the advice. I guess I shouldn't buy. I really just didn't want to lose the house after my lease because I love it and it has the biggest yard of any house that I saw when I was house hunting for a rental and I really like that for my kids. It is very difficult for me to find a house that I like everything about. I usually find at least one thing that I would change but here no. I like the layout and everything and it is the perfect amount of space.
I will continue to rent and maybe I can build one similar. Just with building, all that cash up front is a bummer. First you have to find a solar, find a halfway decent Maestro, then pay, pay, pay....and I'm not very good with delayed gratification or patience. But I do not think it is best for me to buy it, with all of the points that you all have brought up. The good thing that I have going for me is my job, the potential for extra money is excellent. I will tell them no.

SHALENA

 

[porkman100]

Sking; I was just thinking...if you spend a lot of time in Santiago and come across a good deal.. like..like real good, that may interest a U.S. investor. for instance you find a solid buy for say $125 000, A land type contract in the U.S will make your interest payment deductible. for example 125@ 5%=$520 a month (very reasonable) and you could amortize an additional 1000 a month, in 10 years the house is free and clear.The 1000 a month could be placed on u.s. escrow,and if you default a minimum of 50% penalty (better than loosing it all)
The investor will be cover by the presumable equity and making a 5% with very little risk, if you default 6 years down the road, he will keep 50%72 000$(36000) and interest earned. It is all doable and in the u.s. legal activities could be made into a binding thingy for both parties, real estate transactions have their own rules but....there is always two ways to skin a bat.

 

[Criss Colon]

Shalena, don't let your "HEART" overcome your "BRAIN"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
How many times have your seen THIS on DR1, "Rent for a year, BEFORE you BUY!!!!!!!!!!!!!!!!!!!!!!!!!!!!"
Decisions made in Haste, can be regretted at LEISURE!!!!!!!!!!!!!!!!!!!!!
If, after a year, you want to buy, look for financing, NOT in the DR, where you have "ZERO" protection from the DR banks, and/or the DR "government, but in the USA!!!!!!!!!!!!!!!!
Don't know if you own house in NYC,or not.
But you could get a "Second" on your home, or the home of a close family member.
Best of luck on your "Transition" to the DR!
Just use your head,not your heart to guide your decisions,don't be a "Newbee" in the REAL,DR world!!!
You are in Santiago, so just ask chip for his "Good Counsel",..........................................."Oh My God" what did I just "say?????{
I mean "HB" for great advise,NOT chip!!!!!!!!"
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
"Porkman",what is the "Second Method" to "Skin a "BAT"????????????????????????????
Just how much "meat" do you get?????????????
AND, what's the best way to prepare that "Meat"????????????????????????????

 

[arrugala]

SHELENA Don't Buy now PRICE WILL DROP !!! Save until either you have a much better deal with owner. Or another opportunity comes your way ! TAKE YOUR TIME !!!!! Ma?ana .....

 

[bob saunders]

Well, thanks for all of the advice. I guess I shouldn't buy. I really just didn't want to lose the house after my lease because I love it and it has the biggest yard of any house that I saw when I was house hunting for a rental and I really like that for my kids. It is very difficult for me to find a house that I like everything about. I usually find at least one thing that I would change but here no. I like the layout and everything and it is the perfect amount of space.
I will continue to rent and maybe I can build one similar. Just with building, all that cash up front is a bummer. First you have to find a solar, find a halfway decent Maestro, then pay, pay, pay....and I'm not very good with delayed gratification or patience. But I do not think it is best for me to buy it, with all of the points that you all have brought up. The good thing that I have going for me is my job, the potential for extra money is excellent. I will tell them no.

SHALENA

I think you've received a lot of good solid advice here. If you have a good relationship with your current bank in the states why not visit the manager and discuss the situation with them. They may have some attractive options for you or at least some solid advice.

 

[Criss Colon]

My oldest son, is an economy graduate, and now a mortgage underwriter.
I'll ask him for his knowledge and expertise on your questions.
cc

 

[porkman100]

Senor Cristobal...I always get as much meat as can (not being too greedy)always in the right places. Now..with a knowledgeable investor Sking will not be overpaying...why?? because investors know the "real" value of property.
We dominicanos (you and me)know that there is two kinds of sellers in R.D. the one that wants to sell (just about every dominican with crazy prices)and the serious seller (not looking for a daily sucker)

By having an investor lined up, she will have the leverage of an all cash buyer in the transaction. (nothing is like the smell of cash in the morning)

When i said there are two ways...well you need in place a local contract agreement for a possible default and unlawful detainer action in D.R. (in case of default)

If the money is in escrow (u.s.)clear Title to be transfered at the end of term.

Forgive my spelling (i left my chuck speller with my sister in miami)

 

[porkman100]

Banks in U.S. are very shy of making loans at home...we all know why. A real estate market in a place like Republica Dominicana, where they dont know squat ...I dont think their internal bylaws allows that.

 

[porkman100]

SHELENA Don't Buy now PRICE WILL DROP !!! Save until either you have a much better deal with owner. Or another opportunity comes your way ! TAKE YOUR TIME !!!!! Ma?ana .....

ARRUGALA.....prices have dropped......they just dont know it yet....or wont admitted,

 

[Chip]

With all due respect property values have been increasing since I've been here in 2006 in Santiago. For example my home which I bought for RD3.7M is now worth close to RD5M. Land has gone up as well, especially on the East side of town where there is a lot of development.

 

[Wishing you well]

SHELENA Don't Buy now PRICE WILL DROP !!!

Crystal ball please or facts to back this statement with?

Thank you!

 

[Wishing you well]

ARRUGALA.....prices have dropped......they just dont know it yet....or wont admitted,

Same question as above?

 

[Wishing you well]

Now..with a knowledgeable investor Sking will not be overpaying...why?? because investors know the "real" value of property.

No, they don't know the real value of the property, that is accomplished by the appraisal as property is of course appraised. Investors understand "potential values" of a given or potential investment."

 

[porkman100]

With all due respect property values have been increasing since I've been here in 2006 in Santiago. For example my home which I bought for RD3.7M is now worth close to RD5M. Land has gone up as well, especially on the East side of town where there is a lot of development.

Chip,I did not want to talk about this suject, but in 2006 you paid about a bit over 100 k u.s. today is about the same a bit over 100 k, going by prevailing exchange rates.
Now....getting it with in a reasonable time, no more than 3 month, thats is the real value.

 

[porkman100]

No, they don't know the real value of the property, that is accomplished by the appraisal as property is of course appraised. Investors understand "potential values" of a given or potential investment."

w.y.w; Appraisals in D.R are more of a hit and miss, hard to get comps and since there is no financing available the only qualified buyers are the one with cold hard clean $$$$$$. Now... potential is not some one's dream about this great wheather and tourist will flock to buy you out, and hurry and buy before they lock you out of paraiso.
The real value, as I said, is what you get for a property with in a reasonable time, no more than three months, if not, is just not reality.

 

[MerengueDutchie]

Shalena,

Apart from all the other advise about house finance, pls consider this:

The vaue of any asset is determined only by its future earning potential. Apart from the so-called appraisers here in the DR; who are mostly not going by the economical approach but just look at what houses have sold for in the past and make a guess on this going forward, normal price for any asset would be the net value of the annual return. Summed up and discounted of course.

So if you pay an monthly rent of 250 us, with a discount rate of 10% (market interest) and an annual increase of the rent of 5%, the property would be worth about 60K us. This is assuming no deductions in cash flow for maintaining the property and additional costs to the owner, which can be offset towards the difference in interest increase and discount rate. You can scale the value with the rent, assuming my assumptions towards annual increase and discount hold true.

The low rent prices in the DR is what makes a rational buyer skittish of buying at the moment. I know of at least one DR prominent member who applies this logic at the moment.

Best of luck in your decision.

MD

 

[Hillbilly]

Because I know the lady, I decided to read this thread--besides the fact that I am the mod of these threads and have to keep the peace--and I have to congratulate all the contributors..very professional and well intentioned.

I have to agree about not buying right now. I really like the idea of renting to own if that is possible. Shalena has an attachment to the place and the location, which, as pointed out might work against her as far as cold-hearted calculations are concerned.

I am pretty sure that she will follow these leads. At least I hope so.

Go girl!

HB

 

[MerengueDutchie]

Because I know the lady, I decided to read this thread--besides the fact that I am the mod of these threads and have to keep the peace--and I have to congratulate all the contributors..very professional and well intentioned.

I have to agree about not buying right now. I really like the idea of renting to own if that is possible. Shalena has an attachment to the place and the location, which, as pointed out might work against her as far as cold-hearted calculations are concerned.

I am pretty sure that she will follow these leads. At least I hope so.

Go girl!

HB

HB,

IF renting to own involves setting a price now. You'd still have the issue of unrealistic pricing. You'll only solve the financing quandary to some extent (what happens when Shalena can't make the payments or leaves town?).

So for now I'd advise against any buying construction, except in a fire-sale situation.

 

[Chip]

Chip,I did not want to talk about this suject, but in 2006 you paid about a bit over 100 k u.s. today is about the same a bit over 100 k, going by prevailing exchange rates.
Now....getting it with in a reasonable time, no more than 3 month, thats is the real value.

How can make a claim like this w/o any figures? Do you own property here in Santiago?

I paid US115,625 in 2006 at an exchange rate of 32.

My house is worth US128,000 today (if not more) at an exchange rate of 39.

That is an increase in 9%. Next.