A good investment in the DR?

Lots of folks lose money buying real estate in the DR....just like everywhere else in the world, but, the folks I know that have bothered to do there homework BEFORE investing in DR real estate have made A LOT of money. Two tips...be prepared...be patient. DR real estate has been very good to me.

Camden Tom said:

Lots of folks lose money buying real estate in the DR....just like everywhere else in the world, but, the folks I know that have bothered to do there homework BEFORE investing in DR real estate have made A LOT of money. Two tips...be prepared...be patient. DR real estate has been very good to me.

Click to expand...

Interesting. See your private messages.

DR real estate has been great the last 10 years and most likely will continue to be is my opinion.
Land has done very well. Right now plots start at about 20k dollars in attractive locations; apartments from 50K; villas reasonably near a beach from 80k.
Yanandu

AlterEgo said:

Tell him he'd be better off with it under his mattress than buying RE in DR - unless he plans to live there for a long time. Easy to buy, different story if he ever wants to sell or wants to make $$ on the purchase.

Has he ever been there? Lived there?

That being said, in the spirit of full disclosure, we own property in a couple of places in DR, but never considered it an investment.

AE

Click to expand...

If you do not consider it an "investment", then what do you consider it? You still have a vested interest in the property, hence "in-vest-ment"??

yanandu said:

villas reasonably near a beach from 80k.
Yanandu

Click to expand...

Where?????????????????

belmont said:

Where?????????????????

Click to expand...

Port au prince

The the easiest way to leave DR a millionaire is to show up as a multi-millionaire....

The the easiest way to leave DR a millionaire is to show up as a multi-millionaire....

Ditto anywhere else!

Yanandu

Re

good business yes, patience, patience and more patience, long term investment only, even project developments are good, shorter term, requires more cash/credit and hands on to protect your investment, otherwise give ANYBODY here a penny they will walk away with 2 dollars.

Good investments, good returns = risk, are investment bonds/notes with some of the big industries, and they are in dollars or
Euros.....I do not know anybody ever to have been skunked or flat out lost over the long term this way.

g'luck

Trotamundo said:

Hello...

I have a friend who has about $100,000 to invest. I was wondering if buying real estate was a good investment in the Dominican Republic right now and if you had any pointers regarding good places to invest, types of property to invest in, etc.?

Any thoughts, ideas, tips welcome.

I realize this is a very general question but we are just looking to get oriented right now.

Thanks!

Trotamundo

Click to expand...

$100,000 US is not much of an investment for the DR level right now, maybe a nice apartment in Santiago but hardly investment grade for the short to mid term...

For that kind of cash limits he could be at buying some "acres" or "lots" to build later, using the value of the land as collateral with the banks. To the best of my personal experience in the DR's market is that buying already built property at today's standard, requires some RD$ 10 million as the starting point at worst.

You can with ease more than triple your investment when buying lots and later build some apartment units on them, be it with your own cash or a loan from a bank. The units sell fast if you do your homework and don't get greedy, looking to break the bank on the way to selling them.

A good 90% of the banks will offer to fund the construction and split the units between the two of you on sales. The banks are the bigger winners on those terms, but on the upside you split the expenses 50/50 and your risks are much lower than going solo with it.

US$100,000 is not much money to think too big, but it could do some work for you if you do your homework first in the DR.

belmont said:

Where?????????????????

Click to expand...

Las Terrenas, and surroundings. Also other parts of the DR.

Yanandu.

yanandu said:

Las Terrenas, and surroundings. Also other parts of the DR.

Yanandu.

Click to expand...

Anything within Samana is at a minimum 20 years ROI ratio at "best". Unless the investing part here is really young, I doubt that's what he's looking for in terms of length.

Juan Dolio is a better place for mid term returns and anything in Santiago or SD city is go for short terms.

But with US$100K Juan Dolio is stretching it a bit for the money at hand...

The BEST Investment In The DR, IS A Ticket To FLORIDA!!!!

Inflation in the DR(14 %) over the last 2 years!...Will eat up any gains.
The elections next year wont help either!
Hipolito Mejia will then be in charge.
Florida real estate is a tremendous bargain,GET SOME!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

Do you know how to leave DR with one million dollars?
Bringing in ten millions!!!!

yanandu said:

Las Terrenas, and surroundings. Also other parts of the DR.

Yanandu.

Click to expand...

Can you point me in the direction of a site with rental opportunities for as little as you have found them please?

I know this is about investment, and so slightly off topic!

Trotamundo said:

Hello...

I have a friend who has about $100,000 to invest. I was wondering if buying real estate was a good investment in the Dominican Republic right now and if you had any pointers regarding good places to invest, types of property to invest in, etc.?

Any thoughts, ideas, tips welcome.

I realize this is a very general question but we are just looking to get oriented right now.

Thanks!

Trotamundo

Click to expand...

I have made a lot of money in real estate over the years.. I have sold it, bought and renovated, bought and flipped, owned rental property, owned vacation property.. and advised others on what and where to buy.

so .. here is my 2 cents which is worth more than I would feel right charging you for.

real estate is only a good investment if you actually want to live in it..

the days when it was a 'Sure" investment are now gone.

when you say... "to invest" does that also mean "to lose"? because anything other than.. (well I was going to say Treasury bonds but someone will argue with me on that ) ... so do you mean that you want the principal to be there in five years? or that you want to get an xx% return on your money?

If this is just funny money.. that you have to lose.. and you really want just a preservation of principal.. AND you and your partner (because it became a "we" thing) like it here in the DR enough to really consider living here.. and would perhaps enjoy coming down for a few weeks or a month.. AND could sustain the cost of keeping a place WITHOUT renting it... AND do not need a return from the money.. THEN.. with all those caveats, I would say that the DR is a good investment.

If you are Americans, a safer investment .. as one poster said.. would probably be FL.. since the prices have tanked and you can have a rental apartment in the States and get a very lovely 28 year write off on your taxes AND a mortgage deduction.. now if you do not actually understand what i am saying.. then probably this is not for you,

we are not suzie ormond here.. but one assumes that you have no mortgage on your primary residence. and no other debt, yes?

ok.. if we are still following here.. I would look on the north coast for places that are what are called condo hotels.. in that the management rents them out for you...

you will be at the bottom of the market in Las Terrenas

but may do better in Sosua .. which is getting cleaned up now so will probably increase.

The capital is full of sweet apartments in that range .. but it is a bitch to try to rent them..and you are only going to be able to do that if you are here.. plus it is a rent controlle market..

hope this helps

GREAT POST,GREAT ADVICE!
You should be a financial adviser!
Even Igot it!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Nice to see a post here without a personal "AGENDA"!!!!!!

Thanks, Chris

I think that most of us here on DR1 who are posting from inside the DR could be financial advisors because one way or another we have all managed to ESCAPE and catch the brass ring of living here.

There are lots of pitfalls to making your "fortune" anywhere... but here in the DR, there are pitfalls that are the size of the potholes in the road that you can stuff a goat into...

On the other hand, there are also fantastic opportunities..

There is an abundance of extremely beautiful land which is completely undeveloped...

I am currently in love with Bonao...... and the mountains around there.. which is only an hour north of the Capital and would be a fabulous place for some vacation development... not happening yet.

The thing about the DR is that .. ya gotta love it here first and foremost. Be willing to live in an aparthotel eating rice and beans waiting for a check to clear for a month or two...

AND.. you really have to have money behind you .. or be young and footloose.