Overpriced housing or about right?

nyc dad

Bronze
Jul 28, 2011
723
0
0
44
I 've noticed that most apartment in the "better" neighborhoods are about $1000 USD per square meter.Is that a fair market value or everyone it's just jumping on the bandwagon regardless of what the neighborhood or condominium has to offer,and asking what they think it should cost? Also,some apartments are in the $4.000.000 pesos range,I'm not a financial expert but it seems that it might be better to finance since paying a lil over $1000 USD will pay for that condo in about 4 years.What you guys on the ground think?
 

NotLurking

Bronze
Jul 21, 2003
2,447
1,235
113
Sto Dgo Este
I 've noticed that most apartment in the "better" neighborhoods are about $1000 USD per square meter.Is that a fair market value or everyone it's just jumping on the bandwagon regardless of what the neighborhood or condominium has to offer,and asking what they think it should cost? Also,some apartments are in the $4.000.000 pesos range,I'm not a financial expert but it seems that it might be better to finance since paying a lil over $1000 USD will pay for that condo in about 4 years.What you guys on the ground think?

That sounds about right. Current constructions prices are around US$500-600 m2 for medium to good quality finishes. Land in the better neighborhoods start from US$400 and goes up rapidly from there. Financing is not such a great idea, current mortgage rate is about 22% ARM. For a typical 20% down 80% finance on a US$100,000 home you're looking at ~US$1600 for 15 years plus insurance premium. You're better off financing in you home country through some creative financing, buying the property outright or better yet, rent as CC suggested.

NotLurking
 

Castle

Silver
Sep 1, 2012
2,982
1
0
That sounds about right. Current constructions prices are around US$500-600 m2 for medium to good quality finishes. Land in the better neighborhoods start from US$400 and goes up rapidly from there. Financing is not such a great idea, current mortgage rate is about 22% ARM. For a typical 20% down 80% finance on a US$100,000 home you're looking at ~US$1600 for 15 years plus insurance premium. You're better off financing in you home country through some creative financing, buying the property outright or better yet, rent as CC suggested.

NotLurking

This.

Financing a DOP 4,000,000 apartment is not a good idea. With interest rates here, if you give a 50% down payment and finance DOP 2,000,000 that means a monthly payment of more than 1,000 USD for 15 years at least. Plus, it's difficult to get financing for more than 50% of the property value.
 

dv8

Gold
Sep 27, 2006
31,266
363
0
what? 4 million pesos does not go a long way in SD. i have seen apartments at 10 or 15 million pesos. now, that is crazy expensive. but 4 million pesos does not sound insane. there are more expensive apartments in santiago or cabarete/sosua.

bear in mind few things: SD is a capital. every capital in the world has elevated prices, especially in prime locations in the city center where space is so limited.
then: mortgages are not popular in DR. people but for cash of finance within family. rates are sky high.
finally: for many dominicans appearance is everything. hence expensive cars and living on rice and beans, because it is more important to show off. people with money will pay the price for a good address.

now, personally, i am all for buying. i am silly like that. i feel safer that way, maybe, and maybe this is the part of my culture. so buy if your mind is set but buy wisely. there are, occasionally, good deals to be made. sometimes people leave due to personal reasons and they want to sell ASAP, even at less. sometimes people die and their kids need cold hard cash, now.