Buying In the DR - For those pondering it.

J.Baby

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Dec 23, 2012
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There have been quite a few threads on the pro's and con's of buying a place here in the DR. I feel that a lot more of the negatives have been spouted, while the positives remain buried. From my personal experience, I know I spent quite a bit of time here perusing the postings before I made my decision to buy, and this forum almost convinced me it was all a huge mistake. Fortunately I did buy, and it is the best decision could have made.

So I thought I would compile some of the reasons why buying here is a good decision. I do realize every persons experience is personal, and what is best for some is not good for another.

Anyways here is my list:

1. Our place is furnished to our Canadian standards ( no wicker furniture, yuck) The paint colours are all my choice and every bit of our condo has been designed to suit our needs. We also have an electric stove, which is hard as hell to find in a rental. I hate gas stoves.
2. All I do is hear renters complain about this that or the other thing. Obviously a renter isn't going to want to fix things that are the landlords responsibility, and if the problem is personal to the renter the landlord wont usually fix them (eg. no can opener, ugly paint colour, tacky furniture or decorations)
3. We have the same guards all the time, we have a good friendship with all the staff here, and that makes a huge differance. I hear a lot of people complaining that the guards may be behind some thefts, having a good relationship with these guys goes a long long way. My pasola isn't locked up, and it is safe. I know they won't take a bullet for me, but my stuff will probably be the last to be stolen. And when I tell them I want something done around here a certain way, they actually care to do it right. Unless a renter is here so longterm that they forget they don't own, they don't get that respect.
4. I can leave my clothes here, and then when I do come down I can pack light, or use the luggage space to bring things from Canada that I miss.
5. The ability to gain extra income from renting when I choose not to be here, pays for a lot of perks when I get here.
6. Ability to join the condo corporation and effect a change when I don't like something going on. For example we had one dirty old man who was letting his prostitutes walk around without him. We worked on getting a rule passed that these girls had to sign in, and be picked up at the gate. If I was a renter, I could complain but it wouldn't carry much clout.
7. Real estate here is pretty inexpensive compared to back home. Cottages start out three times the cost of a condo here. You can buy a pretty nice place here for under 100k.
8. People say it is impossible to re sell, but we are in a nice area, nice building that is well taken care of and have a nicely decorated unit; people have asked me if I would like to sell it. If you buy a crappy place in a dangerous area, you will have problems selling it. anywhere. location is key, followed by a good condo corporation.
9. When I am not here, my place rents for about 1000 dollars-give or take. If I bought a place that rented for that much in Canada, the sticker price would be fifty thousand more than my condo here, or much more. And the rental agencies here are pretty fair about their cut. Property managers back home want a huge cut.
10. I know when my electricity has been paid. I know four people so far this year who lost power because the landlord didn't pay the bill on time.
11. No yearly property taxes under a certain amount. In Canada I pay more for my property taxes than I do for my condo fee's here.
12. No worries about bad landlords, or being evicted or forced out.
13. I can bring my dog. Alot of landlords, rightly so do not want dogs.
14. Closing costs here are cheap, even with a good lawyer.
15. The ability to give friends and family a cheap vacation option, some of them wouldn't be able to ever afford a vacation. I can lend them my place as a present for a week or so if I am not here. I love being able to do that.
16. Pride in owning a piece of paradise.
17. This country is more than a vacation spot. We love it here.
18. We are close to the beach. There are only so many spots close to the beach. Location was key for us.

There are a lot more reasons. But I don't want to make this too long.


The only con for us is, the place is not going to skyrocket in value like a place in Canada might. Some investments are personal, not financial. But so far the value has gone up about ten thousand, after about five thousand in furniture.

Obviously if someone can't afford to buy, these reasons are pointless to them. Then by all means rent.
 

windeguy

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Jul 10, 2004
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Good points made as long as you rented in that area first to make sure you would indeed find all of the above good things you mentioned are at that location. I doubt most locations would rate as favorably.

I hate electric stoves and would never own one. Where is this nirvana location, by the way?
 

william webster

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Jan 16, 2009
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Agreed about the negative comments..... I feel as you do, happy to have bought.

There are +'s and -'s to both sides.

Really , it's a persnal decision.

If you'tre buying a 2nd or 3rd or 4th home, its not the same as plunging in with all your assets.
Everybody's different.

We had a prof at business school who, after a whole year of various investment strategies, reminded us of one final theory....

The Basket Theory:
Put all of your eggs in ONE basket, study it, watch it and NEVER take your eyes off it.

Different strokes.........
 

buggabagang

Member
Jan 5, 2010
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My thoughts on this very topic...cause its all good...i like the postive vibe!

I would add that while I am back home in the cold Northeast USA dealing with our long miserable winters the one thing that my little simple house in the DR provides me is a MENTAL ESCAPE. Even though I would love to be at my DR house at this point in my life i need to be working back home. I do get to visit and enjoy the house, the island, the experience...but when i am back home just the thought of "My Little Paradise" keeps me going till my next visit.
 

J.Baby

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Dec 23, 2012
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I wouldn't exactly call El Cortecito a Nirvana location. But we do seem to like it here. Others might find it not so nice here. Location is a personal matter, what appeals to one person may not appeal to another. I would never advise someone to move to an area just because I like it. I chose this place because of the amenities available, the fact that the government is working hard to develop the area, the new highway being built, and the proximity to a few beaches that I really loved. In real estate it is always advisable to buy in an up and coming area, whether it be here or in North America or anywhere else. Second only to an established very popular area.

I did not rent here before I bought. It is best if you can rent before you buy, but that was not an option for me as I was working, and was not ready to quit my job just yet. In a way it was good for us to just come for a week at a time. We did a week in a new location every time and wandered off the resort every chance we got. This was very educational. I learned that although the North Coast was fun, I didn't want to live there. And that Samana was beautiful, but not right for us. The capital was never on our list, although we did go just for kicks one day.

I sold real estate for ten years before finally pulling the plug to come down here, so I tried to use the knowledge of recreational real estate, and real estate markets in general I had to my benefit, which may have helped me.

1. Before putting in an offer, check the place out at all times of day, and on weekends. You may find out something interesting, like there is a hotel that is noisy, or the place is deserted at night.
2. Talk to the renters that are staying there. You can usually find them by the pool.
3. Check every local real estate website. If there are tonnes of listings for that building, be wary. Your company may only have one listing, when there really is ten. A lot of the times there aren't for sale signs, especially in buildings where there are a lot of properties for sale.
4. Check for developments in that area, a good sign that the area is developing. Be wary of too many new developments, those will bring your value down as they are newer. The only exception is if you are buying closer to the beach than the new developments. You can build newer, but not closer.
5. Is there run down condos in the area? Yours could be next. Or in general those lower cost rentals will bring down your value quickly.
6. Do all the Gringos hide once nightfall hits? Not the expats, but the tourists. Safety is paramount. Do you feel safe there? How about other people, do they seem nervous at night?
7. How many obvious prostitutes are wandering around? Pay attention to the types of people who are around in general.
8. Visit at night, without the real estate people. Do the guards just let you in, or do they demand to know where you are going and why?
9. Are the balconys and exterior area well taken care of? Take note of things like laundry hanging or broken chairs.
10. If there are other listings in the building, take a look at all of them. And the ones in buildings that are close by.
11. Search for reviews from renters online.
12. If you don't meet any permanent residents in the area or from that building take note. Just like any other place, permanent residents have pride in ownership, although there will always be tourists, a few permanent residents keep the place nice, if it is only absentee landlords that own in that area you should be cautious.
13. Visit the area without the real estate people. Do all your research independantly.
14. Search the rental postings, see what prices are quoted. Even if you never intend to rent the place out. Be suspicious if the rentals there are extremely cheap.
15. Don't use the lawyer the real estate office wants you to use. Get your own independant lawyer.

We also made a trip down here in the down season to finalize our search after doing much of our research in high season. I believe the price was a lot better and the seller more flexible in the summer. It was also educational to see the area when the tourism was a bit slower.

So rent if you can first. If you can't, research, research, research...
 

william webster

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Jan 16, 2009
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Good advice - for anywhere in the world.

Sometimes people here adopt a "Yeah, but the DR is different" style.
Sure, every place is different, but all places have similarities.

Good , solid studying works well.

Glad to hear you're enjoying your self.
 

cobraboy

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Jul 24, 2004
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Unless you have a unique, high-end property and have considerable resources elsewhere the negative is HUGE: the typical property in the DR is basically illiquid.

There is always a market for high-end properties, like there is always a market for Mercedes-Benz.

But if you're NOT a unique high-end property, and you're not asset-rich elsewhere, you're pretty much stuck if stuff doesn't come your way.
 

drescape24

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Nov 2, 2011
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My thoughts on this very topic...cause its all good...i like the postive vibe!

I would add that while I am back home in the cold Northeast USA dealing with our long miserable winters the one thing that my little simple house in the DR provides me is a MENTAL ESCAPE. Even though I would love to be at my DR house at this point in my life i need to be working back home. I do get to visit and enjoy the house, the island, the experience...but when i am back home just the thought of "My Little Paradise" keeps me going till my next visit.

Amen! I feel the exact same way. I am in the northeast also and happy I bought in the D.R.
 

bob saunders

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Jan 1, 2002
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dr1.com
Unless you have a unique, high-end property and have considerable resources elsewhere the negative is HUGE: the typical property in the DR is basically illiquid.

There is always a market for high-end properties, like there is always a market for Mercedes-Benz.

But if you're NOT a unique high-end property, and you're not asset-rich elsewhere, you're pretty much stuck if stuff doesn't come your way.

As the OP said location is still a huge factor. To me if you have the plan to sell in few years and buy with that in mind, and can't afford the high-end place then you have to buy a place that doesn't price the locals out of the Market. I like the solars out where you are now and the location is beautiful but it's very, very hard to sell in that area. Maybe once the road is paved it will make it easier.
 

Tonydomrep

Member
Feb 22, 2009
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Great, finally positive news! I am living here form 9 years now and i am totally ok. Good neighbourhood, nice fooks, doing good business, nice wife.
 

J.Baby

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Dec 23, 2012
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Anyone buying here who doesn't have other assets elsewhere, either in the bank or in another home; isn't making the best decision. Assets here can be sold however, I have seen a whole bunch of places around here sell, but the market is different here, as these condos are second homes to most people, not first time homes. Apartments that are affordable to snowbirds (aka under 120,000) don't seem to be an issue as long as the place is well taken care of and in an attractive area. You want to buy something that is affordable for the typical early retiree to own, because if you sell, thats probably who is going to buy it. Prices bottomed out in Florida for a while, so a lot of retirees with assets went down and scooped up the good places, because a good place could be bought for 100,000 or less. Some people don't want to be in Florida every winter, for those people the DR is an excellent buy.

Believe it or not, for a couple who both make good pensions, have paid off their mortgage back home and have some investments; under 100 k is a very doable price range for a vacation home. If they are early retirees, all the more better.

The properties that sit on the market are the ones where the complex is run down, the ones where the location isn't ideal, the ones that are not kept current. ect.

Even if you never plan on selling or renting, you must look at your purchase through the eyes of a future buyer or renter, because you never know what your future may hold.
 

CaptnGlenn

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Mar 29, 2010
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There were some very good points in the OP, but as in all things, one man's meat is another's poison. I'm VERY happy I've bought my place, don't rent it out even when I'm not there, and it doesn't bother me that realistically, if I wanted to sell today, I would loose money (despite delusional beliefs by some that their condos have increased in value over the past couple of years). It's my HOME (away from home), an investment for the long term, and very much a "personal" investment more so than a money maker.

For one example, the comment about the Home Owners Association. They can be a double edged sword. I find there is a tendency among people sharing a certain mindset to want to change things to be like "back home". I bought in the D.R. to BE in the D.R. -- not Canada, the U.S., the U.K., or anywhere else. While I'm sure they see it as "change for the better", they try to control others or to effect behavior change through "legislation". If I wanted micromanagement / legislation, I'd move to N.Y.C., where thanks to Mayor Bloomberg I can't buy a Coke larger than 16 oz. They also think that the answer to every isolated incident is a new rule. In my opinion, If you have a problem with what someone is doing, have the guts to talk to them. Don't create restrictions for all. But some groups of people are so adverse to confrontation, they can't deal with issues on a personal level. If the old pervert likes his chicas... so what???? As long as they are behaving themselves and causing no problem, who cares if they wander around without him? So now there is a "rule" that EVERYONE must sign their guests in and out. Well, if that were in my complex, I'd hate that. It's my home, and I don't feel my guests should have to sign in and out. Of course my guests wouldn't be prostitutes, (I don't think the Admiral would like that too much... LOL), but they'd still have to "check in". In my opinion, that would make me enjoy my home just a little less.