Are condos a dangerous investment?

sayanora

Silver
Feb 22, 2012
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I am really interested in buying a condo but I have mixed feelings on whether or not they are a dangerous investment in the DR. I see a lot of formerly nice buildings eventually turn ugly from lack of maintenance and other issues. Are there contracts that protect an owner from things like this devaluing their investments or is buying a single family home always a better choice?

Thanks

Tom
 

Ken

Platinum
Jan 1, 2002
13,884
495
83
I am really interested in buying a condo but I have mixed feelings on whether or not they are a dangerous investment in the DR. I see a lot of formerly nice buildings eventually turn ugly from lack of maintenance and other issues. Are there contracts that protect an owner from things like this devaluing their investments or is buying a single family home always a better choice?

Thanks

Tom

No, there are no contracts. To help protect your investment, you should ask for a copy of the rules that a condominium has and read them looking for what is said about maintenance, etc. Then investigate to see how well the condominium is administered, and whether the rules are enforced.

I live in the condo in Sosua that I believe has the best administrator and the best rules. It is not the newest, but you can see from its condition that maintenance is and has been a high priority. There are a couple of units for sale. If you are interested in more info, send me a PM.
 

BostonMary

New member
May 18, 2002
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The rules aren't always enforced. I would advise you to be very careful. I own a condo which is in excellent condition due to the owners pride of ownership. We also have an excellent administrator who takes care of everything when we are not there. We just call before coming and the maid goes in and gets it ready. One caveat be careful.
 

drstock

Silver
Oct 29, 2010
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Cabarete
I think there are large variations between different condo buildings. Some are good and some not so much. Try to talk to some existing owners if you can to see how they are doing.

One thing I would advise against is investing in anything "off plan", that is not built yet. There are too many examples of developments that never get completed.
 

LTSteve

Gold
Jul 9, 2010
5,449
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So much of what you are asking depends upon the condo administrator and their staff. Before buying anywhere find out about the complex. Talk to realtors, owners and administration. Find out who owns the property and if their what their long term goals are. Check the % of apartments that may be sitting empty. Give the complex the "eye test" and see if it looks like the administrators care of the property or just their paycheck. Yes, their are condo rules and regs and they should be inforced. If you think you are interested in buying in a particular complex see if you can rent there first and get a first hand look at daily activity, including security, maintanence and the people that live there. If you do this there will be no surprises.

LTSteve
 

caribeman

Member
Dec 26, 2011
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Enjoy meeting new people/cultures
Much has been said. A condo is a keen way for a developer to maximize profit from land. If you do not want the issues of single family home life - the condo is a potentially carefree lifestyle. No lawn, roof, plantas, etc maintenance. However, be sure that what you buy into can afford to fix the issues of the ENTIRE building when it comes along. Proper management? A reserve? Ongoing routine maintenance? Quality security? In a condo you have bought into prospective mutual distress. Sounds terrible, eh? Instead of replacing your roof - in ten years Building B needs to have its entire roof replaced or the entire plumbing riser...

A different set of nuisances - if the moneys and operation is not there to take care of it.

My business maintenance people tell me of the various condo headaches.

Ask owners, google the projects, investigate the developer - here and abroad, talk to multiple real estate agents before choosing...See the project during day and night. On foot by beach or street - not just a drive by.
 

caribeman

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Dec 26, 2011
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No guarantee of protection offered in any investment. Tread cautious on anyone who would offer such. The Carribean is dotted with these kinds of schemes. Even the haughtiest names of developers - Trump did not carry through...
 

LTSteve

Gold
Jul 9, 2010
5,449
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No guarantee of protection offered in any investment. Tread cautious on anyone who would offer such. The Carribean is dotted with these kinds of schemes. Even the haughtiest names of developers - Trump did not carry through...

Never, ever buy into a condo project, with so called pre-construction pricing in the DR. Investigate the project and wait until there are acutal buidlings being constructed and there is a comittment to complete the project. One advantage with a condo project many times is the security end vs. owning a free standing house. Also is you only want to live in the DR for part of the year than a condo/apartment is something to consider.

LTSteve
 

Eugeniefs

New member
Jan 24, 2008
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First of all check to see if they have their title deeds (we bought ours without a title deed but put in the caveat of the sales contract that we would only be paying 80% and the constructor will get the last 20% within a month of the title deeds being produced).

Secondly, you must be able to see their accounts - to check if there are any 'issues' like the constructor owes money or that all the condo owners are paying their maintenance.

Thirdly, take a good look around the grounds as well as the condo itself, you will be able to tell immediately if (a) the administrator loves his/her job and (b) they have sufficient funds to do what needs to be done.

Condos are great but only as long as the administrator has enough money and loves their job!
 

Olly

Bronze
Mar 12, 2007
1,914
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There is another problem with condos - one owner has sufficient votes to over rule any other group by owning more condos or having the title to them. That person can dictate to the rest ! Several condos in Sosua are in this state and change or improvement is hard to get when one person dominates the meeting/proxy votes.

Olly and the Team
 

Eugeniefs

New member
Jan 24, 2008
286
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There is another problem with condos - one owner has sufficient votes to over rule any other group by owning more condos or having the title to them. That person can dictate to the rest ! Several condos in Sosua are in this state and change or improvement is hard to get when one person dominates the meeting/proxy votes.

Olly and the Team

Good point Olly, thankfully we don't have that issue here but I know another that has 12 condos in the complex and the constructor owns 4 of them (not a majority but still has some 'pull')... and as he ended up having an argument with the last administrator, he ends up by always paying his maintenance 3 months in arrears, which really isn't fair. But that is life here! So check if one owner or constructor has the majority of the vote!!!
 

CaptnGlenn

Silver
Mar 29, 2010
2,321
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also, you can't count on condo (or any real estate) property value to appreciate. Don't buy it as an "investment", except possibly as a rental investment in already proven complexes. Buy it to use it... not "flip" it.

You need a good condo association as mentioned, but also you need to be careful about how much power the association or board of directors has. You could find yourself living in a place with TOO MANY rules or other restrictions that you are not happy with.

Word to the wise.
 

Criss Colon

Platinum
Jan 2, 2002
21,843
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yahoomail.com
As ALWAYS, listen to Ken!!
First time I saw his condo building, about 15 or more years ago,a friend had two units there,it was small,not too many condos, neat as a pin, beautiful immaculate pool area, quiet location,looked freshly painted, it STILL Does!!!!
For all you "Experts" who only think of C/"Pedro Calicente" when Sosua is mentioned!
I would love to own a condo there, but they don't sell to "Vagos" like me!!!!!
The most expensive, beautiful,best located, well built, "Clean Titled", condo in the DR can/will become a "Hell On Earth" if the wrong people live there, or control the condo association!
How do you find that out, BEFORE, you buy????
Rent a unit in the building for a year, "BEFORE" you buy!
And, THAT just gives you a chance of being happy!
That's why everyone without an "Agenda" on DR1 will implore you to, "Not Buy Anything Here For, AT LEAST, a year, maybe NEVER!!!!
Keep your capital, pay your rent, leave whenever you chose, and, you STILL have your Capital!!!!!
And even BETTER, your piece of mind!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
A "PROUD" home owner here in the DR!
:ermm::ermm::ermm::ermm::ermm::ermm::ermm::ermm::ermm::ermm::ermm::ermm:
 
I will like to give an tiny advice based on my humble experiences with condominium managment. Do not buy if there are alot of dominican owners in the condominium. This because they dont want to pay maintance, only make problems for anything- and if there are no problems, you can be sure they will construct some based on the last "novella" they have fed into their brains.

Only my 2pesos worth, Ah yes almost forgot. The "Cumba-yah-Mylord" members can spare me the "if you dont like dominicans, move home" comments. I only speak out of my horrible experiences trying to work together with these egoistic people.
 

Ken

Platinum
Jan 1, 2002
13,884
495
83
As ALWAYS, listen to Ken!!
First time I saw his condo building, about 15 or more years ago,a friend had two units there,it was small,not too many condos, neat as a pin, beautiful immaculate pool area, quiet location,looked freshly painted, it STILL Does!!!!
For all you "Experts" who only think of C/"Pedro Calicente" when Sosua is mentioned!
I would love to own a condo there, but they don't sell to "Vagos" like me!!!!!

Where did you get that idea?

I happen to have the power of attorney to sell a condo and would be happy to sell it to you at a good price.
 

robbie

Bronze
Aug 3, 2006
628
14
0
First of all check to see if they have their title deeds (we bought ours without a title deed but put in the caveat of the sales contract that we would only be paying 80% and the constructor will get the last 20% within a month of the title deeds being produced).

Secondly, you must be able to see their accounts - to check if there are any 'issues' like the constructor owes money or that all the condo owners are paying their maintenance.

Thirdly, take a good look around the grounds as well as the condo itself, you will be able to tell immediately if (a) the administrator loves his/her job and (b) they have sufficient funds to do what needs to be done.

Condos are great but only as long as the administrator has enough money and loves their job!

I second that!!!:)
 
May 29, 2006
10,265
200
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Where people get screwed is when the condo owners aren't in charge of who does maintenance. This can lead to overcharging for electric, no preventative maintenance and many other problems. You need to do some research to avoid getting into a bad situation where the swimming pool ends up as a mosquito breeding pool and the toilets back up...