I bought a piece of land this trip...

After making 15 offers in the last month or so I had just one accepted. I bought a building lot in a gated community in Sosua off of the road to Cabarete across from Seahorse Ranch that is under 3/4 of an acre with a panaramic Ocean view. Paved roads, underground electric, corner lot that slopes away from the Ocean with NO trees. The one thing I didn't want to bother with was knocking them down and having to get permission so I can landscape the way I wanted to.

This was a fun experience and I am going to try it again next time down. Just remember the old addage about buying a boat. The two best days in boating is when you buy it and then sell it. Same feelings probably are warrented here when dealing with Real Estate. I paid about 40% of the purchase price on a resale. In other words he paid more than double what I paid the previous owner for the lot. He was probably excited when he bought the lot and pleased when I bought it from him even at a loss.

I formed a corp that the attorney had already registered the name for. I can't believe that it was available. Translates to Ocean Front Properties Real Estate. Cool name, maybe I will use it for something some day.

This is an interesting country where people try to sell you property that they do NOT own, steal the fillings out of your teeth when you are talking to them and even worse. The best stories in the DR start with "You aint gonna believe this shit", so beware when doing business here.

I have determined that if you can avoid the first 5 screwings people normally get when they come here you will not get soured on the DR as fast even when you consider all the government corruption and every other Clusterfluck.

When I finally left the country the guy that stamps the passports on your way out had the BALLS to ask me for a propina (TIP). I told the SOB that he can keep me there for all I care and if he wants me to leave he should give me a freakin tip! That gave him at first a shocked quizicle look on his face then a smile. No tippy for him I think that he thinks he finally found the missing link!

Man I love this country and all its faults. I just feel bad for the average Dominican for having to put up with these faults that affect them much more than me. Too bad they don't do something about it. When I finally move to the DR I am going to organize protests about what goes on in the US and Europe and around the world. That should help em! LOL

Escott

I promote caution not negativity Robert. I see people making big investments on only 2 visits to the DR and I see many people get a big old screwing here. Balance and caution along with a dose of more caution in my thoughts are highly advisable. What works for some may not work for others.

Like I said in my previous post I love the country with all its faults. I spend a lot of time in the DR have gotten my residency and my drivers license and bought property so I am evidently commited. In eleven months I will apply for my citizenship.

I think that the faults cannot be talked about enough in order to help people with the move and adjusting to the DR. Painting too rosey a picture is more a disservice than telling it like it is or in other words "how I see it".

If people can avoid being screwed over the first 5 times I truly believe their experience will be a much better one so I try try try try try again to inform them of obstacles. A lot of the expats I run into that are soured on the country didn't avoid these pitfalls. Maybe the new breed will and like it more and without resentment.

I have for at least 2 years preached that buying Real Estate isn't a good investment here. I have crunched the numbers here several times to back up my thoughts. After traveling to Costa Rica in Feb/March and pricing Real Estate there and seeing that it was much more expensive than the DR I decided that quite possibly we may be on the bottom of the price cycle in the DR. It cant possibly keep going down, down, down... (I hope) You can get close to 30% on Certificates of Deposit in the DR and the value of Real Estate has gone down for years. Difference can be that the prices have touched bottom and may rise in value now. That would offset a typical negative to 1% max return per month on rental.

So with the end of the Iraq War and the lack of any further activities of Osama Bin Laden I believe that there can be a severe increase of travel to the Dominican Republic because of its convienence to the US, cost of vacationing which is about the lowest in the Carib, and the pent up demand to travel. Tourism is what drives real estate in the Beach Markets in my opinion.

Not really much more to tell about buying the land. I recommend using an Attorney for sure. Also you can take out title insurance here from Stewart Title. The only other advice I can offer is start your offers low because you can never come down while you can always negotiate upwards. Look at lots of properties before you start making offers. Low offers will usually/sometiimes draw counter offers and you may be able to find a balance and figure out actual worth. Some people are just waiting for the next person to come off the plane with too much money and too little sense to unload a overpriced problem property to.

The developer of the Gated Community I bought in still has lots for sale at 2.3x the price I paid without having as good a view and is not interested in dropping the asking prices.

Hope this makes my thoughts clearer to you.

Escott

Not exactly sure yet on what I am going to do. There were 3 other lots in the sub division I put bids on. I may try to buy a couple of more lots there. I have somewhat of a cashflow problem till July. I am closing on a Condo for my dad on the 13th of June and I am selling a house the first week in July. Condo costs 325k and house that I am selling is 365k but I have to come up with the 325 first.

If I don't get another lot in that same sub division I plan on building a decorative stone wall around the property along with two gates going in. 1 meter 20 on the two road sides and 2 meters adjoining neighbors. I may do this at the end of June or after I close in July on the other house. I am going to start looking at plans to build a guest cottage/maids quarters that I may even start this summer and then a main house when I make the final jump to the DR.

I paid 15k for the land plus 1k for the corporation and 500 in taxes and closing costs. 16500 was the total. The guy I bought it from paid 36k for the lot but I wasn't looking to make his day. I had been turned down 4 times with the same offer on other lots in the same place. This may not be 100% representative of what it will cost again but you never know.

The pic that Rob posted was from my car sitting in the drivers seat. View will get much better as I stand up and then build 2 floors 27feet <approx> in height. Maybe one year we can have a pool party at mi casa for Easter instead or along with a dinner at Rockys!

Scott

Edited to Add:

I paid 12x $25 for the year in advance maintenence for the community. Includes maintenence, 2 guards 24hrs, street lights, tennis courts etc.. That was included in my closing costs.

When you build a house it goes to 50- bux a month.

AZB, no problem. I will even make a seperate entrance for you and sound proof it! Don't worry about a thing. You can bring your novia to my home at the shore anytime! Well anytime after I build the thang!

Escott

AZB said:

Yeah but I would have to inspect the place first; no hidden video cameras man.

Click to expand...

AZB... Man I promise to cut you a copy of your two minutes of fame! LOL

Criss... No prob, I would have been down more often anywho! I am going to start some sort of construction by summers end latest.

Trina... Check this place out. Be nice to have more familiar faces around.