ROI Buying an apartment to live in for 1 year.

wtf2001

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Ok, Things are cinching up here in the US nicely for my family to move to the DR for awhile to see if it may be a permanent home. Remote contracts are in place for me to telecommute 3-4 hour work days for my American company from which I have resigned effective in February. Our finances are in place as we begin marketing our home. We are busy selling the furnishings and whatnot we don't have strong sentimental attachments for.
We want to move from the US for the cultural experience, not just a financial motivation. Where we land permanently may still be undecided, but we are willing to invest a year of our lives to see if D.R. is it for us.

That being said, my wife and I are visiting the North Coast area for the first half of November. We have rented a villa and made the travel arrangments for the 2 week excursion. Our interest is to "feel out" the area, meet many of the regular posters on this board and to scout locations for our "permanent move staging ground".

On the advice of many, we are comfortable investing a year of our lives in a rental situation before seriously contemplating residential buy or construction. We have a 6 year old son that will attend the ISS, as well as 2 large canine family members. We will be looking for long term rental of 1 year, as well as condo/apartment purchase opportunities that are less than $50k net expense. We are looking for advice or pointers on the specific following question: Should we buy a small condo or or simply rent for 1 year? If we rent or buy it would need the some of the amenities I will list. My guess is that a place like what we would want would rent for $1000 a month (Correct me if I am wrong) after all the fees and what not. (Not including electricity or other utility variables)


As we have a small son, large pets and ourselves. We are looking for a 2 bedroom minimum configuration. High speed internet access will be a priority and there will of course be stong plus marks for the following amenities:
* Walking distance from: 1) Beach, Grocery, social gathering venues, any parks or public spaces that are relatively clean.
* very short drive distance from ISS for our son (don't want him on the road much)
* Secure but not feeling like we are in a prison
*** Huge plus for an ocean view, especially if it is on a hill or elevated.

It can be physically small, but prefer it to not "Feel" small. Balconies, High Ceilings, Open floor plan all contribute to a sense of space.


So, if we were to rent, it would be very difficult to find a place that would accept our dogs, even if we contractually are obligated to return the space to original or better condition. Renting a place would be fine, I just have always had an aversion to it. Seems like I throw away $12,000 that way. We are committed mentally to give it one year to really evaluate and not be faint of heart after a few months, but we certainly don't want to be miserable either.

Any advice or words of wisdom? I especially am keen on hearing from members that actually live in DR and have property investment advice pertinent to my question.

Thanks!
Gary
 
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wtf2001

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Aug 22, 2003
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More $ invest or More $ Rent?

What makes it a challenging request? 2 BR? $$ Purchase Price? $$ Rent? Ocean View? Walking Distances?? Utility/I.T. Infrastructure?


If it were more than $50k to buy, I don't know that we would do it, simply because we can't see living a decade or so in an apartment.


Rental for a year would be cool, if we found a good deal with a fair deposit. We renovated many homes here in the states, so we could do some improvements (paint, built in or lighting upgrades) that would be left behind at end of lease in trade for fair rates. I am sure we would leave the property in better condition than we found it. We could even pay quarterly rather than monthly if that were of benefit to the owner. We are looking at many options in general.
 

Criss Colon

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I guess someone better tell you!

"DR on $25 A Day" may work for a single person who wants to sleep in an open room with a fan,but it is not a reality for a family! This is not a "Cheap Paradise"!!!!!You sound "Short" when it comes to MONEY! $50 K will get you next to nothing.No Dominican would take your "Improvements" to the property in "payment" for rent.Have you thought about medical expenses,educational expenses? The cost of living is quite high here.Two thousand US a month is not a lot!You won't last long without a secure income stream.Please come,and spend lots of money.Just be aware you will need it! CCCCCCC
 

JanH

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Have you gone to any of the realtor web sites on north coast? You will see many houses/condos for sale or rent: here are a few:

Century21

Palm Hills

American Realty

Before buying our house near Sosua, we looked at a few 2b/2b oceanfront condos for about $75K.
 

wtf2001

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Aug 22, 2003
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?

Since when is $1000/month for accomodations rent "DR on $25 A Day" ?

I would like to have a safe, comfortable place to live for a year with my family while we look for a larger home or better investment. My question was if it is better to pay rent for a year (and what generally would that cost) or to buy the condo/apartment to live in the first year and subsequently rent out or have available for visiting family/relatives.

Our income stream would be more than 2k /month residually after budgeting 1500 for desirable accomodations.

My question is about ROI, since the boards like specific questions rather than generalizations. We do not want to own/buy/need a car. We do want safe, fair housing for 1 year while we evaluate the island and our desire to retire there permanently.

Thanks for the help and posts thus far. It is truly appreciated.

Gary
 

goatfarmnga

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Jun 24, 2003
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Hey ask Xanadu Ranch...

I thought I read where Tom @ Xanadu Ranch had a place for rent or knew of one really cheap..He seems to have a good view at Xanadu. Maybe the wrong area but in such a tourist area on the beach you may not be able to find something really cheap. Why not forgo the ocean view for a place not too far from ocean that would be affordable? Just a thought as I too have been searching the Real Estate sites and found many nice places for cheap in my opinion..but not on the ocean but close..The dogs seem to also be a problem from prior people posting with similar situations. ..Good luck to you in your move..It should be a great experience for you and your family. :) Pam
Hey on another thread here about buying home someone posted www.DominicanRepublicRealty.com I looked at their homes/apartments and they have apartments in your price range but they are small according to US standards 700 sq ft range..Check it out even a nice home 3013 sq ft in Santiago is $75,000..(I have no idea what area you are looking for)Surely you can find something affordable if you get a realtor to do some searching for you..:) PAM
 
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wtf2001

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Aug 22, 2003
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If no Ocean View...

Thanks Pam, Actually, that website is one of the reasons I posted this thread. Small is ok for a short while if it is a good investment. We could manage with a 1 bedroom for a year if we choose the proper furnishings.

If we are keeping the property due to purchase, I would think the ocean view would be the best consideration. High on a hill, or distant from the beach is ok, but the view is really one of the things we want in a purchase scenario. Renting may be another story.
We aren't interested in "on the ocean or beach" but we do want to see it.

Walking distance from necessary and interesting areas is a big concern as well. I guess that would take priority over a view.

As I said, renting is going to be a challenge as I have to consider my canine family members, but if it is a better financial move to rent for a year, I will do so.

Any reccomendations? Advice? Counseling?

Thanks! Keep it coming!
 

Chris

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Oct 21, 2002
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Rental

I would go for a rental of six months with an option to renew for another six months - while you look around. Reason is that you do not need the additional stress of buying a place, wondering if you're making the right decisions and so on, while you want to focus on getting used to a new and very different place.

To find the right property for you at the right price, will take some time. So, rent first and don't offer to do improvements. Perhaps you should consider getting a car as the school that your son will be going to, may be too far from the property that you find to live in. You really are reducing your choices/alternatives if you cannot take your son to school.

Feel free to tell us when you'll be at Jose O'Shea's on Cabarete beach and a few of us are sure to turn up for a chat.
 

Escott

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Re: How far off the mark?

johne said:
Scott--How far off the mark is his $50,000.???
Airy 2 bedroom condo with water view? WAY off the mark. Janh's mention of 75k on Ocean is over except for past run down places with Sankies, putas and 100 kids in front of your apartment with laundry drying on the Balcony.

I have been looking for 3 days and looking today. I haven't even found anything worth making an offer over. Not even worth making a stupid offer over. Maybe today I will have better luck.

Scott
 

wtf2001

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Aug 22, 2003
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Dean Brown Tour

Hmmm... Thanks for the insight Scott.

I have made arrangements to tour with Dean Brown for a majority of our stay. Hopefully he can help us locate a place that is desirable through him or other referrals. A six month lease is excellent advice, something we will do I think.

So it the trade off is no ocean view, even if it is at a major distance...I guess that would be ok. The other amenities would have to offset the desire for view. Maybe a nice garden view...other pools...etc. Depends I guess.

I have a feeling November will be an eyeopener.

Any other tips to make our search more productive when we are in country?

Thanks!
 

JanH

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Dean Brown knows the country side well. He will only show you properties based on your criteria and won't waste your time.

The condo he showed us earlier this year on the water for $75K was off the beaten path. Wish I could remember its name. It was "okay". Like Scott said, it wasn't the greatest looking place. Kind of old. Had bars on windows, which we absolutely hate. But hey, if price is that important, then it would be ok.

Scott - isn't El Neptuno about the same price for a lower floor? Any available for him? El Neptuno was alot nicer. We looked there too.
 

Ken

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El Neptuno is full. New owners, like Scott, making significant improvements. Prices are going up. The days of getting a good deal at El Neptuno are over.
 

Escott

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Least expensive apartment in El Neptuno is 70k and then 80k. 70k needs a bunch of work and will end up 80k to start.

Life moves on, sometimes prices actually go up. This happens when owners care about improving. Once it starts, it kind of spirals. There is a bunch of work being done in a bunch of condos there as I type.

FWIW, I still think that at 70-80k the condos there are worth it compared to what I have been seeing.

I would sooner cut my pee pee off than have two large dogs living next to me. I don't want to hear them and I don't want to walk around their doo. They will do NOTHING to improve life at my Condo for me or anyone else. I think he can probably find a home in Casa Linda to live in that will allow dogs:)

Scott
 

Ken

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Re dogs, El Neptuno's rules prohibit dogs in the commons areas. They must either be quietly in their apartment (barking and other noise that bothers neighbors not allowed) or out on the street or sidewalk with their owner. This rule applies to owners as well as renters.

I would think that any good condo association would have the same rule.
 

johne

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Re: Dogs

Once an owner is accepted (with the dogs) what action does the board take if the new owner and dogs don't comply with the quiet rules? My real estate experience tells me this must be an impossible situation to undo.

So me thinks if a buyer shows up in front of the board with the dogs or discloses that he has these 2 large dogs the board will reject him as a buyer. What I dont know, and would be very interested in knowing, does this type of review process take place in DR - or am I reaching here because I come from NYC real estate??
 

wtf2001

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Aug 22, 2003
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The posts thus far are very much appreciated. Unfortunately, they seem to be focusing on my dogs more than my question.

Frankly, If I were spending 80k on permanent housing, it wouldn't be on an apartment or condo anywhere. Defeats the intent of "waiting a year to make sure we want to live here". I would never live more than a year as a renter no matter where we live, and certainly not cramped into 700 -800 feet in a compartment. (Ever wonder why they are called apartments when they are always together???) 50k is just a number I would be comfortable putting toward a property that temporarily houses my family, then becomes offset by rental income/visiting family usage.

As I wouldn't be traveling to work or anywhere when living in DR, my dogs are quieter than any neighbor I personally have had in my early youth as a renter. If they were a problem, I have no qualms in muzzles or kenneling as appropriate. I am more responsible than any other dog owner I have met when it comes to waste as well, but it is beside the point.

My question is about ROI. Return on Investment. With 1 year as tenant, is it better to purchase a small, affordable condo/apartment that is tolerable and meets my family needs, or is it better to rent?

Assume 1,000/month going out the door per month. If it were rent, that was 12K for 12 months of roof. If it were a purchase, a 50k buy now has a 38k pay off, when I live somewhere else.

Please continue to contribute without bias to my animals. Obviously, if there is a board that votes on "admission" and I am not eligible due to my canines, it is a moot point being made.

Thanks again for the help.
 

Ken

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johne, our rules have a procedure for taking action against an owner who violates a rule.

wtf2001, seems to me only you can answer your question. You aren't going to get any return on your rent money, unless you buy what you have rented and have an agreement that gives you credit for rent paid. On the other hand, if you buy a cheap condo you can't be sure you will be able to sell it, but you will own something and could hope to rent it until you are able to sell it.

For people who are not familiar with the area, and who have no experience with living in the DR (other than staying at AI hotels on vacation), the usual advice is to rent to be sure the area meets your needs and that you and your family will be able to adjust to life in the DR. But everyone doesn't do this, and many of those who don't end up just fine. On the other hand, there are also those who found they couldn't handle the differences involved in living here, or who found that the area wasn't really what they thought it was, or who had other issues/problems/concerns that caused them to conclude they had made a mistake.

Only you can answer the question of whether you should buy immediately or rent while familiarizing yourself with life here and determining what the best value might be for your money.

Seems to me the time has come for you and the others who will be affected to make the decision. You aren't going to get the answer from us.
 

wtf2001

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Aug 22, 2003
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Thanks Ken, that was a very honest and intelligent answer much appreciated.

With your experience in country, I am curious specifically on what you would do. Or, if it is a better way of asking, how did you come to be a full time resident? Did you patiently wait and rent? Curious, but sensitive to your privacy if that seems a prying question. I am curious about how any expatriot "settled in". Did they rent, did they buy immediately?

Thanks!