Is this a good time to buy a house?

Lissa better do some searching

Remax

West Indies

See what is on the market now.

Lissa, where will the houses be located? Am I correct that the client is thinking of the Dominican market rather than foreign buyers?

If the Dominican market, I'm surprised he is thinking of investing so much at a time with the DR economy is in the pits and so many people are out of work or in danger of losing their jobs. According to AZB's recent posts on conditions in Santo Domingo, even many upper class families are having a very hard time. Lots of expensive cars not being driven because the owners can't afford the gas.

Perhaps a different perspective

Generally speaking, it might be wiser for your "investor" to wait a while and see how the dollar is going to behave.

If the IMF accords hold up, perhaps the dollar will settle to 'x' pesos per dollar (whatever it is, it has to be stable)

We have seen prices for everything double + a little bit over the past three or four months. this means that if the government inefficiency continues your "investor" might commit to a 30 unit project for 36 million pesos and find out that he can only complete 14 or 15 units because of further devaluation.

However, construction is a good way to launder money, so maybe the investor doesn't care...

At least that is what the US officials are saying...

However, you, as a construction company, should not care a bit what happens, you get your profit up front on the work you do. Just make sure that your contract has enough escape clauses in case the devaluation continues...

HB

No pi$$ing contest but

No one with US$1 million, from the US is going to put it in the DR unless he is trying to hide it. That is a fact of life. That altruistic stuff is just B.S. to hide the fact of where it comes from.

It is the only possible explanation for all the construction projects that are going on, since nobody can pay 48% interest for a bank load and still sell real estate. Nor can anyone afford to put out RD$35 million on spec.

You see, if it was legit, that million in the stock market or in mortgages or even CDs would make enough to live on for the rest of his life and still have plenty to give to his kids...

However, you are very wise to protect the company at this time...and even if it is being laundered, that should not touch you or the company...

HB

Lissa

The instability of the peso currency, the high interest rates for homes (that range between 24-32%) and the slow down of employment opportunities have had a great impact in the construction business.

Right now there are few companys making good money in housing. One of them is Constructora Bisono, and they focus in low cost homes between 650,000-1,000,000. At the moment it is the only market segment that is purchasing.

Up to 2001, there were still proyects geared towards the 2MM+ market but now a days they are less and less. There are still some, but the big money is not there anymore.

Wishing you the very best of luck

Lissa, I hope you can do a project like this without any "problems>" All the best

HB

Bisono is building a project near my house in Arroyo Hondo.

There goes the neighborhood!!!!! I have NEVER seen a construction project move so fast!! The land "Used" to belong to the Zoo! Wonder how he was able to get "ownership" of a public property???He is building five or more "low-rise" buildings of 4 floors and 8 units, each plus 30 or more single family units.Last week one of his trucks,which roar through the poor neighborhood of "La Puya", crushed a little girl to death!He does use "Haitian" workers.They start before 7 am,and work under the lights until late at night.The best part is that the whole project is built on "fill" land that will settle as fast as the new owners move in!!!
Let the buyers beware!!

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Re: No pi$$ing contest but

Hillbilly said:

No one with US$1 million, from the US is going to put it in the DR unless he is trying to hide it. That is a fact of life. That altruistic stuff is just B.S. to hide the fact of where it comes from.

It is the only possible explanation for all the construction projects that are going on, since nobody can pay 48% interest for a bank load and still sell real estate. Nor can anyone afford to put out RD$35 million on spec.

You see, if it was legit, that million in the stock market or in mortgages or even CDs would make enough to live on for the rest of his life and still have plenty to give to his kids...

However, you are very wise to protect the company at this time...and even if it is being laundered, that should not touch you or the company...

HB

Click to expand...

HB, I respectfully do NOT agree with your conclusions.

I have been selling stocks for years as they come into the black which has been taking a while to do. I won't invest in the market again most likely under any circumstances. I think stocks are for suckers unless you have inside info.

CD's in the states on 1 mil will only return a little more than 20k a year which is not enough to live on even in the DR if you are use to having that sort of money.

I think this is a good time to build because I think if you have US dollars you can build comparitively cheaper than you could have 2 years ago. I would NEVER go into debt in the DR even in great times. The interest rates are staggering in the best of times.

I don't know if this is the best time to BUY a house although I am doing just that myself. I am selective and make low offers. I can still go wrong but not for much at the prices I pay. You can't stand a chance of winning if you are NOT in the game so it is all a gamble.

I am not hiding my money either HB I was a few years ago when my wife was trying to fleece me but now I even make her the VP on the Corps that I start to buy the properties so that she gets control of my assets if something should happen to me. We had a rough time for a year or so but things like that sometime happen. Now we are good friends. I was only squirreling away funds I felt she wasn't entitled to when she was making stupid claims at first. We have an amicable split for both of us but I am still bringing money down.

The best time to start investing in Real Estate is when you think things cannot get any worse. Same thing in Stocks. I bought a ton of stocks after 9-11 and they tanked for a week after. Made a killing in 3-4 weeks.

There are a few questions you have to ask yourself before you do any investing if you buy what I have just said. Do you possibly think that things can ever look as bleak in the DR as it does now? Is there anything good in the news?
I know that prices are lower than they were 7-8 years ago and that they are the lowest in the Caribbean and central America for comparitable properties.

Hey if we all thought alike we would all wear the same clothes and drive the same cars. Thank Gawd we don't and we have choices.

Escott

Re: HB you?re right

Lissa said:

I know very well the bisono?s houses and I have to tell you they use the cheapest materials, and workers, that?s the reason why they have those prices. If you buy a Bisono?s house, in less than a year I?ll see you changing all the wood and remodeling the kitchen or the bathroom.
I hope (and will work on it) that our project be a better option..

Click to expand...

Yeah, I am more or less familiar with their projects . My girlfriend is in the lumber and countertop business so she knows pretty well who is building with what and how good are the products they use.

Theirs (and many others)are not quality oriented constructions. A couple of guys at work have bought homes from them or in some other low cost projects and the stories they have, post moving in, would make anyone freak out.

And since you ask lol I agree with Scott.. It is all about choices and if you choose not to choose... which many sit byand do.. you are in effect giving your power of choice to someone else! Because change will happen... that (and usually only that) you can count on. If you are a good person then go with your gut.. some call it inner wisdom. It will usually serve you well and lead you to good decisions. If however you know you are not then work on becoming better and follow others that do have good intentions til then. Buy your house... invest... move... whatever. Just choose You come here like most of us to make a more informed decision... do your research and then do more...it's all life's lessons homework... but most importantly DO something. I'm taking my own advice and coming there in Nov. and I've lived a rich productive life thus far... with no regrets.
Cindy

Happy customer

Lissa, I am quite happy with my apartment in Santo Domingo.
It took me a while because I wanted unobstructed spaces and none of that crappy corniza stuff in the ceiling, but I got what I wanted.
Like many things here, I found it to have a mix of good and bad qualities, but if you can work out the flaws in design or replace some materials things can work out great.

The biggest problem I find here is functional design. I've seen apartments that could have such a great view and air flow but they only have two tiny windows. Others have floorplans that arent practical at all and...ohh crap, dont get me started, I spent almost 6 months looking for a place.

There are a couple of good architects here though. I've seen some lovely modern houses in Arroyo Hondo III and Cuesta Hermosa aswell as some really cool apartments in the center of twon.

Like you said, there are the good and the bad. But be warned, there are more bad than good.

I agree with Scott. The best time to buy is when everyone else thinks its a bad time to buy. No one knows if this is THE bottom in DR RE prices, but its a lot closer to the bottom than to the top. the problem is that you pretty much have to pay cash for your R.E......or find a way to finance it from the USA.

I will be in the DR within 6 months to start sniffing around. Gooooooo stock market!!!

Re: Scott po0sting

Scott---spoken like a TRUE real estate investor!!! I dont have too much respect for those that have that special kind of vision , that I dont have, called hindsight.

Regarding the posting of the value of $i,ooo,ooo and how one could live off of it---wow--could have fooled me :}

JOHN

Hey John, hindsight is always 20-20. Monday morning quarterbacks are the best Football players!

I go through life just trying my best based on a lot of thought, research and learning. Most times I do well but sometimes I don't albeit very very rarely.

I never second guess myself, never play what ifs, maybes, couldbes, possiblies or shouldbes... I am never sorry to take a profit even if it is not at the top nor feel bad when I don't get the very top. If someone I do business with makes money on what I sold them I feel good for them!

I once bought a piece of dirt that was 15 acres and landlocked. Bought it in my name and my daughters name because I didn't want it in the same name as the 60 acres I owned next door. I paid 5k for the land, sold the timber off of it to help fund my daughters college(15-20k in Logs), the 5 years later donated the land and got a 200k tax write off when I attached it to another piece of property with frontage after large capitol gains on other properties. I was happy (saved over 100k in taxes) and so was the Church Childrens Camp I gave it to.

Everything I sell I sell with a positive cash flow.

Regards,
Scott