Is real estate holding up?

Danny W

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Mar 1, 2003
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Even though much real estate is priced in dollars, I'm wondering if real estate prices are weakening due to the weak peso, and the economic crisis in general. Are sellers more anxious, and are other costs escalating and creating a less secure attitude? Have the recent well-publicized disturbances scared off some potential overseas buyers? - D
 

DRdiving

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Nov 2, 2003
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It's a good question. I can't imagine that it's not having an effect on real estate prices. As a potential buyer I am definitely on the "sidelines" until I see how the economics develop, not to mention the social and political issues. I believe in the contrarian strategy but in my humble opinion, I don't think we have seen capitulation yet. Anyone else looking to buy? I'd be interested in hearing your viewpoints.
 

Jersey Devil

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Jul 5, 2002
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Good Buys

From the reports I am hearing there are some bargains
to be had. My wife had inquired into land prices in
the central part of the country (Cibao). The quotes
she heard sounded cheap.

Happy Hunting,

JD
 

Juan_Lopez

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Oct 21, 2003
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Appears to be fine. I just bought another lot for $RD 400 per metro. For the last year ALL of my investing has been in land!!!

House prices are way up and people are dreaming, but still a few good deals to be had.
 

Escott

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Jan 14, 2002
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I can only speak for myself and about the Sosua/Cabarete area of the North Coast. I purchased a condo in Sosua about 4 months ago. I paid 40k for it. Similar condos have sold for 64k to 68k and I only last week bought one for 58k. The only condo left that is for sale is selling for 89k. I hope he sells it and puts the rest up a little in price by establishing a new worth. These condos originally sold for over 100k fwiw.

I bought a lot in April. I made 5 offers. One was taken. One I was turned down on which did NOT have the good view of the one I purchased sold for 2x what I bought mine for. Mine was the better lot in my humble opinion although I would have bought more lots at that same price.

Peso is nothing to purchasers in this area since they are all from outside of the country. I am told by Century 21 and Remax that the Americans have arrived and are strong buyers of real estate lately.

Escott
 

Ken

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Jan 1, 2002
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As Scott indicated, the peso doesn't enter the equation, at least not in most real estate transactions involving foreigners on the North Coast. These properties are being sold in dollars by foreigners to other foreigners with dollars. The rate of the exchange is seldom mentioned, except in casual conversation.

What Jersey Devil is talking about is different. If you buy land in the interior from Dominicans, then the deal will most likely be in pesos and a strong dollar in relation to the peso will be to the benefit of the buyer.
 
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DRdiving

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Nov 2, 2003
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Escott,

the two condos you bought for $40k and $58k, were they one or two bedrooms? Thanks.
 

ecarignan

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Jan 9, 2003
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Expect more Canadian buyers.

Expect more Canadian buyers now that our dollar has made significant growth over the US Dollar. I bought my villa for a good price I think but bought it when the exchange was at 1.51 CDN to 1 USD. Now that our dollar is 1.30 CDN to 1 USD. I would have saved more than $20K Canadian if I had bought today.

The prices I've seen in Sosua/Cabarete area seem to be more expensive than a year ago.

Good luck.

ecarignan
 

Escott

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DRdiving said:
Escott,

the two condos you bought for $40k and $58k, were they one or two bedrooms? Thanks.
2 bed/2bath 1202 sq. ft and 1377 sq. ft.

Cant be bought at those prices today and if they can I am still a buyer of them.

Prices are no longer soft on the North Coast. Firmed up quite a bit in the last 8 months.

Scott
 

Gringo

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Jan 1, 2002
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The Americans have seen the light.....

I'm in the Real-Estate game, and its true that the Americans have discoverd just recently the bargains on the North Coast!
My web site is getting action like never before.....From America

This of course is driving prices up.
I feel that since 9/11 a lot of Americans are seeking a safe haven away from it all and they are bringing Ben Franklin with them.

But don't worry there are still lots of bargains to be had! ( My old Pappy used to say BUY LAND they are not making it any more)

You can still buy BEACH FRONT PROPERTY on the North Coast for a song, If you have the right connections... Where else in the Caribbean is this possible ?

But beware the speculators are buying it up fast...

Gringo
 

johne

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Jun 28, 2003
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Re: The Americans have seen the light.....

I feel that since 9/11 a lot of Americans are seeking a safe haven away from it all and they are bringing Ben Franklin with them.

There are hundreds of these "safe havens" for the asute American investor. I'm not so sure that the first place they think of is the DR. My 2 cents only.

JOHN
 

johne

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Jun 28, 2003
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contrarian

DRdiving said:
It's a good question. I can't imagine that it's not having an effect on real estate prices. As a potential buyer I am definitely on the "sidelines" until I see how the economics develop, not to mention the social and political issues. I believe in the contrarian strategy but in my humble opinion, I don't think we have seen capitulation yet. Anyone else looking to buy? I'd be interested in hearing your viewpoints.


Would be interested in your definition of your contrarian strategy
and your thoughts on sitting on the sidelines. As a contrarian do you not see enough in the economic and political climate as it exists today to make a valued judgement as to how you should invest now and until the elections in may??
Would also be interested in your definition of "capitulation" and how you factor this in your investment stategy in the DR.
 

DRdiving

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Nov 2, 2003
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Re: contrarian

johne said:
As a contrarian do you not see enough in the economic and political climate as it exists today to make a valued judgement as to how you should invest now and until the elections in may??

Quite simply, the contrarian strategy takes advantage of opportunities that are out of favour. Although, on the surface the political and economic conditions appear to exhibit contrarian conditions for buying, in actuality, clearly we are not seeing that as per the experiences by actual buyers and people in the market (see Escott's, escarignan's and Gringo's posts above).

johne said:
Would also be interested in your definition of "capitulation" and how you factor this in your investment stategy in the DR.

Well put it this way, condos that were purchased 8 months ago that have appreciated 50% doesn't look like capitulation to me. For those who purchased at that level, kudos, and they obviously had the ba$%s and insight to put their money were they mouth was.

Chris.
 

Escott

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Jan 14, 2002
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Re: The Americans have seen the light.....

Gringo said:


But don't worry there are still lots of bargains to be had! ( My old Pappy used to say BUY LAND they are not making it any more)

You can still buy BEACH FRONT PROPERTY on the North Coast for a song, If you have the right connections... Where else in the Caribbean is this possible ?

But beware the speculators are buying it up fast...

Gringo
Just two comments...

Your old pappy wasn't Will Rogers who coined that statement...

Beachfront property in a convienent location close to airport transportation CAN NOT be bought for a song since myself and others have been singing our asses off for quite the while.
 

Gringo

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Jan 1, 2002
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Re: Re: The Americans have seen the light.....

Escott said:
Just two comments...

Your old pappy wasn't Will Rogers who coined that statement...

Beachfront property in a convienent location close to airport transportation CAN NOT be bought for a song since myself and others have been singing our asses off for quite the while.

Escott,

I'm sorry if i offended you, But I did not say my Pappy coined the fraise......also I do not remember saying BEACH FRONT in Playda Dorada or beside the Airport. ( correct me if I'm wrong )

The last time that I checked,,,,,, the North Coast was quite a large area.

Have a nice day!


Gringo
 
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Escott

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Hey Gringo, I am not offended in any way. It is hard to offend a fat, loud, ugly american with a hairy back and flip flops! We are just unoffendable! LOL

If you get any steals and deals between Sosua and Cabarete give me a jingle. I just wanted to point out that it wasn't exactly like you mentioned for clarity. The Will Rogers comment was only because that is about the only line who's origination I knew and just wanted to show off!:)

Escott