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Thread: Selling Villa

  1. #1
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    Default Selling Villa

    I am still selling my villa. I have been out of the DR now though for several weeks. I keep reading all the negative crap here on DR1, but the people I know living in Sosua and Cabarete do not seem to think it is so bad. Makes me wonder about a lot of people here, and where exactly they are living? I guess it must be pretty bad is you are renting a $30 apartment in the ghetto in Santo Domingo? But all the people I know living in nice houses on the NC seem to still love the DR.

    Anyway, all this negative news got me thinking. I bet once the president is gone in May that the economy could quickly turn around. This of course means that the Real Estate could also start going up! Makes me think I should take my villa off the market until after the elections. Could get more $ then? Anyone agree with this? (And PLEASE I am only asking for opinions of people who own property.)

  2. #2
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    I don't think the price of beach front property has much of anything to do with the local economy. Those properties are going to stay relatively high period.

    As for the economy rising, thing again. Do you know that it is going to take the government 13 years just to pay it's debt to the generators? Of course over those 13 years they will be racking up new debt.

    If they can't afford to pay their bills, how can they afford to pay the interest plus principle on those bills? It just doesn't add up.

    As for the resent valuation of the peso, let me ask anyone here, which bank can I walk into and buy $50,000 USD? *sound of crickets* Until that happens, we have not reached the actual value of the peso. Costa Rica is around 420 to 1 right now and their currency devaules by a steady 1 percent per month. But I'll tell you one thing, if you want to go buy $50,000 USD, the banks will sell it to you. You can complete the transaction in one day.

    We have just seen the tip of the iceburg of Hippo's damage.

  3. #3
    TiberiusMineola
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    Lightbulb Real Estave Values - North Coast of D R

    As a home owner & former R E broker, I don't think that the local Dominican economic claimate has much effect on the resale value of upper class, foreign owned housing. All of the appraisals & most of the sales I've particiated in are based primarily on 2 factors: 1. cost of the subject parcel of land, per square meter, based on comparable local sales; 2. cost of comparable new construction, labor & materials. Cost of construction [especially materials] will probably increase. Cost of lot? To specific to 1 area to generalize. Exs. Punta Cana [increasing gemetrically] vs. Sosua [declining substantially]. My free advice clinic: a. R E generally is a very illiquid investment in the DR; especially foreign dominated areas; only foreigners can afford to pay the prices; consequently the demand is extremely limited. b. The law or supply & demand is frequently distorted; there are many VERY WELATHY absent foreign owners who have put up 'for sale' signs, but whose asking prices are nearly totally unrealistic. c. It taks a long ime to sell a pice of 'foreign taste', upscale R E in the DR; therfore, if you are seriously interested in selling, I suggest that you put your property on the market soon. 2 - 4- - 6 - 8 - 10 years on the local R E market is not unusaul here [ie Puerto Plata, Sosua]. d. Get a written, competent, local appraisal [@ US $150 - 200.] before you try to sell or list your proeperty; then, price it realistically if you want a buyer w/i 24 months; especially in the US $200,000. + range. No charge for the free advice. Good luck. Be patient & persistent.

  4. #4
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    Smile My experience is different.

    I offered my house for sale(between Sosua and Cabarete). It sold within 30 days.

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    Default Selling is not like selling in another country . . . . .why you ask?

    Remember the taxes there are practically nill, so most common sales from reality agencies are at the "sit and wait years" price. This is the same reason you hear prices being erratic, where some one else might buy in the same community for 1/2 the price others paid for, because the seller wanted to dump and didn't want to wait years. Let me give another example, in a urban development project in the US , the houses are built and all units are sold off in a matter of a year or two. In the DR (of course they don't build the units), but the land in an urban develpment zone will get sold off over a 15 year period. Don't expect to get the price you paid for, the realator should probably be given a larger cut of the sale if you want to move it.

    But as I said, with taxes at about 0, hell any one can throw up a for sale sign and sit and wait.

    True the economy looks bad right now (in the DR) but things might improve, defaulting on debt might be the first step towards recovery.

    -Lee

  6. #6
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    Default Just bought a house

    You might be interested to know that a Sunday broadsheet newspaper in the UK just published an article which ran to several pages explaining why now was the right time to buy in the DR. It basically said that the only place in the caribbean worth looking at was DR. And the message it put forward was that this was your last chance to buy a piece of paradise.

    I based my house purchase in the DR on an exchange rate pounds to dollars of 1.60 today I can get 1.91. This means a Villa worth 250000US was 156250 pounds now only costs 130890 - same thing with Euro's. Bear in mind an average little house in London will set you back 250000 pounds and if you bought it four years ago it would have cost you 110000 pounds and you get the picture that loads of Brits are releasing equity from their homes and buying holiday / retirement villas abroad. Case in point - France prices have trippled in less than three years. Average 2 bed places in Spain with a shared pool come in at over 100000 pounds

    Watch this space - the Brits / Europeans are on their way (unfortunately - some might say) and if they do start to come I think you will see prices rocket.

  7. #7
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    Quote Originally Posted by Simon & Nicky
    You might be interested to know that a Sunday broadsheet newspaper in the UK just published an article which ran to several pages explaining why now was the right time to buy in the DR. It basically said that the only place in the caribbean worth looking at was DR. And the message it put forward was that this was your last chance to buy a piece of paradise.

    I based my house purchase in the DR on an exchange rate pounds to dollars of 1.60 today I can get 1.91. This means a Villa worth 250000US was 156250 pounds now only costs 130890 - same thing with Euro's. Bear in mind an average little house in London will set you back 250000 pounds and if you bought it four years ago it would have cost you 110000 pounds and you get the picture that loads of Brits are releasing equity from their homes and buying holiday / retirement villas abroad. Case in point - France prices have trippled in less than three years. Average 2 bed places in Spain with a shared pool come in at over 100000 pounds

    Watch this space - the Brits / Europeans are on their way (unfortunately - some might say) and if they do start to come I think you will see prices rocket.
    Can you please tell me what paper was running this story, thanks.

  8. #8
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    Default You are not taking into your equation one VERY important thing!

    Do you think that a house that sold last year for 5 million Dominican pesos(when they were 25 to 1 vis-a-vi the US dollar) will still be selling for 5 million pesos today?? We are dumb here,but not THAT dumb! Cris Colon

  9. #9
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    Quote Originally Posted by Criss Colon
    Do you think that a house that sold last year for 5 million Dominican pesos(when they were 25 to 1 vis-a-vi the US dollar) will still be selling for 5 million pesos today?? We are dumb here,but not THAT dumb! Cris Colon
    TRUE C.C., but then on the other hand, if we wish to attract the local market too, we can't put the value up in line with devaluation!! My 3/4 B/r place in the centre of town (now more suitable as a business venue rather than a house for living in) went on the market 4 years ago at US $100,000 - RD $1,600,000. I can possibly get a local to fork out RD $2,500,000 for the right business venture, but there is NO WAY I could ask RD $4 million!!!

    As a result, I have to bring my US $ sale price down to make comparitive Pesos/US $ sale price!! Anyone coming along with US $70,000 or 36,000 will have their hands snatched off as I grab their money!!! Might even consider an "Option to Buy" rental arrangement to the right person!! Nice place, brilliant location, just needs someone with a few business ideas & the DESIRE to make things work out successfully!!! - Grahame.

  10. #10
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    Default Newspaper article

    Quote Originally Posted by Robert
    Can you please tell me what paper was running this story, thanks.
    I've just spent the last hour or so trying to find it. It was in the Sunday Times - yes that's right THE Times on 25th January.

    I have a transcript of the article in Word format. If anyone wants it just pm me with your email address.


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