Building in Cabarete

rdost

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Feb 13, 2004
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I just bought a small lot near Cabarete that I want to build a small vacation home on. I am hearing that in order to get a decent quality house, I need to spend $500 USD per sq meter. For a 200 square meter house, this is $100K....quite a bit when you factor in DR wages at $100-$500 per month.

Am I being quoted high because I am a foreigner? I realize that material costs may be higher than here in North America, but it still seems high. I don't want to overpay if I don't have to. If I have the plans for a house along with a material list, can I get some of the construction stores to quote me on what it might cost?

The construction company wants to charge 8-10% of total costs for their fee. Is this typical?

Would I be better off getting one of my DR friends to phone a construction company in say, Santo Domingo that would be more aggressive on pricing? Can anyone recommend an honest and good builder to me?

I hear a lot on this board about investing in real estate...but is anyone actually building these days? Or is everyone holding onto vacant land waiting for the price to rise. I've been watching some of the real estate sites for the houses that they list to sell....and some of them (i.e. above $250K) sit there for a long long time.....except oceanfront....for which there do not appear to be too many listings.

Thanks for all comments!
 

Escott

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Jan 14, 2002
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I think you would be better suited to get a quote from Moca/Santiago instead of the Capital which is 3 hours away. The price is a bit high but compare to homes that are selling in the footage you are talking about and add on the cost of the land you you will see you are in the money. I have heard prices that are 10-15% less than you are quoting.

Hope this helps.

Scott
 

rdost

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Feb 13, 2004
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Hi Scott,
Do you know of any honest builders out of Santiago? You are right, the cost is still in the money but I'd rather not overpay if possible and keep the money in my own pocket....I am just trying to do as much homework as possible with you guys who have done it before so I don't make too many mistakes

I read on the forum you are now fully invested in Real Estate. Did you just buy lots and will build on them in the future? One thing I can't find on the forums is the crime rate for break-ins. As I am not in a gated community, do I run a high risk of getting vandalized? (or bulldozed by Gov't troops)?

Thanks for your help and appreciate any insights you can give me on the details of the last 2 posts.

Randall
 

Hillbilly

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Jan 1, 2002
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According to my sources in the construction business, and

I posted this some time back (about a month or so) the cost per squ meter is nearer $222. add on 20% for profit and you still have alot less than they are quoting you.

A lot depends on what you put into it. Mahogony doors and closets> Add on. Marble floors> More and so forth
I would suggest thet you consult with Mairen? Bournigal at Deposito Ferretero near the Brugal Distillery there in POP. He and his partner Manuel Duran are among folks that I would trust in that area.

HB

You can email me for my particulars so you can say who sent you there.
 

Escott

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Jan 14, 2002
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rdost said:
Hi Scott,
Do you know of any honest builders out of Santiago? You are right, the cost is still in the money but I'd rather not overpay if possible and keep the money in my own pocket....I am just trying to do as much homework as possible with you guys who have done it before so I don't make too many mistakes

I read on the forum you are now fully invested in Real Estate. Did you just buy lots and will build on them in the future? One thing I can't find on the forums is the crime rate for break-ins. As I am not in a gated community, do I run a high risk of getting vandalized? (or bulldozed by Gov't troops)?

Thanks for your help and appreciate any insights you can give me on the details of the last 2 posts.

Randall
Hi Randall, I think you can do good safe business here in the DR despite what some people are saying lately. Just make sure you use a good competant attorney and be slow and methodical. Do NOT let anyone give you the bums rush because before you know it they will be eating your lunch. We have bars full of whining Gringos here in Sosua who got screwed and glued and they just sit there all day crying in their beers. There are some people that walk around all day getting taken for a ride and the rest who do normal business here.

I wouldn't worry about the government unless you haven't followed normal business practices and used a competant attorney.

I would ask Hillbilly for recos for builders in Santiago. He probably had them and their children as students and is who I would go to to ask. These are not only some of the brightest and most connected people in the country on this board but the nicest people you will meet if you roamed the entire world.

When you build get iron on the windows and good locks. Crimes against property is NOT unusual here. I put steel outside the through the wall a/c's I put in.

Hope this helps,
Scott
 

rdost

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Feb 13, 2004
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Thanks very much for the great leads. I'm sure if you guys have dealt with them, they're on the up and up. I'll try all of them to see which I am most comfortable with (gives me an excuse to come back to DR in the next month or so).

Hillbilly, do you think the profit margin for builders is as high as 20%? On a $100K home, thats $20K...pretty good for the DR, isn't it?

I see a home that sold in the La Rinconada, just east of Cabarete. It was listed on Juan Perdomo website and it was right on the beach. Almost the only waterfront property that I see listed and it sold within 3 months. List price was $430K...wonder if he got all that.

One more question (which perhaps is more business related)....is that "do I need title insurance"? The land I bought is owned by a very reputable local who has clean title and my lawyer has an excellent reputation....so perhaps its not necessary?

Thanks again.
 

Jwb

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Jan 10, 2002
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Sorry to hijack the thread RDOSt, but I'm heading down to Cano Dulce in (Gaspar Hernandez) on October 16 th to look into construction myself. I was wondering if the building cost in those small towns are the same as in major areas like cabarette. Also, if I use a maestro instead of an engineer how much less will construction cost be (roughly) ? I came across some interesting ideas that I would like to incorporate in my home plans, such as :

Tubular lighting to decrease the dependecy on electrical usage .
http://www.lowes.com/lkn?action=how...ubularSkylight&rn=RightNavFiles/rightNavHowTo

And Glass blocks as oppose to windows and bars.

http://www.glassblockdesigns.com
http://www.buehlerfam.com/glass-blocks/stained-glass-all.shtml

Does anyone have any experience using any of those?
 

rdost

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Feb 13, 2004
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In Canada, we do not have high enough electricity prices (or enough sun for that matter) to warrant solar energy...but I am thinking because of the problems that DR has with blackouts that it would be prudent to get a unit large enough to generate for the fridge and a couple of outlets for the day.

JWB, what are maestros and how do their qualifications differ from engineers. I would imagine that if you hire these guys away from the obvious tourist areas (where I am building), you would get lower prices....which is why I was asking whether to get a builder out of Santiago or Santo Domingo.

Perhaps we should collaborate on our building plans so that we can eliminate avoidable errors. I am hoping to build by October...but do not plan on rushing it. I will be in DR either August or September to meet with a short list of builders for the project.
 

Jwb

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Jan 10, 2002
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What are Maestro's

Maestro's are equivalent (My interpretation) to job foremans.A good and reputable Maestro must have extensive experience from having worked under the supervision of construction engineers. I've heard a lot tales about using Maestro's to do a job. Some good and some not so good. The only reason I'm going with a Maestro (other than to save money where I can,) is because I have been communicating with an experienced engineer in Santo Domingo that has personally checked out my home plan. Since he will not be available to travel to where I intend to build, he referred me to one or two people up North that he trusts and have work with over the years. I stress, make sure you know who you are dealing with before going that route, because there are Maestros and there are Maestros.

The way I went about this project was, I reviewed hundreds of homeplans on line, and I e-mailed the ones that I liked to this engineer for his opinion. Two months ago we came up with a good concrete home plan that was suitable for the Dr. I ordered the plan on line, sent him a copy and he took it from there. If you are interested send me a Pm or an e-mail and I will send you the info regarding my pln. Good luck.
 

Jwb

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Jan 10, 2002
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construction proposal

This information was sent to me by a friend who met with a Maestro on my behalf. I dont know how accurate this info is, but this is what the maestro gave as a rough estimate on how he would go about my project if he is selected for the job. bare in mind that this is a rough estimate for 1764 Sq (163 M2 ?) foot home in gaspar Hernandez. I will not know if this is correct or not until I recieve other proposals, so please feel free to make comments.


2,000 conncrete blocks-----28,000 RD
21 Kintal de Banilla----------40,000 RD
cement (260 bags?)---------52,000 RD
plumbing & piping-----------180,000 RD
Electrical wiring-------------100,000 RD
License& fees----------------50,000 Rd
workers (4 for 60 days)------140,000 RD
Kitchen & basic cabinetry----150,000 RD
Maestros fee----------------150,000 RD
===================================
Total-----------------------890,000 RD ( or $20,697 US @ 43 to 1)
 

rdost

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Feb 13, 2004
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I have found a plan I like by going to www.homeplans.com and looking at their plans. After looking at the reviews for home design software, I have selected "Home Design Quick and Easy" ($20) to do a simple customization of the general plan I have selected.
 

rdost

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Feb 13, 2004
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JWB,
The price seems to be too good. Only $126/sqm? I think the quote is leaving some finishing items out. The workers are still costing you $407 US per month per worker. Isn't that a bit high? Or is that in line?

I heard there was a large "builders" store where you can buy most of what you want all in one place. Anyone know where that is and can you verify the numbers you are seeing from the Maestro at this store?

I think the electrical problems are going from bad to worse these days. Any plans to become self-sufficient somehow JWB?
 

Snuffy

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May 3, 2002
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Good Information...

I like this info...good solid pricing. I have given this a lot of thought over the last year. I think the maestro fee is high and the workers fee is high. Everything else looks okay. You want to be very very hands on. Negotiate the workers pay and the maestros. If the project is finished on time and according to specs then you pay good bonus. You control all purchasing and have your friends there. You want a consultant (contractor or another maestro) who will double check everything for you.

At these prices...what is important is that when they finish you have a sound building with quality material. You have a lot of room to play. I have a friend in Santiago...he is a contractor...built Zeus Cabanas...he will visit my site twice a week for consulting purposes...that checks the maestro...he will know you are no sucker and he will do it right.
 

Barnabe

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Dec 20, 2002
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I don't know if this is solid pricing, I am not an expert, but I know that if I saw a presupuesto like this I would take my money and run..

21 quintales de varilla, no sand , no wood (formwork), etc..

Of course your house needs no rendering, no painting, roof is an option.

Good luck,

Barnab?
 

Jwb

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Jan 10, 2002
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Building proposal

I agree Barnabe but so far this is the 1st proposal,and it is not the official job contract. I expect to have at least three or four to choose from. I intend to negotiate any cost that does not involve material. I suspect that the Maestro paded his fees along with that of the workers because he knows we will have to come to the table and negotiate. Also, he did mention that in addition to these prices I will have to pay seperately for fixtures, appliances, and any details that are not included on the plan( such as doors trimmings, glass blocks,lighting and so on). By the way here is the plan I chose and there were some modifications done ( EX: no basement rooms will be added on top of garage.).

http://www.theplancollection.com/tp...=0&BID=1&PlanNum=ms2835&IID=2499&TID=1&MTID=1

As far as power supply goes, I'm being proactive about it and use as many glass blocks as I can, plus install some solar tubes. here is a new website I recently discovered. They have a new product called a spyder that appears to have some merit, the going price is $465 for a spider of 4 tubes. http://www.sun-tek.com/ .

I am still investigating my options for backup power. Not too long ago there was another poster that introduced a power generator made by a company called genverter. I dont know much about it, but I asked some people to check it out for me. here is their website http://www.friend.ly.net/GEET/backup.htm .

I am doing as much research as I can from my end , but I already am aware that I will be taken for a couple of thousand pesos somehow.
 
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