financing real estate in the DR? how safe and how smart?

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liam1

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Jun 9, 2004
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how safe is it put a down payment on a property and finance it on monthly basis? i'm probably missing something big here, because if the central bank is giving 20+% on 90 days paso deposits, sounds like you could be making payments on your real estate investment just off of the interest the central bank is paying you. that is, if your mortgage payments are fixed in pasos, then the exchange rate fluctuations wouldn't affect you. what am i missing here? thanks.
 
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Don Tomas

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Jun 22, 2004
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liam1 said:
how safe is it put a down payment on a property and finance it on monthly basis? i'm probably missing something big here, because if the central bank is giving 20+% on 90 days paso deposits, sounds like you could be making payments on your real estate investment just off of the interest the central bank is paying you. that is, if your mortgage payments are fixed in pasos, then the exchange rate fluctuations wouldn't affect you. what am i missing here? thanks.
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You are missing the fact that mortgage rates are 35-40%, so you could offset it with the high rate on deposits but the difference is still huge.

Not sure on safety.
 
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liam1

Bronze
Jun 9, 2004
843
30
28
Don Tomas said:
You are missing the fact that mortgage rates are 35-40%, so you could offset it with the high rate on deposits but the difference is still huge.

Not sure on safety.
Click to expand...

thanks for the reply Don. i didn't know mortgage rates were 35-40%, double of what you get on your deposit. i thought it would be maybe 30%, which would still make sense given your investments are safe.
 
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