Which is the current state of the real estate market on the north shore? Is it a buyers market or a sellers market. Or is it balanced? Is the market obviosly trending in any one direction.
- Thread starter davidrudacille
- Start date
Buyer or sellers market
If you know what you are doing it is a buyers market. They have built a lot of homes and condos that did not sell yet.
This could change, but there are just too many new homes for sale to be a sellers market. But you have to avoid the Gringo Price, if you know what I mean.
This could change, but there are just too many new homes for sale to be a sellers market. But you have to avoid the Gringo Price, if you know what I mean.
I understand what you mean by the gringo price. I wonder how you can know what the DR price would be. Is there a difference in price in Cabarete. That seems to be a specialized market.
There is no way D.R. isn't already or becoming a buyers market.
The Buy/ Rent ratio is screwed up.
We have come across homes that are 'worth' $300k+ (thats what the owners paid) renting for $1k per month or less.
As a rule the market has to correct so rents are in line with property prices. For example; a $300k house should rent for at least $2500-3000 per month...NOT $1k or less.
Additionally, the US economy is a mess. People have been buying stuff via home equity loans. HELOCs. Helocs are more or less dead.
US is in a recession and the rest of the world is following.
Price will fall.
The Buy/ Rent ratio is screwed up.
We have come across homes that are 'worth' $300k+ (thats what the owners paid) renting for $1k per month or less.
As a rule the market has to correct so rents are in line with property prices. For example; a $300k house should rent for at least $2500-3000 per month...NOT $1k or less.
Additionally, the US economy is a mess. People have been buying stuff via home equity loans. HELOCs. Helocs are more or less dead.
US is in a recession and the rest of the world is following.
Price will fall.
Cabarete,...Buyers or Sellers Market?
Just my opinion, but probably the next time I post/reply, for this topic, which will probably be months or a year from now,...that house that has a price of $300,000 today, will probably be quite a bit more then the price today! The attraction of the Cabarete area, is soaring, with Europeans with the strength of the euro, with Canadians, with the strength of the Canadian dollar, and Americans and Canadians(*remember this is not a new phenomena,ie,going to the sun/warmth by northerners, this area is just a "newly discovered paradise" ) that see the advantage of owning in the tropics, without the Florida real estate taxes, and the assistance of the Dominican government The influx of "major" hotel chains, building, and moreso, the "plans" that are on file, for these mega chains, hotel/international(well capitalized) resort consortiums,...are said to be on a similar scale, as to what initially was started,...when a place called "Cancun", was just getting off the ground. Cabarete is fresh, young, new, and exploding. Also, this development is moveing the borders of Cabarete outward, to "supply" the market "demand". An educated investor in this Cabarete market understands, that this is not a rental income to "cover" the note market, this is a market for capital appreciation, while he(the investor)enjoys the beauty of his investment, with personal enjoyment as well. Oh, bye the way, I am sure that I will hear the rebuttal,...Oh, I hope it does'nt get to over built, I hope it does'nt lose it's character,...well, I say to that,..."it is building it's character right now,...so get ready for it,...because it is happening right before your eyes! Best to all!
Just my opinion, but probably the next time I post/reply, for this topic, which will probably be months or a year from now,...that house that has a price of $300,000 today, will probably be quite a bit more then the price today! The attraction of the Cabarete area, is soaring, with Europeans with the strength of the euro, with Canadians, with the strength of the Canadian dollar, and Americans and Canadians(*remember this is not a new phenomena,ie,going to the sun/warmth by northerners, this area is just a "newly discovered paradise" ) that see the advantage of owning in the tropics, without the Florida real estate taxes, and the assistance of the Dominican government The influx of "major" hotel chains, building, and moreso, the "plans" that are on file, for these mega chains, hotel/international(well capitalized) resort consortiums,...are said to be on a similar scale, as to what initially was started,...when a place called "Cancun", was just getting off the ground. Cabarete is fresh, young, new, and exploding. Also, this development is moveing the borders of Cabarete outward, to "supply" the market "demand". An educated investor in this Cabarete market understands, that this is not a rental income to "cover" the note market, this is a market for capital appreciation, while he(the investor)enjoys the beauty of his investment, with personal enjoyment as well. Oh, bye the way, I am sure that I will hear the rebuttal,...Oh, I hope it does'nt get to over built, I hope it does'nt lose it's character,...well, I say to that,..."it is building it's character right now,...so get ready for it,...because it is happening right before your eyes! Best to all!
i think currently it's a developer's market. developer's who can finance their projects without the need from "pre-construction sale" money are building their projects, financing them themselves start to finish, and currently they are sitting on a lot of unsold condos, but they are not giving-in and lowering their prices. either a lot of buyers come or the developers give in and lower the prices. they sure can afford to do so since building costs are very cheap.
dont know where you get building costs are very cheap,DR is the most expensive island in Caribbean for construction materials...costs have doubled and trippled for materials in last couple of years or less...barilla has gone up almost 300% in a year,and so has cement...some contractors are slowing down or stopping for now...and prices for built homes here are way out of wack,and unsellable for now.Look around and see all the half built homes and buildings.....all over the island....
bob
that is a result of poor planning. selling a few pre-construction condos, raising some funds and starting the project with hopes as they go along they'll sell a few more pre-constructions to keep the project going, but when the money runs out and they haven't sold more units the project stops, word about poor management spreads and the project usually dies. in the last month or 2 the construction price went up, but when you calculate cost of cement, blocks, steel and the cost of labor, it is still cheap compared to the asking price of the property once it's completed and up for sale.
We are heavily involved in the US real estate market...residential.
All doom and gloom aside....the US housing market has a long way to go before it hits bottom. When it does look for the market to stay flat for years...then slowly creep back to 05-06 price levels.
In the meantime millions of homeowners will lose their homes to foreclosures and millions more will be GIVING their homes back. In Socal homes have depreciated dramatically. As a result its common for someone to owe $100+ more on their homes that market value. People are walking away from their homes, giving them back to the lender.
The press isnt talking about this.
Something else, 90+ days ago the lenders started freezing HELOCs. I mentioned this before. Lenders were/ are 'reappraising' homes and as a result of the depreciation they are canceling home equity lines.
Most people (95%) are massively indebt, not flush with cash. Thats the American reality.
Bottom line, easy money is gone. That will effect the ability of (at least) Americans to buy in D.R. I am reading about the U.K. market starting to 'correct' in suit with the US real estate markets.
We have may properties in many parts of the world. I take no joy in telling you what I just did.
All doom and gloom aside....the US housing market has a long way to go before it hits bottom. When it does look for the market to stay flat for years...then slowly creep back to 05-06 price levels.
In the meantime millions of homeowners will lose their homes to foreclosures and millions more will be GIVING their homes back. In Socal homes have depreciated dramatically. As a result its common for someone to owe $100+ more on their homes that market value. People are walking away from their homes, giving them back to the lender.
The press isnt talking about this.
Something else, 90+ days ago the lenders started freezing HELOCs. I mentioned this before. Lenders were/ are 'reappraising' homes and as a result of the depreciation they are canceling home equity lines.
Most people (95%) are massively indebt, not flush with cash. Thats the American reality.
Bottom line, easy money is gone. That will effect the ability of (at least) Americans to buy in D.R. I am reading about the U.K. market starting to 'correct' in suit with the US real estate markets.
We have may properties in many parts of the world. I take no joy in telling you what I just did.
If you think the rental market is screwy in the DR. Try Hawaii, I pay $750.00 a month for a $300,000.00 house. I can get that deal all over this area I live in. And we don't even need to lock our house when were gone for the day.
J
John Evans
Guest
I've noticed that a lot of sellers are not in a hurry to sell- -ones that havent sold for a while even go up in price...does that make it a sellers market?
You just need to know the real prices in advance. You can bet anything quoted to you has a lot of room for negotiation. Never consider the first price. Also, in a lot of private sales the seller wants to leave the country, or already has and he will take a lot less for cash.
J
John Evans
Guest
Id be interested to know what you consider a gringo price- obviously some people put houses on the market at astronomical prices to see if anyone will bite- its probably still not a bargain after you got the price down on some of them .I would say just look around and see what average prices are in similar areas- if they are priced right there isnt much leeway for negotiation.One persons bargain is another persons house that they would not want to live in
The Gringo price is pretty much the first one you will get. I agree with you as you can see in my post. Know the prices in the area. By that I mean the prices that have been paid for houses, not the price asked.
buyers or sellers market
in the last month or 2 the construction price went up, but when you calculate cost of cement, blocks, steel and the cost of labor, it is still cheap compared to the asking price of the property once it's completed and up for sale.[/QUOTE]
The problem is selling it...
bob
in the last month or 2 the construction price went up, but when you calculate cost of cement, blocks, steel and the cost of labor, it is still cheap compared to the asking price of the property once it's completed and up for sale.[/QUOTE]
The problem is selling it...
bob
Ever since the first cinder block house was erected in the north shore, it has been a buyers market from then on...
Funny but true, in the DR you never pay the wrong price for any property like in other RE markets around the world...
To become a smart buyer in the RE market of the DR you have to achieve one important goal firmly:
What you're willing to spend on ANY property is going to be the absolute price maximum you'll end up paying for it.
In other words: You're the one setting the value for the property, not the seller. In all instances sellers set a "wished" for price and know that it'll be much less than that at contract.
Foreigners used to negotiate using their imported know how, often pay within the margin of the desired priced or at worst the wished for by the sellers. Dominicans use time as their most powerful tool to close deals at the prices they set from the beginning.
After all it was the seller who initiated the will to put for sale the property in the first place; hence they're under the clock to acquire funds.
Used to be that most contracts in the DR were closed after socializing among the parties involved and it only took a handshake to seal the deal. A mere "Acuerdo" was done and that was all it took; nowadays things involved RE agencies doing the show and dealing in between both parts.
Time is a very powerful tool to use in buying property in the DR, if you learn to use it as Dominicans do; you're bound to become a smart buyer...
Nice post PICARDO. Puts the old saying in perspective .. Something is only worth what someone will pay for it! 
Buying a house in the DR is the same as buying a painting on the beach in Sosua, Boca Chica, or anywhere else over here.
For example, the seller quotes you a price of 1,000rd, knowing full well you will bargain him down to 500rd. What you did not know is the real price that he will accept is 200rd.
The post before covered this quite well.
For example, the seller quotes you a price of 1,000rd, knowing full well you will bargain him down to 500rd. What you did not know is the real price that he will accept is 200rd.
The post before covered this quite well.