Cheap investment properties

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jjwilliamson85

New member
May 9, 2008
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Hi

I am currently living and working for an indefinite amount of time in the DR, in Santo Domingo. I have some money in a bank account back at home, and am weighing up the possibility of using it to buy a cheap apartment in this country and having the rental income suppliment my current income. I don't really have the money to spend on a beachfront property, as most of the discussion on this board seems to cover, as i am not eager to take out a bank loan. I'm looking for something more with the aim of renting to Dominican people on a permenant basis, rather than as holiday accomodation. Can anybody suggest somewhere online where i can look in order to do some early research. Also, can anybody suggest the sort of prices i would be expecting to pay, for example, for a cheap apartment in Santo Domingo or San Cristobal? What sort of price range is there? I am currently just looking at figures, seeing if this sort of thing is viable etc. Any advice would be gratefully received. Thanks.

Joe
 
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Matilda

RIP Lindsay
Sep 13, 2006
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In juan Dolio, apartments on the beach road, but not on the beach go for around 60,000 us$ up to 100,000. Rental then is around 300 a month to 350
 
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johne

Silver
Jun 28, 2003
7,091
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jjwilliamson85 said:
Hi

I am currently living and working for an indefinite amount of time in the DR, in Santo Domingo. I have some money in a bank account back at home, and am weighing up the possibility of using it to buy a cheap apartment in this country and having the rental income suppliment my current income. I don't really have the money to spend on a beachfront property, as most of the discussion on this board seems to cover, as i am not eager to take out a bank loan. I'm looking for something more with the aim of renting to Dominican people on a permenant basis, rather than as holiday accomodation. Can anybody suggest somewhere online where i can look in order to do some early research. Also, can anybody suggest the sort of prices i would be expecting to pay, for example, for a cheap apartment in Santo Domingo or San Cristobal? What sort of price range is there? I am currently just looking at figures, seeing if this sort of thing is viable etc. Any advice would be gratefully received. Thanks.

Joe
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Don't do it. Use the search feature here on dr1 and see what can happen when a Dominican refuses to pay your rent.Then look at the cost of your "cheap" apt. and the rent it MIGHT bring in. Determine the possible return on cash and then keep your money in the bank or another investment.
 
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leeanna

New member
Feb 22, 2004
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I don?t like to waste my time,but if you are serious,you could build 6 apartments for that same one hundred gran and rent the six for about 300 each.Of course you would need to buy a piece of land.You could build on about 500 mts. which in the PC area, I could help you get one at around 60 dollars a metro.So with about US $130,000.00 investment you could bring $US1800.00 a month.Despite what people are saying, there is a big demand for these kind of apartments here!
 
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donal1960

New member
May 14, 2008
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Re: Investment

Hey Joe,

Spent a bit of time working in Santo Domingo myself on a project which unfortunately came to an end. Lucky you. I still return for holidays as I made a lot of good dominican friends. Check out
SuperCasas.com - Homes for sale Dominican Republic, condos, villas, caribbean real estate - super-casas for a good selection of properties at realistic prices. I also liked a previous reply recommending the purchase of a site and construction of a small apartment block given low labour charges in the DR. However in all transactions the use of a trusted dominican as a front man would be a good idea in obtaining value for money. Let me know if you want more advice
 
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johne

Silver
Jun 28, 2003
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leeanna said:
I don?t like to waste my time,but if you are serious,you could build 6 apartments for that same one hundred gran and rent the six for about 300 each.Of course you would need to buy a piece of land.You could build on about 500 mts. which in the PC area, I could help you get one at around 60 dollars a metro.So with about US $130,000.00 investment you could bring $US1800.00 a month.Despite what people are saying, there is a big demand for these kind of apartments here!
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In today's world of foreclosures one can duplicate that return on investment in a first world country. Also a lot easier on the learning curve of real estate laws, lanquage, culture and needs (of the renter). Not necessary to have such an exotic investment such as this unless I'm missing something here. If I am-I would welcome the information.
JOHN
 
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sweetdbt

Bronze
Sep 17, 2004
1,574
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If you have an itch to invest money in the DR, a much simpler, and likely safer and more profitable route would be to simply put it in CDs in the Banco Central or open an account in an investment house like Anoeca. 16% interest on peso accounts is obtainable. This would pay the equivelant of over $1700.00 on a $130,000 deposit, and you wouldn't have to worry about maintaining the apartments or keeping them rented.
 
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johne

Silver
Jun 28, 2003
7,091
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sweetdbt said:
If you have an itch to invest money in the DR, a much simpler, and likely safer and more profitable route would be to simply put it in CDs in the Banco Central or open an account in an investment house like Anoeca. 16% interest on peso accounts is obtainable. This would pay the equivelant of over $1700.00 on a $130,000 deposit, and you wouldn't have to worry about maintaining the apartments or keeping them rented.
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I need to disagree with this because of the use of phrases such as "likely safer", "more profitable route" and "wouldn't have to worry about maintaining.."

A great deal has been posted here in the past about investing in peso accounts and OP should research VERY throughly.
 
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GringoCArlos

Retired Ussername
Jan 9, 2002
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Don't do this in the DR - too many horror stories and problems, especially for a foreign investor.

A better choice may be to wait another 6 to 9 months, and then swoop up a foreclosure in the Miami area. You would also get legal protection against your tenants, title insurance, GOOD TITLE, and the possibility of good financing from a bank which would be more than happy to get property off their "Real Estate Owned" account at the bank.

With a limited amount of leverage using, say 50% borrowed money, you would also get more bang for your investment, and at the same time maintain safety against going upside-down on your investment.

LOTS more foreclosures coming there, and some real deals down the road.
 
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sweetdbt

Bronze
Sep 17, 2004
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I certainly did not say research should not be done johne, but last I checked the interest rates I stated are accurate, and I would challenge you to find one post on DR1 from anyone who has had a problem investing in either of the 2 places I mentioned. I certainly don't recall any.

Of course if you were foolish enough to put your entire life savings in peso accounts, a major devaluation in the peso could be disastrous. If a similar amount is invested in dollars or euros, changes in the exchange rate in either direction will be offset.

It is a simple fact that an apartment building comes with ongoing maintenance and marketing expenses (to say nothing of headaches). Empty units don't generate revenue; buildings that aren't maintained aren't going to stay occupied, and if you need the money for something else it could take years to sell.
 
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johne

Silver
Jun 28, 2003
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sweetdbt said:
I certainly did not say research should not be done johne, but last I checked the interest rates I stated are accurate, and I would challenge you to find one post on DR1 from anyone who has had a problem investing in either of the 2 places I mentioned. I certainly don't recall any.

Of course if you were foolish enough to put your entire life savings in peso accounts, a major devaluation in the peso could be disastrous. If a similar amount is invested in dollars or euros, changes in the exchange rate in either direction will be offset.

It is a simple fact that an apartment building comes with ongoing maintenance and marketing expenses (to say nothing of headaches). Empty units don't generate revenue; buildings that aren't maintained aren't going to stay occupied, and if you need the money for something else it could take years to sell.
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Go for it. Do whatever ytou think is good for you and yours.
Good luck
JOHN
 
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GringoCArlos

Retired Ussername
Jan 9, 2002
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Investing in Banco Central certificates around election time might be one of the riskier options I can think of. Who knows what can happen once Leonel is reelected, and who knows who he will appoint to run things once August 16 comes around as well. Maybe he will make Diandino the head of Banco Central, and he would pull a "Metro" or a "Bernanke" on Banco Central.

Who knows? At this moment, I wouldn't think of doing that with my money.
 
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johne

Silver
Jun 28, 2003
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GringoCArlos said:
Investing in Banco Central certificates around election time might be one of the riskier options I can think of. Who knows what can happen once Leonel is reelected, and who knows who he will appoint to run things once August 16 comes around as well. Maybe he will make Diandino the head of Banco Central, and he would pull a "Metro" or a "Bernanke" on Banco Central.

Who knows? At this moment, I wouldn't think of doing that with my money.
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Ageed.But as an alternative you can play red or black at the casino.
 
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Lambada

Gold
Mar 4, 2004
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STEVE G. said:
Not investing in DR = giving the opportunity to others to invest in DR
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Might I enquire where you studied logic? :) It isn't as if there's exactly a shortage of properties for sale in the DR.........:rolleyes:

The hype about 'missing out' which is used oft & in bright letters for those who prefer comics on advertising blurb is what fuels a lot of the emails I get from people wanting to move here. 'Shouldn't I buy now? won't I miss out?' It both demonstrates an insufficient knowledge base of the subject, the property market in DR & themselves as to whether the country will be right for them. And the answer as always is 'Take your time, do thorough homework, know the subject & its vicissitudes, know the market you are dealing with'.

If people know what they are doing, then fine. But please let's not muddy the waters with the 'missing out' routine. It only works with the very stupid. Unfortunately, there are a few around..................:cheeky:
 
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STEVE G.

Bronze
Apr 2, 2006
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Lambada said:
Might I enquire where you studied logic? :) It isn't as if there's exactly a shortage of properties for sale in the DR... But please let's not muddy the waters with the 'missing out' routine. It only works with the very stupid....
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Way too funny Lambada ... sounds like I have an agenda to sell some condos ?! ... if you only knew ... just to funny how some DR1 Members become very defensive on the subject ... very funny :laugh:
BTW the guy was asking opinion on ''to buy a cheap apartment in this country and having the rental income'' and ''is currently living and working for an indefinite amount of time in the DR, in Santo Domingo... and has some money in a bank account back at home '' ... what a big deal , come on guys ... don't kill his dream :dead:
 
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STEVE G.

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Apr 2, 2006
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No Agenda At All

A friend of mine , married to Dominican many years ago was introduced to buy a small hotel on the beach , even that time it was a great deal , but like always there were a lot of ''friends and family'' telling him not to do it , something like '' Are you crazy to buy in DR !? etc... just usual staff ... you know ... Years later he came back as a guest at the Resort now ( it was remodeled , rebuilt and became a 500+ rooms property ... nice beach front ) , successful many years business , never empty , worth a lot of $$$ now ... So my friend told me after all this years : " I think I should buy it then , I think I lost a chance '' , '' No you just gave the opportunity to someone else '' I told him ... that's all is about ... very simple :classic:
 
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johne

Silver
Jun 28, 2003
7,091
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Lambada said:
If people know what they are doing, then fine. But please let's not muddy the waters with the 'missing out' routine. It only works with the very stupid. Unfortunately, there are a few around..................:cheeky:
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"Muddy waters"? NO-the expression is "Steve, your logic is as clear as mud"
 
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