I was wondering if the U.S. market has has any effect
on the markets in the DR yet? Please advise!
on the markets in the DR yet? Please advise!
- Thread starter incredible
- Start date
Are real esate prices deprecating in the DR market yet?
Yes it does. Only the opposite way. There are more visitors in total from The European Union than the US. The US dollar being pegged currently at 1-1.56 Euro boosts the market here as a lot of the pricing is done with the rapidly depreciating US Dollar.
So the buyers from Europe are finding a lot of bargains.
Lol!!!!! Lol!!!!! Lol!!!!!!
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Lol!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The only effect that is noticeable is that of the construction materials going to the moon. As such the beat of hammers is in a lull (in some places).
The reverse happens; most already constructed homes go up in price as the tag to build a comparable one with the rising material prices makes them all more a sweet deal for the purchase.
Let me be blunt here and tell you that in the HISTORY of the DR, real estate is the only thing that goes up and stays up for good...
Empty lots, agricultural acreage lose value as the market exchange rates fluctuate from time to time. The gain back value again but ever more slowly against the backdrop of already constructed homes or lots with commercial edifications on them.
I know of friends that purchased once hot property for home construction, only to see the contractor fold the tent as the budget for the general works becomes too expensive to even try. The lots are titled as land for development, but no streets, sewage or anything remotely liken to a lot partitioning has taken place.
He can point the whereabouts of his titled land, but the lot sits in the middle of hundreds of the others lots still without any visible partition.
He can sell the lots if and only if, another contractor makes a bid to a good majority of lot owners and handles enough funds to make the villa a reality.
His lot is worth sh*t to say the least, still keeps the original value but has lost any equity gained since initial purchase and bid for project started.
That's the kind of real estate deal that is not as safe as buying a home in the DR. The only people that sell property at a loss in the market of the DR are foreigners that either want to move someplace else in the country or can't afford paradise anymore and need the money ASAP...
The RE market of the DR shares very little with the US one, mostly due to the cash vs. loans deals that are concurrent in each market.
In the DR there can't ever be a bubble to burst, simply because there isn't one to start with.
The reverse happens; most already constructed homes go up in price as the tag to build a comparable one with the rising material prices makes them all more a sweet deal for the purchase.
Let me be blunt here and tell you that in the HISTORY of the DR, real estate is the only thing that goes up and stays up for good...
Empty lots, agricultural acreage lose value as the market exchange rates fluctuate from time to time. The gain back value again but ever more slowly against the backdrop of already constructed homes or lots with commercial edifications on them.
I know of friends that purchased once hot property for home construction, only to see the contractor fold the tent as the budget for the general works becomes too expensive to even try. The lots are titled as land for development, but no streets, sewage or anything remotely liken to a lot partitioning has taken place.
He can point the whereabouts of his titled land, but the lot sits in the middle of hundreds of the others lots still without any visible partition.
He can sell the lots if and only if, another contractor makes a bid to a good majority of lot owners and handles enough funds to make the villa a reality.
His lot is worth sh*t to say the least, still keeps the original value but has lost any equity gained since initial purchase and bid for project started.
That's the kind of real estate deal that is not as safe as buying a home in the DR. The only people that sell property at a loss in the market of the DR are foreigners that either want to move someplace else in the country or can't afford paradise anymore and need the money ASAP...
The RE market of the DR shares very little with the US one, mostly due to the cash vs. loans deals that are concurrent in each market.
In the DR there can't ever be a bubble to burst, simply because there isn't one to start with.
in the 80s nobody thought US RE was in the bubble and it burst. up until a few years back nobody thought US RE was in the bubble and in burst. very few people can understand that they are in the bubble until it bursts, not just RE but in all markets. is the oil market in the bubble right now and will the price retract to 100 US a barrel or below? will see. Fidelity or Citi Group or UBS will pay you millions if you can say for sure.
is the DR RE market in the bubble? i don't know, but it sure is not liquid. Perla Marina has "for sale" signs all over the place. Cabarete too. Costambar too. also take into consideration that RE agencies take as much as 10% cut on the price, so if you paid say 330K for a condo, as much as 30K might have went to the RE agency which sold it, so in fact that condo is worth 300K.
is the DR RE market in the bubble? i don't know, but it sure is not liquid. Perla Marina has "for sale" signs all over the place. Cabarete too. Costambar too. also take into consideration that RE agencies take as much as 10% cut on the price, so if you paid say 330K for a condo, as much as 30K might have went to the RE agency which sold it, so in fact that condo is worth 300K.
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WOW!!
Only prices high, higher and more higher! All the way until the Judgement Day.
Cool! Very cool!
I love it! No, honest, I love it!
Cool!
Can anyone get me some contact numbers,i'm currently searching for a condo to buy.We are considering Costambar or Sousa it's for rental .Any info will be helpful.
the OP asked if the market was deprecating which is distinctly different than depreciating,
definition of deprecate below. a deprecating real estate market is a fascinating question bordering on existential. not sure the above posts quite answer the question.
deprecate
One entry found.
deprecate
Main Entry: dep?re?cate
Pronunciation: \ˈde-pri-ˌkāt\
Function: transitive verb
Inflected Form(s): dep?re?cat?ed; dep?re?cat?ing
Etymology: Latin deprecatus, past participle of deprecari to avert by prayer, from de- + precari to pray — more at pray
Date: 1628
1 aarchaic : to pray against (as an evil) b: to seek to avert <deprecate the wrath…of the Roman people — Tobias Smollett>
2: to express disapproval of
3 a: play down : make little of <speaks five languages…but deprecates this facility — Time> b: belittle, disparage <the most reluctantly admired and least easily deprecated of…novelists — New Yorker>
— dep?re?cat?ing?ly \-ˌkā-tiŋ-lē\ adverb
— dep?re?ca?tion \ˌde-pri-ˈkā-shən\ noun
definition of deprecate below. a deprecating real estate market is a fascinating question bordering on existential. not sure the above posts quite answer the question.
deprecate
One entry found.
deprecate
Main Entry: dep?re?cate
Pronunciation: \ˈde-pri-ˌkāt\
Function: transitive verb
Inflected Form(s): dep?re?cat?ed; dep?re?cat?ing
Etymology: Latin deprecatus, past participle of deprecari to avert by prayer, from de- + precari to pray — more at pray
Date: 1628
1 aarchaic : to pray against (as an evil) b: to seek to avert <deprecate the wrath…of the Roman people — Tobias Smollett>
2: to express disapproval of
3 a: play down : make little of <speaks five languages…but deprecates this facility — Time> b: belittle, disparage <the most reluctantly admired and least easily deprecated of…novelists — New Yorker>
— dep?re?cat?ing?ly \-ˌkā-tiŋ-lē\ adverb
— dep?re?ca?tion \ˌde-pri-ˈkā-shən\ noun
:laugh::laugh: I'm so glad someone else noticed. Course you're now going to have to explain existential...........
:laugh::laugh: I'm so glad someone else noticed. Course you're now going to have to explain existential...........
I love this girl.... she is always spot on !
hi. my name is Don. I bought a villa and it being built now. it is in Sousa. we bought from Watson homes in Sousa. If interested their Number is :809-571-1748. The realtor is named Keith Watson. He is a good guy and will help you lots. The e-mail Address is Keith@watsonhomes.tv Also has a website; Watson Homes Sosua and Cabarete, Dominican Republic real estate agents Hope this helps
Believe you me! It was a missing letter that was all!!
Not the later as you diligently investigated...
Again: The US RE market is not even close to comparison to that of the DR by a long shot!
The US market is IOUs against the good chunk of the DR market CASH RE market.
A bubble happens when you have the major ingredients (in the RE market) as artificial demand for housing create based on speculators rather than actual migration/wealth/demand indicators.
The flipping market was alive and well due to 3 things in the US:
A rapidly growing population in cities/states where slow growth or drops in population was the trend (think FL, NC, SC, GA, CA, NY, etc...) with a heavy influx of multi families sharing the costs of housing to be able to afford most mortgages.
A constant demand from speculators(flippers) to the construction industry, thus creating a steady support based on 75% of the market going to flipping' properties instead of actual families buying to reside in the homes.
This represents a remarkable backslash to poor planning, with energy conservation by state and local authorities. Most of the damaged caused to the RE market came in the shape of entire developments based on private transportation to support the communities. As such, the markets with relatively efficient public transport instead of relying on private cars saw less damage from the speculating market drop and devaluation than those with must have private vehicles to do all.
Energy conservation and mass transportation will be the pivotal points of any new housing market development in the US and the world, for the time being and long term future.
Oil prices were only a part of the whole crisis...
Many new housing communities were developed without any long term studies on the natural resources that today are under heavy strains as it is... Like water in many cities and states.
The DR is not even close to having a RE bubble bursting, simply because the bubble is not there, all those for sale properties are paid for by a long margin. How big a margin? Just pick any DR bank loan for big projects and you'll notice the big contrast of both markets when it comes down to financing.
In the DR as stated, only foreigner that need to move or made investments into the RE market of the DR will be on the losing end of the stick.
Why you may ask? The RE market in the DR is not a market with the same dynamics and parameters as other developed countries.
In the DR the housing market rarely follows demand or vice versa; the construction market is ruled by the price of material as the labor has remained manageable for a long time now (cheap Haitian labor).
Most people build their homes when the prices are within an affordable rate to the conditioning of the consumer's pockets. Housing is built by those that mean to live the property, not flip'em.
The RE available in the areas you mentioned are NOT the RE market of the DR, those areas are the RE aimed at foreigners that should know better than use local Realtors to track local trends/market. If they used the same common knowledge they would apply when investing into RE in their home countries, believe you me the outcome would be a much smarter buyer/investor...
Dominicans don't dream of living with the master bedroom facing the sea. We dream of our master bedroom windows facing a nice green lawn with a pool. The sea we can get to within a few minutes/hours without a problem.
Most foreigner used to living in cramped flats and cubicles, head like cartoons (let out of the comic pages to liberty) to the coasts of the DR. The housing there is aimed at them.
When you want to discuss the RE market of the DR, please use the city of SD or Santiago as well as other major cities. Stop using campitos in the coasts to brand as samples of our RE market as a whole.
I had a visitor at home from the UK last year; he was dumbfounded when I welcomed him via the despacho on the side door next to the main door to come into the house (he was there in a biz visit). I explained to him that it was customary for homes of professionals in the DR to have an office right on the front of the home (with separate entrance from the main galeria) that connects into the home as well via a second door and foyer.
Then I explained that the despachos are almost always situated with a reading and book cases room before heading into the main guest's sala. The reading rooms are what some people call study rooms for kids and adults. There Dominicans made sure to have the Pequeno Larousse ilustrado and a host of encyclopedias among other books. No TV or Radios to take away from the main point of having a quite place to let your brain think aloud...
Then I walked him into the guest's sala (I'd received him in the main Sala Familiar before instead of there as he was one of my nephew's acquaintance). I explained that people not close to the family where hosted there for the most part. We walked over to the main Sala Familiar and that's where a comfy living room set is waiting for the general family and friends to crash at any moment to watch TV or chat on the phone.
We proceeded to the French patio, where we host morning breakfast to enjoy the early morning light and fresh flower bed fragrances. We continued to the Spanish patio, where we host most gatherings/party hosting, etc...
We headed to the first kitchen, where the service can quickly prepare morsels or anything to offer the guests without having to head to the main kitchen.
We headed to the main kitchen where he understood that a kitchen in the DR is meant to be used not treated as a portrait to look at and marvel at the design...
I showed him the Despensa where we keep the family rations fresh and safe from any pests. He couldn't understand why we kept 50 gal tanks for rice, beans, sugar, etc... I took it as an indication that his wife (being Dominican) was in the UK for too long to get back into Dominican cook time...
He was blown out of his shoes when I answered his repeated questioning on the tag price for our humble home to be half of that he paid for his in Punta Cana, and yet his looked like 10 by 12 one piece flat to mine...
Now that should give you an idea of where the coast RE market aims to provide to people used to pet kennels for homes unlike many other Dominicans living humble life?s in the interior of the country.
My gas tank in the rear patio was something he meant to ask for but I made sure to skip it until he was seated, as to let him know the price I get gas delivered to my home once every blue moon... LOL!!!
No i think no effect on Dr market by US. It may be happen in future. But at present i will not happen. I have confidence on this issue why because i have been investing in DR market form five years. For more details contact me..
property investment
property investment
CONTACT NUMBERS for heavennsangel
Call me!!!! 809-451-1402 is my cell. Office is 809-571-3131 ext 111. Ask for Phyllis. I know of a 2-bed/2-bath 1st floor with covered terrace and hottub - furnished - in Costambar with $150per month maintenance fees that you could purchase for about $82,000US. Of course, there are more that are slightly more expensive. In Sosua there is quality construction almost completed at great prices. Be happy to show you.
Can anyone get me some contact numbers,i'm currently searching for a condo to buy.We are considering Costambar or Sousa it's for rental .Any info will be helpful.
Call me!!!! 809-451-1402 is my cell. Office is 809-571-3131 ext 111. Ask for Phyllis. I know of a 2-bed/2-bath 1st floor with covered terrace and hottub - furnished - in Costambar with $150per month maintenance fees that you could purchase for about $82,000US. Of course, there are more that are slightly more expensive. In Sosua there is quality construction almost completed at great prices. Be happy to show you.
In Santo Domingo I think prices have been stable for a while and that it has gone down somewhat the last year. I dont think there is a bubble and that something similar will happen like in the US. In most of the world prices have gone down the last two years. Maybe soon it will go up again. Maybe some of the tourist areas are more volatile than Santo Domingo.