I am looking at moving to the DR to start working as a sales agent for a new luxury golf course development on the South Coast. What is the current real estate market like? Are people buying condos and houses? What areas are the hotest and what are the slowest markets? What have prices done over the past year? Where are the buyers coming from? Any insight is appreciated as there is little information available on the web.
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Real Estate Trends
I assume it is the new metro development on the river in San Pedro. Good luck. No tourists at the mo in Juan Dolio and as far as I can tell no buyers either!!! Prices gone up over the last year. People say they are selling but no idea who to.
More info pm me
Matilda
More info pm me
Matilda
RE is always going to be good here in the DR. But with the recent kicks in the financial teeth of the US I don't see the RE business doing spectacular. I know RE has slowed a lot on the North Coast.
It could be the season, sure, but I'm unconvinced at this point. This same time last year property was 'flying off the shelves' and this year is definitely is not.
Good luck!
Ah yes - so you're moving here to sell real estate and you want us to tell you where's hot.
And how much will you be paying me for my assistance to help you get rich?
And how much will you be paying me for my assistance to help you get rich?
Real Estate prices and thus business in exotic vacation and retirement locations like the DR, depend heavily on the drive coming from people abroad and for this reason on their countries' economies. If people abroad have money to spend, and especially if the RE market there is flying high, so that people can re-finance or sell and take in gains, chances are we here will get a cut of all the business this can generate, as long as what we offer is safe, secure and of a good quality price ratio. And the DR did, big time... which is what drove up prices so much in the last 2 to 4 years.
Right now, the picture based on above rationale looks bleak to put it mildly.
Additionally to that, people here seem to be somewhat slow in reading the signs on the walls... even if they come in B I G letters. So, they keep prices high up and even if they haven't sold in 4 years, some will keep on increasing their asking prices so the keep up with something which has stopped long ago. An effect which threatens to further blow up a bubble.
Now, in the DR, like in many comparable markets, most each location acts very differently, as they seem to appeal to different nationalities and or age groups, yes even gender and especially social levels and interests. One can not compare RE in Sosua with Puerto Plata city or La Romana (Casa de Campo) with Santo Domingo or even Juan Dolio and Cap Cana with all the above... and so forth. So, I thing reactions to the market fluctuations abroad may affect each location differently and at different times.
I have now spent almost a month looking at villas and houses in Puerto Plata... intensively. My comments to follow here do not come as a recommendation to anyone, but I've come to the conclusion that in my case and for the location and type of property I am looking at, this is NOT to time to buy as I seem to see an over offering of target properties at prices way to high at the current time. That paired with the limited economy of a little town like Puerto Plata, and the issues abroad, leads me to believe that unless I can buy from a distressed seller at a heavy discount, I may stand a chance to find my property decrease in value in the next two or three years.
One also has to take into consideration the value of RE in other countries. For an example, I used to build, buy and sell RE in South East Florida from 1996 to 2001. A house I sold in 2001, in a very nice development of a nice community of West Palm Beach for around USD 150K, went up to USD 375K in 3004... now they are back to the 180's and on a depressed Dollar... in other words, in Euros it would be less than what we sold it for in 2001!!
Now, this is a nice 4 bed/3 1/2 bath, tarmac streets, low crime, nice schools, supermarkets nearby, 23.9999/7 electric power water and cable, etc home, in a country where you still stand a better chance of finding an appropriate income to pay of a AAA mortgage.
Meanwhile, similar properties in Puerto Plata... a small port town in a small under developed country plagued with crime, bad streets a low quality services can be found offered up to 3/4 hundred thousand Dollars.
London, Paris, Zurich, Munich, Miami, New York, Tokyo...
Do any of the DR's location, yes even big cities like Santo Domingo and Santiago fit into above list? Certainly not.
I love Puerto Plata, I have not been born here, I chose it, but yet I recognize the fact that it is not comparable to above cities for too many reasons to list.
Lets calcualate what we are looking at here: If you'd buy a home in Puerto Plata for, let's say, USD 400K and get a conservative mortgage locally for 3/4 or the value (300K) at 11% (that's considered cheap here for locals) over 20 years... guess what the monthly payments would be?
3000 USD! Now, it's is suggested that raw mortgage (no insurance etc) should not be more than 1/4 of the family income! In our example that would be USD 12K... every month. I presented this simple calculation to many of these would be sellers and pushed over a piece of paper and my pencil and asked them with a grin to write down just 100 families in Puerto Plata with a constant income of USD 12K or more each month... while I would give them a list of a good 200 homes currently being offered at similar prices at this location.
IT DOES NOT WORK OUT.
Well, so I'm then told by some wold be sellers, we can't calculate like that.
So, let's do the rent-income on capital calculation. Most of these would be 400K villas de lujo (what is "lujo" anyway? Does it have running water, windows, lockable doors, is that it?) bring in in rent realistically? USD 1500.oo, really? Well, lets assume they could really get 15 hundred every month of the year... that would still only be 3.75% GROSS (you can deduct legal fees, maintenance, repairs, etc)... you are better off putting your money in a CD in Europe and enjoy your 6 to 7% without having tenant hassles.
But yet again, so I'm told, HERE in the DR I am not to calculate like that either... it's of bad taste :bunny:.
- So why should property here be more expensive than in quaint locations in Southern Florida or the Spanish Costas?
- What would warrant prices the local economy can impossilbe affoard in these quantities?
- Why would anybod "invest" in RE in a risk location for gross returns about half of a safe deposit in a strong currency?
I don't want to discourage anyone here, then good deals and values are to be found in the DR, but buyers need to run the numbers and sellers will have to face the facts and accept that numbers is what RE boils down too, especially in a surrounding market situation which seems increasingly depressed.
Will RE agents and brokers still have business? You bet'cha! Even in a sell-sell-sell market... who does the selling... ?
As for me, I am back at looking for a place to rent 4 to 5 bedrooms, 4 bath, safe, good electricity and water for a year or two... J-D.
Ah yes - so you're moving here to sell real estate and you want us to tell you where's hot.
And how much will you be paying me for my assistance to help you get rich?
Is this type of response really necessary or productive? I'm thinking about accepting a job. It is at a resort so it is a fixed location and I specifically asked about the South D.R. I would like to know about the market in general as the US market is completely dead. I'm not looking to take away your business interest nor do I expect to "get rich". Apparently, there are no broker laws in the D.R. so anyone can get a commission on a sale, so if you bring me buyers, you will get paid:squareeye. Once the deal is finalized, I will post the project name and location for more specific info. Thanks to those that have been helpful with responses.
Great response and very helpful. I currently sell liquidation condos in Florida and throughout the US and we cannot sell, even at 50% discounts or greater because nobody can get a loan. I'm thinking that the DR market is an all cash market so this may not be as much of an issue (although the market for people in the US taking equity out of their homes to buy a second home is dead).
I have been told that 30% of the buyers for this project are from the DR, 30% are from Puerto Rico, the rest from Europe, the NE US and Canada in that order. Since we are in the South, the main draw from the Dominicans will be Santo Domingo. Are the locals really buying or able to buy "vacation real estate"? I have read online that other projects have recently sold $100,000,000 in 4 hours and cap cana sold $300,000,000 in a day. This shows that there may still be some life in the market, but I'm not sure if these numbers are real.
SCSCR--I actually believe these posters are taking it easy on you. Frankly with every response you reveal your naivete. You need to do a lot more homework about every aspect of doing business, living, surviving, prospering in the DR. It is a borderline lawless place--that's not to say it's not very attractive in many ways, but you need to understand that many of the world's marginally ethical people find their way to the DR and get into business--like real estate.
Personally I think that real estate in the DR is overpriced --the North Coast in particular--and that things will settle back to a more reasonable level very soon. The financial crisis in the US will see to that. Developers will have fire sales--if you like that kind of commerce, perhaps you will do fine. But first you have to decide if you want to try to operate in a business environment where there are no reliable regulatory safety nets.
I also think there are many fine, charitable, well-intentioned foreigners in the DR who contribute to the community--but most of them no longer need to earn a living.
Personally I think that real estate in the DR is overpriced --the North Coast in particular--and that things will settle back to a more reasonable level very soon. The financial crisis in the US will see to that. Developers will have fire sales--if you like that kind of commerce, perhaps you will do fine. But first you have to decide if you want to try to operate in a business environment where there are no reliable regulatory safety nets.
I also think there are many fine, charitable, well-intentioned foreigners in the DR who contribute to the community--but most of them no longer need to earn a living.
My German friend finally sold one of his villas. Free standing. Landscaped. Pool. Nice area of International school. In need of little cosmetic work. For $80 000 US. It took him two years to sell. Trying (unsuccessfully so far) to unload the two remaining and bigger villas for $140 000 - $150 000 US and all the raw land that he owns in Sosua..
I have no idea who buy (for cash!) houses listed at $200 000 US or even higher. And from where comes income/profit of dozens of new and new RE agencies that pop up in Sosua almost every month.
Hopefully other sellers are more successful and have better experience.
I have no idea who buy (for cash!) houses listed at $200 000 US or even higher. And from where comes income/profit of dozens of new and new RE agencies that pop up in Sosua almost every month.
Hopefully other sellers are more successful and have better experience.
Yes. Most of the posters have been very helpful and this is the sort of information I was looking for. Solidad's post was neither informative nor helpful. I guess it helps me understand to watch out for the "haters" on this board. I understand that I will be moving to a third world country. I have read about the issues that I will face as far as living there. There is limited info on the real estate market and I cannot believe what my future employer is telling me as they want to paint a rosey picture. I am very skeptical of market conditions and in particular, that most of the buyers are Dominican. I cannot believe that there are that many buyers in the DR that can afford a $200,000 condo or $400,000 villa. The way I look at it, if it works out, great. If not, I'll give it six months and move back to the states. Please keep up the honest posts. I can handle the truth.
I own a colmado In Juan Dolio. As the new apartments are bieng built and then occupied, some of the new residents use my colmado. They are Dominican, who work in the capital in the week and have their beach house in Juan Dolio. Not all Dominicans are poor living in shacks. I would suggest that a large proportion of the sales that are happening at the moment are to Dominicans from the capital. So I hope that your Spanish is fluent!!
Matilda
Matilda
This is what I have been told, but am still skeptical. Are the units in Juan Dolio selling? Do new projects seem occupied or are they sitting vacant? This is really helpful.
Ah yes - so you're moving here to sell real estate and you want us to tell you where's hot.
And how much will you be paying me for my assistance to help you get rich?
one peso would be an over payment of one peso . . . be nice!
No one knows!!! The owners will tell you they are selling. Check out the websites. Metro are big builders, check out Coloniatropical.com, not sure about the other sites but google Juan Dolio. At the end of Juan Dolio where I am 4 projects have stopped at the moment - no money or no buyers - who knows. maybe just all having a holiday!
Many are those who don't know what to do and try to become either bar owners or would be RE-brokers. As they say in German: "Wer nichts wird, wird Wirt!"
Even some who came on here to proclaim that the DR RE-market was a "money tree" after one or two quickies, seem to have disappeared, their restaurant closed and up 4-sale and their RE-web operation shut down. What a surprise.
As Chuck Berry said... "they come, they go, only rock'n'roll stays!"
While money can be made, especially when one has the professional knowledge and experience and some capital on hand to invest when good deals come to their doors, doing business here ain't that easy! You look at how some RE-"agents" make it thru the month... and you must laugh when they try to tell you that two or three hundred thousand for a property at the end of a dirt road or a grand a month for a 3/2 with "sea-view" standing on the toes on a corner of the roof is nada... when the don't have that themselves... and never will.
Few are those who make a decent living in this business here, and those who do mostly because they have successful projects of their own and are highly professional and have extensive knowledge of the region and good contacts.
... J-D.
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It is the marketing, I think there is an interest
I think there is a lot of interest in the DR- particularly as a retirement destination - particularly for the middle class who is being hit.. but the marketing is geared is not geared to "escaping" or " simplifiying" and does not have the needs of say-- older retirees at the core-- i.e. access to medical, access to volunteer projects, access to library, cultural activities. I think that DR is missing a HUGE opportunity with the Baby Boomers who are coming and many who will have enough to buy a condo and then have say $1500 to $2000 a month... This doesn?t look RICH enough for the Dominicans.. but it is a huge market...lots of people in the STates want to move and would be happy to give up the stress if they were just catered to a bit
I think there is a lot of interest in the DR- particularly as a retirement destination - particularly for the middle class who is being hit.. but the marketing is geared is not geared to "escaping" or " simplifiying" and does not have the needs of say-- older retirees at the core-- i.e. access to medical, access to volunteer projects, access to library, cultural activities. I think that DR is missing a HUGE opportunity with the Baby Boomers who are coming and many who will have enough to buy a condo and then have say $1500 to $2000 a month... This doesn?t look RICH enough for the Dominicans.. but it is a huge market...lots of people in the STates want to move and would be happy to give up the stress if they were just catered to a bit
I have made this point before and was mocked mercilessly on DR1. Imagine that!
Among the points I was making was that many regions of the DR are not that welcoming to aging visitors--Cabarete is a great example. The sidewalks are mine fields for even the most nimble.
Elevators in the smaller buildings would retrofit them and make them attractive to the market that Moutainannie also believes is there.
Better health services and ways to take advantage of the skills and volunteer spirit of older retirees would really help.
This is a very big market--I agree that the financial mess in the US will continue to drive older middle class and working class Americans out of the country and to places like the DR in their retirement. But the DR has to recalibrate its thinking to be ready for this commerce.
Among the points I was making was that many regions of the DR are not that welcoming to aging visitors--Cabarete is a great example. The sidewalks are mine fields for even the most nimble.
Elevators in the smaller buildings would retrofit them and make them attractive to the market that Moutainannie also believes is there.
Better health services and ways to take advantage of the skills and volunteer spirit of older retirees would really help.
This is a very big market--I agree that the financial mess in the US will continue to drive older middle class and working class Americans out of the country and to places like the DR in their retirement. But the DR has to recalibrate its thinking to be ready for this commerce.