Are Property Values Dropping on North Coast ?

[william webster]

Brilliant Derf

NYC street boys/men sell umbrellas for MUCH more in the rain than on a sunny day

Supply & demand.. that's Economics 101

 

[jd426]

This is a conversation about Market Value, and perceptions of Market values..

of Real Estate...


I am sorry , but I fail to understand what this has to do with 29 cent books, and bags of Ice..
and price gouging during a storm ?

No 2 pieces of Property are EXACTLY Identical...even if they are Cookie Cutter Condos, One will always have a better View, or more of this or more of that
etc, so the rule applies..
Books , and Ice , are available by the thousands ,and more can be made
So, not exactly relevant , and hardly an Economics 101 lesson.

The last part of your statement in your prev comment is correct.
Until the transaction occurs, a Property has NO established value, real or otherwise.
If it did, there would never be BIDDING wars, ending up ABOVE asking price,
or Homes selling 40 % below "market" value ( other similar home sales)
Market value, even in a stable market is an Illusion in the mind of the seller or the buyer.. only when both meet at the exact same spot, does it become reality. Add Volatility ,and any price can be the right price.
Did the Housing Bubble not teach us that ?

 

[wrecksum]

Say what you like,and never listen to real estate agents,(shake your hand and give you back 10% less fingers) but I have recently bought two condos at half what they sold for a few years back and have made a ridiculous offer on another which has been provisionally accepted..
I have no idea,and care even less,about the multi-million properties in the closed off rich gringo ghettos but there are bargains out there if you want to take a chance.

I have noticed that when you want to sell, the agencies tell you it's a buyer's market and difficult but when you want to buy it's always a seller's market and difficult to negotiate.
What anything is worth is what someone is prepared to pay for it,and that's it.
Forget about value per square meter/foot or nearby amenities and all the other real estate gobbledegook.

Find the owner and make a silly offer.They can only say no,but cash talks..

 

[PICHARDO]

......

.They can only say no,but cash talks..

That's the key to RE in the DR.

Cash in hand determines the value of the property being bought. Period.

Asking prices are not the actual value of properties in the DR.
Most of the time it represents the "If I sell" value their owners would let the property go for, when they are not pressed to sell it.

Like said, make a silly offer and wait.

But cash is the deciding price setter on the value of RE.

 

[fifilein]

More expats are choosing to rent instead of buying because of the political and economical instability in the DR

this, renting is cheap and much safer here. once you spend more than the typical two weeks of vacation here, you know you can not trust the legal system and/or lawyers. real estate agents you already know you can't trust.

I have heard horror stories about duplicate titles (or however this is called), lawyers filling their pockets on real estate deals, ... and I am sure all of you know stories which would make the one's i have been told kids bedtime stories. No one I know would ever buy in the DR.

For me there is one additional reason. When you buy a condo in other places, you can be sure that they will be maintained. I rented a 2BR at Novus Mare in 2013, place was rather new and clean back then. Looked at it end of last year and everything looked filthy, water penetrated the top floor ceilings, ... would not even want to stay there. You can see abandoned development projects, condo buildings all over Sosua/Cabarete. Not really a good sight when thinking about investment security.

 

[fifilein]

Asking prices are not the actual value of properties in the DR.

that is not just for real estate, and also not just for the DR, that is the case for every investment allover.

i've seen it way to often, some business owner have just ludicrous asking prices, as long as no one puts up the cash to buy it, it is what it is. it for sure is not the value.

the buyer decides the value, not the seller. the seller can only decide not to sell at that price.

 

[chico bill]

this, renting is cheap and much safer here. once you spend more than the typical two weeks of vacation here, you know you can not trust the legal system and/or lawyers. real estate agents you already know you can't trust.

I have heard horror stories about duplicate titles (or however this is called), lawyers filling their pockets on real estate deals, ... and I am sure all of you know stories which would make the one's i have been told kids bedtime stories. No one I know would ever buy in the DR.

For me there is one additional reason. When you buy a condo in other places, you can be sure that they will be maintained. I rented a 2BR at Novus Mare in 2013, place was rather new and clean back then. Looked at it end of last year and everything looked filthy, water penetrated the top floor ceilings, ... would not even want to stay there. You can see abandoned development projects, condo buildings all over Sosua/Cabarete. Not really a good sight when thinking about investment security.

Good idea for those who have not bought. Plus with the uncertainty of the DR who knows when your property will be of little value. And it's good for owners who are looking for long term renters who actually will pay the rent.

 

[texan]

Several properties in Sea Horse Ranch have been lowered recently as owners seem to be anxious to sell. I have a good friend from Germany who has been trying to sell his house for 5 years with no luck and he seems desperate to leave. We all know almost every property in La Mulata (1,2 & 3) is for sale. I don't know if it is only high end villas, but it does seem the bloom is off the rose for property values?

If a house is for sale for 5 years the price needs to keep being lowered until it sells. If someone is desperate to sell someone will buy it at some point. I think the high monthly fees would make it harder to sell at seahorse ranch. For that much money it should have a golf course there included in those high fees.

 

[chico bill]

If a house is for sale for 5 years the price needs to keep being lowered until it sells. If someone is desperate to sell someone will buy it at some point. I think the high monthly fees would make it harder to sell at seahorse ranch. For that much money it should have a golf course there included in those high fees.

Yes a nice golf course. It's a nice place but $10 k a year in fees is ridiculous

 

[lifeisgreat]

Been checking out all types of real estate during my seven winters staying in the DR. Prices have been declining steadily, for many reasons. La Mulata is obvious. It's bad reputation has gotten worse and it's difficult to sell anything there. Price drops average $25 to $40 thousand in that area. Other areas like Perla Marina are also experiencing a price reduction but not as bad. Costambar prices are dropping, especially condos. The campo is the worst. Two friends tried to sell their houses and dropped the price by half. Still haven't sold them and haven't had even one person look at their properties. The reason for these price drops are many. The drop in the market worldwide since 2008, too many houses for sale, expats having to leave quickly for financial or medical reasons, etc. A drop in the Canadian dollar also affected sales in the DR. There are good deals to be had if you play the waiting game. More expats are choosing to rent instead of buying because of the political and economical instability in the DR and the significant rise in the cost of living here. Others areas like Costa Rica, Columbia, Belize, have become more attractive with cheaper housing, better access to cheap medical, etc.

The rise in crime and lack of enforcement, I suspect is causing some people to reconsider buying in the DR and others to get out as quickly as possible, even if it means taking a loss on their property.

Please clarify your perspective on lamulata worse really wow ....if anything it's better... Please don't just jabber some of you guys bring up past like its yesterday ..**** happens everywhere how's your backyard ? Smell of roses... By the way Dominican real estate online is so out of date it still shows my place still for sale even an old old 8 yrs ago listing ... And neighbour who's been there 6yrs is showing for sale ...so ya I would say perseption is everything..... 7rs ago area went tru purge out with old in with new...yeah a lot is for sale not much selling until a lot of sellers come to terms they lost almost half there investment is gone .. 8yrs ago my villa went for $240000 .. Well half that now.. Some sell to hold out 5 yrs trying get there 240000 back ...realestate is like a stock but better... Won't turn into toilet paper....there is only so much land in world ....

 

[santa110xyz]

There's a villa selling in SeaHorse Ranch for a listed price of $255K, four bedrooms, three baths, tenis court, pool Never seen anything that cheap in SeaHorse Ranch. Granted monthly condo fees are $700.

https://dominican-real.estate/prope...uxury-community-sea-horse-ranch.html#features

this property is located at the tennis courts and the entrance road is a dirt road, no asphalt, also it is completely open with a finca next to it
the shr employees motor bike parking there. i presume people are not even aware of this area in shr , it is not located in the villa area.

 

[LTSteve]

Several properties in Sea Horse Ranch have been lowered recently as owners seem to be anxious to sell. I have a good friend from Germany who has been trying to sell his house for 5 years with no luck and he seems desperate to leave. We all know almost every property in La Mulata (1,2 & 3) is for sale. I don't know if it is only high end villas, but it does seem the bloom is off the rose for property values?

Property values have been dropping for the last few years but it all depends on how motivated the seller is to get rid of the property. I sold a condo fully furnished in Las Terrenas a couple of years ago and had to take a major loss to get rid of it. Sea Horse Ranch is prime property and on the high side but again if the seller wants to sell than the property must be priced accordingly. Your price is only as good as the market will bare. Supply and demand

 

[windeguy]

The DR is not for everyone. Prices: Location, Location, Location

As someone in the business what do you think cleaning up Sousa would do for property values ?
It has become so sleazy and physically dirty here it reminds me of my time spend of Managua, Nicaragua.
Also the cost of living in DR has become much higher than most US cities and certainly higher than Colombia. I think Costa Rica is about equal.

I just returned from Cali and Medellin Colombia and looked at some beautiful 2 bedroom condos (with gated parking) for $150 - $170K with $85 a month condo fees. For the most part the cities are clean, safe in most areas and restaurants are great. The bars are not full of hookers but meeting women there even for an ugly retiree like me seemed doable.

Property taxes, utilities and food seemed much more reasonable.
Residency is fairly straight forward and about half the cost to have someone process as it cost me here. And driving there seemed civilized and all the cars and motorcycles had lights at night !

I will need to return in two months to complete it but I want to establish a bail-out place in case crime keeps getting worse in the DR.
I love the DR but my place has been robbed twice in two years and I am sure everyone here has their own horror stories about that.
If you don't feel secure in your own house you will look to move.

Did you buy in La Mulata? Location, location, location. One possible goal of cleaning up the prostitution in Sosua is to attract more retirees ( unlike people like yourself who are still working:bunny.
(Being retired and yet "in the business" seem to be at odds.)

Yes there are cheaper places to live. Always will be. I would have never, ever, even for a second considered Columbia. But that is just me.

Property tax is more reasonable in Columbia? Few people pay property tax in the DR. Can't be more reasonable than ZERO. Wait, I thought someone in real estate would know this.

The poor state of world financial markets, low FOREX rate for the Canadian dollar, and many other factors in specific areas of the DR have influence on prices. When I purchased 14 years ago, there was a similar situation.

Without an MLS system there really is no way to know what is happening in general with property values in the DR. Certainly you can see specifics of certain places selling for X when the asking price was Y.
The general scheme is to set a price so high only a fool would pay it, and to wait for that fool.

From what you stated above, the DR is not for you.

 

[PeterInBrat]

Too many buyers have no clue how to value a property or buy speculating on future value. Sellers watch too many reality shows on making a quick buck by flipping.

I was talking to an expat seller here about his trainwreck of a property. He was bragging about how all the ugly floor tiles were imported. Several needed replacing, so where would a buyer get a dozen more? The place has been on the market for six years. No potential buyers and he's saying what a bargain it is.

 

[Cdn_Gringo]

Please clarify your perspective on lamulata worse really wow ....

That's the nature of rumour, speculation and idle chatter. The Real Estate Motto is Location, Location, Location. It only takes a few unfortunate incidents that get press and are repeated to tarnish the image of area. A few break ins, shooting a cow, a high concentration of anal retentive Germans and the damage is done.

It can take years to overcome this perceptual damage and will require lots of work and obvious change. My old neighborhood a few years ago was known for gunfights in the streets between security and ladrones a couple weekends a month. Now it's much better thanks to the efforts of the residents and a good security company. But the reputation from the past still comes up from time to time. The high concentration of anal retentive European residents continues to cause some strife within the community but new buyers won't know that until they move in.

For $700/month in fees, you too can live in a community that is not known for violent crimes against residents and no livestock walking the streets. To some that's worth $700, to others it's not. If you are buying a property here as an investment and expecting some grand return, you are probably in for a surprise. After reading DR1, would you buy a house here? The first piece of advice offered to newbies is, everybody say it together, "Rent first". After a year, just about anyone can walk into a villa that has been on the market for a couple of years, buy it for much less than is being asked and know that the best they can expect at resale is what they paid or less. Hoping for more is fine, but may not be reality. The DR market is not the same as in Smuckmagosh Ohio.

Sure some people do ok. The right property, in the right location, meeting up with the right buyer at the right time. That last two are really important. DR Realtors are not renowned for their diligence in getting the right buyers to the right properties. The ones who make money on Real Estate here are the developers and builders on the initial sale. After that, in current times, it's usually a gradual or sometimes steep downward slide going forward.

That's why the rental market is so good these days. These high end homes do not sell fast enough. When homes are priced beyond the means of 75% of the population savvy/lucky buyers control the market. This is where the idea of value being equal to what someone is prepared to pay you on Monday @ 11:45, comes from. If you turn the offer down, it will probably be a long time before you get another one. If you can wait, great, if not, you take what you can get and move on.

 

[PeterInBrat]

I think rental costs are down now too on the North Coast due to so many empty condos. Why buy a condo for $200K when you can rent the one next to it for $1500/month?

 

[fifilein]

all the talk in here makes me want to look for a nice villa, offer 10cents on the dollar asking price and pay in cash

 

[windeguy]

all the talk in here makes me want to look for a nice villa, offer 10cents on the dollar asking price and pay in cash

Please do and report back.

 

[retiree]

Some people prefer to own rather than rent. We are snowbirds and spend 5 months in the DR. We own our home, have it furnished to our taste, come to the same place every year and everything is how we like it. Have been doing this for 15 years. If we sell it for less than we planned it is still worth it.

 

[Cdn_Gringo]

Some people prefer to own rather than rent. We are snowbirds and spend 5 months in the DR. We own our home, have it furnished to our taste, come to the same place every year and everything is how we like it. Have been doing this for 15 years. If we sell it for less than we planned it is still worth it.

That is the attitude needed to walk down the path of contentment here. Obsessing over property values is a sure path to an ulcer and/or liver failure.