- Thread starter PICHARDO
- Start date
not a bad place to invest?
This project is just before the bridge over the river Higuamo. The entrance is between the massive electricity station and an enormous mosquito filled lagoon. The stench from the lagoon is unbelievable, and when the wind is in the right direction it blows it straight to Juan Dolio which is around 11 kms away. The beaches in Juan Dolio get filled with the trash from the river, and after any tropical storm the mess, including dead animals, is amazing. Given that a large proportion of the crime in JD is committed by San Pedro delinquents and Costa Blanca is on their doorstep, this would be the last place any sensible person should think of investing.
Just my 2 cents
matilda
Just my 2 cents
matilda
Chirimoya gets the point. The buildings themselves look nice, the community for being oceanfront looks HORRIBLE!
I'm starting to think Pichardo IS a PR person lol
Here are some cellphone pix from this mrng. I have no investments in the place and I'm not going to make any additional comments.
I am new to this forum however, I have lived in the san pedro-macoris area in the 90s when juan dolio was just starting to develop, but now see it overdeveloped and the cycle continues. I was in the construction/Real Estate business in the us and went-under due the real estate crunch and now I am just a spectator, but have learned my lesson of greediness of over-building and excess supply and the speculation factor behind it, but for those still in it in the us or the dr more power to you.
My question is how many over-priced developments can a market handle (in the dr) before it starts to stall or come down the bubble effect and some get stuck holding the bag. I have seen this happen in the us and then also in panama and now see it happening maybe even in medellin and cartagena colombia in the future. Where everybody is selling to you pie in the sky and speculating on the indefinete growth of the market.
Can the dr really continue this trends even with the down-turn of the world economy. Do you think that people will continue to purchase these high-priced expensive developments forever. Where in the past it's been seen, when the developers sell everything and are long gone with the money they do not really care of the ripple effect driven by greed and not good business practice and when the market drys up they will leave and just look for another destination to build. I was one one of those that fell for this cycle but now question it and I am more of a conservative investor now and leave the speculating to others.
My question is how many over-priced developments can a market handle (in the dr) before it starts to stall or come down the bubble effect and some get stuck holding the bag. I have seen this happen in the us and then also in panama and now see it happening maybe even in medellin and cartagena colombia in the future. Where everybody is selling to you pie in the sky and speculating on the indefinete growth of the market.
Can the dr really continue this trends even with the down-turn of the world economy. Do you think that people will continue to purchase these high-priced expensive developments forever. Where in the past it's been seen, when the developers sell everything and are long gone with the money they do not really care of the ripple effect driven by greed and not good business practice and when the market drys up they will leave and just look for another destination to build. I was one one of those that fell for this cycle but now question it and I am more of a conservative investor now and leave the speculating to others.
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"Doc",I hit the "LIKE" button after your post,but I really didn't "Like" your post,..."I LOVED IT"!
Only 8 posts,and you already know more about the future here than many who were born here!
"Keeo-On-Post'n",.please.
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Only 8 posts,and you already know more about the future here than many who were born here!
"Keeo-On-Post'n",.please.
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Beg to differ. Half a million dollars in Clearwater beach will just buy a condo ocean front.
Here in the DR the same money will buy two.
Taxes on the Clearwater investment could be 4,500 a year plus maintenance of 5,000, other charges 2,000.
A car is essential there, its an option in the DR.
In Europe along the South coasts France and England 1 million euros for an ocean front condo is commonplace.
DR is raising its amenity profile year by year plus it is developing into a major international air hub.
Many prices have doubled in the last 6 years in the DR without a blip.
Developing countries Brazil, Russia, China etc. are creating millionaires at an extrordinary rate plus in developed countries retired baby boomers have much leisure time and disposable income.
Countries such as the DR offer a tremendous value proposition and are magnets for investment.
pi2
Here in the DR the same money will buy two.
Taxes on the Clearwater investment could be 4,500 a year plus maintenance of 5,000, other charges 2,000.
A car is essential there, its an option in the DR.
In Europe along the South coasts France and England 1 million euros for an ocean front condo is commonplace.
DR is raising its amenity profile year by year plus it is developing into a major international air hub.
Many prices have doubled in the last 6 years in the DR without a blip.
Developing countries Brazil, Russia, China etc. are creating millionaires at an extrordinary rate plus in developed countries retired baby boomers have much leisure time and disposable income.
Countries such as the DR offer a tremendous value proposition and are magnets for investment.
pi2
If I may ask, where exactly is your home located in the DR Matilda?
I glimpsed at some pictures of the blog you posted and talked about of the hood, but can't find the location at all in it...
I think that there's still a distancing of what expats ascertain and what the RE values in the DR are both based on specifics in both.
Whilst in the US or UK RE values are based on demand/supply/greed, in the DR the same formula will not work. A family owns a home in a barrio or residential area of the DR, they want to sell but at the same time they want to sell to move into something better (upgrade). The problem lies in that the price they want to sell for is the same price (just about) of what it will cost them to carry out that upgrade in living somewhere else!
In the DR the RE values are based on the tip principle. Where the RE value of the highest priced properties rank the lower ones. That's to say that as long as the highest segment commands and gets commerce in ever higher values, the lower ranked properties will continue to seek higher values in return.
Take the above pictures as an example, in any other part of the world (pretty much) a property that sits in this hood would command a value that's representative of the residential zone it's located on. But in the case of the DR, the properties here command a value that's representative on equal housing values for the single property and not that of the zone where it's located. That's to say the house you live-in can be sold for an asking price that's equal to that of a property with the same individual qualities, but in a much nicer and higher ranking zone.
Try that in the US or UK RE markets!
The value of the properties in the DR is based on individual aspects and the zone is not the king of the hill, when it comes to the percentage of value as RE in the market.
Another aspect is the boom value. In zones that quality of life is deemed of higher comfort and security, the property values are based on the potential future gains. That's to say that a residential like Villa Olga in Santiago is not longer viewed as the place to settle in a single family home, but to buy several homes and build towers on them. People will be willing to leave behind the luxury and comfort of the single home in exchange for the higher quality of life offered in the apartments that replaced the single family homes.
So what price do you think the remaining single homes have now there?
The same happens in barrios and even campitos all around the country. What today or yesterday was but monte y culebras, now or tomorrow are and will be sought-after property values.
I just recently closed a contract in the Jarabacoa area, where I'd never intended to invest in the first place, let alone think of building a home. Now the reality of the times is much different to that "before".
You can ask for the highest priced property in the DR and I can bet you that within less than 5 to 10 years the value will be far above that last. The problem with RE in the DR remains one based on affordability, and I don't mean the prices, but how people that can't afford the buy in the first place go all out to make it their dream come true soon to become their worst financial nightmare when they need to make it liquid cash...
Of 100 people that use the RE industry in the DR to make money, 90% lose it all or just about break even. The left 10% are the ones that can invest the liquid and not have to convert it in the mid to short term as situations arise due to financial difficulties.
The people behind the Villa Olga project ended up bankrupt after 10 years of the first home built. The people that followed them? Let's just say that their great-great-great-grandkids need not worry of having to work a single day in their natural lives....
Whilst in the US or UK RE values are based on demand/supply/greed, in the DR the same formula will not work. A family owns a home in a barrio or residential area of the DR, they want to sell but at the same time they want to sell to move into something better (upgrade). The problem lies in that the price they want to sell for is the same price (just about) of what it will cost them to carry out that upgrade in living somewhere else!
In the DR the RE values are based on the tip principle. Where the RE value of the highest priced properties rank the lower ones. That's to say that as long as the highest segment commands and gets commerce in ever higher values, the lower ranked properties will continue to seek higher values in return.
Take the above pictures as an example, in any other part of the world (pretty much) a property that sits in this hood would command a value that's representative of the residential zone it's located on. But in the case of the DR, the properties here command a value that's representative on equal housing values for the single property and not that of the zone where it's located. That's to say the house you live-in can be sold for an asking price that's equal to that of a property with the same individual qualities, but in a much nicer and higher ranking zone.
Try that in the US or UK RE markets!
The value of the properties in the DR is based on individual aspects and the zone is not the king of the hill, when it comes to the percentage of value as RE in the market.
Another aspect is the boom value. In zones that quality of life is deemed of higher comfort and security, the property values are based on the potential future gains. That's to say that a residential like Villa Olga in Santiago is not longer viewed as the place to settle in a single family home, but to buy several homes and build towers on them. People will be willing to leave behind the luxury and comfort of the single home in exchange for the higher quality of life offered in the apartments that replaced the single family homes.
So what price do you think the remaining single homes have now there?
The same happens in barrios and even campitos all around the country. What today or yesterday was but monte y culebras, now or tomorrow are and will be sought-after property values.
I just recently closed a contract in the Jarabacoa area, where I'd never intended to invest in the first place, let alone think of building a home. Now the reality of the times is much different to that "before".
You can ask for the highest priced property in the DR and I can bet you that within less than 5 to 10 years the value will be far above that last. The problem with RE in the DR remains one based on affordability, and I don't mean the prices, but how people that can't afford the buy in the first place go all out to make it their dream come true soon to become their worst financial nightmare when they need to make it liquid cash...
Of 100 people that use the RE industry in the DR to make money, 90% lose it all or just about break even. The left 10% are the ones that can invest the liquid and not have to convert it in the mid to short term as situations arise due to financial difficulties.
The people behind the Villa Olga project ended up bankrupt after 10 years of the first home built. The people that followed them? Let's just say that their great-great-great-grandkids need not worry of having to work a single day in their natural lives....
Good! You are not supposed to! I lived in Juan Dolio for several years Pichardo, hence I know the area and the projects well. I don't post about things I don't know anything about.
Matilda
I was using it as reference to the post I made after, not for any other interests Matilda...
It just looked as a good example of what I wanted to convey, nothing more, nothing less...
As you know, from the middle class thread here in DR1, we have posters like Chip that even when living for "years" in Santiago still posts that we have more poor and low income barrios than middle and upper in the city. Never mind that I challenged this "live-in-Santiago" experienced poster to list head to head the barrios and residential areas to put it into facts, but no cigar...
Juan Dolio in 1990 and Juan Dolio 2012 are two different worlds if you ask me, and I have never lived there but visited a lot the area since 1970 (when you could only access the area by boat or with
Land Rovers).
Are the Greg Norman golf course and Chris Evert tennis center already finished? Haven't been there for 2 years but looking at the pics it hasn't changed much. Metro was having problems and they called in the Russians from Petroholding to save their ass. From what I heard Dr. Asilis even had to give up one of his yachts to get the Russians involved.