- Thread starter MJSantoDomingo
- Start date
Property and Rental prices in SD
You are not getting it.......there isn't such thing as market price in the DR.
No, i get it ( Dominican negocios) I just, (unlike some) realize that just because a Dominican buys a property and turns around the next day and puts it up for sale at double the price-does not constitute a "Sellers market" A sellers market doesnt exist if there is a lack of buyers....and contrary to what you may think all these signs scattered amongst the city are not all independently wealthy fully paid off properties....
I do however understand that there is a lack of true information, therefore no "real estate appraisals" as such, this is because like most things, and unorganized system based on unreliable information...
Mistaken again, the system is rather well organized and the information is very reliable as well. Just have to be able to get it from the right sources at the right time. That is the biggest oxymoron of many things in the DR, they do appeal in total disarray for many, when in reality it's a fine tuned machine on its own way
You are not getting it.......there isn't such thing as market price in the DR.
it so much depends on what building you want to be in, what neighborhood, what builder.. most of the good apartments in Gazcue are sold within a year of completion. Only the glass tower idiots who do not know how to build with security and sense like malecon center remain empty
all the apartments in my building have been fully owned.. held by families.. rented for a pittance,, a great investment for the grandchildren.
They will sell you the beachfront.. which is endangered anyway..
they will keep SD and Santiago.. plus plus plus plus
you dont get the idea.............
the secret to wealth is this; as you pay increases maintain your expenditures at your current level. Place any salary increases into property. it is good for the furture....... trust me. my mom told me to do this so i did. Ever dollar i had i placed into property.I am absolutely glad i did that.
the secret to wealth is this; as you pay increases maintain your expenditures at your current level. Place any salary increases into property. it is good for the furture....... trust me. my mom told me to do this so i did. Ever dollar i had i placed into property.I am absolutely glad i did that.
They do have their own "system"of real estate sales here. And there are many games and little disclosure of information unless forced to disclose (or you have a friend that happens to know the information because they lived nearby and saw it being built and saw the inside after, etc and knows what repairs were done, etc - but that is an example of when you get an inside tip on a good deal from someone you trust). But seeing many properties means that most of those properties will not have info you can get from someone you trust - and there is not a means of a real home inspection here - so you play the games and try to figure out as much as you can and then hope you make a good decision - which is why I compared the real estate system here to be more like buying a used car - you find out as much as you can on your own and then hope you made the right decision.
I think most posters are missing the point as to why it's always a sellers market in the DR. Simply stated it's because there is no carrying cost of property. Do you think that if property taxes were assessed annually on the value of properties that these cheap carp sitting on these houses/businesses would be writing out annual checks to the municipalities? They'd dump them in a heartbeat for their true values, about 40% of the listed price. Just one more reason why the DR is a third world country. When you cannot discern the value of a property because there is not an active market then you cannot borrow on your equity of your property. Traditional mortgages are nonexistant, second mortgages - you've got to be kidding, home equity loans - unheard of. Property taxes going for public safety, road repairs, education - in your next lifetime maybe. With ample sucessful models of how developed countries operate you'd think they'd get a clue, but then again it's the DR.
Before you go on posting stuff out of sheer ignorance, check facts. Like the "real" facts!
"I think most posters are missing the point as to why it's always a sellers market in the DR. Simply stated it's because there is no carrying cost of property. Do you think that if property taxes were assessed annually on the value of properties that these cheap carp sitting on these houses/businesses would be writing out annual checks to the municipalities?"
Are you for real? There are NO property taxes in the DR???!!!?? That's NEWS to me and my accountant! So what I've been paying twice a year so far was for what? Blackmailing maybe?
Not only are there property taxes in the DR, they also make sure to tax in a global matter so you can't exploit the loop holes of value anymore...
The state sets the value for your property for taxes, not the market in the DR. There are exemptions that make sense 100% (if you care to find them out, do so).
"They'd dump them in a heartbeat for their true values, about 40% of the listed price. Just one more reason why the DR is a third world country."
Again, where you come from and the DR RE markets are not even close to each other! Just because you think basics apply elsewhere, they don't.
The DR is not a third world country, only in your brain that is...
"When you cannot discern the value of a property because there is not an active market then you cannot borrow on your equity of your property."
So, whenever I got a short term line of credit based on my extended properties equity in the DR, it was based on colored glasses and imaginary money?
"Traditional mortgages are nonexistant, second mortgages - you've got to be kidding, home equity loans - unheard of."
Here you go trying to use your foreign RE market's basics to mirror them in the DR's own RE market!
Traditional DR mortgages are redundant in the DR. Second and third mortgages are a dime a dozen from the many financial lenders. Home equity loans are the bread and butter of most projects in the country!
"Property taxes going for public safety, road repairs, education - in your next lifetime maybe. With ample sucessful models of how developed countries operate you'd think they'd get a clue, but then again it's the DR."
Here is your disconnect from reality! You want to use your foreign rules and MO to the DR, which already has its own rules and MO for each of those in effect. Why do you think Japan and many other developing countries also have their own rules and MO that's light years away from the ones in your own developed country? try and get a loan in Japan like you would in the DR!
More clueless people!
I must have hit a nerve, and only a Dominican could possibly defend the disfunctional real estate market that exists in Santo Domingo as if it were just one of many equally effective ways to run a RE market. Take an area with which I am familiar - the Los Corales area in Santo Domingo Este. The houses in that neighborhood go for between 7-10 million pesos. Every fourth house has a for sale sign and half of those are in an advanced state of disrepair. The property taxes on these homes are peanuts which is why they have tire eating potholes and enough barbed wire to make a concentration camp proud throughout the entire neighborhood. Now let's say you own one of these beauties and go into Banco Popular and want to borrow against your 7 million peso house. If you can provide clear title (no easy task) you might be able to get 1.5 million pesos for the modest interest rate of 17%. How many Dominicans do you think are doing that on their empty houses? The baseball card market in the US is more of a market than the housing market in SD. The reason is that these absentee owners can sit on these properties for next to nothing indefinately. Additionally, if the homes actually had legitmate "assessed valuation" and a rundown property next door would negatively effect the value of a neighbor these neighborhoods would have covenents to prohibit these weed gardens. I don't know how it's done in Japan but I can guarantee you that at least it makes sense.
Dear MJSantoDomingo and Givadogahome I think that 3 millions pesos for a 3 bedrooms apartment in Santo Domingo is very cheap unless you are buying one of those government cheap apartments way outside the central city. My friend just bought and 2 bedrooms 2 baths apartment in Tower Veiramar 2 and he paid 425,000USD for it. Another friend bought one in the colonial and paid 110,000USD. So if you know of any decent 3 bedrooms apartment for sale in the central city of Santo Domingo, please let me know about it and I will purchase myself. but it must be between Kennedy, the malecon, Privada and 30 De Marzo.
Spoken as a true all-DR expert!
(next time break the text into paragraphs, as it will be less confusing to read)
Now theres a good one, only in his brain??? This sounds like a great POLL for Nals-then we can truly see what the consensus is... If its based only on Malls fancy new buildings and jeepetas, then......
The high cost of mortgages changes the RE scene from what is traditional in NA and parts of Europe. It is very similar to Italy and Greece. People have no confidence in the value of the currency. Land taxes are extremely low so buying land and renting for a small amount or taking years to complete a project are normal. Realistically land is the ultimate investment. If you pay cash and have even a small amount coming in its safer than most other DR Investments.
Upper Middle Income country! And that's NOT from a Dominican's mouth!
A developing country, that's doing much better than the region and overall US - EU economies put together!
Able to cope with two major economic meltdowns and continue to post POSITIVE growth.
Able to cope with a traditional markets slowdown and still post a higher rate of positive growth of exports atop growth of imports!
And the above is during both scenarios as posted!
A country that regardless of facing over 15% of the population coming and growing from the poorest to exist in the western hemisphere, continues to post positive development on all fronts.
Yup! Not a third world country by a long mile! If you need to smell and see first hand what a third world country really is, just take a walk into Haiti next door, or North Korea, etc...
There's no poll needed, since all you guys with this brain fart of notion of a DR third world country, are just a handful of malcontents!
Since you are unable to see it for the simplicity it carries, stick to your "developed" world!
Dysfunctional??? LOL!!!
Yes, you buy a plot, save for the water pipes etc. then the foundation and septic tank then the walls and roof. No ripping off by banks such as in the US charging huge rates and then if you get in a tricky period repossessing.
So for the most part DR people do not pay con-artists, bankers, shysters etc. when they build only what they can pay for at the time.
Actually UK started the same way with co-operative building projects then state owned buildings that were allocated according to need; HK also.
Speculators, some US vultures, are descending on the DR and the DR people would be well advised to carry on as normal.
yapask1
So for the most part DR people do not pay con-artists, bankers, shysters etc. when they build only what they can pay for at the time.
Actually UK started the same way with co-operative building projects then state owned buildings that were allocated according to need; HK also.
Speculators, some US vultures, are descending on the DR and the DR people would be well advised to carry on as normal.
yapask1
Knife? Nahh! All this guy needs is one hand to be able to make a sharper edge than a carbon fiber knife, by using a rock he would split in two between his fingers.
A string? Nahh! He got his hair for that!
Sticks? What do you think the human body has so many bones for?
I tell you! This guy is "out" there...
Book? What book! He would spend a whole day going over the said paperback for free in the closest book store, only using his unused neurons to make perfect scans on his brain of each page...