- Thread starter Chris
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Real Estate and Current Situation..
If you are in the States you can call me at 845-810-0212 and it rings in the DR at my home. If you are in the States or Canada get me your number and I can call you and chat all night. Doesn't cost me a nickle extra.iluvdr said:
NO MO Partners
There is always room for others!
I love dirt and can talk about it all day. I love kicking it, feeling it, rolling in it and eating it. Good for me!
Speak to you about safety privately, no need to bore everyone here.
Escott
Escott said:
Large Real Estate market crash coming (world wide). In my opinion it will be worldwide but limited to "bublets" such as Miami, Boston, Toronto, Montreal, etc. (large cities) where prices are drastically up from speculation. I have heard that in Miami, 85% of new condos are held by speculators (and 23% overpriced), with interest rates and inflation going up, this should be a learning experience monitoring real estate prices going down over the next few years. Many areas will be spared. In my opinion the DR will also be affected but at a lesser degree.
The "world wide" real estate "bublets" market may have some impact on the World markets. Also, the new "bankruptcies" laws in the US may slightly slow down the US economy. The higher US CPI annouced today is not going to help either.
Higher interest rates, higher inflation, crashing real estate (especially in the US and Canada), will negatively affect the DR over the next few years.
If you are/were looking to buy real estate, wait a year or two (in my opinion).
Whoops I guess I missed your advice when I When I turned around and started buying properties in the DR about 2 years ago. I think I wouldn't have listened then either btw. I posted that I bought a lot for 15k that the previous owner paid 36k for. Another fellow with similar thoughts posted that I would lose more than the original fellow. That was humorous since the original person lost more than I paid. FWIW the 15k lot is selling for over 50k now. Someone on this board turned down 70k for the lot 2 lots over from mine. I think that was a mistake but...RevenueCanada said:
Higher interest rates draw money to a country and their R.E. market suffers but one thing that you fail to take into consideration is that the interest rate in the DR is out of this world. Scotia Bank just anounced 30 year mortgages at 23%. This was a great big special that they offered that no one else did. They may pay 4% on savings accounts. Banks here do great! So just to let you know, interest rates here are going DOWN not up. Inflation is going DOWN and not up. If the economy of Canada and the US turn down it may have an affect on the DR but not for the reasons you specify.
A major problem in your thoughts is that when interest rates are RISING in the US it is because the economy is doing good and they raise interest rates to slow down the upturn in the economy to prevent inflation with the exception of the days of Jimmy Carter which is a whole other story. I made money in the states even with 19% mortgages when Jimmy was in office in Real Estate. It isn't unreasonable to think that just because there is a downturn in the market you cant make money. You make it, just differently with different strategies.
While real estate in the states was spiraling upwards since things started settling down after 9-11 the DR was stagnant to negative. As things started leveling off a bit in the states the DR took off. Greenspan isn't going to let the real estate bubble burst in my opinion. He has been very careful this time around after screwing the pooch the last time.
Aren't opinions great? Everyone is entitled to one
My mother was of the same opinions that you are regarding real estate. When I was going to buy a condo in Ft. Lee NJ in 1970 she told me that the market was going to crash and to rent instead. I listened to her and rented a place at the Colony in Ft. Lee. The condo was 42k with 5% financing in Winston Towers. I should have bought it! I would have been 300-350k richer after 15 years. I have been buying real estate ever since and happy about it. At times when I took money out of Real Estate and put it into the Stock Market I should have checked into an insane asylum first.
Escott
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Bubble Breaking
All of the bubble breakers I have ever met in my real estate dealings have never made a dime. Interesting with all of your facts/opinions your conclude by saying "wait a year or two". Wait for what? What information is it you have now that would make you interested in waiting for the so called upturn that will happen after your bubbles burst?
I think you might be right that 85% of pre-construction in SE Florida is speculative-but so what? It is a very unique area of investing and one that I also would advise people to stay away from. But that market is NOT representative of real estate investing.I differ in your opinion that it should be used a monitor.As bad as it is it's probably till better than the stock market.
I am intimately familiar with the NY/ NJ area of real estate and for the most part and I say MOST part , purchases are made for primary housing, new construction, commercial investment, expansion, second homes, retirement housing, apartment closer to the city. Not speculation.Agreeded that the prices seem to be higher every day, but it also seems in many instances to be affordable and in fact cheaper than renting.
Higher interest rates? Where? Yesterday I was offered 5 1/8 interest on a commercial loan for a building I'm about to buy in NJ. At this rate I will make approx. 25% cash on cash return giving me MORE money to spend in the DR not less.(Loving every minute of this formular)
Anyway, we're all blessed with the opinion gene and because of that we are free to make our own decision for better or worse.
JOHNE
RevenueCanada said:
All of the bubble breakers I have ever met in my real estate dealings have never made a dime. Interesting with all of your facts/opinions your conclude by saying "wait a year or two". Wait for what? What information is it you have now that would make you interested in waiting for the so called upturn that will happen after your bubbles burst?
I think you might be right that 85% of pre-construction in SE Florida is speculative-but so what? It is a very unique area of investing and one that I also would advise people to stay away from. But that market is NOT representative of real estate investing.I differ in your opinion that it should be used a monitor.As bad as it is it's probably till better than the stock market.
I am intimately familiar with the NY/ NJ area of real estate and for the most part and I say MOST part , purchases are made for primary housing, new construction, commercial investment, expansion, second homes, retirement housing, apartment closer to the city. Not speculation.Agreeded that the prices seem to be higher every day, but it also seems in many instances to be affordable and in fact cheaper than renting.
Higher interest rates? Where? Yesterday I was offered 5 1/8 interest on a commercial loan for a building I'm about to buy in NJ. At this rate I will make approx. 25% cash on cash return giving me MORE money to spend in the DR not less.(Loving every minute of this formular)
Anyway, we're all blessed with the opinion gene and because of that we are free to make our own decision for better or worse.
JOHNE
I would think
Not a thousand percent certain since I don't live in the DR
JOHNE
that these types of management offices are located on site and part and parcel of that development. In other words, only providing the service for that development, condo or apartment hotel.Dalhart said:
Not a thousand percent certain since I don't live in the DR
JOHNE