The DR and the Recession of 2008

[Ringo]

Sorry Pichardo.... You are in Orlando? And yes, the US market has had and will continue to have problems. The global business/stock market response is almost instant. The effect on the overall housing and personal spending takes a few months.

Living on the North Coast of the D.R. for some time, I do not see the large yatchs or even med sized that I did this time last year. (A hobby of mine.) I do not see the real estate market doing much (I own properties). I do not see the tourest spending money. (At the casino, they all stay at the 25 peso per bet table.)

I agree that the D.R. peso is not just "pegged" to the US dollar and point out that other relationships with other countries... other then the US may prove a good thing.

Please let us not fight. BTW... 1st class seats vs biz seats... same thing but.... I'm a little older. hahaha.

Regards, Ringo

 

[andrewc52002]

DR economy relative to US economy is a dependent, not a competitor. It's not like "when it's bad for you, it's good for me". Even though DR is dealing with Europe too, still the dependecy to US is there. Plus, US has mechanisms to switch the burden on other parteners. Anyway, with such a low dollar, I don't see many americans willing to invest in DR, and this will be for some years to come. Maybe Europeans are more inclined to invest. I bet that Juan Dolio developers all speak Italian. lol.

 

[korejdk]

The DR is fast becoming the playground of the top dollar tourism "Elite".
The building of multiple 5 star hotels is only the icing on the cake, as more and more of them make the DR their second home to rest in the secluded areas being built all around the country hush-hush...

Like I said: Don't blink twice!!

Perhaps FL & NY have inconsistent views regarding the "dollar elite" term...
On another note, sadly 90% of the turist funds go into the pockets of the foreign owners of the resorts, little trickle to the local economy.

 

[PICHARDO]

Yes, I'm in Orlando for biz related issues, but make the trek home as often in weekends as possible!

The North coast is not the calling port to the new residents of the hush-hush places going up in the DR... The North Coast caters to the warrior weekender and all inclusive tourists...

The property market of the North coast has always been a Pandora’s Box of sorts. One summer it becomes the Yukon trail others the Baja CA slumps...

I can still recall the initial project of Ciudad Marina in Luperon and it was ground-breaking at the time for any venture of such size and outlook for the north cost. After some three years it became the white whale that couldn't swim...

Any serious investor that wants to call his project a hush-hush wouldn't be caught dead in the North coast. Too close to big populated places (wink), (wink).
Now, Samana is a whole other beast...

No fighting!!! That's my motto!!!

 

[PICHARDO]

Perhaps FL & NY have inconsistent views regarding the "dollar elite" term...
On another note, sadly 90% of the turist funds go into the pockets of the foreign owners of the resorts, little trickle to the local economy.

Most of the resorts built in the DR are currently majority owned by Dominicans... A fact that still escapes most people unfamiliar with the DR's upper class...

FL & NY???? Not a chance! The best pads in NYC are in the multi-million dollar range as well as in FL, guess where they go to relax incognito???

 

[Ringo]

Pichardo.... My friend.

I feel more for the people in the US, England and Europe... Japan and many other places... including Orlando.

It is a matter of how much will things slow, how deep and for how long.

The D.R. is in a better position then many other places. Real Estate prices should come down in the D.R., but nothing like many other places. After all, we have had a great increase over the years and as is normal... an adjustment comes into play. Food, fuel and other items have and will increase... nothing new. Some adjustment in any market is expected. It becomes a question of to what degree?

The D.R., from my point of view, will slow. Not as much as the major world market, but then again the D.R. is NOT a major world market player. If you are a D.R. property/business buyer with cash... wait a few months while things adjust.

BTW: I've got property that I'll sell at "now" full asking price. In a few months... who knows? wink wink wink.

Regards, Ringo

 

[korejdk]

Most of the resorts built in the DR are currently majority owned by Dominicans... A fact that still escapes most people unfamiliar with the DR's upper class...

FL & NY???? Not a chance! The best pads in NYC are in the multi-million dollar range as well as in FL, guess where they go to relax incognito???

DR "upper class" ? You mean the Leonel kind ? The DR citizen is purely a SPV. 11 cents on the turist dollar remains in the country ( again, sadly )! As far as the RE correlations mentioned above, a pm would be more seemly

 

[PICHARDO]

DR economy relative to US economy is a dependent, not a competitor. It's not like "when it's bad for you, it's good for me". Even though DR is dealing with Europe too, still the dependecy to US is there. Plus, US has mechanisms to switch the burden on other parteners. Anyway, with such a low dollar, I don't see many americans willing to invest in DR, and this will be for some years to come. Maybe Europeans are more inclined to invest. I bet that Juan Dolio developers all speak Italian. lol.

Not right...
The DR is not dependant on the US as an economy, neither is the US affected much, if any, by the ups and downs of the DR's economy as well.

But, you must understand that most goods that enter the US market from the DR will become far cheaper than those supplied by the local or Asian markets given the rising costs of fuels...

The DR will benefit greatly from the downsize of the US economy as it makes a sizable chunk of the import originator for goods consumed by the local economy...

The DR stopped being dependant of the US economy the day Sugar was abandoned as the market leverage for others more profitable now...

The recent conditions that provided the DR access to Oil with preferred terms by Venezuela and the current pursue of the DR for full control of the only refinery in the country; makes the situation much better than that facing our friends in the US...

The biggest tycoons and money movers of the US are using the DR's emerging real state as a counter-point to the expected loses that will continue to build up in US market. Or "Tu te comiste el cable" that Ivanka did tell daddy that he must invest in the DR as vented by press releases and gossip...?

Europeans just "re-discovered" the tiny DR and are trampling each other to get a stake of the new "bandwagon" runs for land.

 

[PICHARDO]

DR "upper class" ? You mean the Leonel kind ? The DR citizen is purely a SPV. 11 cents on the turist dollar remains in the country ( again, sadly )! As far as the RE correlations mentioned above, a pm would be more seemly

Leonel can't carry the shoes for the newborn of those Upper class families...

 

[PICHARDO]

Pichardo.... My friend.

I feel more for the people in the US, England and Europe... Japan and many other places... including Orlando.

It is a matter of how much will things slow, how deep and for how long.

The D.R. is in a better position then many other places. Real Estate prices should come down in the D.R., but nothing like many other places. After all, we have had a great increase over the years and as is normal... an adjustment comes into play. Food, fuel and other items have and will increase... nothing new. Some adjustment in any market is expected. It becomes a question of to what degree?

The D.R., from my point of view, will slow. Not as much as the major world market, but then again the D.R. is NOT a major world market player. If you are a D.R. property/business buyer with cash... wait a few months while things adjust.

BTW: I've got property that I'll sell at "now" full asking price. In a few months... who knows? wink wink wink.

Regards, Ringo

Bingo! That's puuuuurrrrfect!

 

[margaret]

11 cents on the turist dollar remains in the country ( again, sadly )!

11 cents on the tourist dollar remains in the country? Do you have a reference for that, korejdk? I'm curious about foreign-ownership in the DR and PICARDO seems to be saying that Dominicans are the majority shareholders in the foreign companies that own the resorts? Is that correct PICARDO? Could you both elaborate? Thanks!

 

[Richard Alberto]

My feelings is that manufacturers and technology companies will continue to look at DR to offset inflation here in the US. As far as real estate is concern, I believe Europeans will look to DR as an investment more so than the US as prices in the larger US cities continue to rise. Purchases of holiday homes in DR will continue to flourish.

 

[Richard Alberto]

I have know an acquaintance who purchased a two family house for $165k US, 3 months ago in Sosua. He already has the top rented.

 

[bilijou]

I’m pretty sure the Fed is going to cut interest rates again (most likely, 0.5 points), the USD is gonna plummet again. Given the loss in purchasing power of the dollar, I doubt it would translate into a boom in the Dominican real estate market.

 

[korejdk]

11 cents on the tourist dollar remains in the country? Do you have a reference for that, korejdk? I'm curious about foreign-ownership in the DR and PICARDO seems to be saying that Dominicans are the majority shareholders in the foreign companies that own the resorts? Is that correct PICARDO? Could you both elaborate? Thanks!

dig Margaret dig...once the price of oil & commodities adjust watch the loonie fall...

 

[margaret]

I'm not asking about the Canadian dollar. "11 cents on the tourist dollar remains in the DR" ?? True or false?

 

[korejdk]

True, yet who am I to state that...

 

[andrewc52002]

I recently contacted those in charge of selling the Punta Goleta condos in Cabarete. I was informed that 75% of the units were sold on the first day of sales last Saturday. And these are not inexpensive condos, they are in the price range of Ocean Dream/Ocean One. Someone is still buying vacation property and quickly.

Any idea who are the buyers ?
thank you

 

[NALs]

I'm curious about foreign-ownership in the DR and PICARDO seems to be saying that Dominicans are the majority shareholders in the foreign companies that own the resorts? Is that correct PICARDO? Could you both elaborate? Thanks!

Almost all "foreign" hotel chains in the DR are being operated by Dominican companies. Take, for example, the Hilton Santo Domingo. You probably think that hotel is being operated completely by the Hilton company, right? Wrong! The Hilton Santo Domingo is operated by Coral Hotels and Resorts, a company that was started, is based, and continues to be owned by a Dominican family. The Hilton doesn't even own the building they occupy at the Malecon Center complex.

Many of the other "foreign" hotel chains are nothing more than franchises owned and managed by Dominican families and businesses. Another good example would be the Wyndham resorts. All of them in the DR are operated by the Viva Resorts company, a purely Dominican owned and based corporation. Then, of course, there are the Dominican hotel chains that also operate under their original name like the Occidental Hotels and Resorts company.

The same holds true for other "foreign" companies in other sectors of the economy, whether its fast food (ie. Wendy's, McDonald's, etc) or services or anything else.

-NALs

 

[margaret]

Almost all "foreign" hotel chains in the DR are being operated by Dominican companies. Take, for example, the Hilton Santo Domingo. You probably think that hotel is being operated completely by the Hilton company, right? Wrong! The Hilton Santo Domingo is operated by Coral Hotels and Resorts, a company that was started, is based, and continues to be owned by a Dominican family. The Hilton doesn't even own the building they occupy at the Malecon Center complex.

Many of the other "foreign" hotel chains are nothing more than franchises owned and managed by Dominican families and businesses. Another good example would be the Wyndham resorts. All of them in the DR are operated by the Viva Resorts company, a purely Dominican owned and based corporation. Then, of course, there are the Dominican hotel chains that also operate under their original name like the Occidental Hotels and Resorts company.

The same holds true for other "foreign" companies in other sectors of the economy, whether its fast food (ie. Wendy's, McDonald's, etc) or services or anything else.

-NALs

Thank you NALS for clearing that up. I didn't know that the Santo Domingo Hilton was run by Coral Hotels & Resorts as a franchise, but I knew that there were 4 Coral by Hilton hotels that were de-branded (when an agreement between the Hilton and Coral Hotels & Resorts expired) They are now run by Oasis Resorts & Hotels. And the Bahia Prinicipe resorts, are they also Dominican owned?

It would be a shame to think the only 11 cents on the dollar stayed in the Dominican Republic and that Germans and Russians are flooding in to buy up all the land.