Where in the D.R. would you want to live in 15 years..

[pi2]

Invest now. 15 years ago I was offered a nice plot ovelooking the ocean near Sosua for $2000. The land was a little steep but buildable.

Many land prices have increased fourfold in 7 years. Many people believe there is not a moment to loose to invest in the DR island paradise. The ex-pat community is growing fast due to the rapidly growing and strong economy; good political and superior lifstyles. Plus of course the rapidly developing international air hubs linking the Americas, Europe, Asia.

pi2

pi2

 

[LaLouve]

If I had to live somewhere I would choose Constanza.

 

[william webster]

Truly, when considering a 15 yr timeframe, you cannot go wrong from the appreciation angle.
You CAN wrong on the location which could change drmatically over 15 yrs.

If you get in now, you can change locations later but at least your investment will have improved.

The cabrera/RSJ area is pretty hot right now - HUGE project at PG Beach and environs. 15 yrs will be VERY different.

 

[mountainannie]

All boat owners, past and present know the truth... a boat is a hole in the water where you throw your money. LOL Somehow we still LOVE our boats. There's NOTHING like sitting at the helm with a steady breeze on a close reach with a course plotted to some exciting destination.

Yes, I have lived on board. And my father spent his 13 year retirement on a converted German wooden shore patrol bottom cruising the canals of Europe. So I figure that the kid has it in his blood. But as for exciting destinations.. he only goes Down the island chain from here.. not west!

 

[mountainannie]

I think it all depends on where you have family in the Country, You say you are Dominican so if your family were in Cibao I would say look to the North Coast Puerto Plata, Sosua,Caberette or Gaspar Hernandez. If your Family was in the Capital I would think of Juan Dolio and if your family were out East I would think about the Bavaro area. Myself having spent extensive time traveling the entire Country plan to Retire to either the Sosua/Caberette area or in Santiago, I say Santiago for me because I dont need to be on a beach everyday. In the end this will all come down to a personal decision of where you feel more comfortable. I Love traveling to all the areas you have been to but to I have come to my decision because if I choose Sosua/Caberette area I am still only an hour away from Santiago and all the things that you may need from a big city and I can live near the beach with lots of different ethinic groups and a variety of different restaurants, but that is my personal preference. What is important to you? Let me know and I can tell you some more about each area.

I think that Badpiece has is just right. It really depends on your roots and what your needs are. Tell us more and maybe we can really help you. For retirement you want to think perhaps about close access to good medical services.. or easy shopping or just ease of lifestyle.. Where are your roots and do you want to go back to them?

 

[cobraboy]

When was the last time you gave your maid a raise? Over the past 5 years, has her salary increased at the same rate as inflation?

There are now 3 malls in Santo Domingo that sell Luis Vuitton. How many where there 5 years ago? The cheapest thing in those stores costs what? $RD48,000. How many people in this country can fit that into their monthly budget?

So what?

Why do you even care if there is one LV store in Santo Domingo if you don't shop there?

You sound jealous to me. How DARE a Dominican be able to afford something you can't!

 

[Colombianonrd]

In 15 years I plan to live in the Millenium Kingdom of Jesus Christ.... Its going to be awsome, cant wait!!!!!

 

[DIESEL1]

I think it all depends on where you have family in the Country, You say you are Dominican so if your family were in Cibao I would say look to the North Coast Puerto Plata, Sosua,Caberette or Gaspar Hernandez. If your Family was in the Capital I would think of Juan Dolio and if your family were out East I would think about the Bavaro area. Myself having spent extensive time traveling the entire Country plan to Retire to either the Sosua/Caberette area or in Santiago, I say Santiago for me because I dont need to be on a beach everyday. In the end this will all come down to a personal decision of where you feel more comfortable. I Love traveling to all the areas you have been to but to I have come to my decision because if I choose Sosua/Caberette area I am still only an hour away from Santiago and all the things that you may need from a big city and I can live near the beach with lots of different ethinic groups and a variety of different restaurants, but that is my personal preference. What is important to you? Let me know and I can tell you some more about each area.

My family is from Santiago, so ideally the north coast would be good. However this would not be the determining factor. Any preference on the places on the north coast?

 

[pi2]

LT may be good - fast evolving to a ressort of truly international fame!

pi2

 

[kimbjorkland]

So what?

Why do you even care if there is one LV store in Santo Domingo if you don't shop there?

You sound jealous to me. How DARE a Dominican be able to afford something you can't!

Yawn. And you sound clueless, but that's your problem (and those that inherit your genes), not mine.

On another point, counting LV stores to average incomes will help you measure the potential for return on investment. Get it? If only 0.1% of the population can afford LV, then what % will be able to afford a $500K house?

So if you're putting your $100K down today, and hope to turn it into $500K in 15 years, what makes you think there will be a local domestic audience of potential buyers? Remember the price of something illiquid is not equal to the value of something liquid. A pretty basic law of investment...

Of all the advice that's been given on this forum, the original poster should do the math like this:

If you put $100K in a gov+commercial bond portfolio today, you can maybe get 5-6% in USD per annum.
Run that spreadsheet for 15 years.
$100K today is $239K in 15 years (not including inflation or tax planning)

This number is what you have to 'beat' with a real estate investment in DR.

Can you do it? Given all the unknowns - ups an downs in currency, political instability, one sector goes from being 'nice' today to being a 'barrio' tomorrow, places 'desirable' like punta cana becoming undesirable because of the growth of new 'desirable' areas like Las Terrenas, the seasonality of resort investments, etc... can anybody honestly for a certain predict what happens in a region in 15 years? no. nobody can.

So dear Original Poster, why not analyze every 'opportunity' that gets presented against this 'baseline' minimum Internal Rate of Return that you need to 'beat'.

Why not grow your cash outside for half the 15 year period, in essence buying some 'visibility' for 7.5 years, then re-analyzing every year?

Anyways. blah.

 

[badpiece33]

My family is from Santiago, so ideally the north coast would be good. However this would not be the determining factor. Any preference on the places on the north coast?

Ok so the North Coast would definately suit your needs, How close to the beach do you want to be and how important is being close to shopping and real super markets, hospitals etc.... ????

 

[william webster]

Yawn. And you sound clueless, but that's your problem (and those that inherit your genes), not mine.

On another point, counting LV stores to average incomes will help you measure the potential for return on investment. Get it? If only 0.1% of the population can afford LV, then what % will be able to afford a $500K house?

So if you're putting your $100K down today, and hope to turn it into $500K in 15 years, what makes you think there will be a local domestic audience of potential buyers? Remember the price of something illiquid is not equal to the value of something liquid. A pretty basic law of investment...

Of all the advice that's been given on this forum, the original poster should do the math like this:

If you put $100K in a gov+commercial bond portfolio today, you can maybe get 5-6% in USD per annum.
Run that spreadsheet for 15 years.
$100K today is $239K in 15 years (not including inflation or tax planning)

This number is what you have to 'beat' with a real estate investment in DR.

Can you do it? Given all the unknowns - ups an downs in currency, political instability, one sector goes from being 'nice' today to being a 'barrio' tomorrow, places 'desirable' like punta cana becoming undesirable because of the growth of new 'desirable' areas like Las Terrenas, the seasonality of resort investments, etc... can anybody honestly for a certain predict what happens in a region in 15 years? no. nobody can.

So dear Original Poster, why not analyze every 'opportunity' that gets presented against this 'baseline' minimum Internal Rate of Return that you need to 'beat'.

Why not grow your cash outside for half the 15 year period, in essence buying some 'visibility' for 7.5 years, then re-analyzing every year?

Anyways. blah.

Blah, blah.

I would venture that across any investment spectrum of 15 years, real estate will hold its own when compared to other investments.
It may not lead the pack, but it won't be last either. My guess?? Solidly in the upper 25% quartile.

Passive investments like land are how fortunes have been made ............. provided the necessary patience is present.

 

[bob saunders]

Yawn. And you sound clueless, but that's your problem (and those that inherit your genes), not mine.

On another point, counting LV stores to average incomes will help you measure the potential for return on investment. Get it? If only 0.1% of the population can afford LV, then what % will be able to afford a $500K house?

So if you're putting your $100K down today, and hope to turn it into $500K in 15 years, what makes you think there will be a local domestic audience of potential buyers? Remember the price of something illiquid is not equal to the value of something liquid. A pretty basic law of investment...

Of all the advice that's been given on this forum, the original poster should do the math like this:

If you put $100K in a gov+commercial bond portfolio today, you can maybe get 5-6% in USD per annum.
Run that spreadsheet for 15 years.
$100K today is $239K in 15 years (not including inflation or tax planning)

This number is what you have to 'beat' with a real estate investment in DR.

Can you do it? Given all the unknowns - ups an downs in currency, political instability, one sector goes from being 'nice' today to being a 'barrio' tomorrow, places 'desirable' like punta cana becoming undesirable because of the growth of new 'desirable' areas like Las Terrenas, the seasonality of resort investments, etc... can anybody honestly for a certain predict what happens in a region in 15 years? no. nobody can.

So dear Original Poster, why not analyze every 'opportunity' that gets presented against this 'baseline' minimum Internal Rate of Return that you need to 'beat'.

Why not grow your cash outside for half the 15 year period, in essence buying some 'visibility' for 7.5 years, then re-analyzing every year?

Anyways. blah.

A large percentage of smart Americans have lost their shirts and more in their 401K's being managed by professional money managers. I haven't made a fortune in real estate but I have sold one property in the DR for 4 times what I paid for it, and we have a number of other plots that we can do the same with. I have done reasonably well in Canada doing the same. Dispite what YOU think,there are many Dominicans with lots of money. Like with anywhere, location, location, location combined with proper development can give you great financial gains. What do you do for a living Kimbjorkland, besides spend your husband's earnings?

 

[william webster]

Give it up, Bob... what time frame.?

I have a nice example...
We bought an apt in NYC in 1991.... 20 yrs ago.

If you recall, NYC was in the crapper - going broke.
What will they do - ? Take an eraser to the map of the world and scrub NYC off the globe???
I don't think so.

Soooooooo, after many years of enjoyment, my younger daughter lives in that apt.

Appreciation ??? 15x the cost... in 20 yrs

Any property will appreciate given time..... unless declared contaminated by the EPA :-((
Or other such untoward, unanticipated event

 

[PICHARDO]

Those who don't study history are bound to repeat it.Note, this is Sao Paolo's skyline right now:

This is Caracas right now:

There are in fact 2 Brazils, and 2 Venezuelas. The country for the rich, with high rises, maids, over and underpasses, and metros. Then the country for the poor - ie. basically 80% of the country.The poor don't use birth control, don't get any real education, and they live as close as possible to the mega cities where the money is.Where will DR be in the next 15 years? Considering how many construction projects are financed or executed by Venezuelan and Brazilian money and companies, is there any wonder that this country is headed to where those countries have already reached?There are already two DR's, one where lunch costs $RD 1000 pesos, the other where it costs $RD pesos.To answer your question more succingtly. In 15 years, a lot can happen. An area that's 'secure' today may end up a barrio, or may end up 'in moda'. Even in a place like Punta Cana, there are 2 punta cana's, and you can't ever tell which side your investment will fall on in 15 years.For this reason, it's probably best not to speculate. Invest in something else, then when it comes time to buy in 15 years for retirement, analyze the build vs. buy vs. rent debate at that time.

Yanandu I'm still waiting for you side by side picture contrast for the two Santo Domingos!Can't be too hard to find, given how the two above are far more rich and developed than the dirt poor DR...Maybe you need some motivation??

Marianly Tejada Burgos, Miss Mundo Dominicana 2011

 

[bob saunders]

Bought in 1999 and sold in 2007.

 

[william webster]

Thats great! 4x in 8 yrs. Thats what we're talking about here.

Today, we drove from Cabrera to Samana... Then the back road to El Limon then thru LT and back to Cabrera.
The loop from the airport, by our route, was about 70 miles. Nice lunch in LT

I'll tell you, this island has sooooo much undeveloped potential.... even those who hate to agree w/ Pi2 should take note.

I AM IN !!~! Still

Beautiful casa sites at Samana (whch in itselfs lacks the "Je ne sais quoi" that cruise ship ports offer. I mean, if a cruise comes there - I don't) but outside and up in the hills.... ??? WOW!


Lots of action in LT (which we prefer to SOS/CAB - to each their own)....

All in all, Just drive around a bit more out of your own "hood and enjoy what we have here.

Back to the point.... If we make it 15 yrs... we'll be able to retire:classic:

 

[cobraboy]

Yawn. And you sound clueless, but that's your problem (and those that inherit your genes), not mine.

Darlin', one thing I'm NOT is clueless.:classic:

Again I ask: why do you even care what other people do? What business is it of yours? Why can't others live their lives beyond your delicate sensibilities and political correctness?

 

[bonao99]

They should make an UN- PC map of where not to buy in the DR:

http://i.imgur.com/Pwnf4.jpg

 

[DRob]

Do you ever have anything positive to say about DR? You have to be the most negative poster here.

I imagine Kimbo isn't adjusting to DR life so well, which happens. Unfortunate, but it happens.

And Robert (Cobraboy) is many things, but clueless ain't one of them.

I've seen lots of analyses on IRRs, etc., which is pretty much where things went so wrong in the states. People got caught up on speculative investments, and forgot that their home (the primary property for most folks), was just that, a home.

To the OP, my advice would be to embrace the reality that DR is not Maui, where most areas would all but guarantee you a great ROI. I'd invest wisely, leave the money alone (other than adding to it), and then when the time comes, look into purchasing something.

The examples of NYC and other major metropolitan locations are nice, but not quite the same as buying a plot of land (raw land is often the most lucrative in terms of bang for the buck) in Las Terrenas. That only makes sense if you have 1) genuine, qualitative information about where the path of development is heading, and 2) adequate time (generally measured over decades or longer).

But if you're just looking for a li'l piece of heaven to call your own, I'd wait, unless and until the deal of the century comes along (and they do, about that often.)