[Harmony]

I see real problems on the horizon for the Dominican economy and it should show up in real estate prices. The depreciating peso is just a symtom. The economy is in a shambles and there is no fix on the horizon. Oil prices are not going to fall as they have in the past because of growing Asian economies, depleting reserves and lack on new discoveries. It takes dollars or euro's to buy oil so the peso and dollar are not independent. As long as the government continues going into debt the peso will continue to depreciate. As the currency depreciates the schism between the have's and have-not's will grow resulting in more and more clashes. Don't say it can't happen in the DR.

The increase in real estate prices is a function of inflation. Why hold a depreciating currency? At the same time Expat's don't want to live in a country without the basic utilities, bars on their windows and a guard at their front door. That's like living in a prison. I would expect an exodous of expat's as the situation worsens; and it will worsen. I've seen it in several countries. As the government searches for more tax revenues it will hurt the economy even more.

The economy needs and eventually will get a real washout with many businesses going under (including banks), the currency becoming worthless and riots in the streets. Then you can buy real estate at depreciated prices if you have the guts. Like Luanda, Angola is today.

Finally, I hope I'm wrong (doubt it) because I really love it down there. I posponed buying for this reason when I last visited.

Harmony