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Originally Posted by gringo in dr
There will always be a fresh batch of people looking to move/retire here. That is the natural of living on a tropical island. Some of those people will obviously not adjust to life in a new culture. You are in effect, buying those properties and selling them to the next batch. Nothing wrong with that. You are in an excellent position to take advantage of the turn over. I'm not suggesting that you will loose money. Your track record speaks for itself.
You are dealing with property that is mostly bought by foreignors. Of course that sector will not be depressed, as is the rest of the country. For the country as a whole, rock bottom is still a long way off. Inflation, devaluation of the peso will continue. Leonel knows he is in for some bad times. He has already stated that he will not pay the interest on the central bank cd's. He is also considering TAXING those cd's. Hard tactics for hard times.
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I have always preached that the best time to buy real estate is when things look the worst. We knew that Leonel was in for a tough ride from the start and that some hard decisions have to be made. For the Dominican people as a whole I see tougher times ahead but I don't think Real Estate is going to crash, nor do I think anyone with a dollar based income will suffer much.
Paying 51% on CD's and those that bought them were looking at fools gold. I never thought that could possibly work. Not now and not when they were offered. I also thought that people were taking a big risk on Baninter when they were paying a much higher rate than the rest of the banks and then Mercantile for the same reasons. Greed will burn you every time.
Harmony saying that Real Estate prices will suffer because of the economy is just silly. Real Estate becomes a safe haven and prices rise. Scared money either leaves the country or goes into Real Estate.
I remember trying to get Golo into a conversation a few years ago about real estate prices in the DR but couldnt but would have enjoyed hearing his take but he didn't reply.
I have always kept my investments in a tight area even when in the US because it is impossible to become an expert for the entire country since things are so different even between Sosua and Puerto Plata and it would be impossible to stay on top of it. Hell I called about a 2000 meter piece in Sosua and was amazed at the 95$ per sq. Meter price I was quoted and thought I had this town down pat.