Is this a good time to buy a house?

Lissa · #1 10-18-2003, 01:36 AM

I was wondering if you see guys that this is a good time for invest in a urbanization..We owe a construction firm and a client came to us to build mid-class houses like 30 or so , the price range will be like 1.5 to 2.0 million . My question is to you as customer, will you get a property in this moment? . I just want to know your appreciation, even though we´re making a market research. But I don´t want that the client loose money or stop him to make a few millions for my advice.... Help me out please...
PS. I know that the investor have one mind and the people who actually are gonna live in the property have another point of view.

AnnaC · #2 10-18-2003, 01:50 AM

Lissa better do some searching

Remax

West Indies

See what is on the market now.

Ken · #3 10-18-2003, 10:18 AM

Lissa, where will the houses be located? Am I correct that the client is thinking of the Dominican market rather than foreign buyers?

If the Dominican market, I'm surprised he is thinking of investing so much at a time with the DR economy is in the pits and so many people are out of work or in danger of losing their jobs. According to AZB's recent posts on conditions in Santo Domingo, even many upper class families are having a very hard time. Lots of expensive cars not being driven because the owners can't afford the gas.

Hillbilly · #4 10-18-2003, 09:27 PM

Generally speaking, it might be wiser for your "investor" to wait a while and see how the dollar is going to behave.

If the IMF accords hold up, perhaps the dollar will settle to 'x' pesos per dollar (whatever it is, it has to be stable)

We have seen prices for everything double + a little bit over the past three or four months. this means that if the government inefficiency continues your "investor" might commit to a 30 unit project for 36 million pesos and find out that he can only complete 14 or 15 units because of further devaluation.

However, construction is a good way to launder money, so maybe the investor doesn't care...

At least that is what the US officials are saying...

However, you, as a construction company, should not care a bit what happens, you get your profit up front on the work you do. Just make sure that your contract has enough escape clauses in case the devaluation continues...

HB

Lissa · #5 10-19-2003, 02:46 AM

We told him so , that waits for at least ´till dec. or january to begins the project, to see how the things are going. And remember that the next year is an election´s year so the things maybe get fixed for at least a couple of month.
Even though that delay isn´t good for us but we don´t want to mix our name with a futureless project . By the way the ¨investor¨is not laundry any money (as far as I know) he´s a business men who believes in his country and is already planning his retire here..

Hillbilly · #6 10-19-2003, 11:39 AM

No one with US$1 million, from the US is going to put it in the DR unless he is trying to hide it. That is a fact of life. That altruistic stuff is just B.S. to hide the fact of where it comes from.

It is the only possible explanation for all the construction projects that are going on, since nobody can pay 48% interest for a bank load and still sell real estate. Nor can anyone afford to put out RD$35 million on spec.

You see, if it was legit, that million in the stock market or in mortgages or even CDs would make enough to live on for the rest of his life and still have plenty to give to his kids...

However, you are very wise to protect the company at this time...and even if it is being laundered, that should not touch you or the company...

HB

samiam · #7 10-20-2003, 12:16 PM

The instability of the peso currency, the high interest rates for homes (that range between 24-32%) and the slow down of employment opportunities have had a great impact in the construction business.

Right now there are few companys making good money in housing. One of them is Constructora Bisono, and they focus in low cost homes between 650,000-1,000,000. At the moment it is the only market segment that is purchasing.

Up to 2001, there were still proyects geared towards the 2MM+ market but now a days they are less and less. There are still some, but the big money is not there anymore.

Lissa · #8 10-20-2003, 03:45 PM

I didn´t see it this way, but it´s true there is a chance that this money isn´t clean enough, but we´ll see what happens, meanwhile I´ll take a lot of care...
And Samiam the project is targeted to the same public that Constructora Bisono works with.. Our final price is like 1m..
I know very well the bisono´s houses and I have to tell you they use the cheapest materials, and workers, that´s the reason why they have those prices. If you buy a Bisono´s house, in less than a year I´ll see you changing all the wood and remodeling the kitchen or the bathroom.
I hope (and will work on it) that our project be a better option..

Hillbilly · #9 10-20-2003, 10:21 PM

Lissa, I hope you can do a project like this without any "problems>" All the best

HB

Criss Colon · #10 10-21-2003, 11:59 AM

There goes the neighborhood!!!!! I have NEVER seen a construction project move so fast!! The land "Used" to belong to the Zoo! Wonder how he was able to get "ownership" of a public property???He is building five or more "low-rise" buildings of 4 floors and 8 units, each plus 30 or more single family units.Last week one of his trucks,which roar through the poor neighborhood of "La Puya", crushed a little girl to death!He does use "Haitian" workers.They start before 7 am,and work under the lights until late at night.The best part is that the whole project is built on "fill" land that will settle as fast as the new owners move in!!!
Let the buyers beware!!

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