Thought of buying a hotel in Cabarete

[gurfrip]

about 8 months ago.

Started researching the climate and have been very turned off about the economic direction of the DR.

It apears that it is going from bad, to worse and with recent Central Bank actions my concern is an economic collapse.

I don't have a crystal ball does anyone have advice on what to look for when Property Value is finding a Bottom?

gurfrip

[ltsnyder]

Don't take this the wrong way, I just have no idea about where the realistate market is going. Are you saying that the price of land is going down? Is this a generally accepted belief, that the values are going down, and wondering where the bottom is, as a result of the financial situation in the DR?

-Lee

[Hillbilly]

Jazzcom, our resident guru on Real Estate. He has purchased a condo and a lot and Lord Only Knows What Else!

He has said that he thinks that the bottom or near bottom is at hand and this is a good time to move into the market.

Talk to him.

HB

[Escott]

I am NO expert especially regarding the micro economy that takes place in the Dominican Republic. You have a strange phenonom of good growth vs. government screwing up the economy faster than superman can fly around Eddys Bar.

Best time to buy R.E. historically is when things are at their worst. I can't think of a damn thing that can be worse here at the moment. When I compared prices to Costa Rica, Mexico and other like places the DR had better buys hands down! To my amazement the DR has much better infrastructure than Costa Rica, Panama, Ecuador and many other places I have been to by FAR.

If they can get a responsible government here that gives a **** about the people this place is prepared to take off like a Rocket Ship. The only question is "Can they" which I have my doubts. Corruption and graft runs rampant here and the people allow it so I don't know if it will ever change. They will protest Iraq but they won't do a damn thing to change their evil ways which is another of the abstractions I think about.

I am buying in the DR. Made 2 real estate purchases in the last 3 months, made 3 offers in the last 2 weeks. Plan on making 3-5 more offers next week. My friends are buying also here. One friend came to terms on a Condo and a building lot last week who I helped a little. Should you buy? You will have to figure that out for yourself.

Scott

[GirlieGirl]

scott said it all... if that does not answer your questions than nobody will...

[lurker]

bottomfeeding in morally and financially bankrupt republicas is dangerous and JUST PLAIN DUMB.

time will tell .........

[ERICKXSON]

im with scott i recently sold my condo in Costa Rica

[KenoshaChris]

It takes three flights in one day to get to anywhere I really want to be in Costa Rica. Mexico is too expensive. The Puerto la Cruz area of Venezuela is one of my favorite places in the world but again, three flights in one day, leaving here at six in the morning and getting there at nine at night. They can have Florida and I just don't like Puerto Rico that much. What I have on the north coast would cost me at least twice as much in any of these places and I could imagine what the price tag would be if it was in the Virgin Islands. My sense is that if the real estate market isn't at bottom, then its very close.

[lurker]

do u think it has bottommed?

stellar economy?
brilliant minds in government?
excellent & unlimited credit (@ 3% month)?
bright outlooks?

what if the house of cards falls,
what happens to real estate prices?

bottom should be after ALL the major problemos are fixed.
just gambling at this point. vegas is more fun.

[ltsnyder]

The main problem is the financial collapse in the DR, I don't think it has hit rock bottom yet. The IMF is seeking to impose restrictions on the bail out loan that would curb spending. This might easily mean that infrastructure will suffer over the long run, roads could have more pot-holes (notice I said more), new water aquaducts and other projects could be put on hold, and temporary blackouts as some sort of compromise between having prices too high or ongoing brown outs hardly satisfies anyone.

If land was a safe bet, people seeking to pull there money out of cash and put it into capital (to shelter themselves from recent hyper-inflation) would be buying up land like crazy (and I don't see that happening). The other shoe of the collapse (that has not fallen yet) is that chances are that taxes will change and you know who is best able to pay the financial collapse, people who are expatriates and rich dominicans, I'm sure there will be loopholes to protect the powers that be, but the taxes will probable be there in the future and you know what that will do to land prices. If I told you the money will be transfered from the innocent to the currupt, I don't think any one would bat an eye at that statement, they would probably think "but of course, but get to the point". DR is a poor nation and 2.5 billion is a huge debit and any IMF deal will only increase the total debit (but spread it over more year, a kind of reverse IV, bleed em slow and long). If you assume out of 8 million people only about 20% of families have any significant wealth and that only 1 in 3 in any family is a bread winner, that makes a 2.5billion USD/ (8mil * .2 *.33 ) or a $4735 USD debit for those in the DR that have something to give.

-Lee

PS: And what other evidence do we have that we have not hit rock bottom? The issuing of government bonds to pull money out of circulation only seemed to tempoarily stalled (not stopped) devaluation. Articles seemed to hint that the issuance was done possibly to stabilize with out the IMF, but again while it might stabalize now , this action is increasing the long term debit load, and also encouraging the government to allow inflation to continue (less true value when the bonds mature).