Rising Real Estate Prices

[twhitehead]

I have been a reader and occasional poster on this site for about a year now. Have read many posts lately that the property values on the North Coast have started to take off. Was just wondering if anyone could explain why this is happening now? Seems that the economy is terrible, political situation questionable, inflation sky rocketing, currency depreciating etc - funny time for real estate to increase in value. Could it be that the world is finally discovering DR? Could it be that the price to build new has increased greatly because of the bad exchange? Is this a short term increase or just the start of long term real estate price increases? Just wondering everyones thoughts on this - Escott you seem to be very knowledgable on DR Real estate - do you have any thoughts on this? Thanks Tom

[Larry]

Prices around the world have gone through the roof the last 5 years. The rock bottom prices on the North Coast has generated American interest. Where else are you going to find a condo 2 minutes from the beach for $50,000 that is a stones throw from the USA. The north coast is getting the most attention because of the large American ex-patriate community and the growing popularity of Cabarete ( windsurfing, etc.). Owning property in the Carribean is the next big thing. I plan on purchasing a condo before years end.

Larry

[Camden Tom]

As everybody knows, the peso based Dominican economy is in shambles. The US dollar based north coast real estate market is thriving. One seems to have very little to do with the other. The sudden appreciation is due to the discovery, a couple years ago, that DR real estate was grossly undervalued compared to any other carribean destination.

My perdiction: "this is only the beginning"

[Rocky]

Some odd 7 years ago, when the government closed down all the bars in the North coast tourist towns, in an effort to control the rampant prostitution, tourist towns died and there was a mass exodus of ex-pats and the real estate prices took a big plunge.
As of June, 2003, real estate started to rise again.
The previous tourist season had been good and a lot of Americans have been looking for good deals on properties in the Caribbean.
So June was the beginning of the turn around and it has been climbing ever since.
It would appear that it will continue to do so and what you buy today may cost more than if you had bought it a year ago, but it will cost more next year and will eventually peak out.
Neither Hippolito's reign in terror or the depreciation of the pesos have anything to do with the real estate situation. Almost all properties are sold in US dollars and the exchange rate has no effect on values.
Yes, the world is finally discovering the DR.
Both Larry's and Tom's comments are spot on.

[Glennt]

My wife and I are looking at buying a house in the Sosua, Cabarete area but not till next spring or summer. How much have the prices been rising by?

[twhitehead]

Thank you Rocky, Tom and Larry for this information, it is very much appreciated. Do you feel that the boom on the North Coast will be limited to Sosua/Cabarete area? Or will it spread further east as this area becomes expensive?

Got an answer to my other question ref Allegro Playa Grande being closed again. Why is this resort not booming with its wonderful golf course and gorgeous beach????

[Rocky]

Originally Posted by Glennt

My wife and I are looking at buying a house in the Sosua, Cabarete area but not till next spring or summer. How much have the prices been rising by?

It's really difficult to put a figure on it.
Some places have doubled.
Some places that couldn't sell at any price have now sold at the sellers requested price.
If I were to take a wild guess, I would say that the prices are up 50%.
WIll it cost you more next year? Yes.
Is it a good idea to rush out and buy something now? NO, unless you are really well informed. Better you should pay a bit more for a property than buy the wrong place.

[BushBaby]

Originally Posted by Rocky

It's really difficult to put a figure on it.
Some places have doubled.
Some places that couldn't sell at any price have now sold at the sellers requested price.
If I were to take a wild guess, I would say that the prices are up 50%.
WIll it cost you more next year? Yes.
Is it a good idea to rush out and buy something now? NO, unless you are really well informed. Better you should pay a bit more for a property than buy the wrong place.

AMEN to that Rocky!!!!!
A LOT of the properties being bought now might well be back on the market next year when the buyers realise that the DR is not the Dream Home they thought it was going to be. THOSE properties might well be going for LESS than they are now being bought at!! Come here first, do a HECK of a lot of looking around & asking questions before going down the house buying route. Get to know the people, get to know the culture & most of all, get to know what is a GOOD buy & what is FAR from a good deal!!! - Grahame.

[Rocky]

Originally Posted by twhitehead

Got an answer to my other question ref Allegro Playa Grande being closed again. Why is this resort not booming with its wonderful golf course and gorgeous beach????

We usually fine people 5 pesos here at Rocky's, for asking the "why" question and 10 pesos for trying to answer it.
There is no rhyme or reason for most things, and even when there is a reason, it often makes no sense.
That's what makes it all so much fun.

[Glennt]

"Come here first, do a HECK of a lot of looking around & asking questions before going down the house buying route. Get to know the people, get to know the culture & most of all, get to know what is a GOOD buy & what is FAR from a good deal!!! - Grahame."

That's exactly our game plan. Stay locally (not AI) look at what's available, the area, the life, words of wisdom from the people at Rocky's, then come back to Canada and make a decision. If I have to pay a couple extra bucks for waiting so be it. If we do it right, in the long run we won't loose any $$