South Florida versus DR

Paddle · #1 10-13-2009, 03:59 PM

Hello everyone. I may be coming to the DR to visit a property in Juan Dolio. I would be trading this property for my bay front south Florida condo across the street from the beach. I use to live there and when I left I put the condo up for sale. At the time similar units were selling for twice what I had paid only a few years before. Now I think I would have to unload it at a loss. The maintenance has doubled as did my taxes although the taxes have come back down thanks to falling appraised values. I have read about the myriad projects in the works for the south coast of DR and I have the impression it may be facing the same problem of over development that is plaguing South Florida.

The house in Juan Dolio is a two bedroom two bath home 250 meters from the beach with a pool and four separate rooms that he describes as little studios each with a bath. The total living area is 230 square meters, and the solar (my new Dominican word) is around 800 square meters. It is not in a gated community. There are no HOA fees so if nothing else the trade would lower my carry costs.

I began doing some research and learned about plans to build a financial center right by JD: Independent Financial Centre of the Americas along with what looks to be a fortified expat town: La Reserve. I have my doubts about whether these projects will be completed even though an article from December 08 stated that the show will go on despite the global financial crisis. If this place comes to fruition I may actually be able to land some consulting work though I am not counting on work.

The owner has not been in the house for two years so I assume at the very least it will need cleaning and painting. Assuming the property is in decent shape would anyone venture to guess what it is worth? My guess is somewhere between $150.000 to $300,000. Could it be worth less than $150.000? I expect the market is at a standstill there as it is in South Florida.

Then there is the question of whether I would want to live there or at least spend half the year there. I am a hardened world traveler fluent in French and Spanish. I’m not materialistic and I’m sure I would love the natural beauty and delight in all the outdoor recreation. In Florida I miss the mountains which is why I spend a large part of the year in NC. But my travels have also taught me a lot about scams and crime. So I have no delusions of paradise. I also don’t expect much appreciation in value. I have been sitting on land I own in Central America because I was never able to invest the time or money to develop it before the crash. I watched it rise in value 3 to 4 times but now have no idea what it is worth or if I could ever sell it.

Let’s assume I like the DR when I visit. Does this trade make sense? Do you think there are plenty of other people who would swap their DR home for Florida? Thanks for any feedback you can give me.

JDJones · #2 10-15-2009, 04:22 PM

Quote:

Originally Posted by Paddle

The house in Juan Dolio is a two bedroom two bath home 250 meters from the beach with a pool and four separate rooms that he describes as little studios each with a bath. The total living area is 230 square meters, and the solar (my new Dominican word) is around 800 square meters. It is not in a gated community. There are no HOA fees so if nothing else the trade would lower my carry costs.

The owner has not been in the house for two years so I assume at the very least it will need cleaning and painting. Assuming the property is in decent shape would anyone venture to guess what it is worth? My guess is somewhere between $150.000 to $300,000. Could it be worth less than $150.000? I expect the market is at a standstill there as it is in South Florida.

Then there is the question of whether I would want to live there or at least spend half the year there. I am a hardened world traveler fluent in French and Spanish. I’m not materialistic and I’m sure I would love the natural beauty and delight in all the outdoor recreation.

I would definitely ask for recent pictures with a date stamp. If it's been sitting for a couple of years. A house sitting empty in Juan Dolio that long could be just a shell by now.

As far as if it's worth it? Tough question. At first glance, I would venture to say that it may be worth 150K if it's in good shape, in one of the nicer areas.

But, depending which part of Juan Dolio it's located, 250 mt. from the beach could be the other side of the Blvd.

Juan Dolio is a funky little town. Most folks either love it, or would leave it if they could. It sounds like the person that wants to trade with you is one of the latter.

But, be advised you're only close to little beach bars and the occasional restuarant. Supermarkets and civilization are at least a half an hour away.

JDJones · #3 10-15-2009, 04:48 PM

Oh, when you go to look at the property, can I go with you?

dieselguy · #4 10-15-2009, 05:11 PM

i'll join you guys. Gang of three. I 'v got a keen i. Bargain or beauty.

zoomzx11 · #5 10-16-2009, 09:42 AM

to buy here first off. Rent for a while and see how you like it. Pricing real estate is difficult to say the least. There is no MLS and realtors are unlicensed. The DR is a peculiar place. Lots love it and a few hate it. Its a man's country. Your non latin culture wife will not like it. (a few generalizations from my experience).
Good luck and one last time, dont rush down and buy anything!!!

windeguy · #6 10-16-2009, 10:14 AM

Please listen to zoomzx11. Do not buy a place here to start with. You really should rent and live here for at least 6 months to see if this is what you really want. Even 6 months is a short time to really understand the differences in culture and environment. Please, please listen to that advice.

J D Sauser · #7 10-16-2009, 10:34 AM

While the climate, the beach, the water and the abundance of palm trees may compare, the DR, even Juan Dolio which is recently being tentatively touted as the "Miami of the DR", does not really compare to SE Florida and even to Miami.
Yes, we have a bit more of that "Latino" flair than Miami, which has lost a lot of that, but then, this is a third world country and Florida is not and that changes every aspect and angle of one's life when switching in either direction from one place to the other... in good and bad... depending on the person.

I would suggest, that IF you can, you hold on to your assets and situation in the States (you may still have your condo up for sale for a good price, meanwhile) and spend some time (a couple of months at least!) renting and experiencing "Living" here, not as a tourist in a resort, but as a resident and potential owner of real estate (the owner thing, by observation and experiences with and around your rental), so to experience the situation(s) you would be buying in, should you after that decide to make the switch with all the financial commitments.

I think you would then be the best positioned to answer your own question based on your personal perception, inclinations, level of resistance to trade offs, etc.

... J-D.

Paddle · #8 10-16-2009, 12:42 PM

Thanks for all the feedback. I pretty much came to the same conclusion after spending a few days reading through all the forums here. I can't rush this trade. Although I have a negative carry on my Condo (I actually do get some rental income but it is low since I am renting to a friend and I still use it), I don't want to jump into another lost paradise trade. I bought land in Central America back in 2000 and my life took so many changes I was never able to do a thing with it. I would probably trade that land for something in the DR provided I liked the DR but I would need more time to trade SFL. Despite my pessimism about SFL, I expect the liquidity in that market to return before it does in the developing countries. In this market the guy who sells his real estate first is in the best position to buy.

I've studied the country very closely and am eager to visit regardless of the trade. I could be wrong but it seems the country has just begun to develop its adventure/eco tourism industry as the country is more known for its beaches than mountains.

I live alone so I have no one else entering into my life decisions. But it is difficult for me to figure out where I would want to settle if I did end up living there. It seems I would like the colonial section of SD if I wanted an urban feel. Since I like to surf though I would prefer the northern beaches and then If I could find some paddling mates I'd want to be in the mountains.

Instead of going to November I'm thinking I'll go in January. I will join the NC outfitter on their whitewater kayaking trip and also check out the house, SD, and the northern coast.

Again thanks for the help.

AlterEgo · #9 10-16-2009, 12:46 PM

To the OP:
My parents retired to Palm Beach County from Long Island twenty years ago. They bought a condo, not a house. Believe me when I say it was much cheaper to live in Florida than it will be anywhere in the DR that is comparable. Plus you will have to deal with language issues, and above all, the electricity problems, which annoy me to no end. Not to mention security. To live in the DR our family members have told us we should expect to spend about $3,000/US per month for the 2 of us. My parents didn't spend anywhere near that in Florida.

My husband [Dominican] and I are nearing retirement age, and of course his dream is to move back "home". I have to be honest that I would prefer to live in Florida because that's where my family and friends are, but in my eyes my husband has lived in NY/NJ with me in the northeast for 33 years, and now it's his turn. He adapted here, I will adapt there. Won't be as hard for me as for the indoctrinated because I've spent a lot of time there these many years, and I know exactly what I'm getting myself into. Also,having a Dominican husband and his large family there to smooth over anything that might arise is a giant plus. They know their way around everything, in ways that we foreigners may never "get".

Tread carefully, and be sure to RENT for a year before you make a commitment and buy a place.

AE