Juan Dolio - South Beach of the Caribbean !!!

[STEVE G.]

Originally Posted by johne

... I know several individuals that are buying up chunks of condos in this market at prices that are about half of what they were 2 and a half years ago...

We had similar situation here in DR during last 2 years of the Government of Hipolito Mejia . A lot of desperate owners wanted to give away their properties : apartments , houses , land ... US$ was 1 to 50-60 RD$ . So speaking from first hand experience . The land in Juan Dolio from US$20 for m² became US$120 just in few years .

[STEVE G.]

Originally Posted by Keith R

Not unheard of in the DR, unfortunately...

Originally Posted by STEVE G.
What would they do ? Runaway with cash ? Please !

The fees are to be paid to Asociación para el Desarrollo Turístico de Juan Dolio y Guayacanes, Inc. http://www.gojuandolio.com/socios.html ( Albatros Residence,Barceló Capella,Barceló Talanquera,Budget Rent a Car,Casino Costa Caribe,Colonia Tropical,Coop-Marena,Coral Costa Caribe,Costa Del Sol I & II,Decameron Club & Casino,Embassy Suites Los Marlins,Guavaberry Golf Club,Hotel Playa Esmeralda,Inmobiliaria Pineda,Las Olas ,Marbella ,Metamorphosis SPA,Metro Country Club,Residencial Mardesol,Starfish Resorts,Sun Village Resort & SPA Juan Dolio,Universidad Central del Este,Villas Guayacanes etc.) ... I still don't think they will run away

[Fernandez]

Quite frankly, the fact that land values went up as high as they did in Juan Dolio is marked to market no different than land values that went up in the USA. What is more, land values in Spain, Italy, UK, USA and other went up much faster than in the DR . An attempt to compare land price increases in Juan Dolio "the South Beach of the Carribean" should be equally compared with land values in California, Chicago, NY, LA, Boston and many other major USA cities- and consider Ocean front land values and there is no real difference. Lets not discuss the cost of beach front in Spain, Italy etc. and the rise of property values there, and their current fall from those levels in the current global downturn.
The difference today is that construction costs in the DR are rapidly rising, the finish is no where near the quality we are seeing elsewhere, and the "style of living" value added points are quite less in the DR right now, than elsewhere.
While this is perhaps true, the Dominican Republic is modernizing and with it come ample opportunities. However, as it modernizes so the investor of the last 5 years today demands much more, more in terms of finish, quality of construction, infrastructure and the like. It is only natural that these demands be met in order to ensure construction and expansion congruent with the needs of the population that is induced to purchase there.
The issue of septic may be a historical one, but new construction should only be built with, and current developments enhanced, through modern application of sewer treatment facilities that can meet the needs of future residents.
I'm not sure who should pay, however there is a clear need for this, and the government should require any expansion be accompanied by these services at least.

The legislative changes in the DR are the result of international investor demands for the same, as we are all well aware of the scams and frauds that consistently play out in the Dominican Real Estate market. These changes serve to support and promote continuing stability to the foreign investor market- not so much the domestic market, as it is the foreign market that drives the zone's expansion.
Unfortunately, this is not enough. There needs to be a liquid secondary market to take out and price this first phase of speculation on the beach fronts. I seriously doubt that investors can claim to receive back the original expectations form their investments, or that there is a ready market with depth for alternative bids on these condominiums. I find no data base, reports, records of any kind that can provide me with this information. I suspect that the prices of units in Juan Dolio are dropping, the pace of purchase dropping, and the increases in costs felt worldwide stemming plans for aggressive future development. Those of us who hold real estate and have purchased will be no different than those who purchased elsewhere, with the difference that there are few mortgages on the DR properties due to a lack of financial markets there, so most is equity that is slowly losing value. Big Deal- the whole world is in the mess, and we will all need to ride it out to another day. On the other hand, manitainence and other fees need to be adjusted, properties managed more tightly and condo boards take charge to reduce the burden of costs as market conditions worsen- for a while.

Juan Dolio is suffering and will continue to experience the same liquidity challenges that other areas feel. There is no $$ for development- no $$ for "ldc" development, and tourism projects need to be financed very differently from before.
Where is was once "do the deal", it is now do the dilligence.

sorry for the expose.

[Fernandez]

Originally Posted by STEVE G.

We had similar situation here in DR during last 2 years of the Government of Hipolito Mejia . A lot of desperate owners wanted to give away their properties : apartments , houses , land ... US$ was 1 to 50-60 RD$ . So speaking from first hand experience . The land in Juan Dolio from US$20 for m² became US$120 just in few years .

No different than Mexico following Salinas devaluation, Chile following Pinochet changes, Spain following Felipe Gonzalez entry, and countless others. Remember- DR is a speculative risk, and returns must compensate and provide premiums that can translate into a quantitative RAROC returns. If not, why invest there? There are ample, more stable, alternatives.
And caution: Based on this history, should Cuba one day resurface in some measurable form, the risk premium to the DR will increase, not decrease.

[STEVE G.]

Originally Posted by Fernandez

No different than Mexico following Salinas devaluation, Chile following Pinochet changes, Spain following Felipe Gonzalez entry, and countless others. Remember- DR is a speculative risk, and returns must compensate and provide premiums that can translate into a quantitative RAROC returns. If not, why invest there? There are ample, more stable, alternatives.
And caution: Based on this history, should Cuba one day resurface in some measurable form, the risk premium to the DR will increase, not decrease.

Just simple curiosity ... what are the regulations in mentioned countries regarding real estate ownership by foreigners , any restrictions on ownership or the inheritance of property ?

[~~anna~~]

"The Septic Systems of new constructions in Juan Dolio are fine if there are suitably located , properly designed , carefully installed, and adequately maintained . The problem comes from old ones , usually the ones that have all the signs of failure (sewage smell, wastewater draining slowly or even backing up into the house etc.) "


***********
Concerning this...
Why is it almost every night about 7pm or so we are getting a sewage smell? We live in the 'new' part of Juan Dolio area down from Giulia's Cafe. Does anyone else notice this?
Seems to be worse on night's when it is more humid.

[Fernandez]

Originally Posted by STEVE G.

Just simple curiosity ... what are the regulations in mentioned countries regarding real estate ownership by foreigners , any restrictions on ownership or the inheritance of property ?

In all countries mentioned foreigners can own property directly and inherit the properties to designated beneficiaries. In addition, each has a deeply entranched system of title integrity- perhaps not as prevelant in Mexico- but never the less an important added gaurantee to foreing investors. As with most international investments, an appropriate vehcile should be considered to shelter the investment from other controllable risks from alternate tax authorities, each depending on its particular case.

[Matilda]

Originally Posted by ~~anna~~

"The Septic Systems of new constructions in Juan Dolio are fine if there are suitably located , properly designed , carefully installed, and adequately maintained . The problem comes from old ones , usually the ones that have all the signs of failure (sewage smell, wastewater draining slowly or even backing up into the house etc.) "


***********
Concerning this...
Why is it almost every night about 7pm or so we are getting a sewage smell? We live in the 'new' part of Juan Dolio area down from Giulia's Cafe. Does anyone else notice this?
Seems to be worse on night's when it is more humid.

It comes from San Pedro so when the wind is from the East you get it. Some say it is the river, some the Sugar factories and some a big 'pond' just where they are going to build Cala Blanca. So keep your fingers crossed, when they build this amazing new place they will get the smell before us so it might disappear before it hits Juan Dolio!!

[Dre Broeders]

It is the big pond.

[49erman]

The smell there is awful! They should drain that pond or something. It really reeks!