cabarete hotel

Brian · #1 09-15-2002, 01:31 PM

anyone ever stay at The casa blanca hotel in cabarete.I am booked for 2 weeks in janaury.How will the crowds be in jan.

Paul Thate · #2 09-15-2002, 04:20 PM

well considering the price, really adequate. This is heresay as I have never stayed there. Right beside you have the El Magnifico
probably one or two steps up but also more expensive.

I guess it wont be that busy.

marina · #3 09-16-2002, 05:09 PM

I live in Cabarete and Holga runs a nice hotel. Very laid back, casual, nothing fancy, which is reflected in the pricing:-)

Marina

Bottomfisher · #4 10-19-2002, 09:02 PM

What can anyone tell me about La Punta Apartamentos in Cabarete? They seem low priced and configured, but next door to Velero Resort (high end).

Thank you.

In addition, does anyone have any horror stories about foreigners buying property in the Dominican Republic?

Paul Thate · #5 10-20-2002, 09:57 AM

Yes . There is this American family that received some properties
with an estate settlement.
A dominican housekeeper was in one of the properties.
They fought in the courts for over a year to get her out of there.
They won once , that went to higher court and won again.
The lawyer of the housekeeper ofcourse never got paid for anything as he was working on commissions in case they won.
This lawyer went to a judge claimed some how that the american family was responsible for all the courtcost which he had paid and send to a fictitious address.
Because of this without further checking the judge awarded this lawyer the tittle of one of those properties.
The lawyer proceeded to sell the house to cover this costs.
This case is now also for the courts.
Beside the case to recover the house there is a case to get this guy debarred.
This is not as easy as was mentioned in another thread.
A lot of their problems could have been prevented had they lived here.
I dont think I would like to be an absentee owner here.

Bottomfisher · #6 10-20-2002, 12:06 PM

Paul,

Wow! That redefines the word "horror". Did the housekeeper claim squatter's rights? If not, why couldn't the owner simply call the police, show their title to the property, and have her physically removed?

If they had lived there, what could they have done differently?

Did this happen in Cabarete? Do you remember the lawyer's name and that of the American absentee owner?

Thank you in advance.

Bottomfisher

P.S. What do you think in general about where we are in the "real estate cycle" in Cabarete? On the upswing? On the downturn after peaking?

Paul Thate · #7 10-20-2002, 12:20 PM

this all happens right in the middle of Sosua.
Yes I do know all the names involved. But since it is now for the courts I am not publisizing any names.
plus as a foreigner here I would not dare to **** off these kind of people.
Thats the downside of living in this paradise. I dont feel we have any rights like we would be used to in N.A.
I think if you want to live here successfully you keep quiet and a low profile at all times and at no point ever **** of locals even if or especially if you are right.

I think the real estate sector for choice properties is about to take off.
Holding the market down at the moment are too many properties
in the wrong neighborhoods.Very nice properties to look at
But knowing the location you would nor even take them as a present.

Paul Thate · #8 10-20-2002, 12:33 PM

this all happens right in the middle of Sosua.
Yes I do know all the names involved. But since it is now for the courts I am not publisizing any names.
plus as a foreigner here I would not dare to **** off these kind of people.
Thats the downside of living in this paradise. I dont feel we have any rights like we would be used to in N.A.
I think if you want to live here successfully you keep quiet and a low profile at all times and at no point ever **** of locals even if or especially if you are right.

I think the real estate sector for choice properties is about to take off.
Holding the market down at the moment are too many properties
in the wrong neighborhoods.Very nice properties to look at
But knowing the location you would nor even take them as a present.

Last week I went around with friends , they wanted to rent a house or condo for US $ 1000 a month for a minimum of 6 -12 months.
I tell you it was not easy.
The rental availability of good properties are very scares.

For real-estate values in Cabarete the bottom was definitely reached some time ago.

Properties that are priced right move.
But there are still many around priced where the owner says
well I spend 10 years ago 300 000 I need some profit , so he offers for sale at 350 000. That house is probably worth 100 -200 000 so will never sell.

Hillbilly · #9 10-20-2002, 12:39 PM

That is JJ O'Connel's old property and the bitch that is involved was a thief and a liar...She figured that she would end up with that property a long time ago. Sad part of it is that JJ was a crusty old guy, good heart, and a lawyer, but he never figured on the insidious nature of that woman.... the family will be a lot older by the time this is straightened out, I fear...Course they never really paid much attention to it either...

HB

Bottomfisher · #10 10-20-2002, 01:57 PM

Paul Thate says:

"But there are still many around priced where the owner says
well I spend 10 years ago 300 000 I need some profit , so he offers for sale at 350 000. That house is probably worth 100 -200 000 so will never sell."

Paul,

I think you are right-on-target. I hear from smart guys like Jazz (Scott) that there has been some real DEpreciation in property values in/around Cabarete. Yet, the owner feels he/she has to make a profit (for ego reasons I suppose). This is how real estate velocity disappears: buyers' bid are reflective of the economics of the property (put a 20% cap. rate on the funds from operations -- rental income less expenses), but the sellers price their offer on what they paid (which is irrelevant).

It seems to me that given one can earn 15% plus in a US$ account in the DR, a real property (with all the hassles and risks) should earn a 20% cash-on-cash return. Thus, a property that cash flows US$20,000/year should be valued at US$100,000 (20% cap rate = 5 x cash flow). Yet, there are guy asking $300-600,000 for such a property? Sure, there is a land value aspect to a property, but in theory that land value should be tied to the cash flows that can be created on that property. If the owner has failed to create more than US$20,000 in net cash flow on that land, then why should I feel I'm so omnipotent that I can create US$100,000 (US$500,000 property asking price reverse capitalized at 20% rate) in free cash flow? Is the current owner that negligent or inept? Or is tourism simply heading south and there are too many properties for rent in Cabarete?