Real Estate Investing

I just read on a Wesabe message about a guy who bought a half acre of land 1000 yards from the Caribbean Sea using a credit card.  I’m only linking here to the Wesabe site because it says (and emphasis is mine to respect privacy rules), 

Wesabe is unique because it combines easy-to-use budgeting tools with a thriving community of smart, supportive people, anonymously sharing ideas and advice with each other to help everyone get more value for their money. And, your information stays private and completely secure, so you can take advantage of Wesabe’s many benefits without worry.

The commenters were very insightful urging the buyer caution in dealing with local customs, laws, and regulations, along with the challenges of local builders and codes.  However if the buyer did purchase in the Dominican Republic, it’s a place I’ve heard is FANTASTIC for people considering investing or retiring.

Homes are incredibly affordable according to this article which sourced Realtor Juan Perdomo of Century 21/Juan Perdomo Real Estate Company,

… along the north shore, prices of well-built residences are highest in Sosúa (approximately $15 per square foot), up to two-thirds less in Cabarete ($4 to $5 per square foot), and much less the further away you get ($2 to $2.50 per square foot). 

You can buy a magnificent ocean-view house in Sosua measuring 3,766 square feet, with three bedrooms and four bathrooms for $340,000. The property sits on 1.7 acres of land with a swimming pool. Or, how about this—a seven bedroom/six bathroom home with 5,380 square feet, on 1.11 acres of land with a swimming pool, waterfall, and Jacuzzi for $330,000—it was originally listed for $550,000. That’s on the high end of the property scale. $179,000 will buy you a two-bed/two-bath house in a good location, with a swimming pool. Or an apartment in a secure complex with swimming pool for $43,500.

The article went on to explain that foreigners have the same right to buy and own homes as natives to the Dominican Republic, as long as the Title Registry Offices have a record of all purchases made by foreigners.  In the DR, buyers must first come to a purchase agreement verbally and then the verbal agreement is written.  In dealing with any foreign purchase (or domestic, for that matter), hiring a good honest attorney is key to having a successful transaction.  In Tennessee, for example, our escrow offices - or title companies - must have an attorney on staff to oversee all transactions.

This article offers a huge amount of great information if you’re considering purchasing a home in the Dominican Republic.  At the end, it also names reliable builders, attorneys, real estate agents, schools, and more.

This home is listed at $286,000 and has an in-ground pool, 5 bedrooms, 3 baths and over 2300 square feet.

Here’s one for $168,000 and a few minutes walk to the beach.  It has 1600 square feet, 3 bedrooms, and 2 baths.

There is a huge disparity between the wealthy and the poor on the island.  I don’t know how this would affect a purchase and living in the area, but it’s something to note.  I could see myself living in the sunshine of this beautiful island.

Photos from here.

The Web Urbanist brings us a collection of amazing houses from around the world.  For example,

I know, right?

And speaking of the unusual, take a look at the Burj Dubai Skyscraper going up.  Here’s a link to the photo where you can zoom in and see fantastic detail.

You can watch the progress here.  To get a real idea of just how tall the building will be, here’s what the skyscraper would’ve looked like in New York City prior to September 11th, 2001.

Soon to be the tallest building in the world, luxury apartments will be available once it opens - estimated completion date in 2009 (or 2008 depending on what you read).  According to the site,

Burj Dubai will feature residential, commercial and retail components including the world’s first Armani Hotel & Residences, exclusive corporate suites, a business centre, four luxurious pools and spas, an observation platform on Level 124 and 150,000 sq ft of fitness facilities. 

Even in the absence of vertigo, I’d have to think long and hard before agreeing to sign a lease there.  Maybe it is the memory of September 11th that gives me pause.

Britain’s real estate market may be like a parallel to the U.S. market, except theirs home prices have nose-dived at a rate in some cases by an astonishing 65%.  This decline is much worse than the average decline in the markets on this side of the Atlantic. 

A two-bedroom flat, bought for £215,000 in September 2005, recently sold at auction for £79,000; another went for £86,000. Nine others did not sell at all.

According to the New Statesman, a London newspaper established in 1913, buyers are being warned to stay away from the housing market,

As Britain wakes up to the nightmare of negative equity, we are facing a housing recession far worse than that of the early 1990s. Iain Macwhirter has a warning: don’t buy a house now, at any price. Just say no. You have been warned.

There are some real estate hot spots in this whole wide world, though.  Baghdad’s housing market is booming, says Terry McCarthy of ABC News.  As stability reaches the region, the strong desire for housing is at an all-time high.  And Iraqis have the money to make it happen - in black gold.

Not only is there pent-up demand that is just waiting for enough security to begin major development, but there is also virtually no new construction going on, so supply of properties is limited.  And with oil at $130 a barrel, compared to $50 a barrel last year, Iraq is not short of money.

Brazil is the number one spot to buy property right now because of quality workmanship and rapidly improving infrastructure.  Morrocco and Canada are also hot spots, according to Uruguay Coastal Properties.  They get their numbers from Property Showrooms, an online investment center for international real estate.

Photo from Rio de Janeiro Real Estate.