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.

My oldest daughter is a senior in high school this year.  As she enters her first year of college next fall, our youngest daughter enters her first year of high school thereby giving us about five more years with kids living at home.  Well… assuming that after college they’ll both find their own places to live with the fabulous new jobs!

But knowing that we’re looking at a relatively short time period before empty nest syndrome hits, we’ve already begun talking about whether we can physically take care of this big house as we get older.  We have lots of square feet, four bedrooms, three baths, sunroom, bonus room, and 1.5 acres.  The main concern for me is the general exterior maintenance, especially when I see my 87-year old neighbor crank up her lawn mower every week wearing a wide-brimmed hat and dark sunglasses.  I just can’t see myself doing that every single week, along with all the weed whacking.  It’s hard enough NOW for me to get out and help pull weeds from the flower bed when the temperature reaches the 90s.

I am already toying with the idea of a one-level home with an association fee that covers yard maintenance.  I like the idea of a neighborhood with a community room and swimming pool.  So when I saw the headline on Money.com about when it’s wise to downsize, I had to go read it.

Clearly, I’ll be the one looking for a newer, smaller place in the next 10 to 15 years so the price issue will definitely impact me. 

With millions of boomers competing for smaller homes, you may find it hard to catch a break on price. Even though the downsizing trend is in its infancy, over the past five years smaller homes (under 1,200 square feet) have shown a greater rise in value than larger houses (over 3,000 square feet) - 5.2% a year as opposed to 3.5%, according to Zillow.com.

The bigger problem, the article continues is getting a good price for your current home.  That will depend on where you live because it’s always about location.  The primary advice in the article is to sell your current home before you buy the next.  But again, shouldn’t that always be the advice to all potential buyers and sellers?

Finally, you must consider how much furniture you’ll need to get rid of before you downsize.  Who will take it?  Can you sell it?  Donate it?  Will you have to buy new furniture if your current couch doesn’t fit?

I guess there will be a lot for me to consider in the next 10 years or so.  Better start planning!

There are few things in life that provide balm for the soul like a nice, long vacation. A recent post spotlighted the hot Texas real estate market, particularly for retirees and the second home/vacation home market. Well, that got my Generation X mind thinking of all the vacation home possibilities for the rest of us.

We’re the ones who haven’t exactly hit the pinnacle of our careers yet and may not be able to plunk down the change for a vacation home, timeshare or even a standard weeklong rental rate. Where does that leave us? Dwindling away in Cubicle City, waiting for the magic fairy to save us? No! In fairness to my Internet-minded generation, this post’s for you.

Craigslist is a great first stop for budget-conscious seekers of vacation rental properties. Considering it is a worldwide online buy/sale/network community, this San Fran-based site is policed quite well for scams and frauds. This site is nothing fancy, no bells and whistles, but has proven a goldmine for yard sales, unique furniture, kids’ toys — and yes, vacation rentals. Just click on your city of choice, then click on “vacation rentals” under the “Housing” category and away you go. It’s all about eliminating the middle man. Great deals abound, especially during the off-season.

There is also a Craigslist link to “housing swap.” This idea really gained popularity after being prominently featured in last year’s film, The Holiday. Incredulous that such a concept could actually happen, I researched it and found that people do indeed swap houses for a week or so. Does the idea of giving perfect strangers the run of my house while I’m away creep me out? Well, yes actually, but different strokes for different folks. While primarily done with vacations in mind, there is a growing trend of swapping houses for actual real estate purchases.

So there you have it! Two innovative ways to find your next vacation rental on a budget. Has anyone had a glorious or horrendous experience with either of these options? Love to hear about it in a comment post!