| The US Dollar has declined considerably, and the US real estate market is not doing well. The diagnosis by many respected economists is to maintain lower interest rates. So, what can you do? Convert your US Dollars to Euros or Gold? Maybe, but that train seems to have already left the station, after a healthy run up already. |
Where can you convert your US Dollars without losing your shirt on the exchange rate or otherwise, get fair value for your money? Even in India at the moment, they are now refusing to accept US Dollars in the country’s tourist attractions due to the devaluation, but not so in the Dominican Republic. Some Dominican properties are actually priced or sold in Dollars, and if not, the exchange rate is still favorable.
Property or land has historically appreciated anywhere from about 2 to 5 percent annually, with some periods of slow growth or a stagnant market setting in from time to time, and some periods of double digit growth as well – sometimes to the point of bubbles being created. But, the main point to be noted is that real estate usually holds it value and acts as a hedge against inflation (along with gold, of course). We say usually, as there are exceptions to everything, such as the current sub-prime nonsense in the US at the moment, which is wrecking havoc with the US real estate market and probably will skew the traditional calculations because of all that debt and leverage that is out there (the market was driven up by debt and leverage, so it is no surprise that these same two factors will make a correction that is much more dramatic and painful as well).
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So, the question becomes – if you are going to swap your paper money for something else, and presumably real estate for some portion of it – then where? Good question. The answer has to do with if whether or not the market where you are looking to buy is over-valued, under-valued or fairly valued at the moment. In addition, if there has been increases lately, what has caused it. Is cheap money or debt to blame, or are properties being purchased for cash? Is it a case of supply and demand or something else?
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The key point in all of this is of course to make your real estate purchases in such a way that you are not over paying, or at least getting current value. In this regard, once again, the Dominican Republic on average is still about 25 to 30 percent less expensive when you compare similar properties in the rest of the Caribbean.
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Looking even further Juan Dolio has a large number of luxury condos located in a secure beach community with single family homes on its two professionally designed golf courses. Donald Siener owner of Juan Dolio Real Estate says: ¨What sets Juan Dolio apart from other locations in the Dominican Republic is its convenient location from the capital and international airport. Santo Domingo corporations, executives, government leaders, foreign investors recognize the real estate opportunities and eagerly provide steady investment to the area ¨.
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In summary, is there value for money when it comes to real estate in the Dominican Republic? The answer is YES. In addition, adding some fairly priced Caribbean real estate to your investment portfolio could also help protect your assets from the eroding nature of inflation as well.
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