I'm a real estate developer of affordable housing in NYC, most recently in the South Bronx

Exploring building affordable housing (apt complexes) in Santiago, DR at the $59k US per unit price point.

Is $59k considered affordable housing for middle income families in DR?

Is there a market for apartments in this price range?

Is pre-sale of 50% of the units the norm?

Have financing lined up for land purchase.

Would appreciate thoughts/comments or further questions.

Thanks!

You are in the wrong forum trying to look for a business relationship with Dominicans here. These guys are a bunch of broke Dominican elite wannabes. Most of them are unemployed, on welfare or recieving unemployment checks. If you want to discuss negative topics about Haitians then they can help you. But about business opportunities involving them, I don't think you will find anyone raising their hand any time soon. Brasilenos4ever!!!!!!!!!!

Not seeking investors nor business partners. On the contrary, we have our bank financing line in place.

Just getting thoughts on the real estate market for affordable housing.

Will be using local DR material supplies, labor, architects, attorney - so should be a plus for DR.

Realize not all of our skills and successes will be transferable to DR for various reason which is why I'm posting on the site.

But thanks for your caveats though.

Best! mb

Brasilenoisback,

It just sounds to me that you are irritated by the fact that there are plenty of threads attacking your country (Haiti). Mon ami, you can always give us your feed back By the way, by pressing alt-1-6-4 on your key board you can add the ñ to your screen name! There is your lesson for the day. Bet, you wouldn't have learned that back in haiti.

Many Dominicans build as money becomes available on a plot. Credit is expensive and outside jobs such as teachers etc. jobs are uncertain. A friend has developed for rental - I think the rewards may be in small houses with lease purchase or rental. People I know have just used a builder who has completed a project or a small block, inspected it, and just negotiated on a copy or near copy for their site. Architects are uncertain. Expect cost and time overruns whatever. Planning can be a hassle and a good lawyer is needed. Also consider a site where there is an existing building to upgrade. Bear in mind that many salaries are 200- 400 dollars a month and even with two family members working meeting a repayment at 17% interest can be difficult.
S.

Thanks abc200 - very helpful.

Presume 17% is the average mortgage rate in DR on a 30 year fixed?

read on another forum that 50% presale for new apartment developments is a norm?

Best, mb

People are reluctant to put money down before near completion as many projects are uncertain. This does not apply to projects underwritten by major institutions. The situation is not as in Spain where the bank, with close links to government guarantees completion. The peso devalues agaisnt the dollar by 5 - 10% par year - against the Euro rather more so the real interest rate allowing for devaluation//inflation is maybe 5%. A good strategy is to build 3 sell 3 etc. you can see this in many places - also some are developed to bare shell for self finishing.
There are also government contracts for low cost / public housing - sometimes if a developer builds so many public houses he gets a nice plot of land adjoining for private housing. Also do not forget that setting up a condo association make take some time. Ask 2 or 3 lawyers with track records to advise.
S.

My real estate experience is in Santo Domingo so the same may not apply in Santiago...

Price- In Santo Domingo $59K is affordable for new apartment type housing in the city. You may want to check out supercasas.com to see what properties are selling for in the area you plan to build in. You can also get a market analysis from a local consulting firm.

Demand- In the Capital buildings are still going up like mad, and they are often entirely sold before completion.

Pre-Sale- This depends on your marketing and the location of the building. It seems that those with the best connections do best. This revolves around the firms involved and their track record. I have seen buildings sold to 50% when they were still in the plans phase. (Meaning with deposits collected and contracts signed...)

My first impression is you should be able to get a lot of the information you are requesting from your local connections. If the connections you have do not have this information... get some more connections.

Hope that helps...

Thanks for all of the postings so far - very helpful.

mb

It depends on the area... You can buy a nice house with 3-4 bedroom and 2 bath 2 car port for around 90k in some areas.
What will your apartments offer??? Most people want 3-4 bedrooms and more than one bathroom
Will this project have 24/7 security?
Will there be parking availible?
What kind of materials are you going to use in the kitchen and bath? cheap stuff?
How many units in the building?

Also, yes the mortgages down in DR rape the people 17-20% rates