Real Estate Investing: Where to find undervalued beach-front property bargains

Today's Financial News - Posted March 17, 2008

“Real estate prices in this stable Caribbean island country have been rising steadily. But in this developing area, you can still get into the market for $60,000 to $70,000.” — Dan Prescher

This is Part V of our TFN International Living’s “Top Real Estate Picks for 2008″.

by Krista Das

Baltimore — (TFN): Krista Das: Over the past 30 years, International Living has proven to its 420,000 subscribers that you can live better for less overseas. International Living’s Dan Prescher is joining us again to tell us about a real estate opportunity in the Dominican Republic that you won’t want to miss

There aren’t many real estate opportunities in the Caribbean still left, and I’m surprised to hear that there is one in the Dominican Republic. Where is this opportunity?

Dan Prescher: It’s called the Samana Peninsula. Until just a few years ago, it was just a big expanse of abandoned beaches and jungle. But now, with infrastructure and improvements, it’s opening up and opportunities there are ripe.

Click here to watch this interview as a TFN video!

KD: Are there airports near there?

DP: Actually, the El Catey International Airport is just being completed, and there is a new superhighway going in from the capitol to the Samana Peninsula. It’s a very conscious effort by the government of the Dominican Republic to open up this new area.

KD: Can we be assured that this is a secure investment? I know in a lot of foreign countries you have to be worried about government seizure of your property. In other words, is the government stable?

DP: It is. Secure investment is always a relative term, but Leonel Fernandez is now the president. This is actually his second term. He was president before, and he’s expected to stand again for the next term. So there’s continuity of government. The gross national product of the Dominican Republic is rising at 6 to 7 percent a year. They recently passed the Dominican Republic CAFTA agreement, so all the elements are in place for good visibility and stability for the next few years.

KD: Has there been a notable jump in tourism on the Samana Peninsula?

DP: Yes, there has. It’s now starting to bubble up on the radar, especially with the news of the El Catey Airport, with the news of the new highway coming in. Lots of people are starting to discover it. It used to be one of those places that was a backpacker haven, and if you follow the backpackers you usually find out where the next big place is going to be, and this is one that qualifies.

KD: What types of property are we looking at here? What price ranges?

DP: Of course you always want to look at beachfront property. Since the airport has been announced, prices have been rising steadily, but you can still get into this market for $60,000 to $70,000. And of course, as with all places you can spend as much as you like, but the values are still there. You can still get in for well under $100,000.

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