Not This Time…. 40% Of My Assets Gone Overnight

Hi, Barry in DR here.  Thank God this is not my story, but one that is too familiar.  One of my readers emailed me about his experience with the last stock market crash and what steps he wants to take to never be a victim of the crooked banks, brokers and inept government officials again.

Stockmarket Crash

Stockmarket Crash – YESTERDAY

“Barry, I have been reading your blog posts over the last couple months.  What you say makes sense for me and my family.  I was one of the victims of the last stock market crash.  In fact my family lost over 40% of our assets in that crash.  Luckily over the last few years we have recovered about half of what we lost. But it is pretty obvious that another crash is coming, and I am pretty sure it will not recover for years.  We will not ride out the next stock market crash this time.  Not this time.

So for my family the real question is whether we should put our money into something that they cannot steal on wall street or through currency devaluation or hyper inflation.  I think that makes paid up real estate one good alternative.  Around our house we have debated/argued about WHERE.  We buy in totally to the benefits of living out from under the thumb of big brother and in a place that offers a lower stess lifestyle.  But my question is whether Dominican Republic real estate is a good investment option?”

All I can say is sorry about getting robbed on wall street.  Unfortunately it happens all the time and too many people are lured into a false sense of security when their money or IRA and 401k are tucked away in bank accounts and stock funds.  But, as you painfully discovered, much of what you have worked so hard for all your life can disappear overnight at the whim of market manipulators and bankers with self serving interests.

The unfortunate irony of this is that so many people have scraped and saved to fund IRAs and 401Ks or to make investments that they believed would ultimately finance a comfortable lifestyle for their family at retirement…. only to wake up one morning in a hopeless situation where the assets are gone and those dreams slip another decade or two.

For us, we needed to take a little more control over our lives.  We chose to refuse to be a victim of bankers, politicians and brokers.  Instead, for our family we chose to put our money into assets we could touch that would give us the retirement-like lifestyle we wanted, well before retirement age.  So yes, that included buying real estate in a place where we could afford the lifestyle we wanted.

Now, to try to answer your question… “Is Dominican Republic real estate a good investment option?”  I guess I first need to talk a little about real estate as an investment to start with.  If you have a valid purpose for real estate, it can be a good investment.  If you carry too much debt to finance that real estate, it can be a nightmare, as so many caught up in the US real estate crash can attest.

Three Main Reasons To Own Real Estate

While Enjoying Our Morning Coffee

While Enjoying Our Morning Coffee

There are three main reasons to own real estate, each valid.  First you may want to own real estate in order to generate an immediate return on investment through rentals or the active production of income.  The second reason to own real estate is to secure your future and assure that your family has a roof over their heads, hopefully in a place they would like to live.  And third, of course, is to own real estate in anticipation of capital gains… in other words selling at a higher price than you purchased for.

For my family we are primarily interested in the last two reasons to own property in the Dominican Republic.  First, this is where we want to live… probably for the rest of our lives.  We love many things about the lifestyle that living in Cabrera Dominican Republic allows us.  But we also believe that real estate in this area of the Dominican Republic will appreciate significantly as more and more people discover the area and as some of the major developments like Playa Grande mature.  Is there a guarantee that will happen… of course not… but does it feel a whole lot more likely than guessing exactly which day to grab the money out of the banks and stock market and run for the hills.  No, for us it is simple…. We’ll continue to put our money into assets we can touch.

But Is It Right For Him or For You

But is that right for the guy that sent this email… I can’t decide that for him… or for you.  If you are comfortable that the thieves are all gone from wall street and from the banks, or that the politicians have had an epiphany and will now behave in YOUR best interest… then maybe leave everything as it stands.  On the other hand, if you have lost all confidence in banks, stock markets and politicians like me… I do encourage you to start your plan to “solidify” your assets.  And not just plan…. take action.

What I will do over a few posts is just show you some pictures of what land and real estate looks like up here on the north coast of the Dominican Republic, just so you have some idea what you would see if you were here.  If I happen to know what a seller is asking or what someone paid for a piece of property or a home, I will share that with you to give you a clue about pricing in this market.

Where?

We're Here Waiting. Barry In D.R.

We’re Here Waiting. Barry In D.R.

To sum up my answer…. WHERE depends on your own criteria.  If you want a good laid back lifestyle in a safe place where natural foods and seafood are cheap, where real estate is a pretty good value, where tourists are few and far between and where you are surrounded by the most beautiful deserted beaches and some of the friendliest people I have ever met… then perhaps Cabrera Dominican Republic is right for you.  If you want to see for yourself… come on one of the free Discovery Tours.

For now, it’s Barry in DR, off on another Discovery Tour.

Share

Comments on this entry are closed.

Previous post:

Next post: