International Perspective: Dominican Republic

 Today we will be shifting from the usual focus on Bay Area and United States Real Estate, and take a look at a Caribbean country, República Dominica.

 I recently went on vacation here, in Puerto Plata, which is situated on the north coast of the country, next to the beautiful waters of the Caribbean. I did some research and got immunizations, so I felt fairly prepared before entering the country. What I discovered though is that no matter how much research is done, it cannot fully impress how being in a new country for the first time is actually like.

Here are my brief observations:

• The law is more or less guidelines, especially when it comes to minor offenses. Locals rarely if ever get fined for traffic violations. Example: A valid license and helmet is required to operate a moped or motorcycle (popular transportation) but the majority of those drivers never got their license and over 90% never wear helmets or any protective gear. I read about this, and witnessed it on the streets while driving and being driven locally.

• Even though most motorcycle drivers don't wear helmets, they weave through traffic, drive in the middle of lanes opposing traffic and blast through red lights. I was amazed that I never saw any car crashes. Locals seem to have adapted to this chaotic style of driving, and fortunately, I adapted as well.

• There are many poor people living in poor conditions. In the US, even some of the poorest people can get some type of assistance, and have four walls with a roof, with heating and cooling. The DR has a completely different standard for poor, middle class and rich. Driving from the airport to the resort, I saw many small houses along the road and amidst the tropical trees with no windows (only open spaces) and a single small room which houses between three to five people. I discovered that with low wages, they have just enough money to buy some food and water to survive. Towards the end of vacation my girlfriend and I went on a buggy drive through sugar cane fields and tropical forest. Before we began, we purchased bags of snacks for the local kids. As we went through the streets the kids came running up begging for food and water. It was heart breaking, and a privilege to be able to give when we found ourselves experiencing a situation we had not imagined would happen. After the trip I spoke to my friend Nelwys, from Venezuela (South of DR), and he told me that many countries in South America are like that. After this experience, I feel that everyone should be involved in giving to the less fortunate, whether directly or indirectly. If you have trouble giving to charities, book your flight and go see it in person, chances are that you will change your mind!

•  If you are not a native, you can expect higher prices, especially if you are communicating in English. If you can communicate in Spanish, please do so. When you negotiate prices at stores in Spanish you can expect to pay less for merchandise. In some places, you will get better service too. Many will gravitate to visitors looking to sell or get some tip for the slightest service, but will not relate to the visitors. From what I have seen, if you can make a connection with them in their language, you can get better service. Generally, for that though, you must be fluent. 

 This area of the planet is absolutely beautiful. I knew it would be, but experiencing it in person is unlike anything my expectations or foreknowledge gave me. If you plan on going, expect hot temperatures, high humidity (think sauna), and not as sanitary conditions. If you are going to a good resort, you generally don't have to worry about sanitation, except for the tap water, which is not at all safe to drink, bottled water only! Since I have lived in Florida before, I expected a lot of insects, and tons of mosquitoes, but I was surprised to not see very many at all. There were a few bugs, and I didn't even see any mosquitoes.

 There are a lot of fun things to do in this area. Instead of telling you, I'll just show you...

 If you're interested in knowing about real estate there, please click here. Basically, anyone interested in buying real estate there should hire a good attorney who can ensure there is no fraud and that everything needed to be done in the transaction gets done.

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Protecting Your Home from Burglary

     Hello readers! Thank you for joining me in another important real estate topic. Today I will be discussing home burglary, and at the end will arm you with the knowledge that you need to protect yourself.

     There are quite a few homes out there without security systems. Their line of defense is minimal, having locks on doors and windows, some of which are not always utilized, especially window locks. A home break in is not a pleasant topic, and often goes undiscussed as a result. I've talked with a few homeowners who experienced this terrible crime and I see a common opening comment between them and many others: "I've heard of it happening before, but I never thought it would happen to me." It's very difficult to imagine being a victim of a crime, especially when you don't have any close friends who have been victims, and this lack of bad experience gives a sense of security, which easily results in a lack a security measures, ultimately leaving us vulnerable. What's more, burglars don't want to have to work hard for their score, they want an easy target. People who have a false sense of security and subsequent lax home security are their number one targets. Burglars would much rather break into a home with poor security and not many valuables than a home with tight security and expensive valuables. Unfortunately, even if you live in a safe quiet neighborhood, it doesn't mean you are exempt from burglary. I have spoke with homeowners living in Union City and Fremont who have had their home broken into from burglars that were later caught, and it was discovered that they traveled from Oakland, that's up to 50 miles away!

     With that being said, I recommend that at a bare minimum you take basic security measures. Always keep your doors and windows locked when they are closed and not being used. If you're not in the habit of doing this, please develop the habit using reminders that are effective for you (eg. post it notes, phone notifications).

     I recommend going one step further and getting a security system installed. An alarm system which detects window and door breaches can save you thousands of dollars in stolen valuables. Even with insurance, high deductibles can leave you paying for most if not all of the loss, and some things, such as sentimental items (eg. pictures, heirlooms, momentos) can not be replaced. It is far better to pay for preventative measures than pay to try to replace a devastating loss. If you're still not convinced, watch a few episodes of It Takes a Thief, a show which originally aired on the Discovery Channel in 2005. Click here to learn more about the television series. I recommend getting a professionally installed security system by a local expert. According to consumer review, the three top ranking home security companies are Frontpoint, ADT, and Protect America. Click here to view the top 10 home security companies.

     Whether you decide to go with a professional install, or buy some cool gadgets and do it yourself, you will need to decide on some options which include sensor and camera placement. When you are deciding, consider the following statistics on point of entry for burglars.

     I would much rather be prepared for something that never happens than be the victim of something that I wasn't prepared for. Enjoy life, expect the best, but prepare for the worst!

     Be sure to subscribe for your weekly dose, and stay tuned! Have a subject you would like me to discuss? Ask, and let me do the research for you!

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National Home-ownership vs. Renters

     For some hard working homeowners living in Silicon Valley it is difficult to get an actual sense of the rest of the country's economy unless they turn on the news or pick up a paper. Some parts of the Bay Area seem to be micro-economic super powers where townhouses cost a million dollars and average sized single family homes start at two million. In addition, these last two years have seen a rise in home purchases with low days on market averages, which means that if you want to sell a home, several potential buyers will send you an offer fairly soon.

     So what about national home-ownership? As of the third quarter of 2014, it was 63.9 percent which is the lowest third quarter since 1994. Since the most recent housing bubble crash (2005-2007), ownership rates did rise, but they have also fallen, following a roller-coaster pattern since.

     Historically, home-ownership rates rose steadily back in the 60's and 70's, from 63 to 65.6 percent, and then declined in the 80's. After the government pushed home-ownership in the 90's, rates rose from 64 percent in 1994 to 69 percent in 2004.

     How should we interpret these numbers? Is American's dream of owning a home on the decline? Well, perhaps, but it doesn't mean that the housing market is heading down a dark road. Some economists believe that current ownership rates may indicate that rates will rise in the years to come. Some point out that the low rate may be driven by some positive factors, such as having more households in total, which indicates a positive market force. Also the decrease in ownership may be due to a rise in renters, many of which have not lost a home, but who are starting out and will be buying their first home in the future. Overall, predicting the economy is very tricky, but there are chances that national home-ownership rates will begin to steadily rise in the future.

This blog's information has been brought to you by my experience, and C.A.R.'s June/July 2015 "Bust to Boom?"

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