Quote:
Originally Posted by Pharaoh
You claim "As far as selling property, the market is almost completely Venezuelan. If you have a property that a Venezuelan would want at a reasonable price, it sells very quickly. In other words, the closer it is to Sambil Mall, the better. With all the money the government is pumping into the lower economic classes, the businessmen in this country are getting rich. They're buying property, and Margarita Island is always considered a good investment location."
HAHAHAHAHAHA....you just said it......"If you have a property that a Venezuelan would want at a reasonable price".....so Joe Blow buys a nice unit for say $200,000, naturally when selling it he would like a healthy profit........not gonna happen is it ? I have seen units for sale for years and years and years....not because they are in bad areas, but overpriced to begin with and in 20 yr + buildings.
Margarita is NOT A GOOD place to invest........end of !!!!
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You defeat your own arguments. I too have seen overpriced units for sale for years and years in old buildings. I've also seen good units for sale in good buildings that were sold at market value within weeks. Someone dumb enough to purchase a poor property for an inflated price is not going to see a good return on it.
The old rule is that one makes money when they buy, not when they sell, and that requires doing the homework and buying good properties for good prices. Doing so produces a good ROI with respect to rents and allows for a nice profit from appreciation at some point down the road.
There aren't ANY real estate markets where Joe Blow can buy overpriced in the beginning and see a healthy return in a short period of time unless Joe Blow is incredibly lucky... kind of the way you were when you bought something in 2002 and watched the country go into a depression in 2003 (negative 11% GDP growth) but then rebound with 17% GDP growth in 2004 and 10% GDP growth in 2005, 2006 and 2007. That drove the housing market up quite a bit, so that even if you purchased for an inflated price you still made money.
My gut feeling is that you've got a bad case of sour grapes. According to your story you sold out in 2007. Either you got paid in Dollars somewhere outside the country or you had to take your Bolivares out through the parallel market (which is easy and legal using a brokerage account) at a rate of 6000 Bolivares plus per Dollar. If you'd just waited until this year you'd have seen a minimum 20% to 30% increase in price as well as a drop in the exchange rate that would have given you TWICE as much money.
In other words, you got out too soon and didn't make nearly as much money as you could have. Most people kick themselves for a long time after decisions like that, but you seem to be redirecting your anger toward Margarita.
There are plenty of properties for sale on Margarita for above-market prices- just like every other real estate market, and there are plenty of properties for sale at reasonable prices. For someone willing to look there are also under-priced properties available. Occasionally a real bargain pops up, but it doesn't last long. Again, I could be describing any healthy real estate market anywhere.
The other side of the coin is the economic condition of Venezuela and where the Venezuelan economy goes from here. Again, you're quite negative and you're implied claim is that simply because you lived on Margarita you must be some kind of an expert on all things Venezuela. Does that mean if you spend enough time in McDonalds you'll be an expert on the fast food industry?
You sound just like a lot of expats I know who live here and get all their opinions from disenfranchised Venezuelans who lost out when Chavez was elected. Some of those Venezuelans lost their jobs and connections... and they're really bitter. Margarita isn't representative of Venezuela, but you wouldn't know that unless you spent some time on the Mainland.
The infrastructure projects going on in Venezuela are huge, with subways, roads, bridges, heavy and light rail systems, power plants and refineries being built as fast as they can be built. The tier 1 and tier 2 construction companies are maxed out and have been for the past several years.
If Venezuela is living hand to mouth, how would you describe the economic condition of the US, UK, Spain or Italy? They're all in debt up to their eyeballs, have a negative balance of trade and a housing market that's (at best) going down.
I'm bullish on Margarita, and I've barely scratched the surface of the reasons why. You, on the other hand, decided to leave, so you obviously have some negative opinions that cloud your judgment.
OH- and about food. You can find any of the items you listed on just about any day of the week if you're willing to pay above the regulated price. If you only shop at SIGO, well, today they had plenty of rice, oil, baby food, milk, eggs, etc., but there was very little beef or chicken. Want beef or chicken? Drive over to the Carniceria at the entrance to Pampatar and they've got all the beef and chicken you want, but it isn't at the "official" price, it's at the market price.
Don't want to pay the free market price? Then take the time and go to Rattan or CM or Unicasa (different supermarkets) and you'll wind up finding what you want sooner or later. Pay your money and take your choice... that's the reality.
Even when there is a shortage of something, if all else fails the chinese markets will have whatever it is that nobody else seems to have, but they'll gouge you for it.