Real estate boom
Replies: 14 - Last Post: Nov 30, 2012 9:34 AM Last Post By: Jorgeguide58
Nov 29, 2012 3:45 AM
Nov 29, 2012 6:31 AM
Nov 29, 2012 8:02 AM
2Funny that the article states that miami Cubans are buying to return to retire and some of the people I know who have their homes for sale are looking for a good payout to buy themselves off the Island. Others I know I know what to cash out and buy down so they have a enough money for thier retirement in Cuba. So if any one is interested in a penthouse in Vedado I can get you one for the low price of 200,000cuc.
Nov 29, 2012 10:32 AM
3Funny, I was there recently this month and once a property hits the market it’s sold to some Cuban American in Miami. MMMMMMmmmmmmmm……..I wonder what this is going to do to the thousands of CA sitting and waiting patiently in Miami for the day the Castro brothers passes away so they can return to the island to reclaim ownership of their ancestry home?
Nov 29, 2012 2:11 PM
4Plenty of houses being sold daily. Prices instead of going down keep going up; and still houses are being sold.
And it is not only non-permanent residents buying; also locals.
C # 2: There are more than two dozens of those around; and if anyone is still skeptical I have witnessed the sales of at least a handful for double that figure you mentioned.
Nov 29, 2012 2:33 PM
Nov 29, 2012 5:28 PM
6Famous last words; there is always a better buy around the corner or on the next island. At the moment it's the only ballgame in Cuba and you pay your money and take your chances. I have never lost money on real estate short or long term.
I think J wants to speak to your wife the next time we are in Havana.
Nov 29, 2012 5:29 PM
Nov 29, 2012 5:44 PM
8Jorge, I was not joking about it being a low price. Needs some work. Has not been touched much since 1953 when the building was constructed. And I can believe some of the prices that you mention. Are they worth those prices? That depends on perspective. As a foreigner without rights for title they are too high and any way we have a house 5 min from Vedado and also in Granma bought/acquired some time ago. If I had the money the 200,000cuc penthouse could be a good investment but I'll leave all that to the Cubans.
Tell me, so residents are allowed to buy homes or do they have a local do that for them? How dose that all work?
Nov 29, 2012 6:01 PM
9They go through a real estate broker/agent who is familiar with all the in/out of the laws to complete the transaction. The topical commission is 10%. Cuban Americans in Miami are buying houses for their families in Cuba who don’t want to leave. You would be surprised at the amount of money in circulation in Havana.
Well if Jorge told you how all that work his friends in the real estate business would be out of a job.
Nov 29, 2012 7:53 PM
10Rickie, like yeah duhhh. What do you think I have done and in the process right now with a third house. but without the 10%
It just sounded like he was saying people w/ PR can purchase homes and I have understood it as they can not.
I guess that people who have permanent residence are just having locals or spouse buying the home. Anybody could do that.
Nov 30, 2012 4:50 AM
11There is no point in trying to find a logic about how prices are set. No point either in trying to understand if some are really selling or just playing a game waiting for the first dumb rich folk to fall into the net. It is pretty chaotic. If anyone wants to have a house in here you have to play by the “rules” in here. I you want to live in here, there is no point in talking about prices in Miami or any other Caribbean islands. We have been used to such disparity of things within and abroad. If you want to have a 32” flat HDTV you have to pay 500.00 cuc and just feel sad that you can buy for $250.00 USD in the US. If any of you want to buy my car right now, I would sell it for 15,500.00 cuc. It will cost –probably- $300.00 USD if I want to sell it to a recycling company out there for its body metal parts and they will do me a favor; and I have already three buyers in here(none is a foreigner).
And anyone having expectations about prices going down may wait for a long (lifetime) time. In a country where new constructions is so way behind the pace of population growing, accumulated needs of overcrowded houses, impact of meteorological events, and collapsing of old buildings -although there will always be real state to buy- supply vs. demand will keep prices steady if not moving up.
R # 6 & 7: J is welcome. You have my email address in case you or J do not have all my phones. I will send them to you.
C # 8: Yes, they did worth those prices. One is a pretty popular place on the Net. I would reveal it once owners allow me to. They are friends and I do not want to get them into any kind of trouble. I understand your thinking about ownership. I have many good friends in the States for whom these prices can be considered “pocket money”. But still the idea of no ownership makes them hesitate. Fifteen years ago I had the opportunity to buy one of the best places in the city (today charging 700.00 cuc a night for 3 bedrooms and one suite) for 1/4 of what it is being sold now. My friends –at the time- were just clients and did not trust this “Jorge guy” to cut a deal with me. Today, fifteen years after, they lament not to have invested in such a beach-front facility that could worth a handful of millions anyplace else.
Did you mean permanent residents like a foreigner being granted permanent residency? It depends on a handful of factors. Be ready to have kids and a pre-nuptial agreement officially notarized. Strong rumors around about Law changes after January so better to stay tuned.
R # 9: Although still trying to survive and working harder to rip you off, “brokers” are not as necessary as they were before the changes of the legislation. BTW the wording in the article of the original post is mistaken. The word is “corredores”. These guys try to get their 10% from both: sellers and buyers when in fact it was supposed to be only 10% total. It does take a lot of energy, time and some money but anyone could do their jobs. It took me two years to swap my Mom’s nice house in Lawton (where I was born) to the apartment in Vedado she owns at present. Money spent? Just peanuts given to a couple of lawyers. And location wise this swap was like swapping a house from south LA to Beverly Hills….lol.. There is a hidden “battle” out there among corredores, lawyers and public notaries.
Nov 30, 2012 7:35 AM
12Anyone can purchase property in Cuba and have the property register in the name of a dummy buyer. Since the new law came into effect it has been raining money from heaven mainly from Miami to their family in Cuba to improve or upgrade their lifestyle. The new law applies to Cuban residents and foreigners with permanent residence status. Most of the real estate brokers or corredores are found on the Internet bringing the sellers in Cuba and the buyers oversea together.
Life is great on the Grand Island. Tourism is booming, the real estate market is booming, Cubans are up to their neck in money and everywhere we go we see Cubans in the latest fashion with the latest mobile phones content to sit back and enjoy their lunch over a bottle of wine engaged in social intercourse with their friends every so often checking their phone to see if their family in Miami re-charged their cellular phone and if they sent the money by Western Union.
Jorge, my amiga was very impressed by your wife depth and knowledge on the subject that interests her. Some articles spell the brokers as Correctores and others with one r and you without the c and d for t as in corredores.
Nov 30, 2012 8:59 AM
13A good option is to buy a suitable roof space and build. Construction and materials are dirt cheap there. We are just finishing a project. Three bedrooms, 2 bathrooms, kitchen, dining room, living room, workshop, laundry and huge terrace all on second floor. Garage on 1st floor with entrance to second, plus main entrance. Extra small room on roof. Hot and cold water. All for 30Kcuc complete with furniture and everything.
It is built on top of 2 houses. My wife's mothers house and the neighbour.
We rebuilt most of the neighbours place to get those roof rights. You can't let the contractors know a yuma is involved or the prices go up.
This was not in Havana of course but we bought most of the finishing materials and fixtures there, from tiles on up.
We are seliing an apartment for 12Kcuc. Lots of interest but no offers yet.
Nov 30, 2012 9:34 AM
Such enterprise in the city would cost you for sure no less than 45 Kcuc; so no, not always the equation works as it is obviously working in your case. But you are right on brining on another angle.
I hope you do not mind sharing with me (in private message if need be) where is your apartment for sale? I have friends in “ el campo” looking for deals.
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