The Benefits of Recession in the Dominican Republic
The term recession brings back memories of tough economic times during the 50`s and 80`s and while most people think recession is the worst that can happen to most, to some it represents a unique chance to gain as much as they can. Let`s take an example in the Dominican Republic luxury villa rental market, where villas that once costed US$1,500.00 per night can now be rented for about half that price, and while most will not publish such low rates, it can be negotiated easily. Update: with the corona virus crisis, people are rushing to buy Dominican Republic real estate like never before, as most other markets are constrained due to restrictions.
During recession times there are more people considering choices that are more beneficial to the health. A study from Stanford University in the United States, says the recession is beneficial for health, because people will smoke and drink less, and reduce the rate of obesity.
The research that led to the report published today in The Times, say that in good economic times people from all walks of life tends to work longer hours and neglects the leisure hours, caring for themselves and their family. Although people of high strata has the luxury of going to the gym, the kind of food they eat in restaurants or shopping in the supermarket contain excessive fat percentages, which keep them away from healthy living.
In times when the economy is moving ahead positively, “cook at home and exercising are seen as a waste of time,” said Grant Miller, assistant to the Department of Medicine at Stanford University.
Conversely, in periods of recession , people tend to cook healthy food, work less and therefore have more time to care for themselves and their families, the study said.
In research published in 2000 entitled “Is recession good for health?” Christopher Rhum, a professor of economics at the University of North Carolina, analyzed the mortality rate between 1972 and 1991, relating to economic situation.
He discovered that every time the unemployment rate increased 1%, the number of deaths fell to 0.5%. To Ralph Catalano, a public health expert at the University of California at Berkeley, said that the recession is good would be an “overgeneralization,” although he admits that affects health in some way. “Anyone who is worried about losing your job, avoid doing things that increase the risk of being fired, therefore, is drinking less and are less likely,” he said.
In the real estate market, while not so badly affected in the Dominican Republic as in most other bigger, more developed nations, prices did fall and some deals can be made that would be beneficial to foreign and local investors. Even if prices do not fall there`s always people that need to sell because they need to balance the losses they had in the States or other country they work or live at. Take for example the 23,000 sq. ft. Sea Horse Ranch ultra luxury villa that was being auctioned on January 19th, 2010 for US$33.5 million dollars, now listed for sale below US$10 million.
One of the best investment areas to make money from in a crisis is real estate, because the value will always return if you can wait on the investment, and in certain Caribbean destinations like the Dominican Republic , the investment return is quicker if you know your way around the business in the country and work with good realtors in town. Sosua and Cabarete offer a large selection of beach front homes and luxury villas that provide rental income while the market for sale steps out from recession , a benefit harder to find in other locations.
Local real estate developers are smart enough to halt the construction of more units until the supply is lower, to keep the market healthy from over supply. During peak season and holiday weekends, demand for villa rentals in the Puerto Plata regions increase over the limit, because most villa owners invest to use the vacation homes for their family and only a small percentage would rather make the rental income of peak season times. Recession creates a buyer`s market in the real estate arena, making it even better for those who are about to invest in purchasing a home or Caribbean villa.
Some writers are already cashing in on the recession , and if you feel you can write a good book you`ll find yourself making millions just by inspiring people to keep going when the going gets tough. New York Times best-selling author Kevin Trudeau`s book Recession Cures provides readers with come know-how on how to get rich during recession times, overcoming the usual roadblocks we all face during bad economy times. Nicholas Bate`s Beat The Recession and How to Sell and Market your way out of his recession have also helped many people achieve their dreams and made the author a fortune.
NEVER WASTE A CRISIS The current recession is a turning point into a new economic world, a world full of opportunity for those who understand what s happening, why it s happening, and what it means for them. Some businesses and some people will emerge from this downturn stronger and more dominant than when it started. Others will weaken and fade. It all depends on critical choices they make right now. Geoff Colvin, one of world s most respected business journalists, says even the scariest recession has an upside and so he explains in his book, The Upside of the Downturn.