purchasing a condo complex in Punta Cana as an investment

dbogdan83

New member
Jun 20, 2011
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Hello Ladies and Gentlemen,

I am 27 year old single male looking to move to Punta Cana and invest in Real Estate with my partner. I am a US citizen so I don?t think I should have any problem becoming a resident. I am looking to purchase about 10 condos and rent them out to tourist and manage the properties myself. I speak Serbian, German, English and have been surrounded by the Spanish culture for the past 13 years so my Spanish is not bad at all. I lived in Yugoslavia Germany and now in the US so I don?t think I would have any problems adopting to such a beautiful country like DR. If anyone has any suggestions on what steps I should take please let me know. Thank you very much in advance.
 

tequila

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Oct 24, 2008
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Punta Cana property

We purchased property about 2.5 years ago. If you require a reliable and licensed realtor, please see Maria Williams at reliable realty. Her husband Toss does the property mgmt. Very honest, hardworking people who look after the buyer not the developer.

You can email me at cpmeriot@shaw.ca if you have any mre questions
 

Bob K

Silver
Aug 16, 2004
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I read your other posting on this subject. You will have a VERY hard time finding 10 condos that touists will be wanting to rent with a budget of one million (USD). That breaks down to $100,000 per unit and I don't think in the Punta Cana area or any other touist area you will find something that will attract touists to rent.
PC is the most expensive of all places.

Bob K
 
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william webster

Platinum
Jan 16, 2009
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Speaking generally, I have seen this strategy work..... in other places, not specifically RD.
However, I see no reason why RD would be unsuitable

It needs to be advantageous purchase.... possibly with the developer's help.

I'm sure you know all that.... good luck.
 

PJT

Silver
Jan 8, 2002
3,562
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There is an overabundance of properties at this time and the starts of construction of multiple types of housing units is minimal at best. The housing overabundance and the poor economy has resulted in losses of rental and sales income for many investors and in some cases outright loss of properties as the owners have not obtained the return on their investments to pay off debts.

PJT has managed rental properties and rental rates are now half of what they were three/four years ago and the tenants want more for less. Less than half of the properties are now occupied as the rental rates prospective tenants are now demanding do not pay for the overhead of the properties, in this case it is more economical to keep the units empty.,

The real estate market is so poor that some of PJT's real estate agent friends have stopped doing real estate full time and have taken up university teaching to maintain a decent income level.

Look before you leap, don't come to Punta Cana with stars in your eyes based upon the allure of a beautiful country and dream you can rent to tourists. It is very hard work even for the locals to compete, and a foreigner will have to work harder.

More power to you if this is still what you wish. PJT would very much like to provide you with positive information.

If you really want to get a window on the matter, ask the developer/real estate agent to take you to other condo properties they have marketed to see what the occupancy levels are. Then visit other sites on your own.

Last but not least, if you do intend to invest, get a damn good lawyer.

Regards,

PJT
 

sharkstooth777

New member
Jan 22, 2011
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I agree with Bob K. $1 Million probably will not be enough seed money for 10 units. Based on the one and I bought last year...it will probably take you about $165K to 180K per unit (including legal fees and fully furnished for tourist renting).

However, I looked at what the occupancy rates were for rentals and that helped me immediately decide that I did not want to rent what I had purchased. This was a personal decision, and I'm sure there are people out there who are renting their properties and doing o.k.

Anything is doable if one has determination, energy, a well thought plan and back-up along with capital to sustain your expenses if times get slow. This is a tourist area and there is a high and low season....so plan accordingly. I also own a house @ the beach in NW Florida and it is a tourist area as well. Spring Break (Apr) thru Labor Day (Sep) there are a few million who hit the beaches. Then it's the locals until the next year starts again. I am not sure how rentals do down here in the off season.

and one other recommendation...Hire you a lawyer for your contract and title documentation no matter what you hear from a real estate agent.

Good luck in you venture. PM me and I can give you details of the area that I bought in. Don
 

Contango

Banned
Dec 27, 2010
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There is an overabundance of properties at this time and the starts of construction of multiple types of housing units is minimal at best. The housing overabundance and the poor economy has resulted in losses of rental and sales income for many investors and in some cases outright loss of properties as the owners have not obtained the return on their investments to pay off debts.

PJT has managed rental properties and rental rates are now half of what they were three/four years ago and the tenants want more for less. Less than half of the properties are now occupied as the rental rates prospective tenants are now demanding do not pay for the overhead of the properties, in this case it is more economical to keep the units empty.,

The real estate market is so poor that some of PJT's real estate agent friends have stopped doing real estate full time and have taken up university teaching to maintain a decent income level.

Look before you leap, don't come to Punta Cana with stars in your eyes based upon the allure of a beautiful country and dream you can rent to tourists. It is very hard work even for the locals to compete, and a foreigner will have to work harder.

More power to you if this is still what you wish. PJT would very much like to provide you with positive information.

If you really want to get a window on the matter, ask the developer/real estate agent to take you to other condo properties they have marketed to see what the occupancy levels are. Then visit other sites on your own.

Last but not least, if you do intend to invest, get a damn good lawyer.

Regards,

PJT

Overall some good feedback, but its certainly not as bad as PJT paints it.. True, rental rates are low, but the occupancy has picked up dramatically over the last 18 months.. and RE sales are 63% better than 18 months ago too... Also prime locations for rentals have "held their value in rates".. Regarding RE agents in PC, 80% of the sales are made by 20% of the people.. It takes a strong hard working closer like me, to make a "pay"... Integrity and strong values are what makes one stand out.. Having said all that, I dont sell RE in PC...
 
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william webster

Platinum
Jan 16, 2009
30,247
4,329
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Some investors would look at the 'doom and gloom' postings above and lick their lips....... they might like a distressed purchase ( the flip side of a distressed sale)

Deep pockets seek weakness in any market...... advantageous purchase was the phrase I used earlier.

Load up on inventory when its cheap..... if you can afford to hold it until the "rubber ball" effect kicks in.
 

Elmahmoudy

New member
Jul 22, 2011
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Investment in other placr

Dear Sir
I think if you are serious, you can invest in sharm Elsheikh, Egypt, You can invest $1Million , which means LE 6Millions.
by this amount, you can bye more than 15 units with revenue 15( unit) *12 ( month ) *3000 LE(monthly rent) =540000 LE = 90000 USD per year
Contact me for more details
alaa@masters-tech.com
 

trangalanga

New member
Jun 10, 2011
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www.villa-elena-bavaro.com
Hey Bogdan83,

I own a building with 11 furnished apartments, plus little garden, pool, washing area, a lodge for an employee, etc. Of these, 5 apartments are one-bedroom, 6 are two-bedroom.

The building and the apartments have a nice design and are quite agreable to the eye.

The property is within a guarded community with 24h security, in the best area of Bavaro. The community provides vigilance, cleaning, gardening, water, etc. Owners and tenants enjoy exclusive access to Bavaro Beach, where they can use toilets and beach stretchers.

Of the 11 apartments, 7 are fully finished and are currently rented long-term (at least six months) to good tenants: prices are 400 usd/month for one bedroom, 500 usd/month for two bedrooms.

The other four apartments need minor work before I can rent them. Minor means minor. I have not done it yet because I am working on other projects. I am currently renting out 27 properties. I do that for a living.

At this point in time I could sell you the whole lot (11 apartments) for 1M dollars.

Please pm me if you want me to send you pictures and more information.