Purchasing Investment Property in Sasoua (Casa Linda)

I am surprised how high some of the monthly fees are here. The only good thing is the property taxes should be less the your properties in New Jersey. Electricity is the other issue that could be a problem for a rental.

If I was to pay a high monthly fee I would want it to real have nice amenities such as pool, gym, tennis courts, etc. I pay to go to Sosua Ocean Village sometimes during the day and they need a nice job with the gym and three pools. I have never stayed there or gone to the spa but there pools and gym are set up nice.

Review the forums for advice related to purchasing property.

mta2 said:

Hi everyone this is my first post

My name is Mir and I visited Sasoua sometime in June for vacation and I absolutely loved the area and had a real good time. I stayed at Casa Linda at Villa Ultima and i really enjoyed my stay. I began my research when i got back home to New Jersey and contacted Casa Linda regarding purchasing a property there. After going back and forth with them, I didn't really have an issue with the price of the property but an issue with the fees which amount to $1k per month and then property tax on top of it.

I own a few properties in New Jersey and some of my tenants are Dominican. My wife's best friend is also Dominican and she owns a few properties in DR as well so I feel like the cost per month is very high after speaking with them.

I am interested in purchasing a property in a secure location like Casa Linda but I would also like to rent it out as an income property. I would definitely prefer something along the lines of what Casa Linda has to offer especially their rental guarantee. If you have any tips for me regarding Casa Linda I would appreciate it because I would love to purchase their property. I'm not expecting to retire from this investment but would like the property to make some money.

Any special contacts you may have to offer please PM me.

BTW, I did a search and found the latest posts up to 2009 but I did find a post suggesting Hispaniola Real Estate. I did contact them also.

Thank you
Mir

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I also looked at casa Linda last year and the more I looked into things the harder it got to justify buying there unless living there full time. The fees are high and you have no choice but to pay the gardeners fees and cleaning fees. If I was living there I would tend to my own garden and pool. Also they are building lots of new villas so competition for rentals will be high. The rental guarantee is not bad for the first 2years as you could break even but after that you still have to pay all expenses even if villa is empty. Also electricity is high when rented due to people running air conditioning all day. I would probably buy there if It was for me and not to rent out.

it got to justify

In my very humble opinion - Casa Linda management and administration is EXTREEMELY unprofessional. Have been dealing with them for the last few months. You can wait several hours in their office before they deign to address your problem. Would definitely not recommend dealing with Casa Linda if at all possible.

I would not suggest buying rental property as I have lived here 9 years and finally bought a rental condo in Sosua and it's being advertised on every online rental website there is and I only make enough to pay the maintenance fees ( $115 per month ) and electric which varies.

Ok, I do not live on the North Coast and have never seen this project that you are talking about. I just went to the web page and looked at the properties and see why you are attracted to them because they really are lovely and prices seem quite reasonable.

But I did live for two years as an American renting up in Las Terrenas, which, in my opinion, is the ONLY place that I think you ought to consider (yes, I have visited the other towns but LT is far more beautiful imho)

Others who seem to be local have brought up the security issues and the only way that you will be able to check that out is to go back down there before you buy and talk to folks there, I would think.

If you mean that the maintenance is $1000 US a month, then I have to ask what you are getting for that? Here is what they say

illa Management Service:
Casa Linda provides a complete management service which includes: ensuring your villa is properly maintained and monitored in your absence and while you are here (interior of the villa, grounds and pool maintenance, housekeeping); monthly bill payments; crisis management if anything goes wrong with your villa; maintenance of all minor and major issues with appliances, roof, pool, plumbing, electrical, etc.; payment of taxes; and point of contact on the island.
Many of our full time residents take advantage of our all inclusive, hassle free services as well. Casa Linda offers a no-work, retirement subdivision, with the capacity to care for your property if you travel to North America or Europe to visit family or vacation.

We have a fully staffed administration and rental office onsite. Shuttle bus services are available to take you to the nearby towns of Sosua and Cabarete. Our friendly, knowledgeable staff are here to make your Casa Linda experience simple and worry free. Casa Linda Security patrols the development 24-hours a day. They monitor surroundings to ensure that your property is secure and rental guests are respectful of the neighborhood."

I am not exactly sure what this all means or what you will be getting for that $1000 .. A pool for instance, can cost $300 or more a month to run. And I think that you will pay for that. As for the rental income.. well I would not count on it. The guarantee may be there simply because it is built into the price. And there may be NO rental market after that program.

There may be FEW residents. Your next door neighbors could be porno film makers. Anyway.. I am not sure why you want the place. Clearly you have not been around the Island long. I worked in real estate for years, bought and sold, owned, rehabed, rented, all that. But here is really different. You can come home and find all your furniture gone, for instance.

One couple I know came back to find that the owner of the project had actually mortgaged their condo and run away with the money.

Another found that he owned the house but he did not own the land.

This place, this Casa Linda. Looks like a Building Scheme. After this massively crowded building complex is completed, you owners will be on your own. After phase 6 or 8 or 9, or whatever, when the pools start cracking or whatever, there will be no rental program or lawn care or anything.

Just my gut instincts.

I would not touch it with a ten foot pole. Those prices are too cheap and the maintenance money is too much.

It is a an advanced time share scam imho

For your next trip, check out Las Terrenas. You should start small, with only a condo. But there are some that are very well run and very well managed. Like the Fenice, for instance.

(no I am not any sort of an agent)

http://www.juanperdomo.com/samana/apartments-condos-page-1.htm

For instance, Mta2, this is really a lovely property.. Great Location or looks like it? I rented the one bedroom next to this for a year, 10 years ago, for $350 a month. Well, yes, they said, there had been some damage from the hurricane the year before but they fixed it up for me.

Unitl the next rainy season. Then the water came in. RIGHT THROUGH the concrete. Because the building is all done so cheaply here.. particularly by these crooks in particular.. that they could just water it down.. and voila.. save so much money.

They did not put up gutters. My upstairs neighbor broke his pelvis when the rotten stairs cracked underneath him.
Plus,while they may have title to the building, at the time, they did not have any title whatsoever to the land.

So I would listen to the "rumours" from the "locals" about ANY properties here.

It ain't New Jersey here. No such thing as building codes.

I am sorry to go on and on since I am sure that there are lots of other folks who are willing to jump on you with the rent rent rent but I do understanding wanting to simply "invest" .. I would invest in only two places, the Zona Colonial and Las Terrenas.

But here is another Tipping point about you Casa Linda

They do not take any credit cards, no Amex, no MC or Visa. only PayPal.. sorta like Air BnB

try asking them if you can pay the maintenance in pesos and see what their reaction is.

mike l said:

I would not suggest buying rental property as I have lived here 9 years and finally bought a rental condo in Sosua and it's being advertised on every online rental website there is and I only make enough to pay the maintenance fees ( $115 per month ) and electric which varies.

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Yes. I agree and obviously you have been through this.
I see there are always lots of rentals available any time of year and the prices are reasonable by the week or month. Was there in Jan at Hispaniola sol and paid $1200 month and electricity was only $35 for the month using air conditioning at night in 2 bedrooms. So I will be renting even if it is for 3,4 or 5months over the winter. It is too risky to buy and HOPE that you can cover your costs.

MTA the DR is not exactly a guaranteed vehicle for ROI in the real estate sector. Years ago you could get some decent prices however the rental market is somewhat saturated and the prices for purchase do not reflect this. Most investors are leveraged in the first world and are looking for European or US money for the properties to meet their obligations.
If you are planning on living in the DR or you are very saavy about the local market then it makes sense to purchase if you have found a deal. If you are a real estate investor you will probably find a much better return on your money in the USA.
Good luck.

For the price of the maintenance you can find a nicer place to rent if you really try. Do not buy.

Location And Management Important

If you are planning to rent at least part of the year, location is important. Owners who rent in the condo where I live do pretty well because of our location.

We also have a very good manager, which is another reason we get lots of repeat business. Management of the complex, whether condos or houses, is something too few buyers consider before they spend their money.

Regarding Casa Linda, I understand the $1000 would consist of the property management fee, the daily maid service fee, gardener/pool person, water supply, television, and internet...all the things you need if you have a rental property.
Yes they take VISA, so whoever says they don't is lying to you.

mountainannie said:

I am sorry to go on and on since I am sure that there are lots of other folks who are willing to jump on you with the rent rent rent but I do understanding wanting to simply "invest" .. I would invest in only two places, the Zona Colonial and Las Terrenas.

But here is another Tipping point about you Casa Linda

They do not take any credit cards, no Amex, no MC or Visa. only PayPal.. sorta like Air BnB

try asking them if you can pay the maintenance in pesos and see what their reaction is.

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Mountainannie
You seem to be really pushing las terrenas . I have read that there is a substantial French population there so that is a big reason I would never live there. Where I live in Canada we have enough of that and I can't wait to get away from it

Eric, thank you for your response. I really want to believe in what you said. I have just the opposite experience. I know you and you know me (or may be still guessing) . When Gabino is back from vacation - just show him this thread. And welcome back to respond.