Page 1 of 3 123 LastLast
Results 1 to 10 of 24
  1. #1
    Regular
    Join Date
    Aug 2019
    Posts
    12
    Post Thanks / Like

    Default Considering investment property in Costambar

    Hi all.
    I've been eyeing a property in Costambar, but everything I read about buying RE in DR is Buyer Beware because it's the wild west: Trust no-one including the realtor, your lawyer, etc. So I am trying to be very cautious.

    Everything I've read on Costambar has been very positive. Do you have different views? VRBO and AirBNB show rental rates that seem promising, though they dont give you info on occupancy rates. Do you have any opinions on that area?

    In essence, the property is a multi-unit building that I would like to use for rental income as well as staying there when I come down. I'd need to use a property management company. All that said, I'd like a local to inspect the property well to see what hidden issues it might have. But it appears there is no such thing as an inspector I could hire to do that. So how do you guys handle that type of thing? Where do you find someone who is local, and who you can trust to give you info you need so as to not get screwed?


    Also, I would have to buy at least some furniture for the units as they are sparsely furnished. What are furniture costs like in the DR as compared to the US? As for US standards, let's use something like Ashley furniture for reference - not designer. I've heard it both ways, that it is more expensive, and that it is cheaper, so I dont know what to think.


    Thanks for any insight you might be able to provide!

  2. #2
    Silver
    Join Date
    Nov 2006
    Posts
    4,618
    Post Thanks / Like

    Default

    Get recommendations on a good law firm, and heed their advice. There are a couple real good ones.
    Guzman is a good one, honest and reliable.

    There are also good real estate people, but harder to find.

    You can come up with a rough occupancy for a specific property, or a price point for a specific locale of similar properties , not exact but close enough. It takes a little work.

  3. #3
    Regular
    Join Date
    Sep 2015
    Posts
    172
    Post Thanks / Like

    Default

    Flights to Puerto Plata are cheap. Fly down and take a look. The local remax realtor Joanne Hammond will be happy to recommend a reliable local property manager if you don't mind paying 30% of your rentals.

    We wanted to buy some water front property outside of the Puerto Plata area and had to fly down to look at it. We realized it would probably be decades before the area had any infrastructure. So we bought a condo instead.

    I wouldn't expect a constant rental income. I own a nice condo in Punta Cana and the rentals have been hit or miss for the 4 years we have owned it. If we depended on any of that income we would be screwed.

    Furniture in Punta Cana is very expensive. It might be more reasonably priced on the north coast.

  4. #4
    Regular
    Join Date
    Aug 2019
    Posts
    12
    Post Thanks / Like

    Default

    Good point. Looking at other properties in the area, the occupancy seems awfully low when looking at their calendars. I wonder how much of that is due to the bad press lately, or if that's the norm.

  5. #5
    Silver
    Join Date
    Nov 2006
    Posts
    4,618
    Post Thanks / Like

    Default

    Quote Originally Posted by drummerdave View Post
    Good point. Looking at other properties in the area, the occupancy seems awfully low when looking at their calendars. I wonder how much of that is due to the bad press lately, or if that's the norm.
    Just plain bad property management also.

    Bad Prop Managers are more prevalent then bad Realtors. Just take a look at some of the photos on vrbo/airbnb. Tons of shadows in the pics, I've seen dirty laundry in pics, shoes laying around, unmade beds, someones bare foot in a photo, pics of a toilets, on and on.

    Being able to navigate the airbnb site does not make one a property manager.

  6. Likes Harleysrock liked this post
  7. #6
    Regular
    Join Date
    Aug 2019
    Posts
    12
    Post Thanks / Like

    Default

    Quote Originally Posted by healimonster View Post
    Flights to Puerto Plata are cheap. Fly down and take a look. The local remax realtor Joanne Hammond will be happy to recommend a reliable local property manager if you don't mind paying 30% of your rentals.

    We wanted to buy some water front property outside of the Puerto Plata area and had to fly down to look at it. We realized it would probably be decades before the area had any infrastructure. So we bought a condo instead.

    I wouldn't expect a constant rental income. I own a nice condo in Punta Cana and the rentals have been hit or miss for the 4 years we have owned it. If we depended on any of that income we would be screwed.

    Furniture in Punta Cana is very expensive. It might be more reasonably priced on the north coast.

    I hope to fly down, but my schedule is pretty booked up until late Sept, so if it sells, it sells I guess.
    I actually checked with Joanne about showing the property as I havent been impressed with the responses from the listing agent, but Joanne doesnt handle properties up in Costambar. I didnt ask her about Prop Mgmt.

    I wouldnt be buying it for the income as such, except hopefully to pay for the property over time so there's an ROI, but I wouldnt "depend" the money to live or anything.

  8. #7
    Regular
    Join Date
    Sep 2015
    Posts
    172
    Post Thanks / Like

    Default

    Quote Originally Posted by drummerdave View Post
    Good point. Looking at other properties in the area, the occupancy seems awfully low when looking at their calendars. I wonder how much of that is due to the bad press lately, or if that's the norm.
    Our property lost one booking because of the bad press but it's overall occupancy this year is very much like years of past. It is usually rented during the winter and mostly un-rented for the rest of the year with few exceptions.

  9. #8
    Regular
    Join Date
    Aug 2019
    Posts
    12
    Post Thanks / Like

    Default

    Quote Originally Posted by healimonster View Post
    Our property lost one booking because of the bad press but it's overall occupancy this year is very much like years of past. It is usually rented during the winter and mostly un-rented for the rest of the year with few exceptions.
    In your opinion, is that due to your specific property (location, size, price), or indicative of the market?

  10. #9
    Regular
    Join Date
    Sep 2015
    Posts
    172
    Post Thanks / Like

    Default

    Quote Originally Posted by drummerdave View Post
    In your opinion, is that due to your specific property (location, size, price), or indicative of the market?
    Probably indicative of the market. I know nothing about the rental market in the Puerto Plata area but the Punta Cana area is fairly saturated with rental condos and with more and more coming each year.

  11. #10
    Regular
    Join Date
    Oct 2017
    Posts
    443
    Post Thanks / Like

    Default

    Quote Originally Posted by healimonster View Post
    Probably indicative of the market. I know nothing about the rental market in the Puerto Plata area but the Punta Cana area is fairly saturated with rental condos and with more and more coming each year.
    This is true. Recently, I rented an apartment condo in Punta Cana for a week away, and the building had four units on each of four floors. Once, only once, did I see another person entering or leaving the building. Often I thought that I was the only person there. The complex had several building and community pool. It was very nice, but deserted. I had no complaints.

    You can find nice units in Costambar. You should visit and walk the area. You may see things that you may not otherwise find. Take a local with you.

  12. Likes beachcomber liked this post
Page 1 of 3 123 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •