condo purchase cabarete

[dom]

if iam to buy an apartment at any of the common projects in cabarete as ocean dream, oceanone or cabarete east, can i expect them to be rented all year tru, and will actually be able to gain some profit, or is it just going to cover its cost, after taking off maintenance, property taxes etc.

i just cant imagine these units to be rented all year tru, but would like to learn better.

 

[pi2]

Some long term lets are possible in condos. Other than this the tourist season is about 6 months.
Many people make profits given a five year time horizon. Also values have been rising.

pi2

 

[belmont]

if iam to buy an apartment at any of the common projects in cabarete as ocean dream, oceanone or cabarete east, can i expect them to be rented all year tru, and will actually be able to gain some profit, or is it just going to cover its cost, after taking off maintenance, property taxes etc.

i just cant imagine these units to be rented all year tru, but would like to learn better.

If the condo association is also the rental management agent, ask what is the occupancy rate and income for units similar to the one you are considering. Then verify those figures with the unit owners.

 

[windeguy]

If you really make your money back in 5 years, that is a great return (20% annually) on your investment. Somehow I doubt it would be quite that good.

 

[VJS]

if iam to buy an apartment at any of the common projects in cabarete as ocean dream, oceanone or cabarete east, can i expect them to be rented all year tru

highly unlikely - depends on your property and the price point obviously. My impression is that the average occupancy there is somewhere around 30-40% on annual basis (ocean dream highest, then ocean one, cabarete east).

 

[pi2]

If you really make your money back in 5 years, that is a great return (20% annually) on your investment. Somehow I doubt it would be quite that good.

Yes, units have been increasing in value by 10% a year plus there is the rental income or the saving in rent if you live in a unit.

People who were really lucky bought post 9/11 and some properties have trippled in value since then.

But fees and setup costs in my opinion make a minimum five year timescale realistic.

DR is becoming increasingly attractive compared with Spain, Brazil etc. since it is a strongly growing economy based on self sufficiency in food and has important mineral resources such as gold.

The cost of living is a fraction of that in many places in the US.

Condo and ground fees in Florida can be four times those in the DR.

Follow the money; for example Rock Resorts is having a huge success in the DR ; and read the reviews of holidaymakers.

pi2

 

[jorgesarduysousa]

then again your counting on the rental agency to be honest about renting your apt; sometimes they rent it without the owners knowing about it and "pocketing the $$$"
this is from past relatives who had this experience

 

[pi2]

then again your counting on the rental agency to be honest about renting your apt; sometimes they rent it without the owners knowing about it and "pocketing the $$$"
this is from past relatives who had this experience

Very easy to check. Get an internet phone line with only local calls allowed.

A stupid 50 dollar camera allows you to monitor the appartment from anywhere in the World.

If the camera is off just get your lawyer or locksmith to change the locks - some locks are re-progammable now.

Lock the wi-fi in a small firesage and remotely change the code every couple of weeks.

pi2

 

[belmont]

Very easy to check. Get an internet phone line with only local calls allowed.

A stupid 50 dollar camera allows you to monitor the appartment from anywhere in the World.

If the camera is off just get your lawyer or locksmith to change the locks - some locks are re-progammable now.

Lock the wi-fi in a small firesage and remotely change the code every couple of weeks.

pi2

You think the DR doesn't have the equivalent of Peeping Tom Laws?? I'm sure the legitimate renters will be thrilled if they find out that you can look in on them. Are you the guy who videos the woman in dresses going up the escalator in the malls?

 

[DavidZ]

Yes, units have been increasing in value by 10% a year plus there is the rental income or the saving in rent if you live in a unit.

People who were really lucky bought post 9/11 and some properties have trippled in value since then.

But fees and setup costs in my opinion make a minimum five year timescale realistic.

DR is becoming increasingly attractive compared with Spain, Brazil etc. since it is a strongly growing economy based on self sufficiency in food and has important mineral resources such as gold.

The cost of living is a fraction of that in many places in the US.

Condo and ground fees in Florida can be four times those in the DR.

Follow the money; for example Rock Resorts is having a huge success in the DR ; and read the reviews of holidaymakers.

pi2

Where are you getting these figures?

Prices over the last several years have definitely NOT been going up...let alone at 10% per year...and the condo fees are nowhere near four times less than in Florida, in many cases they are higher...there is a savings in property taxes and insurance though. I'll agree that those that bought property right after 9/11...in 2002 and 2003, maybe through 2005 probably did pretty well, but that's true of anywhere in the world. And the majority of the condo projects in Cabarete, including the ones mentioned by the OP weren't even built then.

While there is a decent rental market for long term rentals, there is also a lot of inventory, and the average returns are definitely not 20% annually, when all carrying costs are considered. The short-term/vacation rental market has been pretty weak the last few years....to put it mildly. Apart from a few dozen units being rented to Barrick Mining families, there hasn't been an upswing in rental rates or occupancy over the last few years.

Cabarete is a great place to buy a condo as a second home, vacation home, or to live in, but not as a cash-flow investment. If you are diligent, and lucky, you could cover all or most of your carrying costs with rentals, but don't expect much of a profit over the next 5 years.

Ive never heard anyone say DR's economy is stronger than Brazil's...Brazil is considered by most economists as the strongest, fastest growing economy in Latin America...

...and you really think Rock Resorts is having a "huge success" in Las Terrenas at Los Balcones del Atlantico?? What is their occupancy rate since they took over?

 

[latitude19]

Hey, Where I am staying in Cabarete condo fees are 10,000 per year. Rent is 2,000 per month. (Rent was only 1500 per month b4 families from the gold mining company started staying here.) If rented 8 months at $2000, $16,000 gross, minus leasing agent 10% commission, is 14,400. Minus condo fee 10,000 = 4,400. (Wear and tear has to be factored in, as well.) Four thousand four-hundred dollars earned per year on a 375-400,000 condo is quite minimal. A friend and person who has lived here for a while thought the unit prices in the recent past are NOT going up, but down, but that is one person. I do know the owner of the condo complex, who lives here, said Cabarete has witnessed much less tourism in the past few years, probably due to the economy. Personally, I think buying a condo at this point is risky, however it is a buyers market. I would wait and see who wins the election in May. If Mejia wins, prospects for the country look bleak, at best.

 

[Eddy]

Yes, units have been increasing in value by 10% a year plus there is the rental income or the saving in rent if you live in a unit.

People who were really lucky bought post 9/11 and some properties have trippled in value since then.

But fees and setup costs in my opinion make a minimum five year timescale realistic.

DR is becoming increasingly attractive compared with Spain, Brazil etc. since it is a strongly growing economy based on self sufficiency in food and has important mineral resources such as gold.

The cost of living is a fraction of that in many places in the US.

Condo and ground fees in Florida can be four times those in the DR.

Follow the money; for example Rock Resorts is having a huge success in the DR ; and read the reviews of holidaymakers.

pi2

Say what ??????

 

[VJS]

If you really make your money back in 5 years, that is a great return (20% annually) on your investment. Somehow I doubt it would be quite that good.

I looked into buying something in Cabarete last year, realistic ROI was around 5%, if that: it's a high prices, relatively low rents environment. Anyone who tells you about 20% ROI will also have some units to sell to you

 

[belgiank]

I do not know where some people get their info from, but, according to me, prices for real estate are sliding downwards, and will continue to slide.

The NC, at the moment, is in a heap of trouble. Few tourists, and the ones who come, are, for 75%, not the ones the NC needs. They are the low-budget tourists, who book a cheap AI-vacation, will take few or no tours, will not eat at any restaurants, will not spend much on souvenirs, etc...

They certainly will not buy a condo or villa!

I am sure there are a number of exceptions around, but in general I think buying real estate here, at the moment, is a very bad investment. The ROI will probably be around the 1 to 5% annually, and do not forget the investments needed to upkeep your property.

The real ROI would have to come from the resale of your real estate, which is not going to happen quickly.

The problem is that the NC needs a huge investment to make it, once again, an attractive place for richer tourists or investors. Hotels need to be renovated, roads need to be fixed, started constructions should be finished, crime should go down, health facilities should be better, etc...

Honestly, I love this area, but how do you think it looks to the occasional tourist atm...?

 

[Bob K]

We are owners in Ocean Dream and use the unit as a rental. PM me for information.

Bob K

 

[pi2]

Prices are increasing rapidly - a condo that was offered to me at 100,000 five years ago is now selling at 250,000!

The NC is booming - new roads connecting the NC with the capital mean that every week-end all the bars and restaurants are overflowing. New airports have opened up and on the popular advisory sites many hotelss/condos etc. have 5 stars or just below.

The villa market is booming - every day you can see new construction and prices are rising as clients rush to get in on the best deal.

A villa in the DR is a small fraction of the price in the South of France or Singapore even.


Real estate in the DR is, in my opinion, a great medium/long term investment.

The huge shortage of rentable properties will persist.


pi2

I do not know where some people get their info from, but, according to me, prices for real estate are sliding downwards, and will continue to slide.

The NC, at the moment, is in a heap of trouble. Few tourists, and the ones who come, are, for 75%, not the ones the NC needs. They are the low-budget tourists, who book a cheap AI-vacation, will take few or no tours, will not eat at any restaurants, will not spend much on souvenirs, etc...

They certainly will not buy a condo or villa!

I am sure there are a number of exceptions around, but in general I think buying real estate here, at the moment, is a very bad investment. The ROI will probably be around the 1 to 5% annually, and do not forget the investments needed to upkeep your property.

The real ROI would have to come from the resale of your real estate, which is not going to happen quickly.

The problem is that the NC needs a huge investment to make it, once again, an attractive place for richer tourists or investors. Hotels need to be renovated, roads need to be fixed, started constructions should be finished, crime should go down, health facilities should be better, etc...

Honestly, I love this area, but how do you think it looks to the occasional tourist atm...?

 

[hammerdown]

Prices are increasing rapidly - a condo that was offered to me at 100,000 five years ago is now selling at 250,000!

The NC is booming - new roads connecting the NC with the capital mean that every week-end all the bars and restaurants are overflowing. New airports have opened up and on the popular advisory sites many hotelss/condos etc. have 5 stars or just below.

The villa market is booming - every day you can see new construction and prices are rising as clients rush to get in on the best deal.

A villa in the DR is a small fraction of the price in the South of France or Singapore even.


Real estate in the DR is, in my opinion, a great medium/long term investment.

The huge shortage of rentable properties will persist.


pi2

Spoken like a truly uneducated real estate sales person

What condo has risen in value from 100k to 250k???? Beachfront condos that were selling for 130k get sold at 100k...My friends condo, bought in 2005 for 130k sold last year for 120k......3 bedroom house on 2000 sqm of land in lomas mironas was listed for 340k, and the owner will sell for 250k and accept serious offers....
And if its booming so much, why are there so many project started and never finished......

I think you should start to smell that crap you're shoveling ......

 

[windeguy]

Prices are increasing rapidly - a condo that was offered to me at 100,000 five years ago is now selling at 250,000!

The NC is booming - new roads connecting the NC with the capital mean that every week-end all the bars and restaurants are overflowing. New airports have opened up and on the popular advisory sites many hotelss/condos etc. have 5 stars or just below.

The villa market is booming - every day you can see new construction and prices are rising as clients rush to get in on the best deal.

A villa in the DR is a small fraction of the price in the South of France or Singapore even.


Real estate in the DR is, in my opinion, a great medium/long term investment.

The huge shortage of rentable properties will persist.


pi2

Are you a relative of the poster PICHARDO on DR1? You and he have different views of the DR than just about everyone else.

 

[DavidZ]

Prices are increasing rapidly - a condo that was offered to me at 100,000 five years ago is now selling at 250,000!

The NC is booming - new roads connecting the NC with the capital mean that every week-end all the bars and restaurants are overflowing. New airports have opened up and on the popular advisory sites many hotelss/condos etc. have 5 stars or just below.

The villa market is booming - every day you can see new construction and prices are rising as clients rush to get in on the best deal.

A villa in the DR is a small fraction of the price in the South of France or Singapore even.


Real estate in the DR is, in my opinion, a great medium/long term investment.

The huge shortage of rentable properties will persist.


pi2

OK, Ok...I get in now...you're being sarcastic, right?

Or have you been munching some of those mushrooms growing on the cow patties up El Choco??

 

[DRob]

OK, Ok...I get in now...you're being sarcastic, right?

Or have you been munching some of those mushrooms growing on the cow patties up El Choco??

Mushrooms on cow patties are excellent source of protein. And cheap, all you need is (recyclable) bag, and good pair of running shoes to run from any bulls.