Considering investment property in Costambar

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drummerdave

Guest
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!
 
C

ctrob

Guest
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.
 
H

healimonster

Guest
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.
 
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drummerdave

Guest
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.
 
C

ctrob

Guest
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.
 
D

drummerdave

Guest
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.
 
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healimonster

Guest
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.
 
D

drummerdave

Guest
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?
 
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healimonster

Guest
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.
 
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Dr_Taylor

Guest
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.
 
N

Neargale

Guest
I think that when the Puerto Plata port gets built, Costambar will be ideally situated in between that and the Maimon port. I think there will be a high demand for apartments and houses on the part of the people who work in one of those ports or need to travel to both.
Costambar has a lot of construction going on right now. People would not build so many apartments if they did not think they would be rented out all year around.
 
D

Dr_Taylor

Guest
I think that when the Puerto Plata port gets built, Costambar will be ideally situated in between that and the Maimon port. I think there will be a high demand for apartments and houses on the part of the people who work in one of those ports or need to travel to both.
Costambar has a lot of construction going on right now. People would not build so many apartments if they did not think they would be rented out all year around.
Well, this is the DR. Keep in mind that the rental rates truly drop during the off-season. A unit could sit vacant for days or weeks at a time. Personally, I could do without additional construction in Costambar.
 
C

ctrob

Guest
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.
But were all 16 condos in that building for rent? Not everybody that purchases a condo, rents it out. Meanwhile, they sit empty. The developer is happy, and the owners are happy.
 
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irishpaddy

Guest
regards furniture ...I furnished my apartment from Ashley home furnishings in Santo Domingo …...I found the prices good and I am happy with the quality …..I bought the furniture about 4 years ago and have had no problems ...except when the sofa arrived it was damaged and it was replaced my Ashley very promptly (I was impressed with their after sales service and delivery guys were great )
 
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healimonster

Guest
People would not build so many apartments if they did not think they would be rented out all year around.
The Dominican Republic is riddled with construction projects that there is no need for. Some morons thought that it was a good idea to build a new high end mini-mall in El Cortecito in Bavaro when there is a failed real mall just a couple miles down the street. They weren't able to get tenants and now there sits a 4 story mass of concrete that will probably never be finished.
 
M

Mikeytraveller1

Guest
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!
I live in Costambar and own rental property. PM me for any help you may need.
 
T

Timotero

Guest
I believe you need to have at least 10 posts in order to send PM’s? Looks like you have 9? So just reply to this post and that should give you the magic number.

Good luck with your investment. But definitely “buyer beware”.