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Is Punta Perla worth investing in?

Discussion in 'Buying Overseas Property' started by Pal101, Dec 21, 2007.

  1. Pal101

    Pal101 New Member

    Hi All

    I'm new to this forum and to buying overseas but am looking to do so in 2008 to rent out. Ive done some research and found a deal that looks almost too good to be true on Punta Perla golf property in the Dominican Republic. There is a deadline to get the guaranteed returns and rentals which always makes me a little suspicious. Am I being too cautious? Or is there something in it? Has anyone had any experience of this sort of deal or this area?

    Ive looked at Spain but am tempted to go further afield.

    Thanks in advance
     
  2. DC

    DC New Member

    Pal Personal Message me, we can talk further, regards Darren
     
  3. LisaNic

    LisaNic New Member

    Hi Pal

    The Dominican Republic offers an increasingly rare opportunity for real estate investment. Reckoned to be one of the last great investment opportunities in the Caribbean, the government has purposely set out to attract upmarket tourism by offering great tax incentives as well as spending millions implementing a modern infrastructure.

    Property in the Dominican Republic is very competitively priced when
    compared to other Caribbean islands.

    With this development,Punta Perla the Dominican Government officially welcomes overseas investment. Law 158 on foreign investment was recently
    extended to attract overseas property investors by offering exemptions on
    Capital Gains, Income and Property Purchase taxes for ten years.

    Two rental pool options are available. Purchasers can opt for an 8% guaranteed fixed rental return for a minimum of 5 years or a variable return based on usage.

    Punta Perla is already attracting the attention of the world’s leading tour operators. With nearly three million tourists visiting the country every year, competition is fierce to secure this rare property rental opportunity. Punta Perla will set a new standard of facilities and accommodation for tour operators to offer their clients – enabling them to enjoy a unrivalled holiday experience on this amazing island. Punta Perla will run its own rental pool system to take advantage of this demand and at contract will offer every purchaser the opportunity to turn a dream home into a dream investment.

    My advice would be go for it.
     
    Last edited by a moderator: Jun 30, 2008
  4. DC

    DC New Member

    The deal Punta Perla has for 10 years no tax is attractive for sure.

    Post 10 years. 30% tax on earnings. (rental income) but who knows what tax policy will be in 10 years, it would be 30% if now. thanks
     
  5. Investy

    Investy Senior Member

    DOWNSIDES:

    Dom Rep is a down market destination. I've been, and I would not consider it paradise. Still a main stay of the bargain holiday operators. Short rental season.

    Why bother when much better opportunities right on your door step.
     
  6. andyk2

    andyk2 New Member

    It depends on your investment strategy

    The Punta Perla resort offers an opportunity for somebody who wants to have a property that pays for itself and can wait 8-10 years for it sufficiently appreciate in value to make a worthwhile capital return.

    If you are looking to cream off the difference between the mortgage and the rental income - look again.

    If you take the maximum period mortgage available, allow for life insurance payments, annual membership, building and contents insurance - then the net income is $2.700, less than 2.50% return to investment based on the cheapest property available.

    There are plenty of BTL opportunities closer to home (or indeed in the Caribbean) where you can get better finance deals and possibly have a stronger exit strategy. Take your time and have a good look around. The rental guarantee offer at PP will always be available and if it suits your style of investment go for it.
     
  7. LisaNic

    LisaNic New Member

    Investy - I am keen to understand why you believe the Domincan Republic is a down market destination??

    In 2006, tourist arrivals increased by 16 percent with 4.4 million guests choosing the Dominican Republic as their top vacation spot. In addition, the number of visitors to the DR from the U.S. remains steady, with more than one million for the second consecutive year. The DR was also named “Caribbean's Number One Destination” in 2006, a title given by the World Tourism Organization and one that was owned by Puerto Rico for the last forty years.

    From an investment point of view, The Dominican Republic has enjoyed strong GDP growth since 2005, with double digit growth in 2006. In 2007, exports were bolstered by the nearly 50% increase in nickel prices. Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, in recent years the service sector has overtaken agriculture as the economy's largest employer due to growth in tourism and free trade zones. With the help of strict fiscal targets agreed to in the 2004 renegotiation of an IMF standby loan, President FERNANDEZ has stabilized the country's financial situation, lowereing inflation to less than 6%. A fiscal expansion is expected for 2008 prior to the elections in May and for Tropical Storm Noel reconstruction.

    The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in March 2007, which should boost investment and exports and diminishes losses to the Asian garment industry.

    AndyK2 is correct in what he is saying with regards to Punta Perla giving a guaranteed retrun to just break even, however the growth potential for the longer term investor is worth waiting for.

    I agree with what you have all said in that there are other "closer to home" investments that give "better" returns - this is obvioulsy dependent on where home is!!! Surely this also depends on the investment strategy of the investor as mentioned by Andy.

    Investy - what other "closer to home" destinations would you recommend then? I am intrigued?
     
  8. Investy

    Investy Senior Member

    Dom Rep along with Cuba has always been the bargain bucket end of the caribean, which is fine if thats what you feel will benefit your investment yield / growth.


    Closer to home the best investment without doubt is Mediterrenean Morocco (particularly the Royal mega developments known as PLAN AZURE), but how did I come to this conclusion?

    In a nutshell it comes down to the end user experience and also the entry price point for investors.

    There is huge demand for the following holiday experience;

    GOLF (that means on golf, not a walk away), + BEACH (again on site), + lots of onsite LEISURE facilities + OWN PRIVATE POOL + LUXURY CONTEMPORARY ACCOMODATION + OWN GREEN GARDEN (not rubbly bleak yard).

    What the Plan Azure developments offer is this magical combination 3 hours from the UK with developments specifically designed to be year round attractions (for example by including massive sports facilities on site - a far cry for the usualy gym and couple of saunas, modern cinemas, bowling alleys, onsite hospitals, 500 shop western shopping centre, Moroccan medina, Meds largest marina - all brand new).

    Believe me we have trawled and trawled for this magic combination yet have not found out anywhere else.

    I paid £170000 for a detatched 5* villa with own pool in a 5* enclave, all fully managed, on golf on a development with its own 7km beach, 500 shops, 17 golf club houses, endless sports and leisure facilities, onsite hospital, heli pads, dozens of swimming lagoons, amphithatres and the Meds largest marina (again on site).
    In Spain or Portugal I would pay more than 3 x this. People mis understand this point. They will say they know of Spannish new villas for £300,000 on for example Polaris World, but these are absolutley not like for like comparisons. For a start the PW villas are 20 minutes from the sea, with no marina, just a few shops and a good, but not outstanding array of leisure facilities.

    SO THE QUESTION THEN BECOMES - WILL THE RENTS FOR THESE ROYAL RESORTS BE AS HIGH AS THOSE THAT APPLY TO SIMILAR SPANNISH PROPERTIES?

    I would say, definitely. People like me are crying out for the end user experience these Moroccan developments will offer. The demand is simply not met by other nations. Again to re - itorate, the demand is for property on golf, on beach, on marina, loads of facilities, own pool, own green garden. I promise you wont find this magic combinastion anywhere unless you have very deep pockets.

    The renst against my capital outlay therefore should hold up well and I get to own something on a massive lesiure playground that has endless facilities.
     
  9. Markp

    Markp New Member

    Morrocco is good, but where are the resales going to come from?

    The point i am making is that someone can always make a subjective criticsm on the so called merits of most of these developments. And with so much choice out there i think people go looking for the "perfect" development and actually miss out on some good deals because they listen to so called "experts" on property portals. That a lot of the time are talking Bull

    I am not saying you should buy everything offered or that independant opinions are not usefull, but there so much rubbish on these sites.

    Caribbean having a short rental season??? what are you talking about? It is 8 good months, which is pretty good isnt it?

    I think Morocco will be a fair to good tourist destination in years to come and is a good investment, but come on
    How many people do you know that have gone on a beach holiday to morocco in March or October??

    The caribbean is the number one tourist destination in the world and has been for some time now and you have loads of Rich americans on your door step, rather than the less affluent neighbours in Morroco

    I am glad you are happy with your purchase and are probably selling them now, but come on! Information is only useful when based on fact.

    Do your homework
     
  10. Investy

    Investy Senior Member

    I like the caibean but I have found the true realistic rental season to be about 4 months.

    Morocco is having massive royal development built the like of which we have not seen before. They have so much in the way of leisure features that they aim to draw people year round. This was the Kings main aim when this plan was born in 1999.

    THESE DEVELOPMENTS ARE BEING COMPLETED FROM 2010.

    Just to give you a flavour of the first one called Saidia;

    Dozens of names Premiership footballers have bought individual sports villas on this development. They include Rio Ferdinand, John Terry and Gary Neville.

    Compare to the best Spannish developments and you will found about 10x more onsite leisure facilities.
    There is a 500 (thats right 500) shop shopping centre onsite - not for me, but image the extra tourism markets this will tap into. No other debelopment I mknow of has 500 shops. About 20 is normal. These are big brands to including Armani Channel etc

    There is a large onsite private hospital - imagine what peace of mind this will give people

    It has the Meds largest marina able to take the largest luxury yatchs and over 1000 boats at once.

    It
     
  11. Markp

    Markp New Member

    Yes i know all about morocco and like i said i think it will be good when it is all done.
    I wish you all the best for your investment.
    The reality is if you only found four months rental then you are not looking hard enough.
    Also many developers, including Punta Perla which i do not sell may i add will give you fixed rental returns over a number of years making your comments irrelavant anyway, so i dont see your point.

    Dom Rep has many of the advantages of Government or Royal support like Morroco and much better tax benefits and repatriation of your money, which i am sure you know all about having bought in Morrocco,
    It has continued growth in an already established tourist industry rather than having to create a market to create a demand for an already significant number of residential tourist projcts, but again i am sure you know all this already!


    Good work!











    Yes
     
  12. DC

    DC New Member

    Interesting again, Downing Dominican when it is the most visited tourist destination in the caribbean and upping Morocco where you have brought.

    Strange strategy, why are you doing this, do you have a reason to promote Morocco over all other destinations?

    What are your motives? if Morocco goes up, yes you will make more profit but there is to be lots of development in Morocco, alot planned, so there could be an over saturation point over the next 5 to 10 years, or 20.

    Spain is a mature market in EU with services.
    DR is 4th least expensive market in the Caribbean with alot of tourists.

    This topic started out as DR and then ended up with promotion of Morocco, MMM.

    On DR if someone wants a 2 bed villa on Punta Perla, developer price 420k we have one at 400k resale from owner thank you
     
  13. DC

    DC New Member

    Dave Myers

    Hi Dave, no details, phone, email works with reference to this thread. thanks D
     
  14. Investy

    Investy Senior Member

    D Rep is to my mind a poor investment affected by the US economic turmoil. One could buy on a much prettier island in the Bahamas a distressed sale thanks to the US ecomomic situation. I've been to DR and it most certainly is'nt a tropical paradise.

    If you want a caribean investment there are so many better more upmarket and cheaper options.
     
  15. mickthepropertyguru

    mickthepropertyguru New Member

    A friend of mine has spent some time in Tangiers and Bodrum recently. Her conclusion was that she would invest in Morocco definitely before Turkey and i have to agree with her. She believes Morocco to be far more advanced than Turkey and may have a better future for investors.
     
  16. DC

    DC New Member

    This thread is suppose to be about PP in Dom Republic, and then for some reason it gets drawn down to invest in Morocco.

    Dom Republic has some very upmarket luxury developments taking place, it is a place with a severe haves and have nots.

    PP has had some delays, and the principal agent has/is now also marketing other products. So what does that tell you?

    You have to look at PP and compare with other products on the island, the caribbean, your own situation and what you want to achieve, every one has different objectives.
     
  17. Markp

    Markp New Member

    I am not sure what parts of the country you have been to, but there are some really high class resorts in the Dom Rep, and more and more are popping up by the month.

    The general concensus ( sorry for the spelling) is to get into markets as they are growing.
    Dom Rep has a way to go to compare to some of the islands and is already

    way above others and is literally a fraction of the price for comparitive properties and resorts.

    I do market in the island so i am biast, and i am aware of some good projects in some of the islands as well, but i would genuinely say that the dom rep, with the purchasing incentives and exit strategies is probably the best option currently in the Caribbean.

    Not all the projects being offered there though, thats for sure!


    The reality is that the Caribbean in general is a good bet at the moment as it is a buyers market and the caribbean has performed well and has sound tourism figures to back it up.

    These forums make me laugh!







     
  18. reidepot

    reidepot New Member

    Dominican tourism grows 9.14 percent in first two months of this year.

    Punta Perla property prices now are much lower then neighboring CapCana, so prices will be going up for sure after the real construction starts this summer.

    I purchased Poblado Tropical villa in the Punta Perla’s Tropical Village for $285.000 last summer. Now Punta Perla sells the same villas for $314.000 (price increased in February of this year) and currently only one Poblado Tropical villa is available for sale.

    Alex
     
  19. The Great Gatsby

    The Great Gatsby New Member

    what did u end up doing? I think it is a lovely product especially the Star Island properties. Also bearing in mind you are only paying for 30% of it means you can have a dream home.
     
  20. The Great Gatsby

    The Great Gatsby New Member

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