Pre Construction In Vista Cana, Punta Cana

224POSTS

4 years ago

@Karin1 that’s the place ! The men remove seaweed every day. I don’t know if the bar is part of the Condo Assocation or a tenant, in any case it had good drinks and and good food with a view that can’t be beat. We will wait till what we want come on to the market then we will hopefully call this our winter home. You will have a new way to enter the beach once we land! We met one of the owners and two property managers and they are so nice I want to call them friends. Love all the shops and restaurants within a very short walking distance. Love it !

Karin1 Serial expat

354POSTS

4 years ago

#42

Yes good food/drinks, good prices and friendly staff too! I look forward to meeting you guys in person and sharing some lazy afternoons when the time comes! I am back in Canada right now (west of Toronto) and just taking care of things. I have a nice flower garden here to prepare so we can enjoy our short summer of warm weather (June-Sept). Today its only 15C but heading for some early good temperatures next week (26C). Cheers!

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vicml1 Member

22POSTS

4 years ago

#43

@DRVisitor Hello, My experience so far with Cana Rock has been great. Yes, projects have been delayed. My project (Galaxy) was delayed an entire year due to covid. However it’s now back on track. As to the investment, you have to think about the amenities. Ask yourself the question, What is it that my project has over the other ones? In the case of Cana Rock, not only it has its own beach club, lobby, pools, restaurants, etc, but also has the Hard Rock Hotel walking distance. We see that as a big plus when renting. That’s what separates Cana Rock from the rest. We have another rental property in Orlando, 5 minutes from Disney and because of that proximity, our place stays at over 95% occupancy per month. That’s the way we see the Cana Rock projects next to the Hard Rock Hotel. Once you go there in person and see it, you’ll know what I am talking about. By the way we’ve been traveling to Punta Cana for years (My wife is from DR), and have seen many projects but there’s something unique about Cana Rock. Just my analysis and opinion. You need to visit and see it in person. Feel free to PM me if you have any questions. Take Care!

DRVisitor Serial expat

772POSTS

4 years ago

#44

@vicml1

Becareful comparing the investment with Orlando/Usa - regardless of what you think about everything is still October to February/March high season though this year because of Covid

lasted longer. I feel long term the same way as you with the some of the areas but highly doubt you will achieve 95% occupancy with this unless you have longer term rentals and rates are not worth the aggravation and everyone wants the 6 months of high season.

Also, regardless of amenties you are competing with the all inclusive hotels...

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AlaPlaya Active member

66POSTS

4 years ago

#45

@planner having just spent 5 days on a real estate tour I am glad I made that investment of time and money. I know 5 days does not make me an expert, probably more dangerous than anything. We looked at 12 properties in person, came with a list of 15, started with 30 plus on a list. We scheduled AM & PM meetings, with 5 different realtors, some wanted to show us properties we had seen with someone else. It would be an exaggeration to say I could write a book on the subject but I could write a paper with a heck of an executive summary. My wife and I have a very strong like for Playa Turquesa in Punta Cana, so strong if we have to wait 6 months to two years we will wait. Without the visit we could never say that. We will name a return visit in the winter so we get the feel again in the busy season to confirm beliefs we have.
- @rfmaurone

Things are significantly quieter since Easter. December/January is when everything gets really busy.

caroloyap0308 Member

11POSTS

4 years ago

#46

I just bought a unit in one of the projects at VISTACANA with delivery time: End of 2024.

Between next year and 24’ most constructions will be completed. Most people bought for investment purposes (short terms rental).

Do you guys feel everyone can still make money with so many units and competition?

rfmaurone Serial expat

224POSTS

4 years ago

#47

@caroloyap0308 everyone ? Only the Good Lord knows, you yes if you learn how to promote your property. Do it better than the others. Better furniture, wine when the renters arrive flowers ext. if you buy it and list it on Airbnb and wait…. Who knows.

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caroloyap0308 Member

11POSTS

4 years ago

#48

Correct, only God knows, but we’re all doing it hoping for the best and yes better furniture and management will definitely help out.

I just see so many new constructions everywhere in Punta Cana ( Vistacana, downtown, Los Corales, etc) that makes me think if by end of construction my unit will be more of a vacation home than a rental as planned.

What’s your opinion between Vistacana Vs. Los Corales/ Cortesito by the beach?

AlaPlaya Active member

66POSTS

4 years ago

#49

Correct, only God knows, but we’re all doing it hoping for the best and yes better furniture and management will definitely help out.

I just see so many new constructions everywhere in Punta Cana ( Vistacana, downtown, Los Corales, etc) that makes me think if by end of construction my unit will be more of a vacation home than a rental as planned.

What’s your opinion between Vistacana Vs. Los Corales/ Cortesito by the beach?
- @caroloyap0308

I think you should always buy here with the intention of it being a vacation home, and then if you happen to make a little money as a rental it's a bonus. There are tons of short term property rentals that sit empty for weeks and months on end (especially in the low season).

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DRVisitor Serial expat

772POSTS

4 years ago

#50

Vacation home is right idea but do not expect it to be great overall as many variables.

Management will help you but remember at the end of the day they want to make money.

Furniture is the most crazy thing I have seen. I saw a one person couch I liked at Spazio di Casa - cost 9k - I left laughing wondering who shops here...

jeanchris101 Active member

80POSTS

4 years ago

#51

Personally I do not expect great return for rental property, and this is coming from someone that recently bought a pre construction unit in Cocotal as well.

There is just TOO much construction right now, yes punta cana is growing, but not to the level of construction there is everywhere, also price of rent is sort of low overall vs construction cost so yeah... i would not recommend to any foreigner to buy hoping to make good money.

ROI is usually between 5-7% depending if your renting long term or airbnb wich is very bad considering you need to pay cash (or finance higher) and the worst is that... value of your property will most likely not go up.

jeanchris101 Active member

80POSTS

4 years ago

#52

@DRVisitor

95% airbnb in PC? That's impossible. Even longterm contract is difficult, often its 6 months contract here.

Maybe 50-60% i would say for airbnb's is a good estimate

jeanchris101 Active member

80POSTS

4 years ago

#53

@caroloyap0308

It's difficult to judge Vista Cana right now.

Location wise the other spots you mentioned are more attractive. Having said this Vista Cana looks promising... the issue is you can expect another 5 to 10 years before all those amenities are built / completed that will make this project awesome.

DRVisitor Serial expat

772POSTS

4 years ago

#54

@jeanchris101

Agreed

DRVisitor Serial expat

772POSTS

4 years ago

#55

@jeanchris101

That is main problem is rental rate is very low in comparison to purchase price and add in occupancy rates with seasonality. However, it has been increasing over the last year or so. Is

it from covid escape vacation or trend change? Time will tell...

caroloyap0308 Member

11POSTS

4 years ago

#56

Anyone familiar or has purchased at Panorama Luxury inside Vistacana? Construction is scheduled to start next year and completion at the end of 24’.

Can we trust these developers to actually start and finish?

Do you expect Vistacana to be the new WOW of Punta Cana?

jeanchris101 Active member

80POSTS

4 years ago

#57

I expect it to be good if they do as promised, the wow spot? don't think so, but could be!

If they are telling you end of 2024, expect minimum mid 2025. That's how things work here, it's never on time

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jeanchris101 Active member

80POSTS

4 years ago

#58

@DRVisitor

It's true it went up but pre construction also went up a good 30-40%.

Still no deal, DR is and always will be a renter market.

sberger50 Active member

89POSTS

4 years ago

#59

Last August I bought two condos in East Cabarete for investment and personal use. My goal is to hold the units mostly for their increase in value. I do not expect a lot of rental income, because I will not rent through Airbnb or other weekly rate deals, due to the problems with parties, thief, damage, maid service, and just too many problems involved. I only rent by at least a month or more duration. I don't charge much, and only want to help with the expenses. My $$ are made with the increase in value, which to date, less than a year, prices are up about 25%. Complex is 30 seconds from couch to ocean. Just my story!

rfmaurone Serial expat

224POSTS

4 years ago

#60

I think you sharing your experience is very valuable. I have no illusion of making a profit. I want help with expenses that’s it.

Tippj Serial expat

615POSTS

4 years ago

#61

Anyone familiar or has purchased at Panorama Luxury inside Vistacana? Construction is scheduled to start next year and completion at the end of 24’.

Can we trust these developers to actually start and finish?

Do you expect Vistacana to be the new WOW of Punta Cana?
- @caroloyap0308

I wouldn’t buy anything I couldn’t touch for that matter that I couldn’t see , not

Here. , too many file for bankruptcy and maybe you’ll get back .10 cents on a dollar

After 4-5 years …….. no I wouldn’t buy anything with a “Pre “ in a foreign country

Wish you luck and hope for the best……….

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jeanchris101 Active member

80POSTS

4 years ago

#62

lol don't worry, the company (Urban) building Panorama got a good reputation as far as I know and they are building a lot of new projects in cap cana.

I'm not saying you are gonna make big money on it - but I don't think you will get scam on the pre built.

Lot of people here get scam and assume the worst about everything... and a lot of them is because they are cheaping out looking for the best deal - have to say tho it's very important to do your research before buying anything in this country, but in your case, no reason to think anything bad is gonna happen (yet)

caroloyap0308 Member

11POSTS

4 years ago

#63

@jeanchris101

Thank you for your feedback.

I would like to hear from anyone in this forum that has already purchased new construction and it was completed already.

Are they making the rental return that they expected? How much is the highest charge per night? Nightly rentals in DR is so cheap that not sure if anyone can make the money they planned.

Thanks

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jeanchris101 Active member

80POSTS

4 years ago

#64

I have a friend that owns a pre construction in cocotal.

He paid 190 000$ for it, that was 2 years ago before the big bump in pre construction price. Put roughly another 20k in furniture.

He rents it for 1300$/month on a yearly contract, pays approx 200$/month in condo and residential fee.

That leaves him with 1100/210 000$ = 5.2% ROI

Wich is... a bad return but gives you the idea

Also gotta pay something to the agent that reduces the ROI.

For vista cana I could be wrong but I don't see it as the kind of place where it's gonna be good for airbnbs, at least not in the first 5 years. Far from the beach, the whole project is gonna take a very long time to happen (5-10 years I assume) your best chance i think is to rent it on a yearly contract and you will make roughly 4-6% wich is the norm in the DR for most rentals.

Considering that banks don't give loans under 8-10% in the DR - returns on renting is bad, unless you bought a lont time ago at a way better price.

Tippj Serial expat

615POSTS

4 years ago

#65

@jeanchris101

Thank you for your feedback.

I would like to hear from anyone in this forum that has already purchased new construction and it was completed already.

Are they making the rental return that they expected? How much is the highest charge per night? Nightly rentals in DR is so cheap that not sure if anyone can make the money they planned.

Thanks
- @caroloyap0308

Hi , I just want to wish you luck , but let me ask yer , with the price of fuel going’ up and airlines doubling their ticket prices , and people are trying to put some money back in their bank accounts

because they spent most of the their money when they were out of work during the pandemic. I really don’t see the travel business coming back that strongly especially going into a recession , when peoples Discretionary spending on consumer spending and company inventories back up ……..I see people getting furlough or worse layoffs……….

No I wouldn’t buy something down here expecting the Tourism industry to help me get my return back , especially at a 4- maybe 6 % return …..

Maybe look into a CD account down here in the banks the interest is about 4% - 5% and will probably Go much higher with the US Fed raising rates …… i think two years ago I was getting 6 1/2 %

Someone told me about 4 years ago it very very hard to regroup your investment on property

Down here so when I did buy I tried real hard for the the lowest price and expectations are To hold

And enjoy it myself ….. I hope you realize this is only my personal opinion and don’t take it any other way ……but I really wish you the best with either way you go …….👍

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planner Dominican Republic Expert

17773POSTS

4 years ago

#66

So tourism is now significantly higher then pre pandemic levels! And continues at a good pace!

jeanchris101 Active member

80POSTS

4 years ago

#67

It's higher.

Issue is... amount of pre construction getting build is much higher then the increase pre pandemic... there is still a bit of juice left but unless punta cana tourism just increases massively every year its gonna get more difficult for home owner to be profitable with there property.

Right now supply is low, demand is high.

in 3~ years supply is gonna be massive and demand about the same as this year, creating a bad market for home owner.

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planner Dominican Republic Expert

17773POSTS

4 years ago

#68

Maybe. It's all supply and demand

DRVisitor Serial expat

772POSTS

4 years ago

#69

Don't underestimate remote work and increase in demand for rentals and many units won't be completed.

Cd rates are high but you have worry about currency changes pending on country your looking at.

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Tippj Serial expat

615POSTS

4 years ago

#70

Yes the tourism is up because I think people wanted and want to get away from being lockdown for the past 2 years,,,,and is it tourist traveling for a quick long weekend or are they staying for 8-10 days…? but i also think they’re traveling on credit cards which will have

to paid back….and airlines already announced that the price of travel will be going up.

…let’s see what happens in the coming winter months ….and hope for the best

planner Dominican Republic Expert

17773POSTS

4 years ago

#71

Not only are visitor numbers up also average stay is up. Yes we get some American coming for long weekends but mostly it's one to two week stays. Packages are up significantly.

Even in the current shoulder season occupancy is high.

Let's see how this continues!

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DRVisitor Serial expat

772POSTS

4 years ago

#72

Flights have been very expensive in the "off season". Higher gas prices and less flights probably cause as well.

planner Dominican Republic Expert

17773POSTS

4 years ago

#73

And it does not seem to be effecting demand. If you only look at the amount of travel in USA over this past holiday weekend - up 25%. Price does not seem to be slowing things down at the moment. That can and likely will change over time.

jeanchris101 Active member

80POSTS

4 years ago

#74

Yes but I agree with Tippj - we are heading in a recession, prices of travelling going up, next few years are gonna be way more difficult for turism... do not forget that DR had an advantage as they where one of the first country to remove masks and no covid testing at the airport, wich was brilliant in my opinion. Now most countries are more "loose" and DR is not gonna be the obvious choice anymore.

With the lockdown effect, it seems worth it to max credit card and enjoy some good time under the sun, but this cannot last long term.

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Tippj Serial expat

615POSTS

4 years ago

#75

Heading into a recession ? Maybe , might be there now according to some…..

the price of fuel and the supply chain issue , now they say the fertilizer shortage is

really goin to impact the food supplies come the 4th quarter …. Yes I agree tourism

will get tighter with peoples Wallet

dolphinzsplash New member

8POSTS

3 years ago

#76

I believe we are at the beginning of a recession. Living in Northern California USA gas is just below $7 per gallon, all electric gas and heating is up in cost and an extreme drought which penality applied if over use of water, rentals is up because home purchase start at 1 million. You can see and feel the beginning of a great devide in income, the middle glass is losing ground. Lots of jobs available but you can't afford to work if you can't afford the gas and childcare. Plus those hiring don't know how to treat their employees so they often quit. Food prices has also escalated. During the pandemic no group prepared for the return of living all supplies are out of stock and the government stop issuing stimulus checks and employment dept messed up on checks. The last recession was hard but this one if it gets deep or take a hold real good can be hard to recover. The server or servious workers are moving from job to job because they know it's plenty of work for them they no longer worry about jobs they know they are the foundation that keeps it moving. I cringed everytime i see one being yelled at or mistreated by a customer. People are becoming really stressed and with that comes rudeness. So, yes vacation now if you can because a pandemic won't lock you down but the economy will. Only the wealthy will vacation and the rich will pretend to.

I know this is alot but if your economy continues to flourish and grow be forever grateful and thankful.

I've lived through 2 bad economies in the USA it's ugly and people become ugly.

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planner Dominican Republic Expert

17773POSTS

3 years ago

#77

Lets get back on topic please.

Anyone can feel free to open a thread about Recession possibilities and the DR.

ddmcghee Dominican Republic Expert

1950POSTS

3 years ago

#78

I know tourism is up, but is that at the hotels and resorts, or are more foreigners coming and renting private villas/apartments? It's easy to count the number of people on planes, but are there stats on where they are staying? Personally, I only went to the all-inclusive resorts until I started thinking about living here. When I'm in pure vacation mode, I don't want to have any worries - and I certainly don't want to have to cook my meals and make my own pina coladas!

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planner Dominican Republic Expert

17773POSTS

3 years ago

#79

There are stats for the ALl inclusive vacation stays, some stats on other is broken down but no real stats on long stay tourism, those who rent apartment or house and stay 3 months or so.