Casitas a la Barbacoa
Samana, Dominican Republic
Table of Contents:
1. The Opportunity
2. The Property
3. About the Dominican Republic
4. The Project
5. Proposed Investment
6. Proposed Return on Investment
7. Estimated Project Completion
8. Terms of Sale
11. Links and Photos
The Seller is offering approximately 6,400 M2 (1.6 Acres) on one of the most beautiful ocean-view properties on the north Atlantic shore of the Samana Peninsula. Already existing on the property is a two-story house of brand new construction, a large pool and Jacuzzi with a waterfall feature, electricity, and water. A road is in place to access the land.
The purchase price is $350,000USD. Seller would consider a Joint Venture. He is a builder here with over 10 years experience. The land adjacent to the north-west is currently being developed into high end villas. There are additional lands available.
The Seller has all titles and dislende. He has also plans and permits for building up to 16 more homes on the parcel.
Architectural renderings are being drawn up at this time. DR Paradise Real Estate www.DRParadise.com is assisting with these drawings, using their knowledge of Samana Peninsula Real Estate to guide both design and pricing. DR Paradise has over 8 years of experience in Real Estate on the Samana Peninsula..
Design emphasis: A modern style villa with plenty of open space, utilizing outdoor areas as living space in a larger than normal accent to take better advantage of our wonderful year around climate. This adds value for very little in construction costs.
The price of each of these new villas should be under $200,000. DR Paradise believes this is the price break with the largest percentage of buyers. DR Paradise also feels the inventory of homes or condos in this price range is increasingly becoming harder to find. DR Paradise knows that sales of the right home for the right price will ensure success in this project.
DR Paradise is inviting one or more equity investor partner(s) to buy the project. The more substantial financial backing, the faster the project can advance in both presales and infrastructure. The sale of the existing home can provide the working capital for the remaining infrastructure, landscaping, two more villas, and leave approximately $50,000 for contingencies. Sales of these 2 villas, and presales of the others can finance the rest.
The Seller believes that he has secured this land prior to an exponential appreciation in value due to the impact from new infrastructure on the Samana Peninsula. There is a recently opened International Airport at El Catey; There is a nearly finished highway from the capital in Santo Domingo. This cuts the driving time from the capital from 4.5 hours to a little over 2 hours. New water treatment facilities, new sewage treatment facilities, new marinas, golf courses and more are all well on their way. Values are quickly escalating as speculators are combing the area in an attempt to capitalize on these new important features.
The Property is strategically located just 25 kilometers (15 miles) from the newly inaugurated El Catey International Airport servicing the Samana Peninsula. The property is one of the few beautiful development sites in this northern coast. The government has not only commenced the new highway uniting all points of Samana with the Airport but also a new highway cutting the travel time to the capital of Santo Domingo in half from four hours to under two. Reliable electricity from the city of Samana is available at the property line.
The nearest town to the property is Las Terrenas; a quaint intimate village popular with Europeans. The town has numerous quality restaurants and shops, boat clubs, libraries, medical facilities, banks and markets for year round residents. A golf course and marina are well under way. Development has been concentrated in the flat land areas and also near the bayside city of Samana located just thirty minutes away.
The property is consistent with the popular ecotourism character that Samana is famous for; lush tropical rain forest, waterfalls, pristine beaches with coral reefs and rising elevations more typical of pacific islands instead of the Caribbean. The north Atlantic coast is also famous for Humpback Whale watching, where they breach the surface in their mating ritual. The property is within minutes of over 14 kilometers of gorgeous Atlantic Ocean frontage with numerous areas of white sand beach and bluffs rising inland up to 320 meters in height. The property has a diversity of contours of gentle slopes and hills, and a small valley. Almost every lot will provide ocean views.
About the Dominican Republic:
The Dominican Republic possesses everything required for a high quality vacation or retirement destination experience, including great weather, spectacular ocean views, white sand beaches, dark blue warm ocean water, a growing economy, outstanding medical facilities, a non-oppressive tax structure, and a stable government. It has been a favorite destination for European vacationers, resulting in over 3,000,000 tourists per year. Today Americans are increasing exponentially as word of mouth of a good value for a high quality vacation experience continues to be had by most. The increasing affluent tourism has resulted in a great demand for retirement and vacation homes in an affordable price range. This project intends to capitalize on this trend by offering an option that will appeal to the aesthetic mind as well as to the pocket book.
Recent important institutional, legal and infrastructure improvements have paved the way for; impressive macroeconomic indicators, high international investor confidence and a thriving tourist market. Signing of the CAFTA-DR trade agreement with the United States and Central America and the consistent ideal vacation climate are compelling reasons for optimism for the near future.
Much of the Tourist based development investment boom is a result of both foreigners and Dominicans alike enjoying the Tax free or at least tax reduction status imposed on profits emanating from tourist based development projects. Tax relief has also been extended to rental income and property taxes for the buyers in tourist orientated developments, creating another strong reason to buy property.
Dominican labor pool offers an eager to learn work force willing work with pride. The government has extended the Haitian migrant labor force, who traditionally worked the sugar cane fields, into supplying an abundant labor force to meet the current construction boom demand. Haitians are currently working for wages as low as $12 to $15.00 per day. The never before dreamed of full time maid, gardener and/or cook is now a reality!.
The 6,400 m2 (1.6 acres) can be divided into 10 to 16 lots for villas. There is already one completed villa that can be sold or used for a sales center. The projected project yield will be: 11 – 17 2-story villas of approximately 150 m2, all with ocean view. Average unit prices will be $200,000. Prices will depend somewhat on view and preconstruction discounts. Two to three design choices will be available. Living and recreation areas will find lushly landscaped privacy and quiet relaxation amongst a tropical back drop accentuated with fruit trees, and tropical gardens.
Employing a high density impact to further keep pricing affordable is suggested. Because of this, we can utilize condominium and HOA by-laws to maintain the premises and further escalate appreciation in value. This also allows for possible rental programs that can offset expenses for unit buyers.
In a preconstruction promotion, Units are expected to sell out rapidly to investors who hope to catch the first price release and earn high appreciation as the project advances. Additional investor grade buyer sales incentives will include discounts in exchange for an immediate preconstruction advance closing. The project will be propelled on pre-construction sales providing a 30% deposit at contract and released for construction; commissions and marketing budgets for the next unit roll out. Each unit will be treated as an individual project and allow for suitable financial options to execute the completion based on each sales success. Early Bird Buyers will have the opportunity to resell contracts through the Developer if a market is willing to pay more for being nearer to completion. Prices are expected to rise as the project advances and ultimately set record sales due to the lack of comparable competitive development in the immediate area. Buyer financing is available from a local bank for up to 80% mortgage at the rate of approximately 9% for 20 years. Guzman and Associates www.DRlawyer.com can handle all escrow disbursements and title insurance.
To further enhance profits, furniture packages will be offered. We have an associate that imports beautiful furnishings from china at substantial savings. The buyer can pass along some of these savings and still reap profits. This same associate can also supply the buyer with building supplies (i.e. sinks, tubs, doors, windows, faucets and more) at these same steep savings.
PROPOSED INVESTMENT: 10 Villas 16 Villas
Property Acquisition US $ 350,000 US $ 350,000
Cost of Development US $ 675,000 US $1,125,000
Cost of Marketing and Sales US $ 120,000 US $ 192,000
Misc. & Contingencies Costs US $ 20,000 US $ 32,000
Total Investment US $1,165,000 US $ 1,699,000
PROJECTED RETURN ON INVESTMENT: 10 Villas 16 Villas
Villas at $200,000 sales price on average US $2,000,000 US $3,200,000
NET PROFIT: 10 Villas 16 Villas
US $ 835,000 US $1,501,000
ESTIMATED PROJECT COMPLETION:
TERMS OF SALE:
10% US $35,000 deposit at signing of Contract for Sale and Purchase. Deposit is held by Guzman and Associates. Deposit is fully refundable until Due Diligence is done. 45 days for Due Diligence
15% US $52,500 in 45 days of signing of Contract for Sale and Purchase. This money is NOT refundable unless Seller defaults.
75% US $262,500 in 90 days of signing of Contract for Sale and Purchase. Buyer takes possession immediately at this time.
Development and Construction financing may be obtainable
Excluded from the project revenue are:
1. The potential revenue & earnings that could be derived from the sale of furniture packages.
2. Revenue from rental programs.
3. Revenue from shops or other concessions.
These revenues are not included and could be estimated under separate study.
Links and Photos
Architectural renderings, title, permits and site plans: http://picasaweb.google.com/DLHussmann/CasitasDePiero
Getting There: http://www.drparadise.com/getting.html
Legal Aspects: http://www.drparadise.com/legal.html
More Legal Stuff: http://www.drlawyer.com/