GOOD ARTICLE TO READ ABOUT PURCHASE PROPERTY

Good article.

From our own experience, we had put down a reservation fee of $25K for a villa with one of the large popular developers near Sosua. Imagine my surprise when we learned through due diligence that:

• The developer had purchased the property AFTER selling it to us,
• There was a (bank mortgage) lien on the property, which the developer planned to pay off AFTER we had financed construction for our villa,
• If the developer were to not make their payments, we risked losing our fully-paid-for villa.

We were very glad to have been represented by a large national firm, *** and felt that a local firm may have been coaxed/succumbed to pressure and sent us down the garden path. We were able to get our reservation back, less attorney fees, approx USD1.5K.

Glad we got out of that deal, turns out the construction rates have risen by nearly 20%.

Regardless of the marketing, I have found that around the Puerto Plata/Sosua/Cabarete, that occupancy is certainly not 70%. Based on three trips over 6 months to nine different gated communities popular with the American/Canadian expats, I would guesstimate the occupancy during high season at less than 50%. In each case there were villas to the left and to the right of us that, judging by the state of the pool and landscaping, had not been occupied in weeks perhaps months.

Our plan for our own vacation villa will wait until occupancy levels are back to pre-pandemic levels, so that we can use the rental income to subsidize the cost. In the meantime, last minute deals abound on AirBnB and the like.

At least here in Las Terrenas, we had a boom in rentals during COVID - our apartment had the best occupancy rates at even higher rents during fall 2020 and summer 2022 when we sold it. I would say that over the past year, rental rates here have really dropped off. Other parts of the island might be different, but I don't think a return to pre-pandemic levels is what anyone with investment properties wants.

Hello everyone,

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Thanks in advance

Bhavna

@UkuleleFrank

Thanks so much for this useful information. I contacted the attorney's office you recommended and am trying to buy a pre-construction in Bayahibe.

I'm sorry your deal didn't work out. Hopefully, you can find something soon with a good builder.

Sincerely,

Wendy Brown