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'Studio Apartment Project Proposal' DR Paradise Real Estate
Discovering good investments that won't be subjected to inflation and deflation will obviously will be popular worldwide. Living and discovering a DR lifestyle with all the benefits will be part owning a studio. We are going to buy raw land at a steep discount and build the perfect studio apartments at good value prices. Executive Summary Table of Contents:
1. The Opportunity 1.1 The Project DR Paradise Real Estate is giving you the chance to own one of 4 Studio Apartments located in Las Terrenas, Samana, Dominican Republic at 35,000! per unit , minimum purchase: two units or 70,000$. ! Perfect for renting or as liveable apartments. The apartments are located on 350 square meters of land (see below for photos) with gardens, a parking lot and good road access. Each 50 m2 Apartment can be rented for $300 per month and can be sold for $50,000. The Apartments can be sold or rented furnished or unfurnished. DR Paradise has all titles and deslinde. 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 the Samana Peninsula Real Estate to guide both design and pricing. DR Paradise has over 10 years of experience in Real Estate on the Samana Peninsula. 1.2 Las Terrenas, Samana The Apartments are located in the town of Las Terrenas; a quaint, intimate village popular with Europeans. The President of the Dominican Republic has named Las Terrenas as the ‘Monte Carlo’ of the Dominican Republic. A new marina is currently being constructed on one of the most beautiful beaches in the country, ‘Playa Bonita’ (5 minutes from the apartments) and a golf course is also underway. Although to some extent ‘touristy’, Las Terrenas is very unlike the northern tourist towns of Sosua & Cabarete… Las Terrenas has kilometers of white sandy beaches and crystal blue waters. The town is alive with the ‘Caribbean Vibe’ and everyone seems to walk around with smiles on their faces! The town has numerous quality restaurants and shops, boat clubs, gyms, libraries, medical facilities, banks and markets for year round residents. One can snorkel on the reefs surrounding Las Terrenas, play tennis, & soccer, do kite boarding & horse riding and take Spanish lessons if there is time! One could never get bored here! 1.3 Current Real Estate Market Current market trends indicate that the Real Estate market is accelerating and sales are increasing. This is certainly the time to buy! Here in Las Terrenas, Samana, house prices in general are overpriced and DR Paradise would recommend to investors that they consider investing in small apartment projects where one can make a passive income, have a place to live and a property that appreciates in value. DR Paradise will be creating similar projects to the one mentioned in this proposal in the near future as they are a safe investment. DR Paradise recognizes that small apartment complexes of 6-8 apartments are very desirable here in the Dominican Republic. Permissions for small apartments are easy to obtain, they are easy and quick to build (0-1 year), and costs and construction techniques are easier to control. Apartments will be located in desirable neighborhoods in close proximity to the beaches and town. 1.4 Why Invest? As a result of the ‘Subprime Market’ melt-down in the USA and Europe, many investors have lost a large proportion of their Investment Portfolios. The majority of us will know at least someone who has lost 30-50% of their Stock Market Portfolios. It is also evident that Property Investors who bought during the ‘bubble’ have also lost 30-50%. What’s more, is the strong possibility that Portugal, Ireland and Greece are going to default on their national debt and other European countries are headed in this direction. This has led to the fall of the Euro and investors are confused on where it is now safe to invest. A panic scenario is emerging and the inexpensive real estate that brings in good rental income and can be sold for a hefty profit is becoming the best and most secure investment. Current European tax rates: European Income Tax is running between 40% and 58% and with VAT rates anywhere between 17.5% and 25%, it makes sense to invest in the Dominican Republic where very few people pay Income Tax, Property Tax etc.... So why invest in this project? Well here is a great opportunity to invest a small amount and make a great return... DR Paradise is offering investors a fully furnished, modern condo in the Caribbean at $35,000! per unit , minimum purchase: two units or 70,000$. Click here for more economic indicators. 1.5 Niche in the Market It is clear to Mr Bruce Pierson, the owner of DR Paradise, that there is a real ‘need’ and ‘desire’ for an apartment project of this type. With 10 years of living in the Dominican Republic and having a sound Real Estate knowledge, Mr Pierson has been able to locate 3 small undervalued pieces of land for between $15,000 and 50,000$ in good locations with good road access. . Mr Pierson is experienced in the field of construction and building for profit. One of his past successful building projects involved him designing, constructing and running a ‘5 bungalow’ project which he then sold for a profit of 35%. Mr Pierson himself acknowledges the abundance of unrealistic property prices within his own business. “Properties with an asking price of around $300,000 are just not selling. They have been over-valued by the owner and as a result have seen little interest from property investors” (Pierson, 2010). Mr Pierson has found a ‘niche’ in the market for these well priced apartments that are a safe investment and make great returns! 2. The Project 2.1 Project Costs The 350 m2 will accommodate 4 Studio Apartments; two, 2 storey apartment blocks of two Studios. The Studio Apartments will be approximately 50 m2 in area. Approximate cost per square meter will be $450. Average unit price will be $25,000 to build. Architecture fees will be $2,000. Permission to Build will cost $1,104, Furnishings will cost $3,500 per unit, Fixed Maintenance Costs will be $30 per unit and Titles will cost $2,760. Can be sold furnished or unfurnished.
2.2 Break Down of Project Costs
Please note that each unit will have it’s own electric meter and electricity and internet costs are not expected to be more that $70 each per month. 2.3 Buyer Financing 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. 2.4 Monthly Income and Expense Statement
3. Proposed Investment 3.1 Proposed Investment Table (in US $) (Per Studio Apartment)
4. Proposed Return on Investment 4.1 Proposed Return on Investment Table (in US $) (Per Studio Apartment)
5. Estimated Project Completion Years 0 – 1
6. Terms of Sale 10% Deposit upfront with the remaining amount to be paid within 3-6 months. Financing if needed can be arranged through the local banks.
7. The Land The following photos are of the land where the Apartments will be constructed…
The following photos are of the construction progress...
8. The Property 8.1 Property Design The Studio Apartments will be modern in design and can be sold furnished or unfurnished. All furnished apartments will include a flat screen TV, fridge/freezer, microwave, stove/oven, king size bed and mattress, curtains, table and chairs. The Apartments will have small landscaped gardens and a small parking lot.
8.2 The Architect Andreas Noriega Fedelli Mr Fedelli is the architect for this development. He is Chilean and graduated from ‘Pontific Catholic University of Chile’ in 1992 with a degree in Architecture. He has an impressive portfolio and has been working in the Dominican Republic for the past five years. He has studied and travelled to various countries such as Canada, Brazil, Peru and Bolivia. This has given him an insight into different cultures, design concepts and architectural designs which he incorporates into his work.
The following two architectural designs are Mr Fedelli’s vision for this apartment project…
Figure 1. Suggestion 1 - Architectural Design of Apartments
Figure 2. Suggestion 1 - Architectural Design of Apartments
Figure 3. Suggestion 1 - Architectural Design of Apartments
Figure 4. Suggestion 1 - Architectural Design of Apartments
Figure 5. Architectural Design of Apartments
Figure 6. Suggestion 2 - Front and Back Elevation
Figure 7. Suggestion 2 - First Level
Figure 8. Suggestion 2 - Side Elevation
Figure 9. Suggestion 2 - Apartment Block Layout
Download detailed plans, contact Bruce Pierson for more info
Figure 10. Map of Las Terrenas showing Apartment Location
The Apartments are located 5 minutes from Playa Bonita and Playa Coson two of the most beautiful beaches in the Dominican Republic and 10 minutes from the center of town. There are an abundance of great restaurants and shops in the close vicinity and therefore there is no need to make the short trip into town. They are 40 minutes from the International Airport of El Catey servicing the Samana Peninsula. This Apartment project is just one of a few development sites on the 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. 9. About the Dominican Republic 9.1 General Information The Dominican Republic possesses everything required for a high quality vacation or retirement destination experience, including great weather, spectacular ocean views, white sandy 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 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. 9.2 Economy 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. 10. Links
11. Photos Photo gallery:
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