Advantages of buying a house in Punta Cana for resale

Advantages of buying a house in Punta Cana for resale

Many investors aim to buy to sell. Their desire is to maximize the value of the property in order to obtain a capital gain on the transaction that will allow them to make a profit. 

The advantages of buying a house in Punta Cana for resale are very high. We are talking about a market with high growth expectations, so making decisions today can be of great benefit tomorrow. 

What is buying a home for sale?

The acquisition of a home for sale is a real estate investment strategy that seeks to obtain its main benefits from sales transactions. 

In this sense, the time between the purchase and the sale should not be excessively long (from 6 months to 3 years), unless you see possibilities of obtaining profitability by keeping the property rented during that time. 

Generally, the acquisition of a home for resale at a profit is a real estate strategy known as house flipping. It does not necessarily imply having to refurbish the house, but ideally you should be able to access real estate that is at a very competitive price or below its value. 

 In market environments strongly conditioned by tourism, the amount of square meters is not always the only investment factor you should consider in order to make house flipping. Consider also the location, as many small units in luxury condominiums can provide you with a high return. 

What are the advantages of buying a house in Punta Cana for resale?

There are multiple advantages that make it worthwhile to buy for resale in the Dominican Republic, and more specifically in Punta Cana. 

  1. Sustained growth in the real estate market 

In recent years, in the Punta Cana real estate sector there has been a sustained growth of around 8% per year in housing prices.   

However, these figures skyrocket when we talk specifically about luxury homes in Punta Cana, where yields can be between 10 and 15%. 

 Both data highlight the strength of the Punta Cana real estate market. 

  1. Ease of finding buyers

The Punta Cana real estate market is very liquid. That is, it is relatively easy to find a buyer willing to pay the price of the property. 

And we are talking about a market in which many international investors have their eyes set, attracted by its excellent taxation. It is not the same to buy a house in Punta Cana than in other markets with more competition, where the time you have to wait to find a buyer can be high. 

  1. Booming tourism in Punta Cana

Punta Cana is one of the most important tourist attractions in the CaribbeanThis makes it the ideal place to do real estate business.

Currently, more than 10 million tourists come to the Dominican Republic every year, figures that are likely to continue to increase. This highlights the high interest of homebuyers in acquiring properties for tourist rental. 

In this sense, the market is not limited to local residents, whose intention is to reside in their own home, but many international investors are looking for real estate opportunities driven by the excellent figures of tourism in Punta Cana. 

  1. Excellent taxation for foreign real estate investors

 Not all investors buy to sell in the short term. It is better to wait, or even earn income from tourist rentals over a period of time. Many buyers purchase homes in Punta Cana that benefit from the Confotur Law. This regulation allows purchasers to be exempt from Real Estate Wealth Tax (IPI) for 15 years. 

In addition, individuals who obtain rental income from their homes will not pay income tax on these amounts for a period of 15 years. 

In addition, you also do not pay the Transfer Tax on Industrialized Goods and Services (ITBIS), equivalent to 3%. 

 This implies that after that time it is possible that you may be interested in selling the properties that can no longer benefit from the exemption, so it may be interesting to sell once revalued.  

  1. Possibility to buy under construction 

Punta Cana is a growing market where you can find luxury units in condominiums under construction, where you can buy the property from the developer and not from a private owner. 

This allows you to access better entry prices and to have the possibility of resell a property that is already yours, in a context in which the selling prices of the condominium units will increase as more and more private owners dispose of them. 

  1. Favorable legal regulations for foreigners

 You do not need reside in Punta Cana to buy or sell a property. As a foreigner, you have no restrictions to acquire as many properties as you wish, and gradually build your own real estate empire, where you can rent some homes or renovate and sell them according to your wishes.  

On the other hand, the excellent legal certainty and the possibility of accessing professional advice will allow you to carry out your real estate transactions with total peace of mind and the guarantee of complying with local legislation. 

From Vivantia Homes we encourage you to know the different real estate opportunities in Punta Cana where you can buy to resell or rent and maximize your profits. 

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Keys to diversify your real estate portfolio

Keys to diversify your real estate portfolio

Have a diversified real estate portfolio can bring great stability to investors. When a person decides to purchase real estate in the Dominican Republic, he or she is often attracted by the excellent fiscal conditions and the country's great long-term economic prospects.

But simply acquiring a single unit or luxury home is not usually an investment strategy for those who want to achieve maximum financial freedom. Ideally, this should be the first stepping stone to building a real estate in Dominican Republic that allows you to earn a continuous income from rental income.

Discover here our real estate opportunities for investors who wish to maximize the profitability and stability of their portfolio.

What is real estate portfolio diversification?

The diversification of the real estate portfolio is a real estate investment strategy aimed at reducing risk.

When an investor dedicates a portion of his capital to real estate investments, he can obtain returns from these through different mechanisms.

For example, of the tourist rentalsor from refurbishment and revaluation and subsequent sale, or other means. But there are several factors that can influence this, such as competition, the level of tourism or the location of the properties, which can reduce your income.

Keys to diversify your real estate portfolio

If you are real estate investor and you want to grow your investment portfolio, here are some tips to keep in mind if you want to maximize its stability.

1. Better few luxury homes than cheap long-term rentals

 

Diversify your real estate portfolio is not about accumulating as much real estate as possible. There are homes that can be very sensitive to changes in the market, which can reduce your income.

Although investing in low-cost real estate may maximize your return at the outset, it entails a higher long-term risk. And you depend on long-term rentals, the profitability of which depends on the local economy.

On the other hand, the luxury homes in highly trafficked tourist locations as Punta Cana, have a higher occupancy rate. Simply because tourists with high purchasing power come from all over the Americas and Europe, less conditioned by the ups and downs of the economy.

Have a few luxury homes well located allows you to have more stability than many homes of medium or low quality, whose ability to convert is much lower in a tourist context such as the Dominican Republic. This type of housing is more intended for long term rentals, which can be more affected by changes in price.

It is not a matter of not investing in different price rangesThe main objective is to act with a strategy that takes into account the characteristics of the market.

 

2. Acquire units managed by hotel brands.

 

If all your investments are made in self-managed propertiesdiversification of your portfolio can become a problem.

The more properties you acquire, the more time, cost and effort you spend on maintenance. That's why one way to reduce risk is to have luxury units in your real estate portfolio in condohotels in Dominican Republic where you can cede the management of the property to third parties, which is much more scalable.

 

3. Don't rely only on long-term rentals

 

Long-term rentals are available, short-term vacation rentalsreal estate transactions that are solely oriented towards the valorization of the property and resale... Don't gamble by relying solely on one strategy.

Again, diversification is not about avoiding other investments. But it is about finding the right balance in your investment strategy.

 

4. Go to real estate markets with stable tourist income.

 

It is not the same to invest in housing in areas where the influx of tourists is too dependent on the season or the weather.

This is what often happens to many real estate investors in the United States or in less populated urban areas, where there is no stable demand throughout the year.

That means that if you are looking for profitability with tourist rentals, your income is drastically reduced in low season, while it increases in high season. But you can reduce this range if you go to real estate markets such as the Dominican Republicwith a stable climate and an economy that receives tourists throughout the year.

 

5. Commitment to geographic diversification

 

Maybe you are a real estate investor in Colombia and all your homes are located in this country. But what if circumstances occur that severely affect demand, and your rental prices are pushed down?

You need diversify into other real estate marketsEspecially those that offer a high stability in income from tourist rentals, as is the case of the Dominican Republic, and in particular cities of international renown such as Punta Cana.

Do not be afraid to making real estate investments abroad. In fact, you will discover that the tax advantages for investing in the Dominican Republic are surely much better than in your country of residence. And, in fact, they give you all kinds of facilities as a foreign investor, whether you want to live here or not.

At Vivantia Homes we can help you take your first steps as an investor in the Dominican Republic. Discover our real estate opportunities and contact us now to book a video call.

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What are condominium amenities?

What are condominium amenities and why are they important?

One of the elements that you should consider when making real estate investments are the facilities in which the property is located.  

There is luxury units located in condominiums that, regardless of their size and characteristics, have an added value due to the location of the building in which they are located and the amenities of the condominium.  

In this post we will show you what are the amenities or amenities that you can find when investing in properties such as those of Oasis Bay u Oasis Lake. 

What are the amenities of a condominium?

The amenities, amenities or comforts of a condominium are recreational, social or sports areas that are intended to make the stay in the property more pleasant. 

What tourists who visit the Caribbean for a few days or weeks really value is not simply the fact that they live in a luxury home in Dominican Republicbut to be able to enjoy a series of experiences that make your stay perfect. 

The fact that these amenities are located on the same premises or in the same area is not a factor in near the condominium means that they do not have to travel to enjoy them, which helps people to have a better experience. 

As a real estate investor, you should keep in mind that the tourists who will rent your property value highly the amenitiesThey have come to the Dominican Republic to have a good time. And this is a factor that will also significantly influence the price per night, which will help you maximize profitability. 

Types of amenities you can find in Punta Cana condominiums

Let's take a look at a series of amenities that can be a differential factor when it comes to finding people to buy your investment property. 

 Swimming pool 

 Swimming pools can be private or public (for the entire condominium), and it is one of the essential amenities that will allow you to find clients when renting your property. With the competition you have in Punta Cana, and being fundamentally a place to enjoy the sun and water, there are many tourists who would never stay in a place that does not have a luxury pool.  

Private beach 

Private or semi-private beaches are located in gated resorts. They are usually an additional advantage highly valued by tourists, since they allow them to avoid the crowds, apart from allowing you to go to the beach as soon as you get up in the morning, and without having to move around. 

Coworking 

If you want to attract digital nomads, which is undoubtedly a very lucrative market segment in tourist rentals, the ideal is that your property is located in a condominium that has coworking space.  

This will allow your tenants to take their laptop and work during the hours they need it, while enjoying the rest of the amenities of their accommodation. 

Gym 

 Those who come to visit Punta Cana tend to be in many cases young people, well located, and yes, with a sporty profile, or fitness lover. Because what you must have clear is that Punta Cana is a place to enjoy the highest quality of life.  

 That's why every self-respecting luxury condominium has to have a good gym facility where people can keep fit. 

Parks and green areas 

 Green areas in a condominium are synonymous with aesthetics and beauty. The more green spaces, the more cheerful and attractive a place is. But it is also a way for families traveling with children to enjoy a space in which to play, run and have fun. 

 In this sense, tourists value very positively that the condominium in which they are located includes parks and activities of all kinds for children. 

Water activities 

This is an addition that not all luxury condominiums have, and it is the possibility of practicing water activities in a nearby water park, as is the case of Caribbean Lake Park, on the shores of whose lakes the apartments are located. Oasis Lakein the heart of Down Town. 

Places where you can practice all kinds of activities, from jet skiing and aquakart to private circuit adventures with buggies. 

Gastrobar 

When people travel to Punta Cana, they want the full experience. And that includes eating and drinking big and classy. They look for places where they can enjoy upscale international cuisine, combined with delicious local flavors, cocktails and drinks, as well as stylish spaces to enjoy lunch or brunch. 

Invest in luxury apartments in Punta Cana with the best amenities

When investing in real estate in the Dominican Republic it is very important that you choose luxury apartmentsthat offer the best comforts and advantages. 

 If you are looking for luxury homes in Punta Cana to invest and rent, in Vivantia Homes we can advise you on everything you need and inform you of new opportunities, with important tax advantages by the Confotur Law. Book a video call with us now. 

 

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