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Unbelievable after the fiasco of Cap Cana that people believe Punta Perla is worth the risk!  Cap Cana DR were never happy with Forpodecas designs and layouts because they were too dense.  Fact is more untruths were told than truths.  They realised that with fewer units at Cap Cana they would make less than they anticipated so bailed out and will build the hell out of Punta Perla.  With Cap Cana down the road which looks far more exclusive as a holiday maker I would go there.  They never gave a concrete guarantee for the rent and were misleading with regards to the mortgage.

By the way I am not talking down anyones investment but there must have been a sale on rose tinted glasses!

Freerider,

It is quite clear that CapCana is a much more prestigious resort than PP. However, it will also be a much more expensive resort to stay at. As with everything else in life there is a price v. quality payoff.

There are very few people who can afford to pay over $1,000 per night for rental accommodation. This is the likely rates for CC villas. To stay at PP you will probably be able to enjoy very similar amenities but without the excessive price tags. Nobody at this stage knows how PP will be received but from my perspective I think there will be plenty of opportunity to rent a three bed villa since these seem to be quite rate. However if you have a 2 bed villa or 2 bed apartnment at 120m2 there is nothing to separate you from the rest of the 5,100 or so units?

David.

GaryGas,

The water park and the animal park are at the entrance to PP near the commercial centre and carpark. In the brochure that will be to the top right hand corner. The larger plain green sqaure is the water park and the smaller green square is the animal park.

PP will provide a pdf of the development you can ZOOM in and out of for real close ups of everthing. It is upside down though!!

David.

Who is this White Knight? I think he works for Punta Perla.

cheers david, the location of the water and animal parks arent too bad.

does anybody know if jack nicklaus is confirmed as course designer yet, I have received my punta perla sales brochure and am very surprised that jack nicklaus hasnt been named in the sales brochure once! nor indeed has the course management company.

the sale of real estate golf property carries a premium when jack nicklaus course design is involved so this needs to be confirmed by punta perla sales.

GaryGas,

I have an email from PP sales confirming Nicklaus has put his name to 1 course and they are in negotiation with other designers on the 2nd.

Did you visit AtlanticA when you were in the north of the DR? Did you manage to get down to the PP site. Please let us know what you thought of them!?

Thanks,
David.

Free Rider, you point out that this deal is risky. But it's not without it's compensatory returns. Original investors are looking at 180K discount per unit. In addition to a 15% rental return. Given that one only needs to out down 30% that's an extremelly attractive ROI. What risks have you identified that makes this deal so bad?
Don't knock high density, this means excellent profits for the developer thus reducing the risk of him going bust.
I agree it's not Cana Cana but then again the prices (or at least the price I'm paying) reflect this.

Apart from quality of PP ( it is not bad but not standing out as the best), its financial pachage is one of outstanding(net rental guarantee, non-status mortgage and tax exemption for 10years). PP may be OK for pure buy-to-let investment as you are not going to use that often.

How realistic or reasonable the 15% pa net rental is? This is pretty important question to ask. DR soverign risk is basically junk (C credit rating) and therefore it is ultra risky politically. Having said that, the source of cash flow of PP is basically from American, Canadian and European as they are going to go there to play golf, spa, Yatch, tennis and sun etc. In July this year, DR successfully signed Central American Free Trade agreement with the US. I think this is a big step for DR and will get American arm force support to maintain stability of country as American themselves want to protect their commercial property/business right to do trades/business in DR. I think those kind of soverin risk issue has been dramatically reduced recently.

Does anyone have any idea about hotel occupancy rates of the similar quality hotel/development in DR ? In sales brochure, they said more than 80%. Is it realistic for PP. If they pay 15 net, rental revenue of the pool should be something like 25-30% of total book value of the property in pool. How about room charge rate for two and three bed property of equivalent quality developments ?

Does anyone know websits which give access to such statistics in DR?

According to PP sales, there will be two 5 star luxury boutique hotels built in PP. Again, those are the facts that suggest PP is smaller and less Lux version of Cap Cana (5 resort hotels and 5 Lux boutiquw hotels, they are all 5, 6 or 7 star in addition to 3 Jack courses). This should be reflected price of property in PP. Probably, that is reflected in financial package rather than the price of each unit in PP. Cap Cana sales except UK was not offering that kind of Guarantee when I have tried to purchase unit in CC from CC Sales in DR after CC UK broken down.

dbm and GaryGas, are you going to sign up for PP ?

erickk, there is no White night. He is now called Black****.