All Forum Posts by: Junior Jaquet Hernandez

The Dominican Republic is one of the leaders in the entire Caribbean in terms of tourism, livestock, agriculture, and industries and will also be the Hublogistic in Punta Cana

If we make a comparison between other countries that have good tax benefits and return on investment, we can talk about these topics in a Zoom meeting where I can show you a graph of the tax benefits, return on investment, a natural and forced appreciation table that guarantees a defense against economic inflation and in favor of covering your capital

+ The most important thing is the location when acquiring your property, you are not buying a house or an apartment, you are acquiring a location with development or in development that guarantees your investment

+Each property has a number and our task as investors is to discover which is the appropriate number that can give us the return on investment that we are looking for. Each property is different from the others, some give better results in appreciation or capital gains, and others. They give better results according to profitability. Our job as investors is to define a criterion of what we are looking for and try to find what we are looking for according to our criteria.

+We, as investors and also as real estate advisors, guide our clients to invest in tourism sectors that can guarantee their investment in profitability, cash flow and return of the investment. These sectors are: Punta Cana, Miches, Santo Domingo, Las Terrenas, Jarabacoa and Puerto Plata. We focus more on these tourist centers and more on Punta Cana due to its great tourist and industrial development.

These are In our opinion the best places in the Dominican Republic, but it doesn't mean other places can not work for you. Remember what works for me doesn't have to work for you or vice versa. In this post are goal is just provide great information for local and long-distance investors.

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In this post, I share with you the pre-construction investment benefits in the Dominican republic in the tourism sectors like Punta Cana, Puerto Plata, Sosua, and others.

Among the benefits of acquiring properties on plans are the following:

1- Capital Gains: the increase in the value of a property over time, due to different factors, such as accessibility, location, within the urban environment, services and infrastructure, and urban and architectural value.

2- CONFOTUR tax benefits: law 158-01, which establishes tax benefits for real estate investors in the country's tourism sectors, which grants the benefit of tax exemption for 15 years.

a)- Real estate transfer tax 3%.

b)- Real estate asset tax (IPI) 1%.

3- Financing available with an interest rate of 0%:

Which works depending on the policies of each project, it normally works as follows.

a)- the unit must be reserved from $2000 onwards.

b)- They are given an approximate period of 21 days - 30 days to complete the downpayment 20%.

c)- it is financed in monthly installments without interest until 50% of the value of the property is reached at the time of delivery 12-24 monthly payments

d)- the remaining 50% can be financed with a bank or you can pay it cash.

4- Resort administration: which guarantees monthly profitability and a return on investment which we could talk about by a zoom meeting..

Thank you

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Quote from @Mike Lambert:

@Junior Jaquet Hernandez

You're very good at promoting your beautiful country and, anyway, as a local real estate agent, we would expect you to be positive because, if you aren't, who will?

I was just pointing out that I know plenty of people who have been to Punta Cana, including myself, and all of us have been in an all-inclusive resort and not in an Airbnb. None of us, including the many people I've met there have done cultural excursions or gone there for the local food. We've just been there for the beach, the food and resting at the resort. Granted, that's not a representative sample but I bet that's what most visitors do.

A few points regarding what you mentioned:

1. They guarantee 60% occupancy. For how long? I know large and (until then) reputable developers who have done that and then, when occupancy was below the level, they unilaterally cancel the guarantee. Nothing the owners could do. Then, you generally have to pay hefty management fees, whereby your returns oftentimes end up being less that what you can get in your home country. So why taking the risk?

2. 0% interest rate. For how long? They probably include the interest costs in the price, like the US homebuilders do with the rate buy downs. Anyway that 0% could be great if the deal is good but it doesn't made a bad deal good.

3. The tax exemption benefits are useless to most of us foreign buyers and a pure marketing tool used by the local developers. Indeed, we are taxed in our home country on our worldwide income and capital gains. So, anything we don't have to pay to the Dominican Republic tax authorities (the tax exemptions), we have to pay them to our home tax authorities because those exemptions don't apply. Local developers who market that benefit won't tell you that.

Also, I regularly see ads for large new condo developments so, if I was a buyer, I'd be concerned about overbuilding, especially given my previous remark. We have seen that movie elsewhere.

Finally, yes the Dominican Republic has it all indeed but, sadly, that includes sargassum, especially Punta Cana. We haven't found any solution to that problem. If it gets worse, which it could given that the assumed reasons are pollution and global warming, it could eventually wreak havoc on the country's tourism industry, especially Punta Cana. I know people who have been there when the beach was covered by that stinking toxic algae and they mentioned they'll never go back because of it.

To conclude, it's great that people here have different opinions. It makes for a good debate and that's what creates a market between buyers and sellers. Investing in Punta Cana might be right for the right kind of buyers (like maybe lifestyle buyers interested in getting a little bit of extra income) but they should make sure they know what they're getting into and don't look at the opportunity with rose-tinted glasses

Very good, however, you do not have investment experience in the Dominican Republic. You can give me good Investment recommendations in your country and in fact, I can accept them because each state in your country has a different market and different laws. I have properties in Las Vegas and in Cleveland, there are 2 markets. different just like my other properties in the Dominican Republic, it is totally different from the USA.

I invite you to investigate better how to pay less taxes in your country, which in the DR is a benefit for many investors. I understand that the USA is different, it is more strict, but there is always a way to do things.

I also invite you to better investigate what international hotel management companies are. I think you may know many developers or builders, but we are talking about two different factors. Airbnb managers and hotel managers practically have the same tasks and that is to make your property If everyone works according to a different work scheme, I invite you to a Zoom conversation so that we can talk about these topics in more depth.

You say that there is no guarantee of occupancy at 60% per year, rent, perhaps from your point of view you see it as something impossible but remember that you are not buying just any property, these have acquired a property with hotel management, there is the difference and have a lot Be careful, I'm not talking about properties offered by resorts that are commonly known as (timeshare), they sell memberships that have nothing to do with real estate properties.

Investments and businesses have their benefits and risks but tell me one thing that guarantees that my investments in the United States will give good results?. If I don't do my homework looking for properties in a good location, acquiring properties with potential where it is profitable, and looking for an efficient property manager. If I do not do these tasks, no one will do them for me, and my investments, no matter how good they are, will not have a good result.

Properties and investments are good in all parts of the world, some more than others, generally in the Dominican Republic I could find better benefits than in the USA, remember if you really want to do something you will find a way, otherwise you will find an excuse.

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Quote from @Mike Lambert:

@Junior Jaquet Hernandez

I love the Dominican Republic and its history and culture but, as far as I've seen, there's hardly any of it in Punta Cana or around. And, as everybody knows, people go there the beach, the weather, nightclubs,.... and, most importantly, the all-inclusive resorts. As for the gastronomy, you can find nice restaurants like anywhere in the world really but, out of personal experience, you can't beat the food of the better all-inclusive resorts there and that's precisely one of the reasons people go for that option.

To answer your question, as you know, Punta Cana accounts for 2/3 of the tourism in the Dominican Republic so, the first time I went, I was wondering about buying a short-term rental there. I emailed a poll to a large group of friends and acquaintances and I asked them the following question: "Would you ever rent a short-term rental in Punta Cana and would you ever go there if it wasn't for an all-inclusive" and not a single person answered yes to either of those questions! Many explained why and it made total sense to me. So no, I don't own property there.

Of course, this isn't necessarily a representative sample statistically speaking and my friends and acquaintances could be a bunch of weirdos so I could be wrong. Well, people needn't listen to you or me. They can just go to Airdna and check how much money the average short-term rental in Punta Cana makes and they'll have an objective answer.

Finally, I'm getting bombarded by messages from Dominican developers building short-term rentals in Punta Cana so, when looking at the statistics, bear in mind that the supply and therefore competition is going to increase significantly.

My dear friend, due to the tourist, real estate and industrial development, there are approximately 100 all-inclusive resorts along the entire coast of Punta Cana, Bávaro and Miches, Grupo Punta Cana is the pioneer company in tourism and development of the Punta Cana and Cap area. cana, this same company is building the first and only Hublogistico in the entire Caribbean, guaranteeing thousands of jobs not to mention that each all-inclusive hotel generates from 1 thousand to 4 thousand employees depending on the hotel, not counting jobs in the construction sector, airport, local businesses and also businesses to supply the large demand for food and products in the hotel sector, including the entertainment and art department of hotels.

Since you mentioned that it is impossible to compete with an all-inclusive, obviously a 100-square-meter apartment cannot compete with an all-inclusive with 1,000 rooms. If you look at it that way, there is no way to compete, but it doesn't mean that you can't meet your expectations. . The expectations of a resort are millions of dollars a month and thousands of visitors. The expectations of an Airbnb may be 2-3 thousand per month and with 4-5 visits you can already solve this part, but in case you didn't know, there are residences ready and in development that have hotel management like WHYNDHAM and other companies, that is, they have contracts with travel agencies and tour operators that guarantee the flow of short-stay or Airbnb clients and the administration guarantees 60% occupancy per year, projects in development with a 0% interest rate and also tax exemption benefits

I think there is a lot of information that even many investors are unaware of, including me.

The opinion of gastronomy depends on each person. I would not go to France or Italy to eat hamburgers, I would go to taste the best wines, Spanish Iberian serrano ham, the best French dishes, pastas and the best cheeses in the world. In the Dominican Republic we are not experts in ham or cheese but if something stands out from other countries it is our mixed indigenous, European and African cuisine, they are a rum manufacturer, Mabi de behuco Indian is a typical Dominican drink, mamajuana, banana mangu green, sancocho and other dishes. You will not find that in an all-inclusive hotel, you can tour the Dominican Republic from end to end in just 8 hours. People who come to Airbnb in Punta Cana or the Dominican Republic in general come for various reasons. If they are foreigners, they come to Punta Cana to rest. First days then they rent a vehicle and start looking for other places in DR to visit and renting other Airbnbs depending on their route to explore the country, and get to know different tourist, historical, cultural spots and, as you said before, nightclubs if they are local, they go sightseeing. to explore every corner of the country, what there is in the city of Santo Domingo, there is not in Punta Cana and each city, no matter how small or large it may be in the Dominican Republic, has its essence and that is what keeps North Americans, Europeans, Latin Americans and Asians investing in different sectors of the country, just ask yourself this question because there are so many foreign and local investors in Punta Cana or the Dominican Republic in general, the answer is simple, remember, the Dominican Republic has it all.

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What are the CONFOTUR TAXES BENEFITS? for investors in the Dominican Republic?

According to the website of the Ministry Of Tourism in he Dominican Republic.

On October 9, 2001, the National Congress approved Law No. 158-01 on promoting tourism development for areas with little development and new centers in provinces and localities with great potential, to accelerate a rationalized development process. of the tourism industry in all regions with potential and natural conditions for tourism exploitation throughout the Dominican territory.

In the law above, the Tourism Promotion Council (CONFOTUR) was created, to apply the guidelines of Law No. 158-01, as well as create the conditions and facilities necessary so that innovative tourism projects can benefit from the incentives granted by law.

Through Decree No. 372-14, the Technical Directorate of CONFOTUR was created, in charge of handling all technical matters derived from the application of Law No. 158-01 and its modifications.

Classification application files, to comply with the terms of Law 158-01 and its modifications, must be sent through the CONFOTUR website by completing the Application Form. The Technical Directorate will conduct the technical and legal evaluation of the projects and is responsible for recommending to the Council the exemptions specific to each request it evaluates.

A Classification, whether Provisional or Definitive, is nothing more than the approval by the Tourism Development Council (CONFOTUR) of a given tourism project, as capable of benefiting from the benefits and incentives of the Law.

Likewise, with the approval of resolution 49-2014, a step is taken for tourism projects that may be included under Law 158-01 and its modifications, to offer health services, and that can generate important tourist flows, under medical tourism marketing channels, not common to vacation tourism.

In short, all exemptions granted by CONFOTUR are established in Law 158-01 and its modifications. The Technical Directorate of CONFOTUR evaluates each project following the guidelines of the same law, its Implementation Regulations (Decree No. 372-14 dated October 9, 2014), and Resolution No. 109-15 of September 25, 2015, which approves the Guide for the Presentation of Tourism Projects to access the Incentives and Benefits of Law No. 158-01.

So that means investors in the Dominican Republic in some areas like Punta Cana, Puerto Plata, Santo Domingo, and others can have the benefit of not needing to pay taxes on the property per 15 years in some development projects. We consider researching which of those projects has those benefits before investing in case this is a priority point in your criteria.

Mi name is Junior Jaquet

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Quote from @Andres Bernal:

Hey guys,

Im buying a condo in Punta Cana in area nearby "EL Cortecito" 5 min walking from the beach. I have my whole portfolio in CT and would like to expand markets. Im from Santo Domingo but I have lived in CT since 2012. This condo will also be used by my family and myself as well.

Does anybody wants to share their experience owning a condo in PUNTA CANA, Dominican Republic and rent it out thru ARBNB , other short term rental platform or with a property manager?

Any tips on filling Vacancies, Arbnb experience, high or low rental season strategy? Any advice will be highly appreciated.

Hey did you get the property?

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Quote from @Allan Smith:

Hi Andres,

I’ll be watching this too. We just bought a penthouse closer to Santo Domingo (Guayacanes), but it hasn’t gone live yet. Perhaps in the coming months we will be able to commiserate with eachother about our experiences! We’ll be there in the first week of September to finalize the property for renting.

How is it going with your property?

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Quote from @Calvin Mora:

@Andres Bernal hey Andrea how are you I’m also in the process of purchasing in Los corales/cortecito área , a 2br vacation property . It should be done in march so I’ll keep you posted. I’ve contacted some property managers and I think it’s a good investment. Las terrenas is beautiful and growing as well but for family and short term rentals is an ideal place being that it’s close to la romana, Santo Domingo, miches, bayahibe, and to the airport as well. I’ve contacted banks in regards to Ioans and as you know rates are a bit higher than in US and you have to go through much more hoops to get one. I’m new to the DR market as well but I think it’s very lucrative also being that tourism has grown so much in the area .

You are right banks are higher than in the US but properties are lower too (depending on the area and comparing ROI )

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Quote from @Luis Ciriaco:

Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...

Wow sounds good

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All Forum Posts by: Junior Jaquet Hernandez

Junior Jaquet Hernandez has started 15 posts and replied 105 times.

Post: Has anybody invested in the Dominican Republic?

Post: Dominican Republic is a good place to invest?

Post: Pre-construction investment benefits in the Dominican Republic, Punta Cana and other:

Post: ARBNB in Punta Cana, Dominican Republic.

Post: ARBNB in Punta Cana, Dominican Republic.

Post: DOMINICAN REPUBLIC Tax benefits for investors in the tourism sector

Post: ARBNB in Punta Cana, Dominican Republic.

Post: ARBNB in Punta Cana, Dominican Republic.

Post: ARBNB in Punta Cana, Dominican Republic.

Post: ARBNB in Punta Cana, Dominican Republic.