We want to know: what type of investor are you?
December 12, 2018 5:58 pm
Not everyone is looking for investing in the same way. Actually, investment has to do a lot with your financial objectives and the life stage you’re in. But, investing in Punta Cana is always a nice idea to think about.
Cana Blue has summed up 4 types of investors, according to our experience and to the investment behavior we’ve seen over the years from our clients.
First, there is the financial investor.
A financial investor is a person who makes investment decisions primarily based on the prospect for financial gain; they tend to use financial skills and methods to increase returns and manage risks.[1] Strategic investors, on the other hand (typically companies) make investment decisions based on strategic benefits for the organization – like brand oriented benefits or access to new tech.
This type of investor mostly look for the kind of properties that have CONFOTUR and an assured return on investment. We estimate they visit Punta Cana for 1 or 2 weeks a year.
Cana Blue has picked some options for those who consider themselves as financial investors. This type of listings all offer a guaranteed return of 6-7% per year, with an in-house administration, that allows the use of the unit 1-2 weeks a year.
The second type of investor is the second-home seeker.
This is a high profile investor. For them, a fixed guaranteed ROI isn’t enough; they want their slice of paradise in the Caribbean: a second-home in Punta Cana.
Second-home seekers tend to avoid guaranteed return listings because they are similar to hotels. These investors want peace and a place they can call home when they are away from home, and they aren’t big in renting out their place when they’re away or having third parties use it.
We estimate this type of investor usually visits Punta Cana 2 or 3 months a year, maybe he/she is a snow bird who want to fly away from the hard cold winter and spend their holidays by the beach, under the sun, drinking a piña colada.
Are you seeking for a slice of the Caribbean with a second-home in Punta Cana? Cana Blue hascurated some options and we recommend these listings:
But, what’s the difference between an investment property -the type a financial investor would buy- and a second-home? Aren’t they the same but with different names?x
Basically, an investment property is purchased in order to generate income, profit from appreciation or to take advantage of certain tax benefits. Whereas a second-home, is a residence that you intend to occupy in addition to a primary residence, for short periods – for example holidays. It can also be a condo in a city you go often for business and working.[2]
Also, there are differences between the two in the loan qualifications and interests rates that you have to consider.
Clarified the matter, we move to the third type of investor: the retiree.
This type of investor wishes to make Punta Cana their home after retirement.
This is no surprise since thisyear internationalliving.com magazine ranked DominicanRepublic 22nd on the list of best places to retire in the world. The researchtook into account factors such as purchases and investment, rent, benefits,residence, cost of living, health coverage, development level, among others.[3]
Among the advantages of retiring in Dominican Republic is the easy retiree residency.
The government of the Dominican Republic is welcoming of foreign retirees. This translates into perks, benefits and tax breaks, only by showing proof of a monthly pension of $1,500 (plus $250 for each person you’ll be bringing with you), and…ta-da! You can qualify for provisional residency in just 45 days.
In addition to this, the exuberant beauty of Dominican beaches, a dynamic economy and rich culture, as well as a big friendly expat community and the advantage of international currency when exchanged to local money, makes you wonder if it’s maybe too early to retire in the DR.
Cana Blue has gather some options if you are looking for retirement in Punta Cana. These properties include gated communities and beach proximity properties.
The fourth and last type of investor is the first home seeker.
By definition, a first-time home buyer is anyone who has not purchased a primary residence in the past three years.[4]
Also, a first-time home buyer can be a single parent or displaced homemaker buying a home, even if he owned a home with his former spouse or partner. Someone who has only owned a home that is not permanently fixed to a foundation, such as a mobile home, can also be considered as a first-time home buyer.[5]
Due to Punta Cana’s growth over the past 50 years,there is a tendency in today’s generation to make the decision to buy theirfirst property in Punta Cana. This is mostly because present generations don’tbelieve in old beliefs that are based on “workingto later retire and enjoy”; they believe in the now and they want to enjoyit while it lasts.
This type of investor can also be looking for a first home where they can build their families in and raise their children in a family oriented community, or they simply want their slice of Caribbean while they’re building their professional careers.
Cana Blue has got you covered! We selected these options for those who are seeking to buy a first home in Punta Cana:
Cana Blue offers advisory and accompaniment in the whole buying
and investment process, for all types of investors! Please write to us If you
have any question on recommended listings according to your investment type and
we will happily help you.
[1] Recovered from: http://www.invstor.com/information/go-big-dictionary/financial-investor-definition
[2] Recovered from: https://www.macmillandictionary.com/dictionary/british/second-home
[3] Recovered from: https://internationalliving.com/the-best-places-to-retire/
[4] Recovered from: https://homeguides.sfgate.com/meaning-first-time-home-buyer-2228.html
