Last week, I was on the phone with a client who was dead set on purchasing a beachfront apartment in Punta Cana. He was considering this unit as a short-term rental income investment. The cost of the unit was a little over US$250,000… and that didn’t even include furnishing costs.

I told him that if he’s looking for short-term rental income then he should consider investing in Santo Domingo.

“Why Santo Domingo?”, he asked.

“Well, number one your initial investment for a rental unit in Santo Domingo will be nearly 50% less than a beachfront unit in Punta Cana and you’d be able to rent it at nearly the same rate… meaning double-digit yields,” I explained.

“Plus, in Punta Cana you’ve got to deal with the competition from several all-inclusive resorts in the area.

“On top of that,” I continued, “in Santo Domingo you’ve got a diverse rental pool as your unit will be coveted by both business executives and tourists.” If you’re a real estate investor looking for rental cash flow in the Dominican Republic, then I’d advise you to consider Santo Domingo as well. One niche, in particular, that’s experiencing a lot of success here is apartment- or condo-hotels.

I know of one developer who’s apartment-hotel in Santo Domingo is enjoying nearly 100% occupancy. The building is generating so much positive cash flow that he doesn’t even want to sell the remaining 15 units—he wants to keep them for himself.

But that’s okay…

I’ve found another condo-hotel investment project that’ll provide investors with double-digit rental yields in one of the most in-demand areas in Santo Domingo… and units start at just US$102,000.

Introducing Everest Tower in Piantini

Situated in the heart Santo Domingo’s business district Piantini, one of the most exclusive neighborhoods in the city, Everest Tower is a sleek, state-of- the-art 20 story, 136-unit building being developed as a condo-hotel.

It’s being created to accommodate guests who prefer the privacy of a condo over a hotel. It’s also ideal for business travelers looking for luxury accommodations for more than a couple of days but less than month.

The condo-hotel features a rooftop pool and Jacuzzi along with an open-air social area and bar boasting panoramic views of Santo Domingo. Everest will have a fully-equipped fitness center, spa including two saunas, a business center with internet access, a multi-purpose room for events plus an activity room for kids. The building will have fully-furnished lobby and reception area to receive guests, 24-hour security, valet parking, along with controlled-access covered parking.

Further, residents and guests of Everest will be able to enjoy two onsite, five-star restaurants—one on the second level and the other, a rotating restaurant that sits on the 20th floor overlooking the city. The developer has added additional parking (45 parking spaces) to accommodate restaurant customers.

All of the condos in Everest are one-bedroom units ranging in size from 47 square meters (506 square feet) to 89 square meters (958 square feet) depending on the floor plan and layout.

Each unit comes with a modular styled kitchen with Brazilian imported, natural granite countertops, anti-stain porcelain tiled floors, high-quality, precious wood cabinetry along with European sliding windows that open up to an exterior balcony. The units have a full and guest bathrooms plus a small washer/dryer area. Air conditioning will come pre-installed.

The developers, aiming to create one of the most innovative buildings in Santo Domingo, have equipped each unit with home automation (or smart home) systems where you’ll be able to control the unit’s lighting, climate, entertainment systems, and appliances from one device.

The construction of the building is scheduled to begin in the first quarter of 2019 with units set to be completed and delivered by December 2020. The prices of the condo units start at US$102,000 for a third-level, 47-square- meter (506-square foot) unit and goes up to US$224,200 for a 89-square-meter (958-square-foot) unit on the 18th floor. Expect to pay an additional US$12,000 to US$17,000 for an all-inclusive furniture package and closing costs.

No-interest developer financing is available to investors as well. The terms are 10% down (to reserve your unit), 40% to paid over 24 month during the construction period (monthly, bi-monthly, or quarterly), and the remaining 50% balance due on delivery.

It’s also important to note that it’s possible to secure financing for the remaining 50% balance through a local bank.

Net 15% Annually On Autopilot

This investment is ideal for real estate investors looking for turnkey rental income as your unit and condo-hotel is fully managed by an experienced team that will take care of everything from personnel expenses, marketing, booking, guest check-in, maintenance, and cleaning. All you have to do is to tell them where to send your monthly rental check.

Based on current rental trends, the developer is conservatively projecting occupancy levels of at 60%. However, given that occupancy levels in the Dominican Republic hover around 80% year after year, I think that you’ll be looking at around 70% to 75% occupancy at least.

As far as nightly rental rates, you’d be able to get anywhere from US$100 to US$150 per night depending on the size of the unit and the story it’s on. At these rates along with projected occupancy levels of between 70% to 75%, you’d get a net return between 12% and 15%. These are net figures, after paying rental and property management costs, utilities, monthly maintenance fees, and the one-time cost of furnishing the apartment.

Thanks to high tourism demand, low minimum investment requirements, and annual expenses, Santo Domingo is one of the few real estate markets in the world where a 15% net yield is even possible.

That said, I’m not sure how long this will last.

With these types of yields, Santo Domingo, particularly the area of Piantini, is now on the radar of real estate investors from the U.S. and Canada… and they’re buying. That means, from a supply and demand perspective, property values in Santo Domingo will rise.

Investors who get into this market today will be able to take advantage of capital appreciation along with double-digit yields. While investors who wait run the risk of having to pay a premium in the future and settling for below average rental returns.

To make a reservation or ask a question about Everest Tower condo-hotel units, get in touch with one of our investment specialists.