Swaying Palms

Guaranteed Buy-Back, Guaranteed Rental and Guaranteed Investment Return! Two bed Condos starting 190,000 USD, 30% below market value with finance, a solid exit strategy and rental of 8% net for 5 yrs

Swaying Palms Overview

Phase Two just released, after Phase One sold out in just over 5 weeks!

IPIN has identified an outstanding project in the Dominican Republic which offers a chance to become involved at low entry levels. Investment comes complete with Buy-Back Guarantee options from the developer, giving investors the ideal safety net in what are uncertain economic times.

Purchase prices are a full 30% below market value and with an outstanding all round investment package based on rental yield, exit strategy, low capital outlay and considerable growth forecasts.

• Highly attractive rental terms
• Buy-back guarantee options from developer
• Prices are considerably below market value
• All buyers can apply for Dominican Republic residency - all costs (approx. 1,000 USD) shall be covered by the Swaying Palms developer
• First phase of a highly impressive resort development
• Early entry with pre-construction prices for maximum capital growth 
• Finance available with pre-negotiated mortgages in place
• Capital invested balanced with sustained rental income make this an excellent mid to long term opportunity

The Investment

The Dominican Republic attracts the most tourist arrivals throughout the Caribbean by quite some margin, resulting in a considerable demand for rental property.

When adding generous tax incentives and prices which are much lower than elsewhere in the region, Dominican Republic emerges as a great location for your next investment.

• Pre-construction prices at 30% below market value
• Exceptional capital growth. IPIN conservatively estimates 18% per annum
• Reflecting prices below market value, year one appreciation predicted at 48%
• Outstanding rental potential. DR tourist arrivals continue to grow year on year
• 50% pre-negotiated mortgage available when opting for payment option 3
• Flexible payment terms with a pre-approved financing option
• No capital gains tax
• 2.1 billion USD investment underway in immediate area
• Built to European quality standards
• 15 minutes from Punta Cana International Airport 
• 2 minutes from new highway giving easy access to the beaches, city and airport 
• Top golf courses in the area include a Jack Nicklaus course at Cap Cana, and the Cocotal Golf & Country Club which is directly next to the resort.

The Exit Strategies

The Swaying Palms resort offers an ideal long term investment opportunity:

• A consistently high rental demand will realise a strong income stream, which will allow investors to recover their capital outlay over a mid to long term investment balanced against mortgage repayments, subject to unit selection and payment strategy
• On-site rental and re-sale services after completion of the second phase, shall provide targeted marketing for your property.
• Buy-back guarantee option from the developer, which effectively creates a guaranteed exit strategy should it be required by the investor. This is to be used as a safety net option only.

The Rental Guarantee

• The developer is offering a 5 year rental guarantee at 8% of the property purchase price
• Rental yield of 8% is net of all rental management charges
• The guarantee will begin from the completion of the second phase, or June 2010 at the latest
• Rental yields to be paid quarterly into the owners local bank account.
• The rental guarantee is not compulsory. Investors can choose to appoint the same rental managers or an alternative firm to manage their unit seperately.

The Developer Buy-Back Guarantee

This investment offers members an added safety net by way of a 'Buy-Back Guarantee', provided by the resort developer. In what are difficult economic times in 2008, this added feature is sure to attract those who are looking for a low risk investment.

The Buy-Back Guarantee is written into the Purchase Contract as an option to be activated by the buyer, at least 6 months in advance. Subject to the length of ownership, the investor will realise growth of 30% for one year ownership, 40% on 2 years and 50% return on the full 3 year option. The unit must have been under the ownership of the investor for at least one year before the buy-back is activated.

This guarantee is added purely as a safety net option, as IPIN & the developer understand that financial circumstances can change at a moments notice.

Investors should not base their whole investment strategy on this feature alone, as far greater returns are possible when taking actual growth, rental yields and the low purchase prices into consideration, combined with attractive mortgage packages. However, we believe this Buy-Back Guarantee to be a fantastic feature which will re-assure potential investors. 

Further information on this outstanding offer is available from your IPIN Advisor.

Local Tax Exemptions

There is a local government tax incentive that is granted to some developments, allowing owners a tax exemption on their income for 10 years.

The Swaying Palms development is currently in the process of achieving this, and look to have the process completed in around 6 months time.

Dominican Republic Residency

• Residency approval is almost guaranteed, with the exception of extreme individual cases
• All costs for residency application shall be covered by the Swaying Palms developer (approx $1,000)
• The client must attend the capital Santo Domingo to confirm the process and obtain their Residency Card
• The process shall take approx 6-9 months to complete
• All arrangements shall be made by the appointed lawyer on the clients behalf
• Residency shall automatically allow the client to have full banking privileges afforded to Dominican Republic nationals

Passport Application

• It is also possible to apply for a Dominican Republic passport after 2 years of residency
• Part of the qualification criteria to instigate this process is that the client must have visited the Dominican Republic 4 times over those 2 years, or have been present in the country for a certain period of time (to be confirmed)
• While the granting of a passport is not as straight forward a process as residency, it is highly unlikely that it will be rejected
• If the client obtains a Dominican Republic passport, the clients’ immediate family shall also qualify
  

The Security

As part of IPIN's due diligence process, this project has undergone legal searches by an independent law firm.

The International Property Law Centre confirms the following:

• The seller is the owner of the land where construction of the apartments will take place
  
• Initial licenses have been issued
  
• There is a contractual completion date in place, unlike many other DR developments, offering investors more security
  
• The proposed draft of the Private Purchase Contract has been examined and certified to conform with all necessary legal requirements 
• Company registration documents have been verified 

Investors must be aware that there are predominant differences that exist between law and practice between Europe and the Dominican Republic. 

The International Property Law Centre and IPIN are confident however, that the developer has taken and is taking all the necessary measures to ensure that this development is secure from every legal aspect.

Investors are always advised to seek professional legal advice to assist them with their purchases.

The Developer

The developer responsible for the resort was originally based in the UK until 8 years ago, when considerable expansion saw it become an international company.

This company has previously constructed commercial and residential projects in Europe and Africa, setting up local companies in the countries in which they operate, ensuring a social responsibility by using local workers and paying direct taxation on company profits. Details of completed projects are available by request and subject to interest.

If you are not an IPIN member, please join now for free!

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Further Details

Nestled in a generous tropical garden setting, this Punta Cana resort of high specification apartments and penthouses, offers tranquility in a privileged area, just minutes from the highway and a 30 kilometre stretch of pristine beaches.

Furthermore, it is just minutes away from the entrance of the Cocotal Golf and Country Club.

The Facilities

• 24-hour security in a gated community 
• Private Beach Club
• Club house, including bar, administration and sales office 
• Bavaro Punta Cana Tennis Club 
• Restaurant with terrace alongside the main pool 
• Shuttle Service
• 2 supervised children´s play areas 
• 850 m2 communal swimming pool 
• 16 on-site swimming pools 
• Generous tropical gardens 
• Gazebo areas for socialising and barbeques
• On-site WiFi facilities 
• US satellite/cable TV facilities 
• Assigned off-road parking

Swaying Palms owners receive free membership to Punta Cana Tennis Club, Jellyfish Restaurant and the Private Beach Club.

• Reservations are taken at the administration office for free shuttle service
• Access into 5 signature golf courses, including the Jack Nicklaus course at the exclusive Trump Cap Cana - these are usually only open to residents and members
• 15% discount on all food and drink at the private Jellyfish Beach Restaurant 
• 5-10% discounts at Palma Real Shopping Village with Swaying Palms Owner´s Card

The Units

The entire development will consist of 416 units, including apartments and luxury townhouses.

Every two apartment blocks share a communal pool, in addition to the Olympic sized pool at the centre of the development.

The first phase will comprise the following:

• 48 x 2 bedroom apartments, measuring 119m2
• 16 x 2 bedroom penthouse apartments, measuring 230m2
• Penthouse apartments feature roof terraces with jacuzzi
• All apartments overlook either the communal pools or gardens
• Low monthly maintenance of 110 USD per month

The Build Specifications

• Walk-in closets 
• Jacuzzi bath tub in the bedroom 
• ‘Pietra Etrusca’ floor from Emil Ceramica, Italy 
• Duravit bathroom appliances by Philippe Starck, Germany
• Shower enclosures and screens by Hansgrohe, Germany
• Modular kitchen by Composit, Italy 
• Vitroceramic cooking hob, oven and exhaust fan (stainless steel) by Teka, Spain 
• Mahogany doors 
• Cable TV/satellite/DSL/internet ready

The Furniture Package

There are three different furniture packages available, priced from 15,000 USD to 21,000 USD and include air conditioning units. Please ask your IPIN Adviser for details

The Sales Comparables

The table below indicates a price comparison between the Swaying Palms development and a similar project in the same area.

Development name	Area	Guaranteed rental	Fitted kitchens / bathrooms	Prices from	Internal sizes from	Av. price per m2	Fully furnished
Swaying Palms	Punta Cana	Yes	Yes	190,000 USD	119m2	1,596 USD	Packages available
Nautilus Residential	Punta Cana	No	Yes	225,342 USD	100m2	2,253 USD

The Rental Guarantee

The development offers a sound renewable rental guarantee of 8% net for 5 years, within one of the largest Caribbean holiday destinations.

• 12 month holiday season allows for the highest possible rental yields
• The local Punta Cana Government offers tax breaks to new resorts such as Swaying Palms to encourage tourism & investment growth. The project is following government guidelines to secure these tax advantages before completion 
• On-site rental management after the completion of the second phase
• 8% net rental yields per annum
  

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Some benefits of IPIN membership:

• 100% FREE to join
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• Low Money Down Investments, Invest with just £4,000, €6,000 or $8,000 approx. figures
• Projects Offering 8% Guaranteed Rental
• Deal directly with the developers
• Free consultations with expert IPIN portfolio advisors
• Access to pre-release developments
• Dedicated Investment Support Team
• Access to land/development project consultancy services