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 August 2008 Ocean Star Estates UpdateDear Ocean Star Estates investors, Although the real estate market in the U.S. may seem like gloom and doom, that is not the case in the Dominican Republic. The Dominican Republic is not only coveted by North Americans, but Europeans have been visiting and buying properties for many years. Statistics show that buyers are distributed just about equally between Canada, the U.S.A. and Europe. More recently, Russians and other nations flush with oil and natural resources have been buying like crazy. The point is that the Dominican Republic is well diversified and in demand. I just visited Luperon a few weeks ago and the activity was incredible. This once sleepy fishing village is starting to become the latest tourist destination. For example, locals informed me that Banco Popular just signed a new lease for space in town. This is a sign that the bank wants to take advantage of the real estate and tourism markets. Also, activity on Cambiaso Beach has doubled. You can now take catamaran rides from Sosua or Cabarete to Cambiaso Beach. Cambiaso Beach is the beautiful crescent-shaped beach next to our secluded beach. All residents can access Cambiaso Beach through our adventure trail. Soon you will be able to take horse back rides. We are very pleased to announce that we have been approved for funding of Ocean Star Estates Phases II and III. These two phases, together with Phase I, represent a five-year plan overall, and we are fully committed to finishing all infrastructure and making this a world-class destination for all of our investors. For those of you who are beginning to contemplate building on your lot, we will have three model plans completed by the end of August for your review. These plans are being developed by a local architect who is familiar with the housing style on this island. In next month's update, we will provide you with details on these architectural plans. We have seen a preview of the plans and they look great. If you truly want to make a lot of money on your investment, consider building to take advantage of the cheap labor rates. Also, if you are considering selling your lot before building, you can contact any local real estate agent or we can help. Our sales commision fee is 10% for land and 7% for completed homes. We are currently creating a home owner's association, which is common in all developments in the Dominican Republic. This will allow us all to maintain the look and security of the development. As promised, everyone who has purchased will be granted the first year of no fees. After that, the fee structure will be voted on by the association, of which you will be a member. It is our hope to keep the fees minimal, especially for lot owners who have not started building. Many of you have had the opportunity to visit Ocean Star Estates. Our staff in the Dominican Republic is available to spend the day with you touring this beautiful development and beach in Luperon. In addition, they can customize a one-day tour of nearby attractions. For example, Ocean World in Puerto Plata is a world-class marine theme park where you can swim with dolphins. While in Puerto Plata, you may want to visit the Amber Museum, Brugal Rum Factory, the mountain tram, or the fort that once protected the port from pirates and other invaders. If you are adventurous, there is horse back riding, ATV rides, zip lines in the mountains or a 27-level waterfall. Please visit http://www.oceanstarestates.com/tours.html for more information. Developers of the $1.2 billion resort project (formerly known as AtlanticA and now called Punta Alma) to be built on the banks of the Bay of Luperon are in the process of securing the necessary construction permits and organizing marketing plans to move forward. A July 2008 news article titled "Touristic Proyect in Luperon creates 4 thousand jobs, invested 1.2 billion U.S. dollars" is available online at http://www.oceanstarestates.com/punta-alma.html. Below are specifics of Phases I through III of Ocean Star Estates. Phase I (blocks A - K) To date, 75 percent of lots in Phase I (blocks A through K) have been sold. Title certificate numbers for the individual lots in this phase were approved by the Puerto Plata Title Registry this past April, and on August 14th we have a court date to receive the physical titles. To view documentation of the approval, please visit our website at http://www.oceanstarestates.com/title_certificate_numbers.html. Initial roads were cut in Phase I and plans are being drawn up and the required permitting is being obtained to finish the roads to a hard gravel surface. Final road preparation in anticipation of laying electrical and water lines is scheduled to start in September. This will include cutting the roads to grade and then adding drainage ditches made of rock and concrete. Initially, the roads will have several layers of hard compacted gravel. The roads will be paved later after the basic infrastructure is completed to avoid tearing them up with heavy equipment. Final paving will consist of asphalt. The main government road leading to the Ocean Star Estates development has been improved as well. This is a major accomplishment because previously road was difficult to travel on, especially during the rainy season. Ocean Star Estates negotiated an agreement with the government of Puerto Plata that allowed this three-mile stretch of road from the town of Luperon to the entrance of our development to be upgraded, making it easier to get to the site. What was once a 30-minute drive now takes approximately 10 to 15 minutes. This alone will result in significant price appreciations for all property owners. In addition, the road leading to nearby Cambiaso has been cleared and leveled, making it easier to drive from the development to the beautiful beach next to the property. Electric lines will be installed after final road preparation has been completed. We have already spoken with two engineers regarding the design of this utility. We will use our own source of electrical power with a backup generator. As more properties are built and the development proceeds, the benefit of tapping into the local power grid will be analyzed. Electric lines will be installed at the same time in Phase I and II, and completion will take approximately six months. The community will be serviced by two groundwater monitoring wells. A well survey was conducted throughout the area and groundwater is plentiful beneath the site. Several rivers are located close to the site, and the alluvial deposits are saturated. All land owners in the area use groundwater for potable water and several wells already exist onsite. To supply water to homeowners, production wells will be drilled and an onsite tank will be installed for water storage. Water lines will be installed at the same times as electric lines, with completion in approximately April 2009. Engineering plans are being drawn up now. Septic tanks will be installed by homeowners as part of home construction. These systems, which are common throughout the Dominican Republic and many other islands in the Caribbean, are closed duel tank systems and require little maintenance. This construction practice protects potable groundwater quality, especially in coastal areas. Usually the system is cleaned every two to three years, depending upon use. Telephone lines will not be supplied, as the current technology in the Dominican Republic is mobile phone access. Construction of the club house, swimming pool, tennis court and other amenities will be completed by the end of 2009. Phase II (blocks L - R) Rogue Investor closed on Phase II of Ocean Star Estates in early June 2008. This property is adjacent to Phase I, to the west, and has 69 lots. Unlike Phase I, which is primarily designated for single-family residential homes, more lots will be designated for multi-family houses (4 units or less) or condominiums. A plat map can be viewed at http://www.oceanstarestates.com/plat-map.html. The development will include horse stables and a bike rental facility, as well as an adventure trail leading to the beach for non-motorized use. The entire property has been surveyed; however, the topographic survey and surveying of the individual lots is ongoing and scheduled to be completed by mid-September. Once the latter is completed, documentation will be submitted to the Puerto Plata Title Registry for approval of individual lot title certificate numbers. As with Phase I, all lot owners will have deeded access to the beautiful secluded beach on the Atlantic Ocean alongside Ocean Star Estates. Lots are available for sale in Phase II. Lot prices and sizes are at http://www.oceanstarestates.com/lot-information.html. In addition, we are now able to offer owner financing on lots for as low as 30 percent down. Full details, including a credit application, are available on our website at http://www.oceanstarestates.com/financing.html. Infrastructure in this phase will occur alongside that of Phase I. Phase III Finally, I want to remind you that you can help promote Ocean Star Estates by word of mouth or other means. For any friend, acquaintance or lead that you give us that results in a sale, we will reward you with a nice commission. For details, feel free to contact us anytime. P.S. These monthly updates will be archived on our website at http://www.oceanstarestates.com/newsletter.html |
