Guide to Buying Property in the Dominican Republic
A comprehensive guide to buying property and real estate in the Dominican Republic.
Investment, commerical and holiday property guide.
The Property Market in the Dominican Republic
Over the course of the past twenty years, an ever growing number of people from around
the world have been traveling to the
Dominican Republic on holiday. As a result, there has been an increase in
demand for different types of real estate that can be used by people who are traveling
into the country for holiday purposes.
At the present time, when it comes to the
real estate market in the Dominican Republic, the biggest area of growth
involves real estate associated with the travel and tourism industry. This includes
resort properties, apartments and other residences that are utilized by people who
are traveling into the Dominican Republic for extended stays. Foreign nationals
have been very active in this segment of the
Dominican Republic property marketplace.
For generations, there have been no significant restrictions on foreign nationals
owning property in the
Dominican Republic. In point of fact, the countries has a long history of
foreign nationals being involved in that nation's real estate market.
Investment Property in the Dominican Republic
As referenced previously, when it comes to investment in the
property market in the Dominican Republic, there has been a great deal of activity
in that segment of the marketplace that is involved with real estate that effects
or impacts travels and tourisms. In this regard, foreign nationals have been active
in this market -- indeed, foreign nationals have been active in this segment of
the real estate market in the Dominican Republic for years.
A great deal of investment is being made in the development of resort communities
in the Dominican Republic. With tourism being the number one industry in the Dominican
Republic, investment in the tourism trade through the real estate market is proving
to be profitable for many people, including an ever growing number of foreign nationals.
Foreign nationals can be seen putting their money into hotel resort complexes, apartment
projects that are being created to serve as second homes or vacation properties
for people interested in spending an extended period of time in the Dominican Republic
during the course of the year and into more upscale and expensive single family
homes, including high cost villas and estates that are being used with regularity
by well healed travelers into the Dominican Republic.
Most real estate analysts are predicting that this trend towards foreign investment
in real estate associated with the tourism and travel industry will continue unabated
well into the next decade.
Residential Property in The Dominican Republic
Many foreign nationals have taken to purchasing single family dwellings for three
primary purposes. First, there are people who are snatching up these
properties in the Dominican Republic to be used for holiday or vacation
purposes, as a second home.
With the surprisingly low cost of living in the Dominican Republic, many people
are finding this lovely island nation and ideal place to travel for holidays and
vacations. Overall, it is not particularly expensive (relatively speaking) to maintain
a second home in the Dominican
Republic.
The second reason why many foreign nationals are buying single family homes in the
Dominican Republic is for investment. These foreign nationals are buying single
family homes in the Dominican
Republic that they are either remodeling and reselling for a nice profit
or that they are leasing or renting to people who are visiting the Dominican Republic
for extended holidays or for an extended business trip.
Finally, many people from different countries around the world are electing to retire
in the Dominican Republic. In this regard, many of these foreign nationals are buying
single family homes for their retirement in the Dominican Republic.
Residential Real Estate - Apartments in The Dominican Republic
Apartments remain popular real estate choices for foreign nationals. Apartment sales
in the Dominican Republic continue to increase in number as the 21st century moves
onward.
Some people are buying
apartments in the Dominican Republic for investment purposes. These foreign
nationals are buying apartments that they then are renting to people who will be
in the Dominican Republic for an extended period of time on holiday or on business.
Other foreign nationals are purchasing
apartments in the Dominican Republic for their own use. Many people are
finding the Dominican Republic to be an ideal site for holiday or vacation travel.
As a consequence, these people are finding apartments in the Dominican Republic
to be ideal housing choices for holiday or vacation stays and travel.
There are a wide range of different types of apartments in the major urban and commercial
regions in the Dominican Republic. For example, there are some very high end properties
that are expensive propositions. On the other hand, there are very reasonably priced
properties that allow people of modest income levels to invest in an apartment in
the Dominican Republic, to have a second or vacation or holiday home.
Holiday Property in Holiday Resorts
As referenced previously, many foreign nationals are buying different types of real
estate in the Dominican Republic for vacation. Indeed, most real estate transactions
involving foreign nationals in the Dominican Republic at this time generally are
centered in the vacation trade.
Most real estate analysts believe that the trend towards purchasing vacation and
holiday related properties in the Dominican Republic will continue unabated through
the next two decades. Presently, these analysts believe that the present time is
a sound point in time to invest in real estate in the Dominican Republic in that
property values are rising.
These experts believe that those foreign nationals and other real estate purchasers
in the Dominican Republic will be able to realize nice returns on their real estate
investments by buying property at this point in time.
South Americans have been a significant portion of the overall vacation property
market. However, since the turn of the century, a growing number of people from
North America -- including both The Dominican Republic and the United States --
are finding the Dominican Republic to be a wonderful and ideal travel and vacation
destination.
Likewise, the Dominican Republic has seen an up tick in the number of people from
the European Union who have invested in vacation or holiday properties of different
types within the Dominican Republic. These trends are expected to continue well
into the next decade according to analysts who have spent time considering the Dominican
Republic real estate market and tourist trends.
Specific steps to buying real estate property in the Dominican
Republic
Purchasing property
in the Dominican Republic is a relatively easy process. There are no particular
prohibitions that block or otherwise prevent a foreign national from purchasing
real estate in the Dominican Republic. Indeed, many foreign nationals invest in
and own real estate in the Dominican Republic and have done so for many years.
The buying and selling of real estate in the Dominican Republic is subject to the
Land Registry Law of the Dominican Republic. Pursuant to the law of the Dominican
Republic, the first step in purchasing real estate in the Dominican Republic is
the execution of a contract for sale between the buyer and seller.
In the Dominican Republic, it is a must that the contract for sale be signed in
front of a notary public. In the Dominican Republic a notary public must have a
law degree. The contract for sale sets forth the general terms and conditions of
the sale -- a description of the real estate being sold, the agreed upon sales price
and other matters relating to the transaction. The buyer normally posts a deposit
for the property that can be upwards to 10% of the total purchase price of the real
estate in question.
Once the contract for sale is signed and notarized, the document is then taken to
the Internal Revenue Office. At this juncture, a determination is made as to what
taxes will be due and owing because of the sale. The appropriate taxes need to be
paid in advance of the final conveyance of the property from the seller to the buyer.
After the financing completely is arranged and all of the conditions set forth in
the contract for sale have been realized, the contract for sale and a certificate
of title (designating the buyer as the owner of the real estate) is then filed with
the Title Registrar's Office.
In some locations in
the Dominican Republic there can be a delay of upwards to a month before
the Title Registrar's Office is able to issue a new title to the real estate. In
other areas in the country, the office can issue the title as quickly as one day.
In the Dominican Republic the buyer bears a fairly heavy due diligence burden when
it comes to the purchase of real estate.
In other words, if the buyer does not undertake a course of due diligence to make
certain that there are no encumbrances on the real estate, the buyer very well may
be stuck with a lost deposit and being unable to take full title to the real estate
in question.
Property Abroad always recommends using a
Solicitor or Lawyer
Further information on the Dominican Republic
Dominican Republic Mortgages Options
When considering the options for a
the Dominican Republic mortgage on your overseas property there are a couple
of choices to consider:
- Do you consider raising finance on your existing property in the UK to cover the
whole cost of your purchase abroad? A good idea if the interest rate in the country
in question is a lot higher than it is here in the UK as you will pay a lot less
in monthly repayments.
- Do you secure a mortgage against the property from a local bank in the country of
purchase? This can be a wise option especially if the interest rate is lower than
our current UK interest rate. Most overseas mortgage / bank lenders will require
upto 30% deposit on mortgages. However, you will need to give some thought to how
you will service your mortgage payments each month especially if you are not living
or earning in that country as you may well lose out on exchanging money each time
to cover monthly expenses. Check out our
Foreign Currency page to see how you can save money in this example
- Some Builders and developers may well offer their own mortgage facilities on their
properties for sale. This can be beneficial to both parties depending on the logistics
of the mortgage or loan facility. Always check and compare with the two options
above before making your final descision.
For more details on
Mortgages in the Dominican Republic visit our Mortgage page in the Dominican
Republic section.
