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dominican republic property to benefit from financial instability in eu

News Posted On: 02 March 2010

Dominican Republic property is set to benefit from fears over inflation and currency devaluation as people seek to put their savings into tangible assets like property.

The Caribbean is a favourite with these buyers because it is seen as being one of the few regions that has remained largely insulated from the global financial infrastructure. The main bulk of these buyers are the wealthier among society, those with around £100k in cash-savings, and obviously those with a lot more.

However, the longer the debt crisis in the EU and UK persists without clear resolution the more fear will spread, and those with the likes of £30k in cash savings will start looking at putting their cash into hard-assets.

Dominican Republic will be one of the favourite markets with these buyers, because it is one of the few places in the Caribbean that you can buy property at such a price. In fact the only other place is the Venezuelan island of Margharita.

A few years ago it would have been unthinkable to say putting money into Dominican Republic property would be a safer option that savings in a UK or European bank. Not only because the debt problems are a new phenomena, but also because the Dominican Republic was known for instability and a high crime rate.

However, in recent times government crack-downs have made the Dominican Republic a much safer place to invest. The island's massively rising tourism market means that there is also huge potential to make a substantial rental yield from the asset, and even for it to appreciate capitally before the markets back home cool their heels.

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