Do A Deal in The Dominican Republic

The Dominican Republic offers commercial opportunities, beachfront getaways and mountain retreats for real estate investment. If you’re looking for land in rural areas where you can build from scratch for less than $2 per sq. ft.

If you are looking in the city of Santa Domingo, infrastructure renovations are under way, including a subway system. The island is also experiencing a big boom in IT and telecommunications.

DR is Open for Your Business

In 1998, limitations on foreigners buying property here were lifted. Today you have the same right as nationals to invest in this Caribbean paradise.

The Dominican Republic’s Hotspots

If it’s all the creature comforts and a super hot nightlife you need, you may just want to stick to Santo Domingo. This capital city is home to more than 2 million people and it’s the oldest European constructed colonial city in the Americas. Restaurants and dance clubs abound in this world class capital in the Caribbean. The history and culture dates back to 1496 so there are plenty of tourist attractions and things to do. There are also some great opportunities in real estate. $250,000 can buy you a piece of history. Colonial homes start at 984 sq. ft in the historic district of the downtown, just blocks from the water front. Slightly smaller apartments can cost the same. As they grow in size and amenities they go upwards into the millions. It all depends on the level of luxury you’re seeking.

Jamao al Norte: Live Large in Luxury

Luxury haciendas like the Serafina in Los Brazos of Jamao al Norte offer creature comforts and nature combined with a lagoon, swimming pool, fruit trees and a 9 bedroom house for crazy parties. The house is 13,880 sq. ft. on 2,690,000 sq. ft. of land with an asking price of only $985,000.

Sousa in the Sun

If you like the beach and access to great night life Sosua might be the place for you. Located on the North Coast of the Island just down the road from Puerta Plata, Sousa is just 10 Min. from Puerta Plata airport. Luxury condos here can be found for under $250,000. The duplex townhouses at Imbert Beach have access to a spa and healthclub as well as other services to make your life in paradise even more heavenly. Eddy’s Sports Bar is just a few blocks from the beach in Sousa. If you don’t want to hook up cable or just prefer the bar scene for your favorite games, you can walk there from the condo and easily stagger home.

Events in the Dominican Republic

Merengue Festival
Santo Domino Carnival
Dominican Republic Jazz Festival
Global Dominican Film Festival
The Day of the Dead

How to Buy in the D.R.

Unlike in the U.S., here you negotiate the price with the seller and then write up an agreement with an attorney or notary. This document is even more important than the final contract as it lays out the commitment of both parties to the deal and spells out the terms. A fine is often agreed to and included in this “compromiso de compra venta” as a penalty for either party if they back out of the deal.

What to Watch Out for

Before negotiating, you want to verify in the National Registry that the property belongs to the person selling it to you. But that’s not your only worry. It has been common, with all the construction going on, for down payments on property in development to be spent in construction costs of condos. If you blindly enter such a deal and the developer is foreclosed on, you lose everything.

There also may be unpaid taxes, mortgages, etc. Find out in advance by checking at the National Registry. Also be clear on payments to any employees, utility bills or anything else you could be later liable to pay. Once you are about to buy, the Internal Revenue Office will also need the title to do an inspection. But be prepared to wait anywhere from days to weeks.

After everything adds up, all the documents are filed at the registry and a new title is issued to you after the transaction. Again this could be only a few days wait. It could also run into months.

Need to Know

You need to know about the restrictions which exist. From the high tide mark to approximately 20 feet inland, the coast is public property. Construction is allowed only with special permits from the Executive branch of government. Tourist areas also usually have restrictions.

And if there are any tenants or squatters you want vacated, make sure it is dealt with prior to buying. You don’t want the hassle and the law is very favorable to any kind of tenants and their rights.

Prior to the final deal, 3% of the government’s appraised value of the property will be taxed. Be clear on who is paying. Also be clear it is the appraisal, not the price you are paying, which is used to calculate the tax. Be aware you will also be charged an annual 1% property tax too.

Investment Opportunities

Real Estate

Tourism

Information Technology

Telecommunications

Medical Devices

Electronics

Auto Parts

Film Industry

Reference Links

http://www.cei-rd.gov.do/download/brochures/Investment-brochure.pdf

http://dr1.com/travel/santodomingo/