Banco Leon

This sounds ultra fishy to me.
You are saying that a real estate agent in the DR is telling you that he can arrange financing for you, a foreigner, in order for you to purchase property in the DR??
Offhand, I'd say "Bull"......unless you have an astronomical credit rating in the US and a lot of money in the bank????

There has to be some sort of a catch to this. Either he (the R.E. agent) is going to get a huge commission for bringing in this client to the bank or an even larger one for selling the property.

Now, I wish Escott, a knowledgeable fellow when it comes to real estate and things, could get in on this...but to this novice it just sounds "too good to be true...

"HB :ermm:

Both Leon and Scotia offers financing when buying houses, of 50 % .
I am not sure though, that the interests are very interesting.
But as you HB, it is not my profession.

May I ask what real estate agent you are using, Mark?

Mark835 said:

Hello I will be visiting the DR in march to look for a property to buy.
I am in touch with an estate agent who tells me finance is availiable through the Banco Leon.Is this the case and if so can you please give me contact details of the bank so i can arrange finance before i go. Thanks

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809 476 2000 is the Banco Leon number regarding mortgages.

Within the republic, but outside Santo Domingo the number is 809 200 8242.

You can email to their head office at info@leon.com.do

or Fax 809 473 2050

I would suggest for any info inquiries to be done in Spanish, in case an english speaking person is not available at the time you call or if faxing or emailing, it would simply make sense to put the information in Spanish.

-NAL

NOBODY in their right mind borrows money in the DR - rates are extortionate. My recollection of a post some 3 or 4 weeks ago said that Scotia Bank had brought theirs DOWN to 14% pa.

You would be best advised to try raising the money in the US if there is ANY way you can do it! Re-mortgage, get a friend to re-mortgage, ANYTHING rather than borrow money down here!

My sincere advice would be to 'SLOW DOWN', check the properties available, look at 10 or 15 areas, look again & double check what is being offered by an Estate Agent against what you can see in the National papers. What area are you considering & WHY? Have you studied the pitfalls of using lawyers down here? Will you be working down here & if so where? If not, how do you intend financing this - from the US? A LOAD more questions need asking before serious advice can be offered - take time to consider this very carefully & look at the archives! Lawyers, Buying Property, buying land/houses are all good 'keywords' to punch into the search function! ~ Grahame.

Let me for one moment take the opposite view - just for grins and certainly only for long term investments. If you find that beautiful piece of beachfront in the right area for 5 or 10,000 or even 20,000 bucks and do not have it in cash, mortgage, even at DR rates and buy it. If you can pay it off over time without hardship, and have the ability to look after it and improve it, buy it. If you're looking at 10 to 15 or even more, years down the road to cash out, buy it - immaterial of the interest rates charged here.

Pay it off quickly yes - but if it is ideal, buy it! The right real estate in the DR is going one way and that is up. If it is not ideal, if you're going to be eating yucca to afford it, if you have no ability to pay it off, or no ability to care for the real estate, don't buy it.

http://dominican-realestate.net/main.php?qsContent=financing

This RE company offers financing

Many offers financing.
These states to be the ONLY. That is not true.

It's always been my understanding that you would have to have your "residencia" to borrow from a Dominican bank, although I may be wrong.

Mark835 said:

Thanks for these replies people, sounds like ive got a lot of research to do.The ideal is to contribute about ?20000 and finance another 20 and of set the high interest by renting the property.I have done this succesfully in other parts of the world.However the DR is in its infancy with regard to financial services so buyer beware i guess.On a more positive note as long as i can rent it and enjoy the enevitable growth in equity it should be a reasonable invistment.

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What do you expect to buy for 40000. Possibly a small condo? I doubt the rental will cover the interest and maintenence.

HOWMAR said:

What do you expect to buy for 40000. Possibly a small condo? I doubt the rental will cover the interest and maintenence.

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Thats 70,000 US so he can find plenty of small condos, studios from 60-90k.

bob saunders said:

Thats 70,000 US so he can find plenty of small condos, studios from 60-90k.

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Yea, but the interest on a 20,000 loan is at least 300/month or about US $540 (interest only, without amortizing the principal). Add maintenence, repairs, etc. How many 60-90k condos generate $1000/month rent? Just to hope in 15 years your condo has appreciated. How many older condos are falling apart?

A different story if he can borrow at 6% back home rather than at DR rates.