Hi! I am just doing a little research about the process of buying a home in DR. I am interested to know things such as the required down payment requirement, the maximum years a bank will allow you to finance and what the interest rates are like. Also, how does it work for someone who would be doing it from outside the country. Also, is it even worth it? All opinions are welcomed.
- Thread starter DR_DEFENDER
- Start date
Process to buying a home in DR.....
Depends, immomexx.info in Las Terrenas offers up to 70% mortgages at maximum 8% on properties they are selling. That is slightly better than any bank here will give you. As has been standard advice on here forever- rent for six months so you get a feel for the area, learn some of the pitfalls....etc and don't end up with a lemon or money pit. It is very hard to get a mortgage with a bank here unless you are a legal resident, have a guaranteed source of income that you can prove....etc.
I have a guaranteed line of credit at prime in Canada that I could use to buy a house here, but fortunately haven't required using it.
I have a guaranteed line of credit at prime in Canada that I could use to buy a house here, but fortunately haven't required using it.
People that are selling their own homes (re-sales, not new const) are often willing to finance short term to get the sale. Typically they are going to want 40 to 50% down with a balloon in 5 to 7 years. But that 5 to 7 years can sometimes provide time to obtain other sources of financing.
Well, I guess it's better to buy a lot and then just build it yourself with time? I have heard horror stories with that as well. But it seems the best way to go about this. I figured you can buy a $15k lot somewhere and then begin to build the house as you see fit. Seems like buying a home is out of the question. Anyhow, just an fyi...I'm not planning to move there. This would be a vacation home and, perhaps, someday a home for long term vacations when I retire.
It's MUCH BETTER, to "JUST RENT"!
Especially for a year or more to see if the "DR Life" is actually what you thought it would be, and where you want to live.
NEVER buy, BEFORE you rent here first!!!!!
When you do buy get a great law firm BEFORE you start looking!!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Especially for a year or more to see if the "DR Life" is actually what you thought it would be, and where you want to live.
NEVER buy, BEFORE you rent here first!!!!!
When you do buy get a great law firm BEFORE you start looking!!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCC
I would think hard about building a house that's not in a secure community especially if you don't live there year round. You really need to spend a year or more here to get a complete understand of how business is done. You can overspend just as easy building you home as buying one. The commission system here can be complex. Then there's the miastro, government. If you have time before you retire use it to your advantage and don't rush into anything.
Good luck
Rent, in the DR it is cheaper than buying. In the US rental prices are higher than purchase. Here it is opposite.
Compare 500/mo and 100,000 sale for the same. Quick calc shows 500/mo is like 60,000 NPV compared to 100,000 NPV.
Plus you can end rent but there may be no end to owning.
In my opinion: For living STI is a good choice for vacation the beach could be better.
A few points in buying a house or condo in the DR. First, if you don't plan on using it yourself for at least half the year than I would discourage buying anything. If you are not there to oversee any problems you can get ripped off and also maintenance on the place will probably not get done. If you buy a free standing home who is going to watch it? If you buy a condo in a gated community you will have to pay monthly maintenance fees. You can finance a loan in the DR but again interest rates will be at least 8%. I am not sure on the term but probably no more than 15 years. If you are still interested take a couple of weeks and link up with a reliable realtor and check out properties. You will get a better feel for what is available and the problems that exist in the DR.