purchasing property

tlc32875

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Apr 3, 2006
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hello everyone
we are looking to purchace property in the dominican republic,we are from the US and we are looking for some insight on how to go about financing,bank names,phone numbers,any suggestions from someone who has done this before .
thanks
tracy :)
 

danely

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Apr 23, 2004
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Tracy....use the search button in the blue tool bar above...then read for several days....more info than you could want.......
 

Ken

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Jan 1, 2002
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If you have to get financing from a bank in the DR to buy the property, delay your purchase until you find financing sources elsewhere. Interest rates here are likely very high compared to what they are in your own country.
 

sweetdbt

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Sep 17, 2004
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Why? Do you plan on living in he DR? If so, the general consensus is that it is best to rent for at least a year, be sure you want to stay, and take your time finding a property to buy. If you are thinking of doing it as an investment and being an absentee landlord, well............. there are horror stories about that.

Mortgage rates in the DR are outrageous (although far better now than a couple of years ago). You are doing well to get a loan at less than 18%. The majority of property owners, and especially foriegn owners, pay cash. If you have enough equity in a home or property in the states, you may be able to finance a DR property with a second mortgage or home equity loan at a much lower rate than available in the DR.
 

tlc32875

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Apr 3, 2006
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thanks

thanks for all your help .it was very helpful. we are looking to buy for an investment and then in 9 or so years want to move there part time . not sure if better off buying in a tourist area or the outskirts..i know i want to be somewhat close to the beach. more horror stories in tourest areas or just all over ?
 

ecarignan

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Jan 9, 2003
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www.commtech.ca
Not just horror stories, I have bought, built and sold properties on the north coast succesfully along with another 10 or so that I know personnally that have done the same as you are thinking of doing and really enjoyed it. So, don t let the negative people of this board stop your dream. Use the right people for lawyers: Guido Perdomo or Guzman office. Use the right realtors: Anabela or Dean from Century 21, there are other good ones, but I ve used those and trust them. Tourist area offers a better return on your investment. North Coast is probably the best choice: Sosua, Cabarete or anywhere nearby. Ocean front communities: Playa Laguna and Perla Marina are good ones, SeaHorse Ranch on the more expensive side. Non oceanfront communities: Casa Linda, Pro-Cab, Lomas Mironas, Hacienda El Choco, to name a few.

Get to the North Coast and take a realtor to show you the different communities. Now is a good time to invest as the market can only go up. If you have more questions, email me or PM me. Good luck.

Eric Carignan
 

Simon & Nicky

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Feb 3, 2004
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www.simon-hall.co.uk
18% Interest? Facts please, this is supposed to be an informative site. Banco Leon are offering dollar mortgages at 8.25% (reviewed once a year) for up to 20 years. Sizeable downpayment required, building must be complete / nearly complete.
 

moviemouth

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Jul 12, 2005
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Simon & Nicky said:
18% Interest? Facts please, this is supposed to be an informative site. Banco Leon are offering dollar mortgages at 8.25% (reviewed once a year) for up to 20 years. Sizeable downpayment required, building must be complete / nearly complete.

Don't know about that offer though I have heard the 18% number for some time now. In any case, as you are U.S. citrizens, it seems to this retired banker that a 30 year fixed rate mortgate (or second mortgage) at around 6.25% - with tax deductable interest - would beat even 8.25% with no tax advantage hands down.
 

tlc32875

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Apr 3, 2006
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thanks everyone

thanks everyone for all your input and info . all this is very good to know .
have a good day everyone
tracy
 

sweetdbt

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Sep 17, 2004
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One mans "negative"

is anothers "realistic". I would be VERY interested in hearing from anyone who has obtained an 8.25% mortgage in the DR, regardless of the size of the down payment or other stipulations. If you have, I will reitterate what I said in my initial post "you did well". VERY well!! For a bank to promote a low rate is one thing. To actually obtain that loan, particularly as an extrano who is unfamiliar with the market, is another thing altogether. My figure of 18% was based on a face to face conversation this February with the operator of a Dominican investment house. Again, I'm not saying it isn't possible to get a lower rate.

As far as being an absentee landlord in the DR strictly as an investment, I would again stand by my statement and would agree with Moviemouth that someone in the US with $ to invest in real estate would be well advised to look at home, where they can get more favorable financing and can look after their property in person. If someone is going to live in the property, even part of the year, that is a different matter, but I would still say that the conventional wisdom is to rent first and become more familiar with the country and the market before buying.