I want to buy a home with some land in Santiago De Los Caballeros. I am not one of the wealthy folk that can vacation in rich areas like Punta Cana or Puerta Plata. I'm broke and going to be paying this off for the rest of my life. A friend told me if I buy from here I'll be taxed heavily because I'm American, but if I have a Dominican citizen buy for me it will be much cheaper. Does anyone know if this is true? I already have been ripped off by "Aduanas" there. Everyone I speak to down there is trying to run game or get money. I have a friend who lives down there but he is extremely poor, doesn't speak any English, and definitely can't negotiate. If anyone knows how it really works from both sides, I would appreciate the help. Thank you.
Hi!
You can buy the property you want directly. Banks will finance you (a tad higher rates) using your USA income to support it.
The best way to do it, is to first open a savings account in the DR.
Deposit money every month, to the amount you can spare without breaking your budget back home. Keep that up for at least 3 to 6 months.
That will create a relationship between you and the bank. Then you can talk to the bank manager and tell them you want to buy property here with their bank financing.
First rule of buying property in the DR is deslinde at hand. If there’s no deslinde walk away.
If there’s deslinde, then it must be appraised.
After that the bank will rate the property and decide upon amount they are willing to finance for you. Usually you are talking 20 to 30 percent of the total as down payment.
It all depends on the bank and your proven income via tax records and bank statements from back home.
Never put property under anyone’s name but yours. There’s no need for that at all.
It’s highly recommended to rent first whereabouts you plan to buy at. So you can get a good grasp of the neighborhood and surrounds. Once you buy, it’s very difficult to sell at asking prices, unless you sell at a price where the last comparable property sold for.
Don’t rush to buy. Be patient and learn as much you can of the neighborhood and surrounding areas.
Rent, rent, rent first...