- Thread starter Linda Stapleton
- Start date
Property Financing in DR
I popped into their branch in coral Mall to see what was on offer, I asked a simple question if I put down 15 or 30% to buy an apartment and repay within 8 years what was the best % they could offer, 14%. Then asked if I secured the loan for the duration (with x2 cover) to really limit the risk what could they advance at, answer 14%.
I had done some costings on a rent to let basis, and everything worked sweet at a rate of 12%, but they wouldn't move, mind you it was a junior staff member who wouldn't let me discuss the requirement / proposal with a senior member or branch manager.
The reason for this approach was simply to secure an apartment for the future requirements of my girls going into GAzcue for Schooling in 7-8 yrs time. Seems odd, but she did explain the only security they were interested in was the apartment and furnishings !!
I had done some costings on a rent to let basis, and everything worked sweet at a rate of 12%, but they wouldn't move, mind you it was a junior staff member who wouldn't let me discuss the requirement / proposal with a senior member or branch manager.
The reason for this approach was simply to secure an apartment for the future requirements of my girls going into GAzcue for Schooling in 7-8 yrs time. Seems odd, but she did explain the only security they were interested in was the apartment and furnishings !!
This wasn't the article I was thinking of, I'm sure it was a lot longer ago than this, but this is very interesting, too. Thanks for posting it. I presume this is only available to Dominicans?
Ok. Question. I've been thinking about doing private loans here in the DR for real estate financing only. The idea would have 12% interest with a maximum 5 year term. Does anyone think this is a good idea?
I know how to do this so I'm not screwed, that's not the problem, but I do not know if there is really a market here. Thoughts?
I know how to do this so I'm not screwed, that's not the problem, but I do not know if there is really a market here. Thoughts?
Surely it's safer to invest in a CD at Banco Popular or Banco Leon, they are currently paying 14% interest per annum for a five year CD (paid 6 monthly) or if you're prepared to invest for 7 years the rate rises to 15.5% per annum, again paid 6 monthly. You do need to be in Peso's though. Oh, you need to mention that you want to invest in the CD they offer with Banco Central, the National Bank of the Dominican Republic.
I hope this helps.
You're assuming he is lending the money in pesos. The safe way is to tie the mortgage to the dollar.
I guess there could be a take up if the buyers can't get financing through any other means but the repayments do seem very high for anyone living out of the country. I know here you can end up paying a lot higher rate through some lenders.