WHERE DO YOU START?
Right here. With sound information.
We were once foreign buyers too.
Considering to buy a foreign property can seem like a pretty daunting prospect. We believe knowledge is key.
We’re here to provide useful information, answer all your questions, give you a solid tour of the area and its real estate – and help you discover if Connections and the DR, is the place for you.
Follow the links below for some great info and a good start. Then, when you’re ready, contact us and we will help you with next steps.
STEPS OF THE
Buying Process in the Dominican Republic
This is how it all works in the Dominican Republic. The process is very much like buying in North America. It starts with finding out if the DR is the place for you, then moves along through finding a property, and eventual purchase. We are here to guide you, every step of the way.
These are the general stages of the buying process:
#1: Come Check Us Out!
The first step is to see if you like CONNECTIONS and the north coast of the DR. Stay in a villa and do a test drive. See local beaches, restaurants, shopping and more.
#2: Choose Your Condo or Lot & Villa Plan
Decide what type of property you’d like. Condo? Choose what floor, size, and view. Villa? Now it’s time to pick a lot and plan. To reserve a condo, there is a $20,000 US deposit and a $25,000 US reservation fee for a villa lot.
#3: Final Villa Plan Approval
#4: Contract of Sale
#5: Construction Begins!
#7: It's Done!
HOW DO YOU OBTAIN
For buyers requiring mortgage financing, there are two options available:
- Use the equity you have. Obtain a home equity line of credit or do a refinance of an existing property in your home country. Rates are often better and the process easier.
- Take out a new mortgage in the Dominican Republic with a local bank. Here is where to start, and how it works:
Find out if you qualify. do this first:
We only require two items for determine if you qualify for DR financing: your credit report and your income.
- To obtain your credit report click below:
- United States: TransUnion US
- Your credit (FICO) score to qualify must be greater than 640
- Canada: Equifax Canada
- Your credit (Beacon) score to qualify must be greater than 680
- UK: Equifax UK
- Your credit score to qualify must be greater than 640
- If your credit score is above minimums, proceed to obtaining:
- Income Information:
- United States and UK: Two-years of tax returns
- Canadians: Two-years of Notice of Assessments
Start the application process
Send your credit report and tax information along with a completed mortgage application. Click the link below to download:
- Mortgage financing here in the Dominican Republic is limited and can be time consuming.
- Financing is only available to citizens from the United States, Canada and the United Kingdom
- Projects or developments must also be approved by the lender
- Mortgages are done in United States dollars (US)
- 20-25 year amortizations available
- Interest rates from 3.75 – 5.75 %
- Downpayment of 35% on houses under $1,500,000 US
- Downpayment of 40% on houses between $1,500,000 to $2,500,000 US
For Expats and Real Life
The Dominican Republic welcomes part time and full time foreign residents.
- You fully own your real estate
- Taxes are very low
- Government is a representative democracy similar to the United States system
- You have the same legal rights as a DR citizen with regard to real estate
- All countries have a consulate in the Dominican Republic.
Banking and Currency
- The Dominican Republic uses its own peso, although along the north coast, the US dollar is universally accepted.
- To open a bank acount you will need the following: your passport; letter of recommendation from your own bank; a personal recomendation from someone known to the local bank.
- Accounts can be opened in US dollars or Dominican pesos.
- In addition to medical insurance, if you buy a villa or vehicle it’s recommended that you isnure them as well.
- There are several insurance brokers in the area, all speak english.
- Full coverage for a home varies from $800-$2000 per year depending on value
- Vehicle insurance depends on the age of the vehicle and type of coverage. Estimate $600-$1700 per year.
Healthcare & Medical Services
- Most expats choose to purchase private healthcare from one of several providers. An average amount for a couple is $1,200 US per year. This includes hosptial stays, some medicine and some dental.
- Very few prescriptions can’t be found locally, but all can be ordered.
- Locally, we have a private hospital just 10-minutes from CONNECTIONS. Twenty minutes away is Puerto Plata with several excellent faciliites and 1.5 hours away is Santiago, with world class health centeres that cater to foreignors.
USING YOUR PROPERTY FOR A
Cover Your Monthly Costs
Many owners in Casa Linda Communities (and soon Connections) use their properties as full or part time holiday homes. It’s a great way to cover costs, earn an income, and make your DR property pay for itself.
Rental Hosts & Airbnb
We can recommend several rental hosts and rental management companies in the area. These companies work to rent your property through international marketing, repeat renters, reputation and great service. They offer transparent services to owners and ensure your property is well taken care of when renters are using it. For vacationers, they offer a great holiday with airport transfers, excursions, activities and onsite assistance. Airbnb is also an excellent choice for rental bookings combined with a local management company for on the ground services.
The amount of rental income earned will vary. It depends on location, how well the condo or villas is decorated/equipped, what months are available, etc. Many owners find they make a tidy sum on rental – which is icing on the cake!