Buyer's

Planning Center

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.

Start here: 
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.

Buying

Process

Mortgage

Financing

Expat

Information

Renting

Your Property

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
If you’ve chosen a villa, you have a bit more work to do :).  You may spend a little time or a lot of time working with our in-house architects to get the villa plan exactly the way you want it.  This process can be done via email too.
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#4: Contract of Sale
The final purchase contract and deed of sale is drafted by your lawyer (in Spanish).  You are given English copies for your approval. You can either attend the signing or have your lawyer sign on your behalf.
#5: Construction Begins!
Your condo will be under construction already and you can watch your dream space go up, up, up!  Your villa will take four to six months to complete.  For condos and villas, payments are made at pre-determined stages of construction.
#6: Designer/Decorator?
A few months before completion of your condo or villa is the time to decide if you’d like to work with a decorator.  We can suggest some excellent designers who will help you make your villa a showpiece.  Alternatively, you can also decorate it yourself.
#7: It's Done!
Possession day has arrived.    You will sign up with Connections for utilities and administration service.  We can also recommend a good rental host should you wish you to earn income/cover costs in your absence.
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#8: Title
Final title will be conveyed from us to you in either your persnal name(s) or to a corporation (your choice).  This process generally takes a few months.

HOW DO YOU OBTAIN

Mortgage Financing?

For buyers requiring mortgage financing, there are two options available:

  1. 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.
  2. Take out a new mortgage in the Dominican Republic with a local bank.  Here is where to start, and how it works:
  1. 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.

  1. 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:
  1. Income Information:
  • United States and UK:  Two-years of tax returns
  • Canadians:  Two-years of Notice of Assessments
  1. Start the application process

Send your credit report and tax information along with a completed mortgage application.  Click the link below to download:

Then contact our Executive Sales Coordinator, Tony Willies to discuss further steps:

Cell/WhatsApp:  (809)-817-3335

Email: tony@casalindacity.com

Tony will let you know where to send the application and the next steps to getting your pre-approval and eventual funding.

  1. General guidelines
  • 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
Information

For Expats and Real Life

The Dominican Republic welcomes part time and full time foreign residents.

Legalities
  • 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.
Insurance
  • 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.
Residency
If you plan to be in the country for more than two month a year, it’s required that you obtain a legal residency status.  This is a fairly simple process that begins with a Visa.  For more detailed information, please CLICK HERE.
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

Vacation Rental

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.

Income Earned?

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!

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