Why invest in real estate in Dominican Republic

Turned off by low ROI on property?

Maybe your already own investment property.

Or maybe you’d love to get into the market.

Either way, you’ve probably noticed…

…Real estate investment isn’t what it used to be.

In the United States and Canada, there are now just too many barriers standing between your property and a solid return on investment.

  • Property is too expensive, even for tear-downs and fixer uppers.
  • High interest rates have increased the cost of borrowing.
  • Too many rules and regulations that work against landlords.

Solid returns on real estate are still possible in the D.R.

It’s different when you invest in D.R. property.

Owning income property in the D.R. is still a great way to build wealth.

Here, you don’t have to deal with all those barriers that owners deal with elsewhere.

Here’s what you can expect as a D.R. property investor:

  • Low Initial investment = sustainable cash flow: The cost of ownership doesn’t eat up all your profits for the next 25 years. You can start earning income from Day 1.
  • Tax breaks: No fees, or much lower fees. Plus don’t pay property tax for 15 years.
  • Landlord-friendly: Here, the rules favor owners over tenants.

Which is why smart investors are starting to get REALLY interested in the Dominican Republic.

Let’s break each of these three points down.

Top 3 advantages to investing in D.R. property

1. More affordable prices for quality properties

The price for great income property is a fraction of what you’d normally pay.

In most urban areas in the US and Canada, a million dollars wouldn’t get you very far. Nowadays, that money would probably only get you a fixer-upper.

And then interest rates would claw back your returns.

Compare that to the D.R. Here, your initial investment can be so much lower.

  • Take that same million dollars and invest in three luxury homes in the D.R.
  • Or buy one home for $300K and bank the rest of your money!

Another bonus?

There’s still plenty of undeveloped coastline in the D.R.

Which means beachfront and ocean view property is still within reach for the typical investor.

There’s so much choice too:

  • Whatever type of property you’d like to invest in is available here.
  • Everything from pre-built homes and homes ready-to-build
    Pristine land to develop and build on.
  • Find commercial properties, like boutique hotels and small businesses too.
Bottom line?

Low initial investment = higher potential ROI

2. Financial incentives for investors

The D.R. has rolled out the red carpet for foreign investors.

Get big tax breaks, plus reduced fees on your property transactions.

First, property taxes are extremely low.

For both individuals AND businesses that own property:

  • Get an exemption of approximately US$166,000 on the value of your property.
  • Only pay property tax on the amount above that value.
  • The rate is only 1%

So for a property valued at $200,000, you only pay tax on $34,000.

At the 1% rate, that’s only $340 per year!

And foreigners can qualify for exemptions from taxes on:

  • Pensions or income received from abroad.
  • Dividends and interest generated within the Dominican Republic.
  • Property transfer taxes for the first property purchased.
  • Household and personal items brought into the country.
  • The import of a vehicle, which can be sold or transferred tax-free after five years.

As well, you can fast-track your residency:

Get your Dominican residency more quickly and easily compared to the standard process.

Bottom line?

More money in your pocket = higher potential ROI

3. Rental tourism in D.R. is booming

The D.R. is the number 1 tourist destination in the Caribbean — 10 million+ visitors last year!

That’s why major hotels and cruise lines have made big investments.

They see the huge upside.

And as an investor, you can take advantage of this too. You can count on a steady stream of visitors looking to rent a home like yours.

As well, post-Pandemic many people are more wary about staying at resorts and hotels.

Which is why demand has grown for private homes and condos to rent. People want to stay in their own home while on vacation.

Bottom line?

Huge tourist demand = higher potential ROI

The main types of investing

1. Turnkey investment opportunities

Start making money from Day 1!
 
With a turnkey investment, your fully furnished villa or condo is ready to rent (or is already rented) upon purchase.
 
Many properties for sale in the Dominican Republic are set up so their owners can earn income.
 
And day-to-day management can be as hands-off as you want it to be…
 
Everything can be handled for you: property management, rentals, upkeep, etc.

2. Pre-construction

Many new homes in the D.R. are pre-construction. You purchase a lot in a community and a new villa is built for you. Or you buy a unit in a condo building under construction.
 
Either way, you get input into the design of your villa or condo. You get to choose which upgrades you’d like to make your property more appealing to renters.

3. Fractional ownership

Some people don’t want to buy an entire home they’ll only spend a couple months a year living in.
 
Instead, they opt for fractional ownership: they purchase a home with a small group of owners. 
 
This allows each owner to get a beautiful vacation home in paradise—for a fraction of the cost. 
 
Another upside?
 
Owners don’t need to worry about property management, which is take care of for them. And they don’t need to worry about renting their home out either.
 
They get all the benefits of ownership, without the typical hassles.

4. Project development

We’ve helped bring projects together for investors.
 
We’ve got the expertise you need:
  • Coordinate financing
  • Locate property
  • Navigate applications, legal and regulations
  • Organize architects and construction
  • Oversee marketing and sales

Investment opportunities

Exclusive projects

We are involved in a few select projects. With our unique expertise, we’ve helped bring these projects to reality. 
  • Kite Beach Villas 1 & 2
  • Sea Glass Cabarete
  • Mountain Village

Hotels & other businesses

There are many businesses available for purchase. These are often tied to the tourism industry, like boutique hotels and shops. 

Land for sale

The D.R. is a big island. There’s still plenty of valuable property available, if you know where to look.
 
Vast swaths of coastline are still untouched, ready for development.
 
Find ocean view—and even beachfront property—for sale.

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