Dominican Republic Real Estate: buying process, about the Dominican Republic, mortgage financing, condos and villas, gated communities, rental income and more

1. To advance slides, look for the
blue arrow on each screen.

2. • About the Dominican Republic
• Why Own Real Estate in the DR?
– What’s in it for you?
• Who Are We?
• Types of Properties We Sell – and Why
• Who Are Our Buyers – People Like You
• Earning Rental Income
• The Buying Process/Financing
• Residency
• Some Sample Condos & Villas
• About Casa Linda Villas
TONIGHT’S TOPICS

3. The Dominican Republic is located 1508 kilometres south east of Florida.

4. ABOUT THE
DOMINICAN REPUBLIC
• Area of 48,442 sq. kilometres or
about 18,000 sq. miles
• Over 1,000 miles of coastline
• Average year round temperature of
28°C
• The north coast experiences no
hurricanes
• #1 tourist destination in the
Caribbean
• Close economic ties with the United
States and Canada with free trade &
tourism (we even print their money)
• Vested interest in keeping expats
and foreigners happy
• Westjet and Air Canada fly into
Puerto Plata and Samana
• Spanish speaking with English spoken
in tourist areas
• Capital is Santo Domingo – Colonial
Zone is Unesco World Heritage Site,
first city in the New World
• Population: 10.28 million
• Investing in education for the people
of the DR
• Much lower violent crime rate than
the US, Costa Rica, Belize, or Mexico

5. WHAT THE DOMINICAN
REPUBLIC OFFERS:
• North American services with
excellent infrastructure like
shopping, restaurants, internet
etc.
• Large Canadian community
• Unlimited activities, social
groups and events
• First world medical facilities
and services – low cost for
medical insurance -
$1400/family each year
• Improved quality of life
• Fully owned, secure real estate
investment (no bank trusts, life
leases). Click for more details
• Low to no taxes
• Good rental returns
• Airport 10-minutes away
• Simple residency process

6. LET’S PAUSE FOR
EFFECT:
A typical backyard in January

8. • From Edmonton originally – still spend a few months per year there
• Between us, we have years of experience in real estate, finance, &
marketing.
• Seriously considered Mexico, Belize, Costa Rica, and Barbados
• The DR provided the best balance of price point, government stability,
climate, community and more
• Been helping others buy DR property for 10-years
A LITTLE ABOUT
US:

9. • Are located in gated communities with
24-hour security – lock up and leave
• New and resale condos and villas
• Have full administration services (bill
payment, maintenance, housekeeping,
garden/pool care)
• Offer rental programs with
international marketing, check in/out,
damage deposits, onsite services for
renters
• Have financially sound developers
ALL PROPERTIES WE
SELL:

10. • Are free for buyers.
• We are a real estate
brokerage
• We will give you a
thorough view of the DR
real estate marketplace as
well as local beaches,
restaurants, shopping,
banking, meet other
owners, etc.
• Negotiate the sale, assist
with legal services,
insurance, etc.
• Ensure you understand the
buying process
• Our after sale service is
why our clients become
friends.
OUR SERVICES:

11. • 40-70 years of age
• Most still working, not retired
• Will use their DR property 2-weeks to 10-months per year
• Require special services (administration, rental management)
• Most will use their condo or villa as a rental and earn income
• Are very tired, cold winter hating Canadians
WHO ARE OUR TYPICAL BUYERS?

12. 1. Offer to Purchase written and
accepted
2. Buyer sends deposit to DR solicitor –
monies held in trust account
3. Promise of Sale is written in Spanish
(English version provided)
4. Buyer sends balance of monies or
progress draws as specified in
contract
5. Deed of Sale (Acontrato de Venta) is
the final document that conveys the
property from the seller to buyer
6. Purchase registered at Land Titles
Click here for more details
Very similar to Canada
THE BUYING
PROCESS

13. • 3.0% property transfer tax
– Only on the government assessed value of
the property, not market value – less than
$1,000 US
• Legal fees – 0.75-1% of purchase price
– All fees and costs including disbursements
Two Methods of Ownership
• Purchase in personal name(s)
– Little to no property tax payable
– Subject to DR inheritance laws
• Purchase in a DR company name
– Good for investors – shares distributed
between several owners
– No personal liability
– Inheritance laws do not apply
– 1% due each year on government
assessed assets of the company
PURCHASING COSTS

14. • #1 searched destination in the
Caribbean
• The DR is the largest tourist zone in
the Caribbean as per Expedia and
TripAdvisor
• Sosua and Cabarete units rank
higher than Punta Cana rentals
(TripAdvisor)
• Large market for short term
(vacation) and long term rental
• North Coast tourists prefer renting
condos and private homes instead
of all inclusive resorts
• Both condos and villas rent very well
• Rentals compete with hotel rooms –
this is why rental occupancy rates
are so high
RENTING YOUR PROPERTY::

15. No Work for You:
• International marketing (Airbnb, Expedia, etc.)
• Fully managed properties – lock up and leave
• Cover costs & earn income
• High rental occupancies
• Short term vacation rentals or long term stays
• 20% taken of short term, 10-15% of long term
RENTAL INCOME & COSTS

16. Upon every check-in:
• Inventory is taken
• Credit card details or insurance paid
• Liability waivers
• Daily maid services (optional paid service)
• Daily pool/gardening services
• Clients registered with security for access
• The property is checked for damages & missing
items upon check out
RENTAL PROCEDURES &
SECURITY

17. • Most personally owned properties not subject to tax
– Fall beneath the DR government exemption amount
• Corporately owned properties subject to 1% tax
– Payable on the government assessed assets of the
company
– Always less than market value
– $0-$1,800 US/year
– For more information, click here
PROPERTY TAXES

18. Two ways to obtain financing to purchase
a DR property:
1. Dominican Lenders
– Time consuming and can be difficult
– Rates 5.95-8%, 25-year amortization,
30% downpayment
2. Canadian Lenders
– Refinance, or place line of credit, on
an existing Canadian property
– Pay cash for DR purchase
– Faster turn around times
– Much better rates
– Interest on mortgage is tax deductible
MORTGAGE FINANCING

19. • No restriction on length of stay in country ( in 3-month intervals)
• Residency recommended if you plan to stay 3 or more months/per
year
• Easy to obtain
• Personal goods can be imported tax free
• Legal resident can work and do business
RESIDENCY & TIME ALLOWED IN THE
DR

20. SOME SAMPLE LISTINGS: (CLICK FOR WEB LINK)

21. SOME SAMPLE LISTINGS: (CLICK FOR WEB LINK)

22. SOME SAMPLE LISTINGS: (CLICK FOR WEB LINK)

24. • Beautiful homes with titled lots & private
pools
• Executive spec, several floor plans to
choose from
• Full, onsite management and
administration program
– Maintenance, housekeeping,
gardening/pool, bill payment, onsite
English speaking office
$119,800- $359,800 US
Price includes lot, villa, landscaping and pool
• Internationally marketing rental program
with excellent occupancy rates & returns
• Rental guarantee of 6-10% of purchase
price
• Large Canadian community
• 3 minutes to Sosua, shopping, restaurants
and the beach, 10 minutes to Cabarete
• Shuttle bus service all day

25. • 24-year history of development, construction,
management and rental services
• 24-hour gated security – lock up and
leave project
• Beautiful communal grounds & walking
trails. A parklike project.
• Growing project with over 250 villas
completed
• Upcoming amenities: tennis court,
small store, clubhouse, spa, kid’s
waterpark, & outdoor gym.
• Financially sound ownership group
with no debt & ongoing good cash
flow. A sound investment.
SOLID, SECURE
PROJECT

27. RENTAL INCOME VERSES EXPENSES:
• 2, 3 and four bedroom villas
• Using ONLY lowest possible nightly rates and
ONLY a 50% occupancy rate

31. • Can make monthly payments or let rental
income make the payments
• 70% down: 5.95%;
• 80% down: 2.95%
• Pay off without penalty at any time
CASA LINDA FINANCING
• No specific credit rating or income
qualifying required
• Makes buying earlier possible
• Less exposure to fluctuating rates and
currencies

32. WHAT DOES THE WORLD SAY?
Three DR Beaches Considered Best in the Caribbean
The three Dominican
beaches were selected from
a list of the Caribbean’s top
25 beaches. “Playa Bavaro”
in Punta Cana, in the
country’s easternmost
region, “Playa Bonita” in
Samana, on the northeast
region, and “Playa Sosua,”
on the north coast were
selected by TripAdvisor, the
popular travel site, which
included the beaches in its
Travellers’ Choice Awards
2015
Access DR 03-15-15

33. WHAT DOES THE WORLD SAY?
The world's 5 best beach cities for retirement
2. Sosua/Cabarete, Dominican Republic. Where
the verdant green jungle hills slope into the
crystal-blue waters off the north coast of the
Dominican Republic rest the sand-fringed towns of
Sosua and neighboring Cabarete. These are
beachfront utopias. There are no high-rise towers,
no big crowds and no worries. Life here is all about
enjoying what mother nature has created in this
world-class coastal spot.
The life on offer here is also increasingly appealing
to retirees. Expat communities are established
and expanding, and planned developments are
under way to cater to them. Retirees settling here
can choose luxury living in planned communities
where houses sell for $400,000 to $800,000, but
also have much more affordable options in coastal
developments where homes are priced from
$130,000 to $150,000.
Yahoo Finance - 10-12-14

34. Real estate in the Dominican Republic is more
affordable than you may think
1. Prices Represent The Best Value
In The Caribbean
2. The Established Expat
Community Means Amenities
And Services You Won't Find
Elsewhere In The Caribbean
3. Developments In Infrastructure
Make For Easy Living
4. Easy Retiree Residency
5. Not Ready To Retire? The Red
Carpet Awaits Investors And
Entrepreneurs, Too...
Huffington Post - 06-16-15
WHAT DOES THE WORLD SAY?

35. Please contact Colleen Valerio:
780-474-7900 * info@DRProperties.ca
FIND OUT MORE!