Can I hold title to property?

Sure you can.   One of the largest US title companies, Stewart Title, has an office in the Punta Cana area.   They can provide title and closing services for your DR investment.   Contact us for more details.

What is the real estate market like?

Booming!   Pre-construction properties are appreciating at a minimum of about 30% per year.   Post-construction properties are appreciating a little slower, but still at a very attractive rate.

What are the condo fees and what do they cover?

Condo fees can vary depending on the particular community.  Generally they run anywhere from US$80-150/mo for a 1 br and US$120-250/mo for a 2 br.  The fee includes maintenance of the grounds, tennis courts and pools, 24-hour security, water, maintenance of the beach, etc.

Is there financing?

Yes.   With a minimum FICO score of 640 you can get up to 80% loan-to-value for about 8.5% APR.

Can I rent my property when I’m not there?  What are the fees?

Of course.  We at RE/MAX would be happy to manage your rental for you when you are not here.  Rental fees are 1 months' rent for an annual contract to place the tenant, then 10% monthly for the management fee.  A 6-month lease will cost half a month's rent for the tenant and the property management fees are the same, plus miscellaneous expenses such as cleaning and maintenance, which are nominal.  
 
 

What are the fees for buying a property?

There are very few fees involved with buying a property in the DR.  Estimate approximately 5% in one-time fees based on the purchase price.  This includes attorney’s fees, title registration, and government transfer tax.

What are the property taxes like?

Very good.  You will pay taxes on ever dollar above approximately US$160,000 at a rate of about 1% per year.  For example, if you purchase a property for US$200,000 you will be responsible to pay taxes on the US$40,000 difference from US$160,000.  This means you will pay 1% of US$40,000 which is US$400.

And what about insurance?

Insurance can be purchased for about .8% of the purchase price (including tax). This includes coverage for fire, electronic devices, and liability.  You can purchase property insurance at any stage of construction from raw land to the finished product.

How does the buying process work?  

Very simple.  First you make an offer.  It's a 1-page document with only the highlights of the transaction (i.e Name, property location, price, terms, initial deposit).  Typically this comes with a separation fee of anywhere from US$1,000 up to 30% depending on the developer and the stage of the project.  A formal contract follows within a couple of weeks.  It is in spanish since this is a spansh-speaking country.  My office can provide contacts for you to have your contract translated if needed.  At this point a second deposit is usually expected according to the purchase offer.  After the contract you simply continue paying according to the agreements.

and finally, though not related to buying I do receive this question ALL the time!

Are you Dominican?

No.  I'm a US-citizen, born and raised.