This article will find out which is the best real estate investment in the Dominican Republic. You will discover how to invest in real estate and why to do it.
5 reasons to invest in real estate
Real estate is an investment that gives you the security of generating capital in the medium or long term. That is, it is a low-risk investment.
Below, I will explain the five reasons why you should invest in real estate:
- Stabilized value: real estate stands out as being one of the strongest and most stable financial assets.
This is because, compared to shares on the stock market or other investments, property value is maintained or increased, depending on its location or size.
- Monetary flow: investments generate a constant flow of money. The first investment will generate instant profits.
- Low interest rates: In crisis situations, mortgage loans tend to have lower interest rates, so you can buy a house at a better price.
The value of your property will increase during economic booms.
- Heritable investment: this type of investment ensures the financial future of your family. It generates stability and financial peace of mind that could even last for years.
- Structural improvement: renovations increase property value, which will generate income by investing a small amount of money.
Investing in real estate offers many advantages, especially if you do it in a country like the Dominican Republic. Why?
The Dominican Republic is the fastest-growing country in the Caribbean.
Maintenance costs are relatively low compared to the rest of Latin America.
One of the reasons why people invest in this country is tourism.
When making the decision to invest in a country like this, the primary determinant to consider is location.
I will show you the best places and the reason for your investment:
- The San Juan River: this area has the most beautiful beaches in the country, and also the lowest prices.
Agriculture is still the leading sector. Tourism does not play the first part in the city’s area that could generate more stable profits.
- Las Terrenas: in recent years, it has become one of the most attractive tourist destinations in the country.
The beautiful beaches are very attractive to tourists and, needless to say, to investors.
- Punta Cana: this top tourist destination is experiencing a surge in demand for rentals, preferring luxury condominiums to hotels.
- Boca Chica: thanks to its crystal clear waters and exotic vegetation, Boca Praíso is the best place to invest.
- Rio San Juan: this area has the most beautiful beaches in the country.
- Santo Domingo City.
- Santiago City.
World Luxury House RE encompasses all the necessary skills to build and manage prestigious properties.
Thus, the enterprise has created an amazing project consisting of an international holiday exchange.
Owners choose holiday places among the world’s most appealing destinations and exchange their properties for one or more weeks.
The exchange program perfectly fits the fast-evolving housing market’s demand.
Contact World Luxury House to learn more about this project.
In general, investing in the Dominican Republic offers many benefits:
- The investor may obtain a rental property program with a limited amount of starting capital;
- Both residents and foreigners have access to local bank financing;
- The country is in constant development. Moreover, its paradisiacal and enthralling landscapes make it more attractive for tourists;
- The real estate market has gained momentum due to the country’s political, economic, and social conditions;
- Interest rates are low,
- Tax exemption.
Owing to its beaches and paradisiacal landscapes, the Dominican Republic is a top-rated tourist destination in the Caribbean.
As a result, tourism is the key industry in the Dominican economy.
As of 2014, the Dominican Republic has recorded the strongest economic growth (7.64%) in the Caribbean and Latin America.
This trend has been slowing down in recent years because of the Covid-19 pandemic.
Economic growth is expected to be constant. It might even remain stable owing to the increase in business relationships, foreign investment, etc.
Real estate foreign investments are growing due to the low tax burden and facilities that allow access to any real estate asset.
The Dominican government has different incentive plans which facilitate residence permits for investors.
The Dominican Republic Export and Investment Center (CEI-RD) states in its document the benefits of Law 16-95 on Foreign Investment. Decree 950-0, that incentives are:
“Conceived with the objective of benefiting foreigners who make a considerable investment in the Dominican Republic.”
Therefore, people who invest in the Caribbean Islands have many benefits, such as obtaining:
- Permanent residence;
- Reduction in home repairs and personal property taxes;
- Reduction in Motor Vehicle taxes;
- Tax exemption on real estate transfers;
- Low interest rates.
The Dominican Republic stands out as being one of the best countries to invest in the real estate market.
Next, I will share with you some benefits of investing in this sector:
- The investment you make is easily returned with security and stability;
- Labor costs are relatively low;
- Perfect weather;
- The geographical location lends itself to tourism;
- Government support;
- Socio-political security;
- Economic stablility;
- Free trade agreements with the USA, Latin America and Europe.
The CEI-RD states on its Web page that:
“The Dominican Republic is the leading investment destination in the Caribbean, capturing 49% of direct foreign investment in the region.”
Despite the strong crisis left by the pandemic, tourism plays an important role in boosting economic growth in the Dominican Republic.
The Ministry of Tourism confirms in its press release:
“The country’s tourism figures are a clear indication of the sector’s recovery, said yesterday the Minister of Tourism, David Collado.
He revealed that upon his arrival in the office, only 200,000 tourists entered between August and September, but that between June and July the figure soared to 1,025,500 visitors.”
Data confirms that the Dominican Republic is experiencing strong growth in the Caribbean tourism industry.
As a result, the real estate sector is offering great investment opportunities.
WLHRE proposes two types of performance:
- 5% fixed return rate.
- Up to 7% variable return rate.
In the next section, I will explain two common ways to invest.
- Environmental assets: It is the transfer of assets that aims to make a contribution in nature.
Several assemblies are held to ratify that it’ll be done according to the established laws.
This provides notable tax advantages, making it the investment of choice.
The developer, WLHRE, which has built dozens of real estate operations in Italy, the Dominican Republic, and Panama.
WLHRE has built more than 400 apartments here in Dominican Republic.
- Corporate or individual real estate acquisition:
Many people believe that there is a difference between investing in the Dominican Republic as a company or individual.
Actually, there is no benefit to being one or the other.
You should only take into account that it is better to acquire it through a company if the value exceeds US $500,000.00.
The answer to this question is a resounding “Yes”. Any foreigner who even resides abroad can purchase a property in the Dominican Republic.
The national financial system grants loans or economic facilities to foreigners, whether they do or do not live in the country.
If you want to invest in a property, you can do it safely, easily and quickly with the due legal measures.
To get started, you’d better follow these steps:
- Contact an experienced real estate agent who can provide assistance and advice;
- Define the property land and features;
- Complete the form required by the Dominican Republic to comply with the Anti-Money Laundering and Terrorism Financing Law.
- Select attorneys aware of local laws and regulations;
- Ask a commercial bank for pre-qualification.
From this text, we can draw the following conclusions:
- Investment in real estate generates capital in the medium or long term.
- The Dominican Republic is the country with the fastest economic growth in the Caribbean.
- Investing facilities make the Dominican Republic attractive to foreign investors.
- The Dominican Republic stands out as being one of the best countries to invest in real estate.