Is it worth buying a country house in the Dominican Republic? 

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Is it worth buying a country house in the Dominican Republic?

When you are thinking of investing in the buying a home, One of the questions you often ask yourself is this: what kind of house to buy? A house in an apartment building? A villa? A country house? 

 The decision can be very personal, but we must also take into account our objectives such as real estate investors. Keep in mind that even if you buy a house to live in, if you are not a resident of the Dominican Republic, you will probably rent it when you are not in the country. 

Having a broad vision when buying a house is important. In this post we would like you to know the advantages and disadvantages of buy a country house in Dominican Republic. 

Advantages of buying a country house in Dominican Republic

Purchasing a cottage instead of an apartment home can have some advantages. 

Privacy  

A country house generally means having more privacy, since you are away from the noise of the big cities, so you can enjoy a quiet environment. 

Space 

 Country homes can have multiple acres, which gives you plenty of space available to grow crops, keep animals or enjoy much more flexibility and possibilities to customize your home as you like. 

Less hustle and bustle  

A house in the country is usually synonymous with quality of life. There is less traffic, less hustle and bustle and an environment marked by tranquility and abundant vegetation, which allows you to enjoy a very pleasant experience. 

Price 

Houses in the countryside, depending on their size and characteristics, can be an interesting buying opportunity, especially for those who prefer to sacrifice a good location in exchange for a larger house with land. 

 However, this apparent advantage can also become a disadvantage in the future, as it will take longer to find a buyer than a property located in a tourist area and with a higher yield potential. 

Disadvantages of investing in a country house in the Dominican Republic

There are also some reasons why investing in a country house in the Dominican Republic is not always the best option. 

It is far from urban and tourist areas.

If you have a house in the country, it will generally require have a vehicle to move around in to there. Inland houses, on the other hand, are not as touristy as those near the beach. Earlier we told you about the advantages of buy a house on the beach in Punta Cana. 

It should be noted that if you are thinking about rent your home to tourists During the time you are not in it (or if you buy it as an investment), it is much better if it is well connected to the Punta Cana airport and the main tourist areas. 

More oriented to long-term rental

The country houses are usually designed for those who are going to live in the Dominican Republic for the long term. Although luxury homes can be very lucrative, the big business opportunity in the Dominican Republic is in short-term tourist rentals, where there is the possibility of charging higher prices per night and getting a higher return on rent. 

Fewer services

The remoteness of a country house from the main urban center may result in the existence of less services, The experience will be available to the people who live there and those who live there will have to travel to enjoy it. 

Not everyone who comes to the Dominican Republic is willing to spending too much time on the road for small needs. 

Fewer luxuries and amenities

Many of those who visit the Dominican Republic are more accustomed to being able to living in hotels, condominiums and resorts that already have all the amenities: private beach, coworking area, swimming pool, gym, recreational areas, easy access to the golf course...  

 Having a country house deprives you of that international environment which can only be found in accommodations located in tourist areas. 

Confotur Law

The tax benefits of the Confotur Law only apply to dwellings located in the areas favored by this regulation.  

 This legislation is oriented to the promotion of economic activity and tourism, Therefore, houses located in areas that are not affected by the Confotur Law do not benefit from certain tax advantages, such as the IPI exemption for 15 years. 

We invite you to get to know all the benefits of the Confotur Law and why right now it is much more attractive for a foreigner to buy a home in areas that are covered by this legal standard. 

Remember that the real estate opportunities that you can find in Vivantia Homes are covered by the benefits of the Confotur Law. If you want us to explain how it works and how you can invest in our tourist apartments in Dominican Republic, please contact us, write us now. 

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How much do you need to live comfortably in Punta Cana? 

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How much do you need to live comfortably in Punta Cana?

Many see Punta Cana as the ideal paradise in the Caribbean to live in. Whether to spend your retirement or retirement there, or simply to spend a season as a digital nomad, this city in the Dominican Republic is currently one of the international references among those seeking quality of life and a buoyant economic environment. 

However, you may be asking yourself how much money you need to living comfortably in Punta Cana.  

Although everything ultimately depends on the lifestyle and priorities you have when living in this Dominican city, we are going to show you some aspects that you should know about the cost of living in Punta Cana. 

Is it expensive to live in Punta Cana?

The first thing you need to be clear about is that, although Punta Cana is a tourist city and one of the main points of reference in the Caribbean, is by no means the most expensive city to live in.  

There are other places such as Jamaica, Aruba or the Bahamas which can be significantly more expensive than Punta Cana and the Dominican Republic as a whole, both in terms of housing and day-to-day expenses. 

In addition, you have the advantage of speaking Spanish, which gives you more confidence when it comes to getting around, negotiating prices with cab drivers or local markets. 

This makes the Dominican Republic, and Punta Cana in particular, one of the most important a highly valued destination for settling down, The island is a great place for investors, retirees, and vacationers who want to enjoy its relaxed atmosphere, luxurious resorts, and incredible beaches. 

Cost of living in Punta Cana

As we have said, the cost of living in the Dominican Republic and particularly in Punta Cana is relative, but here you can see some references to have more or less clear what rent you should have. 

Cost of housing

A monthly housing rentals in well-located areas of Punta Cana can cost between $600 and $800, although costs can be significantly higher depending on whether we are talking about luxury homes or villas, where prices can be well over $$3000 per month. 

Rental growth is becoming increasingly important, so many foreigners who come to live in Punta Cana prefer to buy a home. For about the same price or less than what you would spend in the United States, you can buy a luxury home in Dominican Republic at very competitive prices. 

Cost of food

The food costs in Punta Cana are relatively inexpensive, compared to other Caribbean populations, and also compared to the United States.  

A restaurant dinner can range from $15 to $20, which is perfectly affordable for many average salaries; the same can be said for shopping at the supermarket, where we can find all kinds of food at reasonable prices. Filling the shopping basket will not take you more than $400 or $500 USD, although it all depends in the end on how many people reside in your home and the whims of each one. 

Cost of telephone, internet and supplies

The cost of telephone, internet and utilities (electricity, water, etc.). can also be quite variable, However, it is possible to pay around $100 or $120 dollars for a house, living without too many restrictions. 

Cost of transportation

The prices of transportation in Punta Cana can be highly variable. Generally, people travel by private car, cab, public transport or buses. Fares between the airport and hotels are usually regulated, while cab fares vary depending on the route and can range from US$$10 to US$$70 depending on the distance. 

There are also the so-called “conchos”, These can be shared cabs or motorcycle cabs, and can allow you to move around the city easily, and can also be more economical, depending on where you are going. 

How much does it cost to live in Punta Cana?

Depending on the pace of life that each person wants to lead, you will have seen that living in Punta Cana can be relatively inexpensive.  

 Although it is a city more expensive than others in the Dominican Republic and you have to take into account the fact that it is a touristic place, with a good planning it is perfectly possible to live with about $1500-$2000 USD, and keep enough money to do sport, touristic or cultural activities during all the time you are living there. 

At Vivantia, we want to emphasize the importance of being able to owning your own home as a way of saving costs and be able to establish yourself in the country in the long term. Keep in mind that, in addition, with the houses that benefit from the Confotur Law you do not have to pay the Real Estate Property Tax (IPI) for 15 years. Find out how much cost of an apartment in Dominican Republic. 

Discover our real estate opportunities y buy your luxury home in Punta Cana at a much lower price than in your home country. 

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Residence for real estate investment in the Dominican Republic

Residence for real estate investment in the Dominican Republic

There are different ways of obtaining residency in the Dominican Republic. One of them is the residence by investment, which is obtained by means of a investor visa.

You can make different types of investments, You do not have to be a stock market expert to access this type of market.

An upper-middle income person in the United States, with sufficient savings for buy a house in Dominican Republic for a value of $200,000, is enough for you to obtain residency in the Caribbean country in the short space of 45 days.

In this post we will show you the types of investments that you can make in order to be able to to obtain residency in the Dominican Republic.

Types of investments valid for obtaining residency in the Dominican Republic

Do you want to obtain residency in the Dominican Republic? There are different types of investments that can be made.

Real estate investment

The real estate investment is the easiest way to invest in the Dominican Republic to obtain residency. This can be more or less passive, since the mere fact of investing entitles you to apply for residency by investment, without necessarily having to rent the property.

The buying property in Dominican Republic is a more or less semi-passive business, since you can rent it and receive benefits month by month. There are even ways that you don't have to take care of the management, if for example you acquire a unit in a condominium managed by a hotel brand, which takes care of everything from marketing to maintenance.

Investment in local businesses

Another possibility is invest in a local business. It is to create a new company or to participate in an already created company. To do so, you must register with the Dominican Republic's Export and Investment Center.

This would allow you to apply to the residence for business investment, This also leaves the door open for you to make a purchase or acquisition of a home in the Dominican Republic in order to manage or run your new business.

3. Financial investments

Here you should take very serious advice, since not all financial investments allow you to apply for residency by investment in the Dominican Republic. Investing US$200,000 in Dominican government bonds can be valid, but there are other formulas that will not automatically give you the right to apply for residency by investment.

You should keep in mind that they must be investments made from within the country, and the investment must be registered with ProDominicana as a foreign investment. Transactions with cryptocurrencies are also not accepted as a registrable financial investment.

What are the advantages of obtaining residency for real estate investment in the Dominican Republic?

Obtaining residency by investment is much quicker and easier for those who have sufficient capital than by other methods.

This is carried out at the General Directorate of Migration of the Dominican Republic, and is usually granted in a very short period of time.

1. Buying a home in the Dominican Republic is more affordable than in the U.S.

Making a real estate investment for $200,000 is a relatively affordable amount for people with good salaries in the United States. Perhaps you are looking for a way to make the most of your savings, but you know that the effort to buy a property in the current circumstances in the U.S. market can be high.

For a much lower cost, you can have access to luxury homes in the middle of the Caribbean, in a country like the Dominican Republic where there is an enormous growth in tourism, and which is increasing in value year after year.

 

2. It is a scalable business and easy to delegate.

Unlike what would happen if you decide to create a business in the Dominican Republic and make that investment, buying a real estate property is much more scalable and easier to delegate.

You can buy properties managed by a hotel brand, and they take care of everything, so that even if you have the residence, you don't have to manage the reservations or carry all the paperwork involved in managing a property.

 

3. It is a stable and long-term investment.

When making an investment in the Dominican Republic, you must prioritize your interests, as is logical. Evaluate what is the most profitable for you at this time, according to your objectives, and not only in obtaining the visa.

$200,000 is a considerable amount, so you should seriously evaluate to which assets you are willing to dedicate such amount. It is not about creating a business, with employees and duly registered, or making financial investments in a different country, just for the purpose of obtaining residency, as this is something that should be valued for its own profitability or the interest you may have.

However, if you want a residency visa in the Dominican Republic, it is generally because you want to live there, and in this sense, buying a home is the easiest way to access. Once you have the residency, you can focus on other investments, create a business or continue investing in real estate.

From Vivantia Homes we want to pave the way for you, simply by showing you the real estate opportunities that you can access through us, and that would allow you to apply for investment residency. Do you want more details? Book a video call with us.

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Why buy a house near the beach in Punta Cana?

Reasons to buy a house close to the beach in Punta Cana

There are several reasons why investing in a luxury home that is close to the beach is a much more attractive option.

1. You are occupying a strategic position

Punta Cana is in the midst of a real estate boom, with significant long-term growth of close to 10-15% in many homes. This will not always be the case, of course. But those who have acquired the best locations have greater appreciation potential than those who have invested in properties with poorer access or some distance by car from the coast.

As a real estate investor, you should not only look at the current price of the property in Punta Cana, but also at two very important aspects.

The price of housing compared to other real estate markets, where buying a similar property would cost substantially higher than in Punta Cana. Previously we already told you about the differences between buying a house in Miami vs. Punta Cana.

● The price of luxury homes in the future, 5, 10 or 20 years into the future, whose appreciation can maximize the potential return on your investment.

2. It is more attractive to tourists who make short trips.

If you are looking for tourist rental yields, a house near the beach is much more competitive. Time is highly valued, and even more so when we are talking about a type of tourism that seeks above all comfort and proximity. In many of the short-term trips booked by those who rent tourist homes, priority is given not only to the design of the house and comfort, but also to the fact that it can be close to the beach.

In a short trip of 1-2 days can be, in fact, a differential factor for those who book a night in your rental property or not. In this way, you can reduce the risks of your real estate investment in the Dominican Republic, which is an excellent market, but where it is important to choose well.

3. Landscape and views influence the price per night.

The fact that your property has a good view is another element that greatly influences the price per night. In the end, tourists don't pay just to sleep, but for lifestyle.

The design, amenities and aesthetic beauty of your home is greatly complemented by the fact that they can open the window and have ocean views, or at least be in a place of reference in Punta Cana and not in areas far from the tourist centers of interest.

4. A house on the beach allows you to increase your occupancy rate.

Remember that when you are looking for profitability through tourist rentals, not only the price per night is important, but also the number of stays you have throughout the year.

The time your property is vacant is the profitability you give up, so it is in your interest to maximize the occupancy rate. This can be achieved more easily when your property is well located, in a place near the beach or tourist attractions for travelers.

Many travelers value the accessibility of homes as an important factor when renting or buying them. If your home is located near the beach, its accessibility will generally be much better in every way.

People will find it easier to get from the airport by cab or rental car, spend less time on the road, and find restaurants nearby where they can eat.

If you would like to buy a luxury home in Punta Cana, in areas close to the beach and the main tourist attractions of the city, Vivantia has the real estate offer you are looking for. Write to us now.

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