Advantages of buying a house in Punta Cana for resale

Many investors aim to buy to sell. Their desire is to maximize the value of the property in order to obtain a capital gain on the transaction that will allow them to make a profit.

The advantages of buying a house in Punta Cana for resale are very high. We are talking about a market with high growth expectations, so making decisions today can be of great benefit tomorrow.

What is buying a home for sale?

The acquisition of a home for sale is a real estate investment strategy that seeks to obtain its main benefits from sales transactions.

In this sense, the time between the purchase and the sale should not be excessively long (from 6 months to 3 years), unless you see possibilities of obtaining profitability by keeping the property rented during that time.

Generally, the acquisition of a home for resale at a profit is a real estate strategy known as house flipping. It does not necessarily imply having to refurbish the house, but ideally you should be able to access real estate that is at a very competitive price or below its value.

In market environments strongly conditioned by tourism, the amount of square meters is not always the only investment factor you should consider in order to make house flipping. Consider also the location, as many small units in luxury condominiums can provide you with a high return.

What are the advantages of buying a house in Punta Cana for resale?

There are multiple advantages that make it worthwhile to buy for resale in the Dominican Republic, and more specifically in Punta Cana.

Sustained growth in the real estate market

In recent years, in the Punta Cana real estate sector there has been a sustained growth of around 8% per year in housing prices.

However, these figures skyrocket when we talk specifically about luxury homes in Punta Cana, where yields can be between 10 and 15%.

Both data highlight the strength of the Punta Cana real estate market.

Ease of finding buyers

The Punta Cana real estate market is very liquid. That is, it is relatively easy to find a buyer willing to pay the price of the property.

And we are talking about a market in which many international investors have their eyes set, attracted by its excellent taxation. It is not the same to buy a house in Punta Cana than in other markets with more competition, where the time you have to wait to find a buyer can be high.

Booming tourism in Punta Cana

Punta Cana is one of the most important tourist attractions in the CaribbeanThis makes it the ideal place to do real estate business.

Currently, more than 10 million tourists come to the Dominican Republic every year, figures that are likely to continue to increase. This highlights the high interest of homebuyers in acquiring properties for tourist rental.

In this sense, the market is not limited to local residents, whose intention is to reside in their own home, but many international investors are looking for real estate opportunities driven by the excellent figures of tourism in Punta Cana.

Excellent taxation for foreign real estate investors

Not all investors buy to sell in the short term. It is better to wait, or even earn income from tourist rentals over a period of time. Many buyers purchase homes in Punta Cana that benefit from the Confotur Law. This regulation allows purchasers to be exempt from Real Estate Wealth Tax (IPI) for 15 years.

In addition, individuals who obtain rental income from their homes will not pay income tax on these amounts for a period of 15 years.

In addition, you also do not pay the Transfer Tax on Industrialized Goods and Services (ITBIS), equivalent to 3%.

This implies that after that time it is possible that you may be interested in selling the properties that can no longer benefit from the exemption, so it may be interesting to sell once revalued.

Possibility to buy under construction

Punta Cana is a growing market where you can find luxury units in condominiums under construction, where you can buy the property from the developer and not from a private owner.

This allows you to access better entry prices and to have the possibility of resell a property that is already yours, in a context in which the selling prices of the condominium units will increase as more and more private owners dispose of them.

Favorable legal regulations for foreigners

You do not need reside in Punta Cana to buy or sell a property. As a foreigner, you have no restrictions to acquire as many properties as you wish, and gradually build your own real estate empire, where you can rent some homes or renovate and sell them according to your wishes.

On the other hand, the excellent legal certainty and the possibility of accessing professional advice will allow you to carry out your real estate transactions with total peace of mind and the guarantee of complying with local legislation.

From Vivantia Homes we encourage you to know the different real estate opportunities in Punta Cana where you can buy to resell or rent and maximize your profits.