Payment & financing of your dream home in paradise is one of the most important elements in your investment decision, to help shed some light here are a few things you should know.
In the case of new development assets, many developers offer payment plan options, such as 20/60/20. Typically, the asset can be taken off the market with a 5K-10k initial deposit and 20% downpayment at contract signing, 60% during construction, and 20% at closing. The 5/10k would be part of the 20% down payment, this takes the unit off the market and locks in the pre-development price.
Your agent can assist with negotiating the best possible payment plan structure through the developer.
Banks in the Dominican Republic provide financing for existing properties only, it is mandatory for the mortgager to be in possession of the title at the time of applying for financing. With that said, once the property is ready for delivery, buyers may apply for financing to cover the balance of their purchase and/or recapitalize, in some cases, over 50% of the assessed value of the property based on the bank’s criteria.