Most individuals that purchase a second home is usually for either the investment or for a getaway/retirement purposes or both. This article will discuss some benefits of owning a second home here in the Dominican Republic for the getaway and retirement crowd.

Many that choose to purchase real estate in the Dominican Republic do so because the prices of property are dramatically cheaper than comparable property in most all other Caribbean countries.

The weather of the Dominican Republic is generally great all year long which does not aggravate medical conditions caused by cold weather.  Sky touching mountains and florescent green valleys provides eye stunning backdrops to have the best of both worlds. Consistently warm weather and sunny beaches in Dominican Republic are a few reasons tourist return over and over again and intrigue many to own a piece of this tropical paradise.

Domestic help is very inexpensive.  The costs having a full time maid, cook, or a gardener is very affordable. Prices for these services vary according to your personal needs but s an example, a full time maid working six days a week may average only two hundred US dollars a month.  Services such as these free up your time to enjoy relaxing.

If your into Golf, Golfing Dominican Republic is one top destinations for golf. Some of the top designer courses in the world are right here in the Dominican Republic. Robert Trent Jones Sr. “Playa Grande Golf Course” and Pete Dye’s designer golf courses such as “Teeth of the Dog” are only a couple to mention.

There are many things to do in the Dominican Republic such as hiking and exploring, visiting beutanical gardens, birdwatching, horseback riding and visiting neighbouring towns to find each uniqueness.

If you interested in reading about buying a home in the Dominican Republic for investment pourposes, see these posts: Investing in Rental Property or Investing in Dominican Real Estate for Resale.

1. Repossessions, ugly homes, and distress homes are useful for buying property. Lease purchases can be extremely useful which  can help you to leverage investment money and reach a positive cash flow from renting. Buying fixer upper homes or repossessions can help to reduce investment money and improve your cash flow and appreciation.
2. One can’t count on a large cash flow from property with one tenant. In this scenario , the goal is to cover the mortgage and current expenses.
3. Research on a potential rental home should include significant financial planning for years ahead, like expenses of property management, repairing, vacancy, emergency etc.
4. The apartment and the 2-4 unit homes are the main classes of the multi-unit residential property investments.
5. With apartment investments the main profit comes from the rental cash flow. A lease to purchase option and leveraging investment money is quite useful in this case. The most significant factors in this case are the financial evaluation and property management. With a steady cash flow from a number of tenants, it is possible to hire a manager for the property management. It helps to increase the cash flow and the value of the apartment building. Underestimation may damage the investment and lead to loss.
6. Commercial properties investments include office buildings, retail shopping centres, industrial properties and the like. The market value of these properties is decided on the cash flow (net rental income). The main objective of rental in these cases is to generate enough cash to exceed the cost of mortgage, insurance, maintenance, future improvements. This is not an easy task to handle. It requires analysis of many things. But if done properly it could prove to be lucrative. Changes in the economic conditions usually have a serious impact on these types of real estate investments than on residential property investments. And as office buildings and industrial properties are more susceptible to these changes, it is wise to keep extra capital to support those investments if something does not go as expected. In this case, a money-leveraging approach (lease to purchase option) is very useful.
7. A vacation home can be used in two ways. It can be a property home or an investment property. This category includes resort properties, mountain homes, or beach homes. With vacation rentals, the main profit comes from the appreciation. Cash flow generated from renting is usually used for current expenses like property management, mortgage and insurance. These are short-term rentals and require intensive maintenance. On these properties know the tourist high season window and be prepared for it months in advance. The tourist high season for the Dominican Republic is generally between November to April.

Before beginning the search for buying Real Estate in the Dominican Republic, it is best to do your homework and follow the simple rules below.

First, know your reason for purchasing the Real Estate. Is your reason to live in as a primary or secondary home, an investment to resale or rent or is it for a business to generate an income? By having a clear reason for purchasing Dominican real estate one can adherently focus on the second step, finding the right location.

Below is a short list of some buying reasons:

• Buying Real Estate for Investment

1. Renting
2. Resale

• Buying Real Estate to live in

1. Primary Home
2. Secondary Home

• Buying Real Estate for Business use

1. Restaurant, Bar, etc.
2. Store Front Merchandising
3. Agricultural

Location location location. Location is the single most important factor that will determine the value of the real estate.  While that statement is true in most situations especially when it’s your primary home, it’s not always the case for real estate investing.

How to choose an investment location?

• Stay on top of real estate news of that area
• Visit the location and spend some time there
• Have inside information by knowing someone who lives in the area
• Research economic investment reports for that area to know the facts
• Make sure you understand the local market
• Understand the commitment and take time choosing the right investment