A group of friends of mine are investing in a Dominican real estate project in Cap Cana. I have visited the country before and loved it. One of the reason I loved the Dominican Republic so much is because they don’t have as many rules as the state, but for that same reason is that I’m a bit hesitant about buying property in the Dominican Republic. A couple of my friends have already invested in Dominican real estate but they are both of Dominican decent and speak the language.
Another thing that makes me even more hesitant is that when I was doing some research of Dominican property guides and consumer protection agencies and I found one called Dominican Watchdog that exposes fraud and corruption in the Dominican property .They have so many articles about Dominican fraud, corruption and real estate deals gone bad, it really making me rethink buying property in the Dominican Republic. But then again isn’t that what consumer protection agencies do?
They also have a property guide with 10 simple rules on how to avoid fraud and corruption when buying property in the Dominican Republic, so you can successfully buy property in the Dominican Republic.
I know the Dominican Republic has its share of fraud and corruption, but doesn’t every country. What I’m really worried about is the future of an investment in a still developing country. Things have been getting better and better in the Dominican Republic over the last 10 year, but with the situation in Haiti being so unstable am afraid that could affect the Dominican Republic. Has anybody invested in the Dominican Republic?
Is it wise to invest in the Dominican Republic?
I read that property in Punta Cana, Bavaro Beach, and Casa de Campo have been selling out faster that they can build them. I would really like to here from people who have invested in the past and their experience buying Dominican property.
Sorry for rambling on about the same thing I’m just really confused. :help
I guess the grass is always greener on the other side! To answer your question directly, NO! I would not invest in a 3rd world country when there are excellent real estate opportunities right in your back yard!
This is a good reference to use when researching real estate in other countries: http://www.globalpropertyguide.com/
Notice that there are not only commentaries and statistics, but referrals to local agents, accountants, and lawyers.
Economic growth in a country is strongly correlated with corruption. While I agree with you that every country has it problems, there is corruption and there is corruption. I know you know what I mean. If you have to refer to a 10 rule program on how not to get ripped off, you might consider this a clue.
Most Western countries, and most of the former British colonies (except perhaps India), are generally free and honest enough to invest in. This doesn’t make the deals great however, and a herd mentality to get in, as seems is happening in the Dominican Republic, is no reason to invest. Plus, some developers are trying to gain credibility with flimsy associations, as Cap Cana is doing with Donald Trump.
I don’t know why you say you are “just really confused.” The research is not difficult. If you have to spend most of your discussion explaining away the negatives, I think you answered your own question.
I have a friend who invested in DR “investment” properties, specifically, vacation rentals. They were supposed to rent for a certain amount, and at a certain frequency. But with people no longer spending on vacations, they were a dud. This was 2 yrs ago when they were in phase 1 and he wanted me to get in on the ground floor with him.
Yes there are limited taxes but also, limited utilities, limited law enforecement and limited laws. When your money leaves the country it leaves our protection as well. But you can invest internationally with reputable firms.