The Dominican Republic is a relatively new destination to think of when planning for your retirement, but its popularity as a retirement location has been growing exponentially. Reasons for its new popularity include but certainly are not limited to the near perfect weather, absolutely gorgeous beaches and golf courses and of course the great exchange rates for Americans. These factors combined with the fact that because the Dominican Republic is a relatively new developing country, it is extremely affordable in most areas, it is safe to assume that its popularity will only be increasing further in the near future.
When choosing a retirement location, one of the most important factors that people consider is if they were to purchase property there, how easy it would be for them to obtain a mortgage and what kind of rates they should be expecting to pay. This is important to investors since international mortgaging is different in every country and it can sometimes be difficult to find information on it that can be trusted. If you are one of the many visitors interested in purchasing property in the Dominican Republic, and are looking to finance. Get ready to be shocked! Mortgage rates in the Dominican Republic are typically around 20% and can sometimes be as high as 26% and are almost always totally adjustable. Even worse news is that you are going to be purchasing properties with U.S. Dollars; however financing in the Dominican Republic must be done in pesos! Since exchange rates are constantly changing, the amount you are paying for a home is constantly changing, making it impossible to know what is really being paid for the home that was suppose to cost say 0,000.
However, if the Dominican Republic is where your heart is set on for real estate purchasing, there are ways to avoid these outrageous mortgages. The best option is available to those people who own assets or have property in the U.S. If this is the case, the best thing to do is refinance the property that is owned in the United States and use that cash to purchase property in the Dominican Republic. Reasons for doing this are endless including interest rates in the single digits, up to 100% of appraisal value available, and interest payments and taxes on the property in the US are tax deductible.
When purchasing real estate anywhere, there is a lot to consider but especially when looking outside your own country. The Dominican Republic is a great place to retire with affordable properties and beautiful areas, however financing through the United States is definitely the way to go when purchasing property in the Dominican Republic.