Building a House in The Dominican Republic Part #1

If you are considering building a house in The Dominican Republic or investing in real estate in The Dominican Republic, you can follow the adventures of Roger and Annina who contacted DR Property Guys to see if we could help make their dream come true by helping them build their forever home on the north coast of The Dominican Republic.

The Reasons Behind the Move

Initially an old video about Caribbean Life inspired Roger and Annina’s move to The Dominican Republic. That and a desire to pursue a more cost effective way of owning property and living in The Dominican Republic versus the cost of owning property and living in their native country of Switzerland. Being seasoned travelers around the world, they had a clear understanding of the standard of lifestyle they were looking for, and the budget they would need to make that happen. With a love for a warmer climate, swimming, surfing, tennis and as it turns out gardening, The Dominican Republic seemed to tick all of their boxes.

Choosing The Right Real Estate Agent

Possibly the most important decision you will make and one which will determine the outcome of your desired plan to build a home in The Dominican Republic. A good real estate agent can guide and steer you throughout the entire process. Finding the right lot at the right price in the right community. Steering you through all the required legal processes, finding the right lawyer, architect / surveyor /  builder / developer. Not to mention translating and communicating all relative information allowing for the freedom to make informed, intelligent time and cost saving decisions.

Finding the Right Community, Location and Lot in The Dominican Republic

When buying real estate in The Dominican Republic, or anywhere else for that matter, the old adage “Location location, location” always springs to mind. But there are other important considerations that shouldn’t be overlooked as follows:

Ocean front lots

It’s everyone’s dream to live by the ocean, but it does come with a couple of important caveats. Belongings such as furnishings, clothes, electrical items and vehicles perish at a faster rate due to the saline nature of ocean air. It’s also important to take into account elevation, erosion and proximity to the ocean relative to storms and hurricanes that can pass by from time to time. That being said, ocean front property in The Dominican Republic has increased in value exponentially over the years, so it’s always a good investment of you have the capital.

Gated Communities Versus Non Gated Communities in The Dominican Republic

Basically these are the two options available to anyone considering buying real estate in The Dominican Republic. A gated villa or condominium community generally provides security, roads, lighting, refuse collection, water and a back up generator to ensure power 24/7. For this,  a monthly community charge or a HOA fee (Home Owners Association)  is required to cover the overhead for providing these services. This is generally the preferred option for anyone wishing to buy property in The Dominican Republic. At the time of writing this article the average HOA fee on the north coast of The Dominican Republic is around U$350 per month.

There are also some property owners here that prefer to live outside gated communities who by doing so negate HOA fees, however, these are generally people that have a good knowledge of the country, language and culture and who set their own parameters in terms of security and oftentimes live in tight knit communities and less remote areas. Location and security should be key considerations for anyone wishing to buy real estate in The Dominican Republic.

Starting the Process of Building Your Home in The Dominican Republic

Once the lot has been identified, it’s time to make a formal offer. A good realtor will do their utmost to get you the best deal and then guide you through the process of making a written offer. This is usually made with an accompanying good faith deposit which will be returned if the offer is rejected, or be applied to the final cost of the property if the offer is accepted. Once the offer is accepted, a 10% down payment is required with full closing some 30-45 days later.  Should travel commitments mean that a buyer cannot be present for closing, this can be can be circumnavigated by arranging a power of attorney, using docusign, or by using FedEx. Receiving the title for the property would take typically 3 to 6 months.

Designing Your New Home

In this day and age, the convenience and flow of the property are of utmost importance. At some point the property will be up for resale and so it’s important to think about this going forward and not opt for too may quirky features that might inhibit the future sale of the property. It’s a good idea to consider air flow, light, where does the sun rise and set, height of ceilings / doorways,where will the shaded areas be at certain times of the day, what might be the effect of heavy downpours and where might the water accumulates etc. The indoor and outdoor living areas should flow seamlessly between one another and the outdoor living area should be an important consideration regarding size, protection from the elements, comfort and accessibility to the kitchen, bathroom and pool area. The home being on one level with little to no stairs to navigate is also a plus for your own personal comfort and for resale value. An architect will generally charge U$20 per m² for the plans to be drawn up which need to be presented and taxes paid which at this time are just over U$15 per m². Social security and insurance also have to be taken into account.

Choosing your Developer / Construction Engineer

A crucial appointment, you need a developer with a first class reputation which goes without saying. In this particular instance an extensive soil study was carried out to determine the structural requirements of the build before breaking ground. As mentioned previously, your real estate agent can help you navigate this process.

Don’t Forget to Check Out: Building a House in The Dominican Republic Parts 1-8

You can also find listings and other informative videos about buying real estate in The Dominican Republic, or lifestyle videos about The Dominican Republic by visiting our YouTube Channel here, please don’t forget to take a second to hit the subscribe button.