When investing in real estate in the Dominican Republic, most individuals only consider buying a condo unit. However, investing in a lot in a master-planned community in the early stages of development is an option you should consider. This option could make sense for someone who is more than five years out from making their move to the DR.
Here are four advantages of buying a lot versus a condo.
Advantage #1 – Lower Initial Investment
The cost of a lot can vary depending on the project and its development phase, with prices starting as low as $20,000. Plus, in some cases, developer financing is available. During the initial stages of development, you don’t have to pay ongoing maintenance expenses and homeowner association (HOA) fees.
Advantage #2 – You’re In Control
When you purchase a lot, you can design and construct a home that suits your specific needs, tastes, and lifestyle. You have complete control over every aspect of the building process, from the architectural style to the materials used.
Some folks may want to avoid taking on home construction in a foreign country, which is understandable. That said, in most cases, developers will consult owners and manage construction on their behalf.
Advantage #3 – Flexibility and Options
Owning a lot gives you flexibility and options. You can decide to build on the land now or in the future, buy and hold it, then sell it later for a profit, or maybe hold onto it until you know exactly what you want to do.
Advantage #4 – Huge ROI Potential
As the DR continues to grow in popularity as a tourist and expat destination, the value of land or lots will continue to rise. And, as the community where your land sits and the surrounding areas continue to develop and grow, you’re looking at huge capital appreciation potential.
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Maria Abreu is the CEO and Managing Attorney of Abreu & Associates, a law firm practicing exclusively in Dominican Republic Immigration and Nationality law. She is also the founder of Retire and Invest DR. This organization hosts conference events for foreigners interested in living, retiring, and investing in the DR. You can contact Maria at: mabreu@abreuimmigration.com.