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US$1 equals 16 DR pesos
It’s harder and harder to find real estate in the Caribbean that isn’t overpriced. But there is a place, one of my favorite islands, with an idyllic climate, inviting white sand beaches, and reasonably priced housing and living expenses. 

It’s the Dominican Republic. The D.R., as it’s commonly called, is a pleasant surprise for many first-time visitors. The people are friendly and hard-working, and the D.R. currently has the best buyers market in the Caribbean…but it won’t last forever. 

The new government has made some positive changes. The infrastructure problems are receiving top priority. Land ownership restrictions have been eliminated. Now anyone can own property virtually anywhere in the D.R., and there are no real estate taxes. For the first time in 20 years, the government has allocated millions to promote this beautiful country. The D.R. economy is booming. Property prices have been flat for several years, and we now have a progressive young president. 

The recent ad campaign in North America means that many Americans will soon hear about the Dominican Republic; thousands of Europeans have already moved here. North Americans have been missing the boat. This country has a democratic tradition of land ownership and government. It’s only a matter of time before prices increase to parity with other Caribbean islands. 

The undiscovered North Coast 
On my last D.R. visit, I was accompanied by a friend, who usually agrees with me on places we like-that have good fundamentals for above-average property appreciation. Places like Panama, Nicaragua, and Belize. But it was clear from our conversations that he had written off the Caribbean as “overpriced.” I convinced him the D.R. still has bargain real estate, and we arranged a trip together. 

On the ride into Santo Domingo from the airport, I asked the taxi driver what he thought were the three biggest problems in his country. Without hesitation he named electricity, the water, and the garbage. 
As is typical in Third World cities, the answer applies mostly to the capital, where most of the people and problems are. As strange as it sounds, most Santo Domingo residents have never been very far outside the city. But, if you head over the mountains, as we did, in a new, comfortable, air-conditioned Metrobus, tel. (1-809)566-7126, you will arrive in a few hours in another, more peaceful world: the North Coast. Here, you will find only traces of those three big problems that bother the big metro area on the South Coast. 
We stayed in Sosua, a pre-war European village that has bistros, clean beaches, and best of all, property bargains. We visited several realtors there. We saw a 4,000-square-foot, 3-level, 4-bedroom villa overlooking Sosua, selling for  $195,000. It would bring $500,000 on most other Caribbean islands. We saw a 1-bedroom condo in a peaceful tropical garden near the beach going for $39,500, and a studio just steps from the beach, for $20,000. I asked Lynn Ostermann, an agent with West Indies Real Estate, (EPS D-210, PO Box 02-5548, Miami, FL 33102; tel. (809)571-2838, fax 2860, e-mail: i.west@codetel.net.do, website: www.caribpro.com/west-indies-real-estate), why they don’t advertise these deals. “In many cases,” she said, “the listing price is much higher…sellers are very negotiable now…many times I’m in shock when a low offer is accepted…I sometimes wonder, why didn’t I buy that?” 

A realtor on the North Coast that I feel comfortable recommending is Jim Belair, owner of American Realty, El Batey, Sousa, Dominican Republic; tel. (809)571-3646, fax 2925, e-mail: american@codetel.net.do, website: www.dominicana-sun.com/americanrealty. Jim has lived in the Dominican Republic since moving there from Canada in 1985. Jim provided us with some answers to frequently asked questions about the D.R., such as the cost of living. Although some things, like vehicles and appliances, cost more, the overall cost is definitely less, with no costs at all for winter heating and clothing. Also, there is no property tax. 

Phone service here is almost as good as in North America, and an Internet connection is easy to get. Most North American children attend private schools taught by Americans and Europeans. They have classmates from all over the world. Classes are small, with more teacher time per student. Jim told me, “Here, I feel my nine-year old daughter is safe waiting on the roadside near her school, or anywhere in fact, because of a different cultural attitude. It is easier here to spend time with my family as there are less distractions. However, life here tends to be a little louder, and people are not as tidy.” 

Easy residency requirements
Large villas on the beach start at $249,000. A short distance from the beach, homes are $50,000 and up. 2-bedroom condos on the beach go for $135,000, but a short distance away they cost $20,000 for a studio, and $39,900 for a 1-bedroom garden condo, with a pool and a security guard. Construction costs from $35 per square foot. 

Buyers should ask around about the agency they are working with. Ask the people who live here, who work in the hotels and the restaurants. Ask the business people. These are small communities. People know and will tell you who has a bad reputation. Those of us who are here for the long haul would prefer newcomers not to get started on the wrong foot. It’s bad for business. The same goes for a local lawyer, who can help immensely if he is independent and not working for one agency. 

I recommend  Evander Campagna, tel. (809) 582-7181 fax 571-2345 e-mail: evandercampagna@hotmail.com. They have offices in Sosua and Santiago. I would also recommend checking with your own consular officials. 
Residency requirements here are very easy. Usually a lawyer will do the legwork as you supply copies of your passport, personal information, and photos, and get a medical exam. Meanwhile you can stay at least two months on a tourist card, and up to three more months if you pay a $20 fee at the airport. If you are planning on operating a business you must have residency. You don’t have to invest to qualify, just being here is enough. 

Four good deals
Great buys right now include: 
• A 4-plex only four minutes from the beach for $150,000. 
• A hillside 2-bedroom villa with a separate guest apartment with a great view of the ocean, and large lot, with room for expansion in a quiet area for $125,000. 
• Two 650-square-foot 1-bedroom condos in an American-built project popular with foreign residents at $39,900 and $42,900. 
• A small studio condo for $20,000. 

When looking for a property, have some simple rules in mind if you wish to ensure a future profit on your property investment. Don’t be in a hurry: you can save a lot of money if you just wait for the right time. Do your research: there are deals here, but they won’t advertise themselves. Knowing a bit of market background for the area you’re interested in can only help. And, as always, check out the location.
Organize your search. After deciding your price range, make a list of amenities that your property must have, such as the view, if it’s on waterfront or beachfront, if it has a boat dock, a pool, or a golf course.
During the final stage of your purchase, stay at the property or nearby. Many sellers will happily offer a rental discount if they know you are a prospective buyer. They may also deduct the rental cost if you do buy. While there, check out the local situation. Talk with neighbors, expatriates and fellow countrymen who live in the area. Attend social and sporting events, get a feel for what it would be like to live there. Before making an offer, get a contractor’s estimate of repair costs. Check out the vendor. Get impartial advice on local lawyers and get their fee schedule. Ask about transfer taxes, duties and other buying and closing costs. 
Though not the norm in many locales, try to get the seller to provide title insurance that will refund your investment if a title problem appears later. Even if you have to pay for title insurance, your peace of mind is worth its cost. We’ve found a reputable U.S.-based company that offers title insurance throughout the English-speaking Caribbean. Contact: International Data Management, tel. (561)798-6645, fax 8386. 
Although bank financing is not available to foreigners in most offshore locations, terms are possible from sellers, especially in buyer’s markets, such as this one. 

Many resort areas have excellent rental management companies, with commissions ranging from 12% to 20%. I recommend Mr. Jas Somerton, Sosua Central Rental; e-mail: sosua.c.r@codetel.net.do. In the past four years, after presenting over 5,000 Caribbean and Latin American properties for sale, I have not seen a better example of a classic buyer’s market about to turn around than the Dominican Republic. Jerard Ritter has published the Caribbean's closest thing to a multiple listing service, the Caribbean Property Report, for the past five years. It includes hotels, private islands, businesses, and residential properties for sale. You can pick up a copy through the IL website, in the on-line Bookstore. For more Caribbean property listings, go to his website: www.caribpro.com. IL