Quote:
Originally Posted by lexa
Hi,
I'm looking to buy a property in Santiago. I either want a lot in a decent area or a rundown home could be in construction so that I may build new or remodel. In other words I would like to purchase very cheap. I've already seen some property for some reasonable prices but I'm not sure as far as how the owner want to be paid out. do most sellers accept bank loans (mortgage) like the US or do these sellers want their money on the spot? Also witch Dominican banks have the lowest interest rates?
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Most owners expect to be paid at signing. If you bring 3rd party financing, that usually won't affect the seller as the bank will provide a check or deposit.
Some "developers" will have a "deal" with a bank or even offers some in-house financing at horrendous rates for first time buyers or people who feel they won't stand a chance at a bank anyway.
Few and mostly foreign private sellers will offer owner financing... usually between 6 to 12% in USD.
Banks may offer mortgage specials (
feria) now and then regionally. The lowest rates I've ever seen in DOP in recent years was 12%... which given the inflationary and exchange rate, was a giveaway. However 16, 18 and easily higher percentages in the twenties are more common. Loan life is often limited to 5 or so years with a final balloon payment.
In other words, you will probably want to pay cash or bring money from an equity mortgage from abroad.
... J-D.
(10)
Need buying advice
