There are many ways to invest in real estate in a growing market like Las Terrenas in the Dominican Republic. Presale projects are definitely a very attractive option to consider given its numerous advantages compared to resales. Naturally it is important to work hand in hand with a trustworthy broker who will present the right developments and professional builders locally.
Discover in the article below 7 reasons why invest in a new construction on presale in the upcoming beach town of Las Terrenas.
Secure the best units in the project
When investing at the very beginning of a new construction project, one can secure the best units to buy, detaching from the competition in the local real estate market. Strategically it is very attractive to position on these units since they are the ones likely to yield higher returns and capital gains.
These units are typically rare in the project or the more luxury units. They will attract more interest from future buyers at the moment of reselling or renting.
Low starting price
Asking prices in new projects typically start at floor price for the developer. This is usually 25% to 30% lower than the market value at the time of reserving the unit. Prices will then gradually go up as the units in the project are sold.
Immediate property appreciation
New constructions benefit from strong and immediate capital gains as soon as the project is completed. As a pure financial investment, it can be very interesting to purchase the first units of a new project at discounted price and resell with a substantial return on investment.
In a local real estate market like Las Terrenas where the resale properties are usually finished with lower quality materials which were available 10 years ago, it makes more sense to buy a new build. One can then benefit from modern finishes, equipment of quality and detach from the existing competition thanks to high-end construction standards.
Adapt the design, choose the finishes and furniture
Another advantage of buying real estate on presale in a new project is the flexibility of floor plans and designs. In most cases, the architect and constructor are open to adapt the design to a certain extent and without additional costs. One can thus customize the layout and review all the details before the actual construction. A nice way to truly feel home!
Most presale projects benefit from Law 158-01 (CONFOTUR Certification) which exempts first owners from all property taxes for 15 years:
- No 3% tax on transfer of property
- No 1% yearly property tax (IPI)
- No tax on rental income
- No tax on capital gain when reselling
After booking your unit with a small down payment (5% or less), pay your property as the construction advances, step by step. This way one can monitor the construction progress and quality and pay only a percentage of the total price until the construction is completed and the title of property is transferred.
Here is a typical payment structure in presale projects:
- US$5000 to book your unit
- 25% at the beginning of works
- 25% at completion of foundations and walls (4months)
- 25% at completion of roofs (4months)
- 20% at delivery of the keys (4 months)
- 5% at reception of the title of property – US$5000
Are you convinced already?
Discover here all our Properties on Presale and benefit from attractive starting prices! Get in touch with one of our agents for more information.