TIPS WHEN BUYING A HOUSE OR APARTMENT in Bayahibe

Step 1:

Make Sure You’re Ready to Buy.

If you’re thinking of buying a home, this step plan will help to guide you in the right direction. But before we jump right in, you have to make sure three things are ready: you, your bank account, and the real estate market.

Are you ready? Be sure.

Owning the roof over your head will bring you great pride, but with that pride comes accountability and sacrifice. There’s the obvious financial responsibility, but your home will also require constant care and upkeep. That’s what real pride of ownership is all about.

Is your bank account ready? Check it twice.

Your first home will be the biggest financial obligation you’ve ever faced. You should already be an experienced saver, and good at managing debt like student loans or credit cards. Ideally, you’ve also saved up some money for a nice down payment. Talk to your financial institution about the Home Buyers Plan too. Our next step will give you a crystal clear picture about how much you can afford.

Is now a good time to buy? Here’s the hottest market tip you’ll ever get.

Markets go up, markets go down and even the smartest experts can’t accurately predict when a market will peak or bottom out. The good news is, if you’re buying a home as a long-term investment (and for long-term enjoyment), you’re protected from short-term changes in the market. Over time, real estate has almost always increased in value.

All you have to do is pick a home that meets the needs of you and your family. Then you’ll enjoy living in your investment as it grows in value. A home is one of the best financial decisions you can make, so make sure you think things through.

Step 2:

Find out how much you can afford.

Before you start looking for your dream home or apartment, let's find out how big you can dream. Knowing your true budget is the first and most important step in buying a home or vacation home

Why?

A house or even an apartment is a big purchase.

It's probably the most expensive thing you'll ever buy, and there are many expenses you might not even know about. The total cost is different for everyone, but there's almost a guarantee you won't have saved that much money. Hope you have enough for a nice down payment. Here is the reality in detail:

Cost of buying a home = One-time costs (down payment, legal fees, inspection fees, taxes - you're lucky you pay little tax in the Dominican Republic)

Monthly expenses (mortgage, utilities, maintenance, insurance, >property taxes > not for you in the DR)

Yes, you need a mortgage.

Step 9 is brimming with tips on how to arrange your mortgage, but for now we just need to figure out how much a bank will lend you.

How much does a bank lend you?

Well, that depends on how much you can afford each month. This is determined using two credit principles.

The first lending principle is that your monthly housing costs should not exceed 32% of your monthly gross family income. This principle is known as the Gross Debt Service Ratio (GDS) calculation. (Dominican TDS if you are interested) data.worldbank.org/

The second lending principle applied, the Total Debt Service (TDS) Ratio calculation, states that your monthly housing expenses and payments on all your other debts (including loans, credit card, and lease payments) should not exceed 40% of your gross monthly income.

Step 3:

Decide what you want to buy.

First decide where you want to live.

What speaks for Bayahibe

• The small fishing village of Bayahibe. Sure, prices are generally higher, but you can walk to a restaurant or comedor where you can dine out for less, maybe even to work. They also have the widest range of housing options.

• Have kids we recommend in Bayahibe Academia Internacional Dominicus, newer malls, small and bigger apartments, bigger houses, no wonder so many people love Bayahibe.

• Smaller Towns and Communities - There are many wonderful, self-contained communities in the area and compared to the big city you can enjoy nature

• Love the Countryside - If you like the idea of owning land, how about a few acres all to yourself? Seclusion isn't for everyone, but for some it's heaven.

Next, decide what type of house you want.

By now you probably have a good idea of what type of home is right for you. To familiarize you with the terminology, here is a quick overview:

One-family house (freestanding)

As the name suggests, the house is not connected to the neighboring house. Styles range from a one-story suburban bungalow to a three-story Victorian.

Semi-detached houses are rather rare in the Dominican Republic

Duplex or triplex

A two-story or three-story house, with each floor owned by a separate family. Separate entrances are the most common.

Townhouse

Also called terraced or terraced house. Several houses connected in a row with a common style. They usually share walls on both sides. May come with a monthly maintenance fee.

Condominium

An upscale version of an apartment. Usually located in high-rise buildings with access to common elements. Maintenance fees usually apply. Condos are also a great first home purchase, often costing thousands of dollars less than a single family home.

How condominiums are

You own 100% of your unit and a share of the common areas. The common areas include the necessary sanitary and electrical systems, corridors and elevators. They can also include lots of fun things like a private gym or a party room.

Condominium fees

Membership has its privileges, and it costs. In addition to your mortgage and property taxes, condo owners also pay a monthly fee for the operation and maintenance of the common areas. Be sure to check condo dues and how well they are managed before signing anything.

New or Resale?

Resale. loved before.

Nothing can match the charm and character of an older home. As a bonus, the previous owner may have made improvements and upgrades that you get with the home, usually for less than the cost you would install yourself. Some might have a little too much "character" though, like a leaking roof...you know what you're getting into. You should always work with a knowledgeable REALTOR, and as we cover in Step 10, never buy a resale home without a home inspection.

Ahh... that new house smell.

You will be the very first person to live in your new home. In fact, your new home may be so new it's not even built yet. You have the luxury of customizing your home to suit your interior design tastes. But when you move in, be prepared for constant touch-ups from your builder; Dust, mud and dirt roads if your area is still developing; and Moving and settling in your home (cracks and popping nails) within the first year.

Before committing to anything, carefully examine the property and building plans, and visit other homes built by the same construction company. Check that you like the finishes on offer, as well as the craftsmanship and quality of their work. Have your REALTOR® and attorney review everything before signing. Stay informed as your home is being built and remember that you have the legal right to fully inspect the home before accepting it as finished.

You know what you want, but remember to focus on the needs.

Are you getting out of a two bedroom apartment somewhere in the US or Europe because it's too small? Then your new home in the Caribbean should have at least three bedrooms and probably a second bathroom. REALTORS call these must-have features "Needs." Features you wish to have are referred to as "Wishes".

Your strategy should be to find a home in your price range that meets all or most of your "needs" and as many of your "wants" as possible. Use the dream home checklist to decide what to look for in a home.

Step 4:

Find a Realtor® that's right for you.

You know how much money you have and you have a good idea of what you want. Now you need the help of a true professional to make your search a success.

REALTORS®. Well trained and constantly educating himself a recommendation from the Realtor Walter Cavagna is Managing Director with a lot of experience

In the Dominican Republic, licensed REALTORS® are members of their local real estate committee, a provincial association, and the Dominican Real Estate Association. This membership system ensures the highest level of service and that you are always treated with honesty and integrity. This is supported by the REALTOR® Code of Ethics.

The three REALTOR® relationships

The relationship between a real estate agent and a client is referred to as an "agency" and there are three main types:

• Vendor (seller) agency

The real estate agent and all his REALTORS® represent the seller solely and it is their job to get the best deal on the home. You are required by law to tell the seller everything you know about a buyer. For example, if a seller's REALTOR® knows that a buyer will pay more for a property, they must notify the seller.

• Buyer (buyer) agency

The real estate agent and each of his REALTORS® represent the buyer solely. They look for homes that fit the buyer's needs and help assess the merits and flaws of potential homes. They keep the buyer's information confidential and never share information like the maximum amount their buyer is willing to pay. Your REALTOR® may ask you to sign a brokerage agreement. Actually there are in some provinces

REALTORS® need you to ask for your own protection. This agreement ensures that the REALTOR® and the brokerage firm can represent your best interests.

• Double agency

Sometimes a broker can have an agency relationship with both the buyer and the seller. Both the seller and the buyer must provide their informed consent, and the REALTOR® must always disclose all relevant information to both parties in a full and timely manner.

SELLING AND BUYING WITH THE SAME REALTOR®?

Absolutely! Especially if you stay in the same community. Your REALTOR® is already an expert on your needs, so you can save a lot of time and energy.

Choosing a REALTOR®

There are many ways to find a REALTOR®. When driving through potential neighborhoods, write REALTORS® names and numbers on the For Sale signs. Open houses are a great opportunity to meet face to face. Perhaps friends or family members have worked with a REALTOR® they love. Interview two or three and pick the one you like the most.

How REALTORS® are helping buyers like you.

A REALTOR® will review your list of wants and needs to help you determine your price range.

• Answer questions about the markets that interest you and help compare homes and neighborhoods.

• Use the local Multiple Listing Service (MLS).

• The MLS is the most powerful tool for buying and selling a home. Your REALTOR® gives you access to exclusive features of the MLS system that are not known to the general public.

• Preview properties to ensure you only see homes that fit your needs and budget.

• Make appointments and guide you through potential homes and answer all your questions.

• Provide up-to-date information on financing and explain your mortgage options.

• Negotiate with the seller, resolve any conflicts and create a legally binding contract.

Stick with your REALTOR®

One dream, one team. The REALTOR® you select becomes the expert on your specific needs and preferences.

Dividing your time and energy across multiple REALTORS® will counteract your goal of finding your best home. And since most REALTORS® have equal access to the same real estate listings, there is no real advantage to having multiple REALTORS®.