Developer Financing for Canadian Home Buyers – Dominican Republic

Casa Linda Casita, 2 bedroom with full kitchen

If you are a Canadian overseas property buyer I know you are concerned about the unfavourable exchange rate at this time. In the past year the Canadian dollar (CAD) has dropped against the US dollar (USD) to a 13-year low at one point. Not the ideal situation for purchasing your Caribbean home. But don’t hit the pause button yet.

During a recent meeting with one of our developers Eric Sandmael, President and CEO of Casa Linda Residential. Eric discussed a new finance program for the Canadian market to help off-set the impact of the unfavourable exchange rate. This purchase strategy works by leveraging the financing offered by the developer so that you are only paying for 70% of the purchase price. While using your rental income earned in USD to pay all your monthly expenses and your financing payments (no further payments are required).

Why Will This Financing Work?

This will work for several reasons.

Villa Sunset Casa Linda

Villa Sunset

Today the Dominican Republic has the largest tourism market in the Caribbean. “The number of international tourists visiting the Dominican Republic grew an impressive 8% between January – November 2015, compared to same period in 2014.” Also “according to Central Bank figures, more than four million international visitors traveled to the DR through the country’s various international airports” AccessDR

Another important reason is the DR has a strong economy with a GDP growing from January 2013 (2.9%) to January 2015 (6.6%). Refer to Wildefire’s  Retire or “Unretire” Blog 

Next is Casa Linda’s twenty successful years of experience in the vacation rental sector. They have an excellent on-line booking system as well as an international marketing program. They offer high rental occupancies at rental rates between $125 – $550 per night and are also well represented on sites like Expedia, Trip Advisor, Travelocity, etc.

Developer Canadian Financing Program:

  1. 70% Buyer pays only downpayment in USD
  2. 30% Balance financed by developer at 1.9% interest
  3. Your monthly rental income in USD to pay for the balance of your purchase
  4. Villa must be in Casa Linda’s rental program
  5. No payout penalty
  6. In case of disaster resulting in shortfall of rental revenue the buyer will have to pay a minimum pre-agreed amount per month in USD.

Here is the Scenario:

Villa Sunset, 2 bedroom (including lot, villa, pool, landscaping)

  • Purchase Price                              $ 126,900 US
  • Buyer Pays                                     $  88,830 US
  • Balance Owing                              $  38,070 US  **

** Remaining balance owing will be paid off by monthly USD rental revenues generated by your villa – no further out of pocket expense.

This special Canadian financing program applies to all villas offered by Casa Linda.

For more detailed information on rental revenue, expenses, net income or ROI email at [email protected]

 

 

 

 

Tell Your Friends!