Many people dream of sitting on their veranda, sipping tall drinks while watching the sun go down in a tropical paradise such as Punta Cana. Many immediately tell themselves it’s a pipe dream, assuming that the cost of an island home is out of their reach.
New research by the National Association of REALTORS shows that while the median income of those who own their primary residence is $79,650, the median household income of people who own vacation property is not significantly more: $94,380.
Almost forty percent of vacation home owners from North America plan to use their properties as family retreats, and sixteen percent plan on converting their vacation home into their primary residence at some point in the future.
More than forty percent of buyers were interested in a vacation home’s income potential, and sixteen percent availed themselves of low real estate prices, feeling that they had got “a good deal.”
The study also reveals that more than two thirds of vacation homes bought by North Americans in 2015 were financed with a mortgage. With several banks in the Dominican Republic offering mortgages to US, UK, and Canadian residents, this trend is expected to continue and the number of vacation homes financed by mortgages will increase in the coming years.
At the moment, US, UK, Canadian residents can benefit from Dominican mortgages of up to 70%.