Dominica

The basics/background – The island of Dominica is located in the Lesser Antilles roughly where the Leeward and Windward Islands meet. The nearest islands are Guadeloupe to the north and Martinique to the south. Dominica is roughly 29 miles long and 16 miles wide, making it one of the larger islands in the Lesser Antilles. Population estimates are around 75,000, comprised mostly of native peoples, some Carib descendants and a small – but growing – number of expatriates. The primary airport is Melville Hall (airport code DOM) located toward the northeastern corner of the island. Most flights in are connecting from Antigua (via Liat) or San Juan (via American Eagle). Most of the real estate interest appears to be oriented toward the quieter western (or lee) side of the island and toward the Calibishie area on the northern coast. Ferry service is available to/from Guadeloupe, St Lucia and Martinique. Currency is the Eastern Caribbean Dollar, tied to the US Dollar at a fixed rate of about 2.7 EC to 1 US Dollar.

Dominica is fairly unique in most respects, when contrasted with other Caribbean islands. It is relatively undeveloped, undiscovered, almost pristine in terms of its natural heritage. It is the kind of island people would go to for a getaway from posh, glitzy resorts with lots of activities. There is excellent diving, hiking, waterfalls, uncommon whale-watching opportunities, unusual natural features (the Boiling Lake, the Emerald Pool, black sand beaches and the like), an aerial tram that skims the canopy for 90 minutes to 2 hours, etc.. There are no branded hotel chains, no casinos, no major shopping districts (excepting some small areas near the cruise ship port in Roseau), few postcard beaches or “5-star” anything. Infrastructure is fairly rudimentary, though there is plenty of fresh water, as the island is covered with rivers and receives more than 300” of rain per year. Roads are pretty frightening as most (particularly the interior ones) are full of holes and only about 1 ½ lanes wide and drivers tend to drive fast and aggressive (our initial driving experience on the island was being run off the road with 2 flat tires after making it only 7 miles from the airport). Electricity is fairly available, though in 220 volts/50 cycles requiring a transformer if coming from North America. The island is very third-world in feel – roaming goats, cows and dogs; people bathing in rivers; corrugated aluminum housing throughout much of the island; the primary occupation of most is agricultural with small plots and road-side stands to sell their produce.

Desirability for investment - Unlike most other Caribbean destinations, the Dominica’s appeal lies mostly in what it is not. Prices are pretty reasonable, though rising in recent years. Construction costs are about Caribbean average. The fairly large size of the island – in relation to most other Antilles islands – offers many interior parcels, including numerous one acre + lots. The highest points on the island approach 5,000’ above sea level and there are many steep sections. [Obviously, flatter lots or ones with gentler, easier to build grades command more money.] Many lots have river frontage, often with small waterfalls on the property. Foliage is fairly overgrown, largely due to the copious rainfall. We feel that the island’s greatest potential lies in its “escapist” potential. Rainforests, mountains, absence of typical tourist destinations, activities and bustle make its personality rare among Caribbean options. There is little regulation of development, so expect few headaches for permitting, inspections and limits on grading or construction.

Location: WITH MAPS OF CARIBBEAN AND AREA

Dominica's location (far right of map at 15' N latitude)

Dominica

Investment Appeal:

OVERVIEW

The tax and land use landscape of Dominica:

There are no restrictions on private ownership of land in Dominica. For non-residents or citizens, a non-belonger’s license is required. Property taxes are extremely low, in some cases only $20 US per year or so. Fees for purchase are very high – roughly 10% in stamp duties/transfer fees and another 10% for the alien landholder’s license. On the books, the 10% license fee is only for larger parcels, but the Registry has been enforcing the fee on ALL purchases. Dominica is a former British Colony, so most governmental functions (titlework, systems of ownership, common law, etc.) operate similarly.

Building costs are anywhere from $100 to $300 per square foot or slightly below Caribbean average.

RENTAL

Rental of properties is difficult to generalize… Caribbean rules apply. There is a high season of about four months (December through April, usually starting around Christmas) and a big drop-off to the off-season. Costs and rates tend to be a little below average for the Caribbean. A well-appointed villa may be $1,000 or more per week, but most properties are more like average apartments. Management or caretaker services, housekeeping, carrying costs, etc. are also below average. Expect 20% plus or minus from a management company.

OWNERSHIP AND TITLE INFORMATION

Ownership is freehold and subject to few restrictions. The process will generally be an offer coupled with funds equal to around 1% of the purchase price. If accepted, further down payment to 10% will be expected. The balance of the purchase price will be paid and the title transferred upon satisfactory title review. Attorney's fees for the non-belongers application and conveyance can be estimated at around 1-2%.

Dual citizenship is available for purchase with fees from $75,000 for a single resident to $100,000 for a family (cost in US Dollars). The fee is referred to as a "donation" to the government. Further, expect a processing fee of $25,000 family, $15,000 individual and a due diligence fee of anywhere from $3-10,000.

Representative listings:

Like most of the Caribbean basin, Dominica is without a MLS system to help in your search for properties. The few agencies with significant listings we could find are listed below. Like most of the Caribbean, it is often best to simply pick an area you like and start asking around with the locals, cab drivers, etc. as they always have more information than any single realtor ever could. Best websites/real estate agents appear to be: dominica-estate.com; safehavenrealestate.com.

Prices vary widely by area, samples below are representative of a wide cross-section (all prices below in US Dollars). Note: Calibishie (north end) appears to be hottest right now, in terms of interest, though larger, inland parcels appear to be more and more popular for people looking to "settle-down" or retire to the island.

Cochrane - Two-story home with 2, 3 bedrooms/2 bath units located on approximately one-half acre. Asking $363k.

Jimmitt - Three bedrooms/2 bath home on 1/4 acre located off of adjoining river. Asking $184k.

Roseau Valley - Three bedrooms/3 bath home on 3/4 acre off of adjoining river. Asking $558k.

Goodwill - Three story home with pool and 5 bedrooms/3 bathrooms with views (set-up as two, larger apartments and one smaller on the first floor). Asking $484k.

LAND:

Temple - 65 acres with substantial sea front near airport on north end. Asking $8.4 million.

Woodfordhill - 15 acres of flat, dividable land. Asking $530k.

Rosalie - 2 acres with ocean view. Asking $67k.

Macoucherie - 3/4 acre with sea view. Asking $85k.

Castle Comfort - 1/4 with sea view. Asking $35k.

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