Opportunities in real estate investing in ARUBA

Opportunities in real estate investing in ARUBA

Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes

Hi Everyone ,

Let me first introduce myself to the community.

My name in Kenrick from Aruba(the caribbean), I am a young entrepreneur on the island also involved in real estate.

In this discussion I will elaborate more about types of real estate investments in Aruba & where I see opportunities.

Aruba is a part of the Netherlands, but still we are autonomous, this being said the Netherlands still has some responsibilities with Aruba and other caribbean islands.

Aruba has its own currency & its own government.

For more info on Aruba: http://en.wikipedia.org/wiki/Aruba

Real estate in Aruba:

Arubas real estate I would describe as a strong market, we have seen only growth in real estate prices this after more then 20 years after a market correction due to the closing of a refinery leading to job loss and Aruban citizens migrating to other island.

Aruba in the past years have seen major condo projects & is still being invested primarly from Venezuelan investors with there condominium projects.

Property land prices have been rising as supply does remain short of the demand of houses.

Land:

In Aruba if you want to build your own house, 2 ways you could do this either buy a property land or a government owned land leased to you.

Property land being the most expensive(most valueble) & government owned land being the cheapest  with restrictions are still available depending on size average size needed is 300 sq. meters or more.

Housing projects is still a big business because of supply and demand, 

dividing big pieces of property land and developing them into housing project is a good business with draw back in regards to getting permission from government departments, must have a concrete/paved road, infrastructure in place all expenses for the real estate investors costing time & money with could lead into a delay of a year or more.

Opportunity:

Opportunity to buy either a big piece or a small piece of land which could easily be divided can easily double your money in 3 to 6 months time. Buy price & sell price would need to be accounted for.

Opportunity;

We see also investing into rental houses in Aruba, prices per sq meters of a house is around 1500.00(Aruban guilders to 2000.00). I have a building product where we will be able to build for 900.00 to 1000.00 per sq. meters. Keeping in mind a 3 bedroom with a nice fence could rent for about $2000.00 a month with a 90 sq meters home( costing 90.000+50.000(land)=140.000 Aruban guilders converted to $= $78.000.00.

Could also sell in the future if investment goals change for a good profit!

Opportunity:

As prices are rising more people are renting, demand is high for apartments & houses. Buying or building apartment complex is still a good business with a ROI of about 8 to 10 %. Also building small or medium condo projects for Venezuelan tourist that call Aruba their second home.

Opportunity:

East of the island which holds the refinery will soon stop operating, Government just signed a huge MOU with a spanish hotel chain to develop a major hotel, the first on this virgin massive land which would see a major change.

We see the opportunity for apartment complex for working men & women that would need to be imported to be close to their work place.

Prices in that area are still low( non attractive site till now to investors).

Opportunity:

West of the island is where prices have risen quickly, demand to live in the west close to the water is very high. Where you find million dollar homes, some good flips, land being bought build with Aruban prices per sq. meters then sold for double the price or more.

This is a summary of what I see are opportunities in Aruba, many more are available and come out of the blue.

Looking to answer as any questions as possible.

Important facts;

*Aruban notary handles all buying, selling & must pass thru them.

*Aruban Notaries also make official documentations for mortgages for banks & private investors.

*Bank real estate loans( for commercial) renting, buying or building apartments are available 30% down & 8.5% interest!

*Non commercial loans for houses are 6.9%!

*Any one an act as a broker, real estate agent no special permit needed.

If you have any questions..send them my way!

Your friend in Aruba,

Kenrick L

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  • New York City, NY · Member since 2015 · 1 post · 0 votes
    11y

    For more info about David Lichtenstein, the MD, please visit health grades dot com.

  • Houston, TX · Member since 2016 · 1 post · 0 votes
    10y

    Great stuff here Kenrick, 

    Myself and my husband have visited Aruba since 2014 where were married. We are coming in May again year, and this information regarding opportunities to invest is very helpful. Our motivation is to buy condo's off the popular beaches, where tourist are investing, and lease, and/or rent out the condo to vacationers, or long term visits by corporate vendors. I am currently an Executive Advisory Consultant in the US, wanting to establish ground lease purchasing business, but starting with residual cash flow, and continue buying ground lease development property, providing comfortable stays for tourist, and jobs for the citizens of Aruba.  I am also looking for investors who are willing to partner in some of those projects that I could managed under my business InegriTee Group Consulting.  I desire to network with the right  people, don't hesitate to stay connected with us. My office contact is >>>>

    Tonya Bowens

    Senior Executive Associate, Advisory

  • Flipper · Cupertino, CA · Member since 2015 · 265 posts · 27 votes
    10y

    What are the legal/land ownership issues?

  • Saint James, NY · Member since 2016 · 4 posts · 0 votes
    10y

    I enjoyed your post very much. I've been visiting Aruba each year since the late 1980's, and was always intrigued with the idea of investing in some real estate. I have explored many options over the years.  I remember the high interest private construction bonds that were advertised to tourists in the late 80's-early 90's. The billboards were everywhere. Unfortunately, that didn't end well. I also remember the many "developments" that remained empty lots for decades or more.  I know this may sound cynical, but I would think twice about investing in any planned development in Aruba. If the structure is built and people are living there, I might be interested. The real estate market has a bit of a wild west feel. Hucksters abound. Caveat emptor. Other issues I recall- I believe mortgages are only issued for a term limited by the borrower's age and number of years to age 65. A 50 year old can only get a 15 year loan. As a result. many US residents use their equity in their stateside home to fund their Aruba vacation/retirement home. 

    Despite all this, I'm still always looking for the right opportunity to come along. I love the island, and will always go back. 

  • Lutherville Timonium, MD · Member since 2016 · 2 posts · 0 votes
    10y

    Hello,

    I have a question. We are considering buying second home in Aruba, hopefully with rental potential. I was looking at rental income taxes, it seems that we have to pay 20%. Plus, another 20% to property management. Utility bills, etc.  I don't see the profit here. Do landlord charge 20% on top of the rental price, or I have wrong info? Thanks.

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    10y

    Hi Julia,

    Landlord do not charge 20% on top of the rental price, I believe it's 10% for property management 

    As fa as utility bills this would be on the renters account, best way to go.

    Depending in areas you could start by asking $1500 or more for the house, again depending where it is.

    I can always help you find and purchase your home, I am a real estate agent on the island.

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    10y
    Originally posted by @Chet Mazur:

    What are the legal/land ownership issues?

     Chet,

    There are bascally 2 types of land available on the island.

    lease land and property land which is full ownership.

    Both can be bought & also if there is a house on them could also be bought with no problem when you are a foreign person

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    10y
    Originally posted by @Daniel Conty:

    I enjoyed your post very much. I've been visiting Aruba each year since the late 1980's, and was always intrigued with the idea of investing in some real estate. I have explored many options over the years.  I remember the high interest private construction bonds that were advertised to tourists in the late 80's-early 90's. The billboards were everywhere. Unfortunately, that didn't end well. I also remember the many "developments" that remained empty lots for decades or more.  I know this may sound cynical, but I would think twice about investing in any planned development in Aruba. If the structure is built and people are living there, I might be interested. The real estate market has a bit of a wild west feel. Hucksters abound. Caveat emptor. Other issues I recall- I believe mortgages are only issued for a term limited by the borrower's age and number of years to age 65. A 50 year old can only get a 15 year loan. As a result. many US residents use their equity in their stateside home to fund their Aruba vacation/retirement home. 

    Despite all this, I'm still always looking for the right opportunity to come along. I love the island, and will always go back. 

     Hi Daniel,

    How are you doing?

    Things have changed on the island and yes I do recall some problems with one project.

    We have a lot of projects of condo's and townhouses that are ready to buy or are in the pre construction phase.

    Some go faster then others depending on area & developers. Banks on the island are willing to finance showing proof of income with a downpayment. There are some nice ocean front properties at the moment.

    Thanks

  • Lutherville Timonium, MD · Member since 2016 · 2 posts · 0 votes
    10y

    http://www.globalpropertyguide.com/Caribbean/aruba/Tax-Pages

    Thank you, Kenrick, for reply. Above is the "tax" link I was talking about. We are traveling to Aruba this September. What is your contact info please?

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    10y

    Hi Julia,

    i would like to meet you if your still available

  • Enschede, Overijssel · Member since 2016 · 8 posts · 1 vote
    9y

    Hello Kendrick,

    Brillaint informations! Very helpfull

    I am also looking to invest my first rental property. But i do see on the prices keep rising and rising on the west. My parents live there as well.

    I also have questions about taxes on Aruba rental in general.

    Which company you working for ?

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    9y

    Hi William, 

    I work with Remax BonBini. William Prices are going up but I see value in digging deep into constrcution and buying land.

    This is where you really cut pricing instead of using for example general construction companies.

    There is great opportunity in the Aruba markets.

    Send me your questions.

  • Real Estate Investor · Wheat Ridge, CO · Member since 2015 · 36 posts · 2 votes
    9y

    Hi Kenrick,

    If you could invest in one thing in Aruba right now, what would it be and why?

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    9y

    Hi Tyler,

    I would seek out investors to provide capital to buy land and build houses to resell to the local market, huge demand for houses which are in the affordable and median price range.

    I would buy for pieces of land and built and resell for a profit.

    Would take aprox 8 months to 1 year for the whole process but i am confident that houses will sell.

    Bascally have all info ready for a investor to fund.

    I also like buy and hold but have not done much analysis on this.

  • Contractor · city of vaughan, ontario · Member since 2011 · 14 posts · 1 vote
    9y

    hi Kenrick, i will be on the island end of december to mid january. i would love to see the opportunities available on the island. been to the island many time we love it. send me your contact info i will contact you when we are there. thanks

  • Contractor · city of vaughan, ontario · Member since 2011 · 14 posts · 1 vote
    9y

    hi Kenrick, i will be on the island end of december to mid january. i would love to see the opportunities available on the island. been to the island many time we love it.

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    9y

    Good afternoon,

    I will be in Aruba.

    Let me know so we can meet up & show you around

  • Enschede, Overijssel · Member since 2016 · 8 posts · 1 vote
    9y

    Hi Kenrick, 

    My question was parents now have 3 little apartments.

    How do i need to manage my taxes on the rentals? All the rentals are currently long terms. 


    Do you suggest me to go to an accountant to consult ?

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    9y

    because every situation is different, A tax advisor could help

  • Enschede, Overijssel · Member since 2016 · 8 posts · 1 vote
    9y

    Thank you Kendrick. 

  • Rental Property Investor · Bedminster, NJ · Member since 2014 · 217 posts · 60 votes
    8y

    Hi @Kenrick are you still active in investments in Aruba? We will be visiting in May and are interested in learning more about real estate opportunities on the island. 


    Thanks,

    Steve

  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    8y

    hello @Stephen kunen, i am still active and would like to meet you in may.

    Let me know when are you coming

  • Investor · Buffalo, NY · Member since 2016 · 6 posts · 0 votes
    8y
    Thanks for the info Kendrick, I would love to link with you to discuss real estate in Aruba. I’ll send you a request.
  • Real Estate Agent · Oranjestad, Aruba · Member since 2014 · 25 posts · 4 votes
    8y

    hello Nino , please do.

  • Rental Property Investor · Lavallette, NJ · Member since 2018 · 1 post · 0 votes
    8y

    Bon Dia Kenrick, I was looking to acquire more property in Aruba for the long term and have a question if i could get your opinion? So in the US its easy to go on one website and see 90% of property for sale in your area but as i search for properties in Aruba i come across more than 30 different websites that list homes, land, rentals and more. Some are Dutch, some are Arubian, some are American and some are UK made. With so many websites to search through i was wondering if there are and specific websites that you know of where hidden deals can be found and the best way to go about my search? Any information would be very helpful in my quest and would love to meet with you in person to discuss more about real estate plans if you are still active on the island.

    Sincerely Alexander

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