Opportunities in real estate investing in ARUBA
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