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Aruba Real Estate

Aruba Vacation Property - Retirement Homes in Aruba

Aruba real estate is the gem of the caribbean. Once upon a time the impression was that foreigners could not buy property in Aruba. The Aruba government does allow non-residents to buy real estate and we'll add that conditions for purchasing real estate are attractive.

If you travel to Aruba frequently and are familiar with the "lay of the land" and know people who can help you, you can probably do without the services of an Aruba real estate agent, but if you have the slightest doubt about scouting for properties on your own, you could save yourself a lot of headaches by relying on the services of a real estate professional. The good thing about Aruba real estate is that there are names that are familiar to North Americans: Century 21, Coldwell Banker, ReMax and others. Only real estate professionals can guide you on recent local legislation that deal with Aruba real estate transactions. They'll be able to tell you the nitty-gritty of buying and selling property and the myriad of details about Aruba real estate that you otherwise won't have the time to look up.

Aruba real estate options for non-residents

Nationals from the UK, US, Canada, Belgium and other countries can buy houses the way Aruban residents can.

Two options are available: property can be bought on property land or on leased land. Leased lands are owned by the Aruba government and carry a 60-year lease. There is a yearly lease amount that needs to be paid. When the 60-year lease expires, the lease is simply renewed. What can happen is that the yearly lease amount can be increased by the Aruban government.

Many leased lands where houses are built are located in:

Aruba real estate: taxes and other costs

Contrary to popular thinking, taxes for owning Aruba real estate are relatively modest. There are no property taxes (called land tax) imposed on the first US$34,000 of the house value (verify with a real estate professional if this amount is still in effect). For the balance, you pay US$4.00 for every US$1,000 over and above the $34,000.

So let's say your Aruba property is worth US$350,000, the land tax is calculated as follows:

First $34,000 of the $35,000.00 – no tax
$350,000 - $34,000 = $316,000
You pay $1,264.00 (US$4.00 multiplied by $316,000)

Just like in North America, buyers of Aruba real estate usually have to pay for closing costs which range from 5% to 8% of the property's sale price. Closing costs include a one-time transfer tax of 3% (if selling price is lower than Aruba florins 250,000) or 6% (if selling price is more than Aruba florins 250,000). There is a notary fee for transferring the deed amounting to 1% of selling price and another notary fee for the mortgage deed amounting to 1% of the selling price.

You'll of course want to insure your property against fire and theft. The standard rate is US$4.00 per $1,000 value of your property. So if your property is worth US$400,000, you would pay a yearly premium of US$1,600.

How to Buy Aruba Real Estate

The procedure for purchasing Aruba real estate is relatively straightforward but always carry out due diligence. Engage the services of professionals who are highly recommended or who are licensed to practice in real estate. Do your share of the homework so that there are no unpleasant surprises later on. You simpy get a second or third opinion from others about the information you receive from the professional you're dealing with. This way you can check for accuracy.

When you've chosen your Aruba property and have completed verbal negotiations, you must come up with a Purchase and Sale Agreement that must be signed by buyer and seller, and whoever is involved as a witness(es) of the sale. The buyer gets to choose a notary. Once the notary is selected by the buyer, a 10% downpayment has to be placed in escrow with the notary. When the Purchase and Sale Agreement is signed, the deed can be then be signed (usually within eight weeks after signature of the Agreement).

Overview of Real Estate Prices in Aruba

(updated 2010)

A quick search on the Internet reveals that buyers of Aruba real estate have a wide range of property types and prices.

A few examples of home prices:

You'll find numerous Aruba properties for sale, rent or for time-share purposes.

Aruba real estate is a safe investment which retirees, young upward mobile couples, investors and professionals should consider looking into. Aruba has a safe and stable political system and continues to enjoy excellent ratings as a tourist destination. This is one reason real estate investments in Aruba can be lucrative.