There are many reasons to own real estate in general. Owning real estate in a foreign country brings a whole other set of rules and reasons. Why should you own real estate in Aruba? Or why shouldn’t you own real estate in Aruba? There are many reasons, both for the short term and long term. Let’s make a top 5 pros and cons of the most important reasons.
- Aruba has the second lowest price per square footage in the Caribbean, making real estate relatively affordable.
- Property value rises, on a steady, controlled pace, making short term and unrealistic gains, improbable.
- Limited speculation in the real estate market, chances of meltdowns is limited, without taking into account external, uncontrollable events. Steady, healthy growth is more likely.
- Local mortgage rules are relatively strict, preventing all kinds of problems right off the bat.
- Foreigners can own property on both property land, as well as long lease land.
- Owning a piece of Aruba real estate is precious as the supply is limited.
- Political, fiscal and legal stability offers confidence in the investment.
- Heavily dependent tourism sector allows for a lucrative vacation rental option when property not in use.
- Connections to major cities in the US, Canada, South America guarantees accessibility to the property.
- Dependency of import materials is a risk for future price/quality of realty in Aruba.
- Upon own construction, rules and regulation offers little protection against unreliable contractors.
- Utility companies work slow and inefficient and are a slowing factor during construction.
- Old fashioned legislation prevents swift reaction when trying to sell the property.
- Notaries public are slow and expensive when setting up transfer deeds. Admittedly, this is in large part due to a lack of adequate tools for notary’s staff to thoroughly verify any outstanding legality that might lie upon the property in question. The fiscal value of the property to calculate the transfer tax takes longer than usual.
- There are no Multi Listing Systems available in Aruba nor a central database with information.