Buying a Condo in Aruba – The Ultimate Guide
We put together this guide for investors considering buying a condo in Aruba.
Whether you are thinking of investing in a condo primarily as an investment with the potential to generate passive income or you are looking for an apartment to keep for your own private use, this guide is designed to cover all aspects of acquiring a condominium unit from finding condos for sale Aruba through to the details of the purchase process.
Is Buying a Condo in Aruba a Good Idea?
How Much Does it Cost to Buy a Condo in Aruba?
Can Foreigners Own Condos in Aruba?
Where are the Best Places to Buy a Condo in Aruba?
How Do you Buy a Condo in Aruba?
Getting a Mortgage in Aruba
Investment Opportunities – Explore Condos for Sale in Aruba
Buying real estate in Aruba offers investors the opportunity to own property at a relatively affordable price in one of the Caribbean’s leading destinations.
For buyers looking for a vacation home in the sunshine or a place to retire in Aruba, the island is a great choice. The island is the top tourist destination in the southern Caribbean, with miles of beautiful white sand beaches and a unique landscape studded with cacti and divi divi trees. Aruba offers a world of activities with something for everyone. From its 2 golf courses and world-class kite and windsurfing to a fantastic array of dining, entertainment and duty-free shopping options, the entertainment options on offer in Aruba are many and varied.
For investors looking to purchase a condo with a view to generating income, Aruba is also a solid choice. The island is a leading regional tourism destination, each year attracting approximately 1 million overseas visitors. The very large inflow of international tourists provides condo owners with the opportunity to earn significant income via the rental market.
The cost of condos in Aruba varies according to several factors such as location, size and perceived value.
Prices range from approximately US £200,000 to US £250,000 for a studio or 1 bedroom unit in a condo resort development in areas such as Palm Beach or Eagle Beach up to US $1 to $2.5 million for a luxurious penthouse apartment in one of the island’s top beachfront complexes.
Yes, foreign nationals can buy condos in Aruba and the Government of Aruba welcomes foreign investment.
There are no restrictions on foreign buyers owning a condo in Aruba and foreign buyers enjoy the same rights as citizens, including the right to purchase beachfront condos.
Unlike in many other countries in the Caribbean and Central America, foreign buyers are not required to obtain any kind of license or permit in order to purchase property in Aruba including condos.
Foreign nationals can buy property on either freehold property land or on lease land which is owned by the government. In the case of lease land (which is a very common form of property ownership in Aruba), a lessee is required to pay an annual fee for lease rights.
That depends very much on your personal preferences and objectives.
For beach lovers who want to be close to the sea, the Eagle Beach, Palm Beach and Malmok areas are very popular choices.
For those who like to spend as much time as possible on the golf course, be sure to take a look at Tierra del Sol in Noord.
Buyers looking for an investment in the heart of the bustling capital, look no further than Oranjestad.
Buying property in Aruba is a relatively straight-forward process. Below we have outlined the typical process.
Firstly, once a preferred unit has been selected and an offer accepted by the seller, it is customary for the buyer to select a Notary to draw up the Sale / Purchase Agreement which must be signed by both the buyer and the seller.
Upon signing the Agreement the buyer will generally need to pay a security deposit at the Notary which typically amounts to 10%.
Over a 6 to 8 week period, the Notary will handle other aspects of the property transfer process such as ensuring clear title and handling the final payments and transfer fees.
For more detail on the purchase process, please see our guide to buying property in Aruba.
It is possible to buy a condo in Aruba with cash or a mortgage.
Both local banks and international institutions offer mortgage financing options to residents and foreign buyers alike for the purchase of residential property and residential lots as well as construction or renovation.
In the case of non-residents, up to 70% financing is typically available, which would therefore require a minimum down payment of 30%.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates to be a little higher than in the USA, Canada or Europe. Mortgage terms tend to be in the region of up to 15 years.
Ready to begin your search for condos for sale in Aruba?
To find investment opportunities from across the country from beachfront condos overlooking Eagle Beach to brand new apartments in the capital Oranjestad, explore condos for sale in Aruba on our website.
Please note that our website only showcases a sample of the condos and apartments available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in Aruba.