Home exchange

Owning a second home in Aruba means you can enjoy your vacation time in the sunshine whenever you wish.

Also you can travel the world and use your second house (in Aruba) for home exchange. Home exchange is to swap a house/ apartment with like-minded travelers all over the world without paying for it. Other than getting to the location of your choice, a home swap doesn't have to cost you more than staying at home.

How home exchange works;

Browse on-line listings for homes, apartments and locations you love, and use a messaging system to get in touch with those property owners. Check out inquiries sent to you from members of such an on-line home exchange site, and when you are ready, simply arrange your exchange. You will find the home exchange websites via google.com or bing.com

Rather than staying in hotels and being treated like a tourist, you can enjoy staying in comfortable homes, and living the life of a local. 

Non residents can buy a house in Aruba!!

All non-residents can buy land or a house in Aruba going through the same process as the Aruban residents. They can buy a home on property land as well as on lease land.
Lease land
Besides property land you can buy a house which is built on lease land. This land is owned by the Land of Aruba and the lease is for 60 years.

A yearly fee is paid for these lease rights. After the 60 years, the lease period will automatically be extended with another 60 years. The only thing that might happen when the lease period is extended is an increase in the yearly fee.

Most of the houses situated in Arashi, Malmok, Tierra del Sol, Topaz, Safir, Esmeralda, Ruby, Opal, Salinja Serca and Palm Beach are built on lease land. Many non-residents have bought there and will keep buying in those areas although the homes are built on lease land!
The reason they keep buying houses in those areas is because of their locations. These areas are close to the spas, golf course, tennis courts and shopping malls. Another huge advantage is the distance to the ocean.

Building a new home begins long before the foundation is poured. To avoid costly mistakes during the construction process, start with these five important steps.

1. Plan Your Budget

Begin now to think about how much you can afford to spend and how much building your new home is likely to cost. Chances are you will need a construction loan and a mortgage. It's not too early to find out what size loan you qualify for. Also, knowing the approximate costs will help you modify your building plans to meet your budget.

2. Choose Your Lot

Whether you are building your home in a suburban development or a site with sweeping ocean views, you will almost always need to choose the land before you select floor plans or other details. You (and any pros you hire) will need to investigate factors such as soil condition, drainage, zoning and building codes in the region.

3. Line up Your Team

Unless you are a homesteader, you'll need a team of experts to design and construct your house. Key players will include a builder, an excavator, a surveyor and a home designer or an architect. Many homeowners begin by selecting the builder or contractor. That pro then selects other members of the team. However, you may also opt to hire an architect or designer first.

4. Pick a Plan

Many new homes are built using stock plans from a catalog. The builder or a home designer may make minor modifications in room size, window style or other details. A custom-designed home, on the other hand, is created specifically for the family which will live there. In most cases, custom-designed homes require the services of a licensed architect. Whether you opt for a stock or a custom design, you will be wise to choose a plan that will meet your needs for many years to come.

5. Negotiate a Contract

Be sure to get a written contract which has been signed and dated by both the builder or contractor and the architect or designer. A contract for new home construction will describe the project in detail and include a listing of all the parts to be included in the house. Remember to amend the contract if you or your team make any changes to the project later on

9 things before moving abroad

With the joy of the internet allowing us to explore the world from the comfort of our own home and dreaming about visiting far tropical sunny places; it seems that more and more of us are actually planning on moving abroad at least for a few years in a bid to broaden our horizons and experience different cultures and ways of life.

If you're currently considering relocation overseas to for example ARUBA, and thinking about whether you could survive a move abroad and personally benefit from expatriation, then this 9 things article could help you get some planning in place to make your decision that much easier.

1) Location, Location, Location

Where in the world would you most like to go? What is it about moving abroad that appeals to you? Where in the world are you allowed to live and work and which countries can fulfill the dreams and aspirations that you have for a new life abroad? By asking yourself questions such as these you can do your location research accordingly and ensure that wherever in the world you decide to move to you will get access to the facilities and amenities you want and live the kind of lifestyle that you're dreaming of.

2) Learn the Language

You will get far more out of stay overseas if you make the effort to speak the local lingo. Consider taking language lessons before you go and then continue your training among native speakers once you relocate. You'll find it seriously rewarding and by having a second language under your belt, chances are even more countries will begin to appeal to you where you can go and live and practice your new foreign language skills.

3) Finding a Home

Getting accommodation sorted out will be a priority when you move abroad. Even if you're expatriating for good, consider renting real estate before committing to purchasing could be a wise idea. That being said; rental rates in Aruba are high and it is currently still a buyer’s market, so there are great deals to be found buying a property now. See www.arubahouses.com for some great listings.

4) Keeping a Home

If you already own real estate in your original home country what are your plans for it while you're away? Will you leave it empty, rent it out or even sell it. Your decisions may depend on whether your plans for a move abroad are temporary or permanent of course - but remember real estate is usually a great asset to hold on to but that your decision relating to what to do with your home will have a certain taxation implication, from income tax due on rent earned to capital gains tax due on a house sold.

5) Jobs Abroad

Are you planning on moving abroad to work - if so are you allowed to work in the country you're planning to move to? Will you need permission to take employment, will your skills and experience be valued or even recognized abroad. How realistic is it that you will find a well paid job abroad? You have to look into the realities of all these questions and ensure that you can work abroad and afford to live the lifestyle you want to live. Before moving to Aruba you’ll contact Dimas for Residency and Work permit requests. Website: http://www.dimasaruba.aw

6) Taxes

All countries have different tax systems and some countries like America seem to own their citizens in taxation terms no matter where in the world they live. Check out what rates of tax you will be paying overseas, make sure you won't have to pay tax back home as well and ensure you're not about to move to a country where tax is even higher than you pay currently - because where would the fun be in that!

7) Visas and Permissions

Will you require a visa to move to your chosen country before you even arrive or can you sort out residency and employment visas once on the ground? Ensure you know your legal obligations in terms of getting permission to enter and reside in a given country before you even set out, because if you fall foul of the rules and regulations you could be fined, imprisoned or sent back home.

8) Stay Healthy

Getting healthcare treatment abroad isn't always as easy as you might think. Some countries have a poorly funded healthcare system and other nations don't even treat those without insurance in place. Consider having a good international health insurance policy in place to cover you in all eventualities and which will ensure you receive the best standard of care available. Don't mess with your health.

9) Financial Planning

And finally - before you even consider packing up and shipping out make sure you have some money behind you to tide you over once you arrive and also a financial lifeline in case you ever need to get back home in a hurry! Financial planning might be the most boring but most essential part of planning a move abroad. Get it right and you'll have nothing to worry about and you can enjoy your new life - get it wrong and your new life abroad will be over before its begun as you're forced to take a dead end job or even return back home and take up where you left off having left your dreams for a brand new life far behind you.
 

 

 

Saving that Real Estate Commission!!!!!!

Everyone likes to save money. So, how can you save money in a real estate transaction? Find that new "e-Realtor" with a discounted commission? Or, better yet, don't even use a Realtor at all? A FSBO (For Sale by Owner) is bound to save you a bundle. Right?

The correct answers are No, No and No. Sorry, the old adage "There is no free lunch" is alive and well in real estate. Let's take a look at discounts and FSBO's and find out a few of the reasons why you might want to steer clear.

Discounts: "E-Realtors" who will rebate you something at closing seem to be the latest rage. You can even use their search engines and e-mail updates to find the home you want. It sounds good but did you know: It might be a problem seeing more than a few homes. It might be hard to schedule appointments. It might be difficult to get answers, advice and counsel. And, your agent might be new and inexperienced. Why all these problems? The "e-Realtors" are all on a modest salary, not commission. They have little incentive to "go the extra mile" to get the job done for you. In order to make money (after paying the rebates) they need to deal in large volumes of customers, not in quality service, assistance and details. So, is a small rebate worth the chance of less than adequate representation? Probably not.

FSBO's: The biggest problem with a For Sale by Owner is that both buyer and seller think that they will be saving money by avoiding a Realtor's guidance, expertise and cost. Unfortunately, somebody usually gets burned. Lack of knowledge and information combined with greed leads sellers of most FSBO homes to overprice them. Worse, buyers tend to be uninformed, unprepared and unqualified. For the seller this can result in the home not selling at all or an unqualified buyer trying to buy it (unsuccessfully) and wasting the seller's time. For the buyer it can lead to paying too much or buying a home with one or more unrecognized problems. In either case someone loses. Do you want to be that someone in the hope of "saving" a few dollars? Probably not.

So, if discounts and FSBO's don't work how do you save money in real estate? The best way is to find an honest, experienced Realtor and follow his/ her sage advice and guidance. You will save in the long run because that Realtor will earn his commission the old fashion way: by working long and hard for it.

 

 

 

Buying a Condo, a great investment.

 

It is about time home buyers and investors consider the added value of investing in a high-rise residential development.

By adopting international standards in virtually all new developments in ARUBA, we are not only providing clients the convenience of having all things they need within reach, we also afford them peace of mind knowing that their properties are safe from harm.

Here are 4 reasons why “condo living” is a rewarding investment.

1.Safety ensured. Condo living is usually more appealing to most people because of ease of maintenance as compared to a high-maintenance home. The units are also easier to protect when you leave since the unit’s safety is enhanced further with security measures that have high-tech features such as camera’s, fire protection, alarm system, and 24/7 security guards. 

2.Higher appreciation. Investment in “green buildings” is recoverable not only through energy cost savings but also through higher rent and increased occupancy in the long-run. Larger units and more luxurious apartments are now being preferred by quality expatriate tenants. This market covers those who are willing to pay an average of $4,000 per month for a two to three bedroom luxury unit.

3.Lower total cost of ownership. One of the major reasons why owning a condo unit has been attracting a lot of buyers is that buying a unit does not entail individual land ownership. This way, you get to own a piece of property at a fairly good price since it basically gives full ownership of the unit without the sole responsibility of owning the land. What’s more, the combined ownership allows free use by residents of existing facilities and amenities of the condo. Some condo developments such as “Blue” also include the provision of small business establishments such as a mini-grocery, tour desk, restaurant and car rental agency, so tenants no longer have to leave the building. 

4.Proven track record. With a consistently growing number of high rise condos rising at Eagle and Palm Beach, finding one’s dream property may well seem to be just a matter of location. Top considerations such as accessibility and proximity to schools, hospital and similar conveniences are mixed with the enticement of living in developments replete with an array of exciting amenities such as clubhouses and 24/7 security, such as at Goldcoast, Divi and Tierra del Sol. But plunging headlong into such an important investment, however, should not only be dictated by these preferences. One must also consider the image and reputation of the property developer in deciding where to buy to ensure that one’s investment will provide great returns in the years to come.

How much money will I make, buying a rental income property?

What does ROI (return on investment) mean for real estate income properties? Return on investment for income producing properties is a measure used by investors to estimate the profitability of a real estate investment.  It measures the annual percentage income return on the initial amount invested in the property. When analyzing income properties or any other type of investment, smart investors look at past, current and anticipated future returns to determine if/ where they should invest their money.  What financial data do we need to calculate return on investment? All of the financial detail associated with the purchase, sale and operation of an income producing property should be included in the return on investment calculation.  The ROI calculation should incorporate anticipated purchase price, estimated future sales price, closing costs, operational expenses, mortgage fees, interest expense, rental and other income, depreciation, investor tax rate, and so on.
	When calculating current and potential future return on investment for real estate income property, we need to obtain the most recent annual financial data for that property.  To be sure that the annual income and expense data is viable it should be verified with a current owner’s tax return. The annual financial data can then be projected into the future on a year to year basis over a given period of time by applying an income growth rate, expense growth rate and appreciation growth rate.  I believe that it is sufficient to project financial data for up to the next 5 years. The farther you go out, the less reliable the projections.  As we have seen in recent years, economic conditions can change quickly.  Projecting the income and expense data forward over a five year period will enable us to estimate future annual cash flows and sales proceeds.  Our growth rate assumptions should be conservative and should be based on a good understanding of the local and national economic environment.  With a good real estate investment program, we can look at worst, average and best case scenarios to get a range of future wealth values and return on investment projections. To calculate return on investment, we would use an initial investment amount, a projected after tax sales proceeds amount in 5 years and a series of anticipated annual after tax cash flows for each of the years.  It should be noted that current and future return on investment for real estate income properties should be calculated on an after tax basis since a properties income is taxed yearly. The ROI calculation for an investor is a subjective calculation, by that I mean that different investors are subject to different income and capital gains rates.  Investors with higher tax rates will have a lower ROI than investors with lower tax rates when analyzing the same property.     What factors affect return on investment for real estate income producing properties? The real estate investor should have a good understanding of income tax brackets, capital gains rates and recapture depreciation tax rates since they impact return on investment.  Investors should look at every aspect of their real estate investment with the objective of improving ROI. In favorable economic conditions, if you purchase an income property under market value and in the future sell it above market value, you can increase your return on investment.  The level of leverage utilized can greatly impact return on investment.  The use of accelerated depreciation can increase ROI.  Having a good understanding of the conditions that cause income properties to go up in value or down in value can help the real estate investor to increase ROI?   Property values are impacted by many factors such as location, over-/ under supply, mortgage rates, inflation/ deflation, property upkeep, general condition of an area, supply of potential renters, cost of construction materials, proximity to infrastructure, local and national economic conditions, etc.  These factors and many others impact real estate values and can increase or decrease future return on investment.    Return on investment can be increased by reducing operational costs, minimizing vacancies and making sure that rental rates are at market value.  The investor should periodically check to see if rental rates reflect current market conditions.  To put it another way, smart hands on management can increase ROI.  The lower an investor’s tax bracket, the greater their return on investment.   Mortgage interest rates and fees can impact ROI.  The real estate investor should seek the best mortgage rate with the least fees.

I have listed my house, now how can I help sell it?

So I have de-cluttered, cleaned the place and listed it. What can I do to help selling it?

Answer: stay out of the way. Make it as easy as possible for the Realtor to do his/her job. Not only should you hand a key copy to the house, you should make the showing as painless as possible. That may mean that you must take on a lot of inconvenience.

You must be able to get out of the house on short notice and make it easy for the selling agent to schedule showings for others. The easiest house to show is one that is already vacant, although vacant houses are harder to sell, so make it easy to schedule an appointment to show your house. 

You do not want to be there during a showing. The Realtor doesn’t want you there and the buyers would feel awkward if you were there; so take a drive, go to a store - just go. Let the real estate professionals do their jobs. Believe me when I tell you that all of your helpful information about the house, as you trail the showing around, is not what these people came to hear. Do not hang around. Disappear. 

If you really want to help with this part of the process, here are some tips for things that you can do before you leave to make the showings go better.

 Turn on all the lights or leave all curtains opened. The showing agent will not know how your house is wired and may not be able to figure out how to get the lights on. A good agent will try to turn off lights as they go, but there will be lights left on. If there is a showing after the one that you left for, leave a note for the first agent telling him/her to leave the lights on for that showing.

 If you have freshly baked bread, popcorn or do other things in the kitchen to leave a nice odor in the air, I recommend it. We’ll let you be the judge of how much you want
to do. Try not to leave bad odors in the air;

however, lighting too many fragrant candles is just as bad and some people might think you are trying to hide something by masking a smell in the house.

Also remember to take your dog with you and your cat too if possible. Buyers don’t really want to be accosted by your pets and viewers may have allergies to pets so get them out of the house. Hopefully your house doesn’t smell like a full cat box or like your dog, but if it does, deodorize the place as you leave and put the litter box out in the garage.

If you must leave your pets in the house, please either cage them or place them in  small room that can be closed off and put a note on the door advising the showing agent that the pet is in that room. That room will be something that the buyers will wonder about after the showing, since they couldn’t see it.

Make sure that your agent has flyers or brochures available in the house for visitors and put them out in some easily spotted location, like a kitchen counter or table.

Normally showings only take 20-30 minutes, so you don’t have to be gone that long. Agents will normally ask for a one-hour window to allow themselves some leeway on travel or other showings. And remember to not let clutter creep back into the house. Keep it clean and clutter free!   
 

Your agent should get some feedback from every showing and most will share that with you. Don’t get offended by anything that you read; instead try to learn from the feedback and make any changes that are suggested in the feedback or by your agent.

Finally, now that you’ve mastered the three C’s of real estate – Clutter, Cleanliness and Condition; you must focus upon your role in the three P’s of real estate – Price, Patience and Persistence. Hopefully you and your agent have set the price correctly; so you need to be patient and persistent.

Real estate sales do not happen overnight, so patience is a real virtue here. As for persistence; you will need to get up every day and get the place ready to show before you leave for work or to do other things. Remember that showings can happen at any time. You’ve got to have the house ready at all times.