ArubaAdventurer

Hi everyone, new to the forum, but have been to Aruba multiple times and love it! Might like to consider selling timeshares and buying a condo, but on my last trip I learned that one would normally need to put 50% down and finance the rest over 10 - 15 years; quite different from the lower down payment, 30 year mortgages in the US. Not sure if this is the right place to ask (thought I had seen a Buying A House in Aruba page in the past, but now can't find it) - but does anyone have any advice on finance options for buying a place in Aruba? It seems a number of people on this forum own houses in Aruba, and just wanted to find out how people did the financing, and if they dealt with local banks how difficult/easy it was. Any advice would be great. Thanks in advance.

barry

I bought Pre-construction and had to do 5% down and the rest at different times of the progression of the project. If you buy a Home/condo that is built, most will ask for a depost on credit card of 1,000.00 to 3,000.00 to hold the listing till you get home or arrange your financing. { most people do this from thier bank at home and wire transfer} at this time they will require 10% of purchase price to start the paper work, notary. Be very sure on the property as if you back out and have sent the 10% you will loose all of that, no way you can get that back. I always tell people if they are seriously going to buy, get a Inspection from a 3rd party, this is similar to an appraiser in the U.S. It only cost about 200.00 U.S and they are in the phone book under inspector's. Most of them work for the banks in Aruba. If you get a loan in Aruba they will make you have one done. If you get to this point e-mail me and I will give you the name of a Inspector for Aruba bank that is very trustworthy and works for you not the realitor, they will say it is a waste of time. saved me about 250.000. try www.arubahouse.com If I remember they have alot of information on moving/buying a home in Aruba. anything I can help you with, feel free. I bought at www.GCV.com ( GOLD COAST VILLAS MALMOK)
HOPE THIS HELPS,
Barry

ArubaAdventurer

Thanks Barry - I would not have guessed that one could arrange financing with a US bank for non-US property. If you can I would guess that you can't take the mortgage interest deduction though. Might I be pleasantly surprised that you can do both of these things? US financing would be more favorable than local financing I imagine.

barry

You most likley would have to take out a 2nd morgage, because you would have to pay in full at the closing. If you buy pre-construction you only pay in phase's as the project is developed. I bought in Feb. 2006 5% up front and another 5% around October 2006, I am just now 2 years later at my final payment This is a plus because you get in on the ground level without paying all at one time an. There is no capital gaines tax in Aruba. Property tax's are very low also.

ArubaAdventurer

Ok, home equity loan or home equity line of credit does make sense, as you can use the loan for anything. Having been through this / going through final stages now - do you have any general idea if you might be able to deduct the loan interest, or is the fact that the house is not in the US the negating factor for any possibility of that? I'll check with a tax advisor of course, but just thought you might know. Congrats on your purchase!

barry

The bank gives you a line of credit, they dont care what you do with the money as long as you pay them back. ARUBA Notary will want paid in full. Now You can open a bank account in Aruba.

skdiddy

I'm working on my second career after being downsized from a major auto parts company, and I'm a senior accounting student taking tax this semester.

I looked on the tax website (primary source) and in my text, the only thing that it states is if it is a 2nd home then it is a vacation home, and the mortgage interest is deductible. If you rent it out more than 14 days a year, then things change a bit, BUT, I could not find anywhere that stated that the vacation home must be in the U.S.

Even if you live permanently in Aruba, that is your primary location, you will remain a U.S. Citizen (I assume?) and will file a U.S. tax return, and take the deduction.

If you DO rent it out more than 14 days a year, then it is a business, and you can then depreciate all assets in the home, including window treatments, flooring, washer/dryer...everything!

I would assume if you bank in the U.S. and your money is here (interest payments) then you shouldn't have any issues anyway.

Check it out further to be sure, you might even do a mock return on TurboTax or some similar tax software if you use those, or do a search on there and see if anything turns up. What I see though, is you should be in the clear...

SK

islander2b

Hi new here to website ,Question? everybody is talking about buying a house but aren't there resrictions on how long you can stay in the house? i too after going to Aruba (since 1985) am thinking about moving there but have heard many many different stories on moving and living there... 3 months out of a year is what i have been told ..can someone set me straight? we want to move there so bad, but???

Mr Norman Paperman

This from the Cas Bon web site under FAQ there is a lot of good info on this site.


Visitors to Aruba need proof of identity and are allowed to stay up to 14 days. For citizens from countries like the United States and Canada, whose country has a visa abolition agreement with the Netherlands, the length of stay may be up to three months. Citizens of the Netherlands and Netherlands Antilles may stay on Aruba up to six months.
If you own a home, your visa can be extended up to three months, but not exceeding three months per year, if you can show Immigration Department of Aruba that you own a house and you carry or can prove you have sufficient funds to cover your length of stay.
If you want to stay longer, you need a special permission, granted by DINA to extend you stay. Each petition is handled on a case-to-case basis, and permission granted based on merits.
For more information contact DINA at:
Tel: 297-584-3322
Fax: 297-584-3258

__________________
Let the Carnival Begin
Mr Norman Paperman

islander2b

Ahhhh bummer, looks like the US Virgin island then....