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Thread: Condo Owners Who Rent To Tourists

  1. #41
    Super Moderator Jacki's Avatar
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    Just wanted to add a thank you - this thread continues to be extremely interesting
    Jacki ~ loving Aruba from NJ



  2. #42
    Junior Member Oliveira's Avatar
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    Im glad I found this thread, as this subject also interests me. Can anyone share some numbers, in terms of rental income X property value, for reference? Say a $200k condo, how much one could expect to get in rental income per week (considering a 50% vacancy), etc.

    How much are property taxes?

  3. #43
    Senior Member act1966's Avatar
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    Quote Originally Posted by schexc View Post
    We approached it like this; if it rented it reduced our expenses, if we didn't it was an investetment in a place we call home.
    That's the prudent approach to real estate: worst case scenario... Can you carry it if it never rents? Hope for the best but plan for the worst.

  4. #44
    Member crdavies's Avatar
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    Quote Originally Posted by Oliveira View Post
    Im glad I found this thread, as this subject also interests me. Can anyone share some numbers, in terms of rental income X property value, for reference? Say a $200k condo, how much one could expect to get in rental income per week (considering a 50% vacancy), etc.

    How much are property taxes?
    It differs depending on what the unit offers, pool, beachfront, concierge, etc. Your best bet is to go on a website like vrbo.com or airbnb.com and search for a similar property to see what they are getting as a nightly rate. The condo I was looking at was a 1 bedroom with pool and gated community. Looked like I could get more then $100 per night. Vacancy is hard to determine, but again the websites I've listed show "availability" which I found helpful in getting a feel for how often the units were getting rented out. Property taxes are very cheap comparative to here in the states. I don't have an exact number, I want to say the realtor told me something like $1200 a year!

  5. #45
    Senior Member robin's Avatar
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    We purchased a condo recently in Aruba-at Oceania. We never thought we could afford to purchase one there because of the price point; and it was not on our list of places to view; however that changed once we started going on viewing of homes and condos. At least 2/3 of the properties we saw were Venezuelan owned and were eager to sell due to the economic climate in their country. There are a lot of good deals now in Aruba. We ended up purchasing a unit at the very top of our price range and got more than we ever thought for the price we paid. We did not use a lawyer and relied on the realtor. We use Johnson's for closing and everything went smoothly. We will be renting the condo when we are not there, but since we plan on being there for Jan.-March, we don't expect to make tons of money on the condo-whatever we get we will be happy with it to offset our expenses. We did have all the condo documents to review prior to our purchase. The closing paperwork was in Dutch, but Johnson's sent the translation with it. The deed is in Dutch, and they did orally translate it at settlement. We don't have the actual copy yet because we left the island before it was ready. Oceania has a reserve fund that we pay into, but they can also have special assessments.

    We own a condo at the shore near us(Ocean City, NJ) and we have a healthy reserve, but do to an unexpected erosion issue (over $40,000) we had expenses that would wipe out the reserve, so we did a special assessment. Unexpected issues crop up and you should always be prepared for special assessment.

  6. #46
    Junior Member bornbrit1's Avatar
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    The Pearl is much closer to the beach than Palma Real, where we lived for two years. We didn't have too many complaints, except for the fact there are a lot of young children at Palma Real who are allowed to use the pools without adult supervision, day and night. There were quite a few condos broken into while we were there, with several items stolen, but since the are now actually using the gate that problem should have been alleviated. They have replaced all the pool furniture with nice chaise lounges and maintenance is fairly good there. Either place would be a great investment, but I like being closer to Eagle beach so I don't have to drive there.

  7. #47
    Junior Member Oliveira's Avatar
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    Would anyone be able to chime in, regarding current values?


    Quote Originally Posted by schexc View Post
    If if my memory is correct then #42 an #43 are for sale. There is another one that backs up to Palm Aruba too, maybe #48? I think #47 recently sold. We've stayed in 42 and 43. Of the one's we stayed in #43 was in the best condition. I don't think either of them had updated inverter A/C units. From what we experienced 175-185,000.00 seems to be fair market value. Number 47 could have been purchased for less, maybe 150-160,000.00, but needed some TLC. The mid level units were in the 145-160,000.00 range. Our last few trips we rented a ground level unit from a very nice owner from California. She offered her unit to us, but we never discussed price. I think either 45 or 46, ground level sold for $150,000.00 a couple of years ago.

  8. #48
    Junior Member Oliveira's Avatar
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    Quote Originally Posted by Oliveira View Post
    Would anyone be able to chime in, regarding current values?
    Answered my my own question (about the Pearl - still trying to get an idea about Palm Aruba)... currently, 1 bedroom units at the Pearl are listed at 203k USD, and 2 bed/2 baths start at 242k USD.

  9. #49
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    We own a townhouse in Gold Coast. We purchased just over 4 years ago. Banking and purchasing in Aruba is different. Be prepared for the 40% down and then all of the front end loaded fees at the closing. Was not impressed with our notary and I had to do it again I would use an attorney. Was finally given the taxes and fees due at closing only a few months prior to closing and it was a much larger amount than expected as they front end load the taxes on the purchase.

    Rental. We started with out doing a long term renter over the prime season. Plus was that it was guaranteed rent and they were not hard on the home and furniture. Down side is the rent was substantially under what you would get in high season. We have moved on to another property manager and have moved away from long term rental. We set our rental pricing in the middle of the pricing. We set the home up with the quality of furniture that we want when we are there and all the things you want in a home. So we don't necessarily want to attract the folks looking at the cheapest rental price. There are certain areas that you have to be careful renting to people from. You can set up a rental for 2 couples and have management show up and they have a dozen people in your place. That is how your home gets trashed.

    Things we have learned. The airlines control the flow of people to Aruba. If they set airfares to high, people don't come. This last summer, airfares did not drop and it was the toughest off season since we purchased. The banks in Aruba suck and you are a non belonger and they treat you like you are an ATM machine. They will charge a fee for everything they can and the monthly fee for banking with them is absurd even they hold your loan.

    Happy to answer questions that are more specific if you like.

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