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ArubaAdventurer
03-09-2008, 08:35 AM
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 :eek: 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
03-09-2008, 04:08 PM
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 (http://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 (http://www.GCV.com) ( GOLD COAST VILLAS MALMOK)
HOPE THIS HELPS,
Barry

ArubaAdventurer
03-09-2008, 05:07 PM
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
03-09-2008, 09:40 PM
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
03-09-2008, 10:29 PM
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
03-09-2008, 11:28 PM
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
03-11-2008, 07:10 PM
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
03-13-2008, 02:18 PM
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
03-13-2008, 03:59 PM
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

islander2b
03-13-2008, 04:23 PM
Ahhhh bummer, looks like the US Virgin island then....

Schnauzerjoy
03-13-2008, 06:49 PM
I am not an expert on Aruba, but is researching like crazy (since I bought a house there and plan to go ALOT for a long time) :)
One thing that seems to confuse everyone is how long you are allowed to stay.
The confusing seems to be coming from the FAQ on the Casbon site, which states "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. "
Correct me if I am wrong, but from what I can see on this PDF from the Immigration Department of Aruba, All visitors from US, Canadian and EU can stay up to 180 days !!!! of year without applying for an extension.
http://brochures.aruba.com/entryreq/2007entryrequirements.pdf
I could be misunderstanding something, but to me it looks like the good people of Casbon got it wrong or missed the changes of 2006.
Please let me know if you disagree.
If not it is great :D for me and you, so forget the Virgins :D

barry
03-13-2008, 11:49 PM
Casbon site has not been updated for years. If you own a home in Aruba and from the U.S you can stay up 180 day's in a calendar year. when you come into Aruba and you fill out your immigrations card it ask where and how long you will be staying in Aruba. In my case, I had to prove I owned Property, I had my notary papers with me.

islander2b
03-14-2008, 07:27 AM
Thanks for the info,180 days is better than 90...but still im looking to retire there and live there full time..Maybe things will ease up in the next 3 years and we can live there years around..We just love the island and the people and to be frank i have had it w/NY State..and need the move...

barry
03-14-2008, 02:27 PM
If you want to live there year round you have to appily for residency. this is a prosses and has to be done from the U.S. I am looking into it now, seems like a ordeal. they want to know you have no criminal record, medical history and most important you can support yourself, all your information from your bank. Alot of other things also T.B TEST AND SO ON.

Cosmo
03-15-2008, 03:36 PM
If you buy an affordable house in Aruba, and have equity in your primary residance, you can take out a home equity loan. But the Aruba property, pay the equity loan

madricharubabound
05-04-2008, 11:16 AM
Have any of you folks opened bank accounts in Aruba? I have read what is required. Do they really want all these documents or just some and then your money. Any info appreciated.
Thanks

Tom and Karen
05-04-2008, 02:33 PM
Have any of you folks opened bank accounts in Aruba? I have read what is required. Do they really want all these documents or just some and then your money. Any info appreciated.
Thanks

We opened an account at Aruba Bank when we bought our house. I don't know if it is required to have a bank account, but it is sure convenient for paying bills. I'm not happy with the fee ($30.00) to wire money to my account in Aruba.

I don't remember what we had to show for paperwork to the bank. Some of what we had was a letter from our attorney, letters of credit from 2 banks, proof of income. This may have changed since we opened our account almost 3 years ago.

Schnauzerjoy
05-04-2008, 04:03 PM
Just opened with ArubaBank. Yes they are very restrictive when it comes to required documents, so make sure to supply everything.
Only thing that they might be more easy on is that if you only use one bank, they probably will accept only one bank letter.
Even when you have given them all the paperwork and signed another bunch of papers they will even want to know where deposits to the account will come from and also what how often and how big amounts :confused:.
And then you have to wait several days for their commitiee to approve you.
It seems crazy in a modern world that they need all this paperwork and signatures, but on the other hand they do it to limit criminal activities, so its ok for me, and only have to be done once.

Carsten

supertramp
05-06-2008, 11:27 AM
is it possible to move to aruba if you have a criminal record one charge for breach of the peace when i was 16 young and stupid or if you have any sort of criminal record is it just a down right no never wont happen