Exploring the Advantages and Disadvantages of Owning a House vs a Condo in Aruba

Introduction

Greetings, esteemed readers! I’m back with another insightful article, #YourFavoriteLawyer, and #YourFavoriteColumnist. This week, I’d like to shed some light on Aruba real estate. My extensive real estate experience will give you a comprehensive view of the pros and cons of owning a condo or a house on our beautiful island. Let’s get started!

The Pros and Cons of Owning a Home

Owning a home in Aruba has several notable benefits. As a homeowner, you are in complete control of the property. You can customize and maintain the property according to your needs and preferences. You are also responsible for paying the taxes, long-term lease (if applicable), and electricity and water at actual rates. This gives you greater control over your costs. You can choose the materials, furnishings, and fixtures that you want to use when building a home. This level of customization allows you to tailor your home to your tastes and standards. If you decide to sell your home, you can do it yourself or hire a professional real estate agent. If you decide to rent your house out on Airbnb or for a short time, you will receive 100% of the rental income and be paid directly by the tenants.

The cons

But owning a home also has its downsides. Maintenance, repairs, and landscaping are your responsibility. This can take a lot of time and money. You may need a professional to ensure your property’s maintenance and security. These considerations may require more expense but allow you to control your property entirely.

Ownership of a Condominium – Pros

Owning a condo in Aruba is an excellent option for those who want to live a carefree lifestyle. You can reduce some burdens of traditional homeownership by purchasing a condominium. You pay a yearly maintenance fee that covers upkeep and maintenance of the building and the general areas. Not only that, but you usually won’t have to worry about the pool being cleaned or the grass needing mowing. The property manager will take care of all these things while you are away or if you are on the island. On the other hand, you are relying on your developer’s engineering and construction skills. The developer will constantly try to keep his cost low, which may lead to some less-than-ideal choices in construction. Owners always complain even those who own fancy condos in the hotel’s area.

Ownership of a Condominium – Cons

Condominium living doesn’t come without its challenges. Most condominiums require that you use a dedicated and exclusive broker for Airbnb and short-term rental arrangements. A broker that is owned, controlled, or related to the developer. The developer often does this to create another profit center to maximize the revenue the developer can pull out of the property. This is undoubtedly a good business practice for the developer, except it may not always align with the owners’ interest. The same applies to selling your condominium; you are likely forced or bound to use the “house broker.” 

The “democratic” homeowners association

A homeowners’ association is another factor to take into consideration. Often, the developer holds the majority in the HOA. This majority is created at the onset by design. This structure gives the developer more power to make decisions that may not always be in the best interest of the homeowners. The developer generally determines the outcome of the homeowners’ general meeting before the meeting even tackles place. You can do that when you have a controlling majority.

The transparency of the maintenance fees can also be a problem since these can increase and be unclear over time. They can also be voted into place by the general meeting of the Howmeones association, which, of course, is controlled by the developer.  The developer is often responsible for the electricity billing, not Elmar, which could result in charges based on assumed consumption instead of actual usage. Your bill may not accurately reflect your energy-saving efforts because you are likely paying based on an algorithm used by the developer to calculate your usage based on parameters set by the developer.

Buyer beware

It is also important to point out a common mistake condo buyers make: making impulsive purchases without carefully examining all the documents that are relevant to their purchase. Before deciding, it is essential to carefully review the reservation agreement, the sale-purchase agreement, the deed of division deed, the bylaws, and the rules of the homeowners’ association. Unfortunately, some buyers do not devote enough time to reading these important documents. They then discover that their influence is limited compared to developers. Some buyers may be frustrated when they realize that, despite paying top dollar for the unit, they have little influence in decision-making. On the other hand, the developer continues to make profits and exert control over the project even after sales are complete. Prospective condo purchasers must do their due diligence to avoid disappointment and dissatisfaction. Read and carefully examine the deeds of division, bylaws, rules, and regulations. Be sure to familiarize yourself with both owners’ and developers’ rights and responsibilities. This will help you be prepared and well-informed for your journey.

You should hire a real estate lawyer or unbiased professional to help you navigate the complexities of buying a condo. These experts have the expertise and knowledge to guide you through the complex purchase process. Consult a real estate lawyer to receive tailored legal advice. They can examine the deeds of division, bylaws, and other documents to protect your rights. A knowledgeable attorney will review the fine print and identify any red flags to help you make a more informed decision. You can also get a neutral perspective by engaging the services of an unbiased real estate professional. Their extensive knowledge of the local market can provide valuable advice. These professionals are familiar with the complexities of condo ownership and can guide you through the process.

Whether you decide to hire an attorney or real estate agent, their experience can be a great asset throughout the entire condo-buying process. They can help you understand complex legal terms, negotiate on your behalf, and ensure you know your rights. You can reduce the likelihood of frustration after purchase by conducting extensive research and seeking clarifications on unclear clauses. Knowledge is power. Understanding your condo purchase’s legal framework will empower you as a homeowner.

Conclusion

Each ownership option in the world of Aruba real estate has its pros and cons. I am not trying to promote one condo over another, but rather to provide some insight based on my experience as a developer and owner of condominiums. Before purchasing, buyers should consider their lifestyle, financial capability, and long-term objectives. You can make an informed decision if you know the advantages and disadvantages of each. Both paths have advantages and disadvantages, so it is indispensable to consider your circumstances when weighing them. In my years of experience, I have seen the many facets of real estate. This includes the good, bad, and ugly. I always encourage them to ask for professional advice and consider different perspectives. Their expertise can help protect your interests and make homeownership a more enjoyable experience.

My Book

If you are keen to explore more about the topic, check out my book on Amazon titled: Paradise Found: A Guide to Buying Real Estate in Aruba.

Available in paperback or e-book.