Hi there Jim, thank you for the kind words. Indeed, I’m ready to answer any questions regarding accommodations or beaches.

On a slightly different note, what is your take on the effects the sub-prime crisis in the US might have on Caribbean realty in general?

I’m planning on writing a piece on this topic in the upcoming weeks.

Thanks again Jim.

Gabriel

Hi Gabriel,
I am not an economist, but I do pay attention to what is happening with the world currency markets and how they impact Caribbean real estate purchases. The short answer to a complex question is that generally the American buyers for second and third homes in the world are not impacted by the current sub-prime mess, except for the impact it is having on the world stock markets. We expect to see a steady climb in Caribbean property sales over the next few years in two categories; 1) the American “baby boomers” whose age and money is maturing to the point of finding additional places to live during the year – the Caribbean being one of their top choices; and, 2) The Brits, Europeans and Canadians, who are buying any Caribbean properties tied to the U.S. dollar because their currency value allows them to make these purchases at huge discounts compared to the U.S. dollar. I hope this gets you started on your upcoming article. Contact me if you would like to discuss this further.
Jim

Hi Jim…good post! Out of curiosity, do you happen to know what the resale market looks like for these $200,000 investments? I would think that with anything that is tied to land that there is a possibility for appreciation.

The 2 Jaguars in the garage also sounds rather appealing

-S

Hi Scott,
Thanks for your question. Our experience is that there is a resale market for Fractionals, just like other deeded property. The appreciate is related to the islands where the fractional property is located. The price of the fractional property is also based on the most popular islands. Aruba is currently focused on this product as a key element to the growth of real estate ownership on this beautiful island. This product is a growing market that at the moment makes the most sense for those seeking a piece of paradise, but they don’t want to have a full ownership of a home, villa, or a townhome. I will continue to be a deligent detective in finding the best real estate opportunities in the Caribbean. Stay tuned…

This is a great article regarding properties in Aruba. I also keep on searching for properties and I find properties in Antigua quite appealing because of the picturesque landscape and friendly people. Moreover it is quite popular among Brits! I bought a villa in sporting icons resort here and got the best deal from http://www.elysiancaribbean.co.uk.

Hi Amy, thanks for sharing your experience in searching from real estate in Aruba and the Caribbean. I look forward to checking out the one that you selected at Sporting Icons Resort in Antiqua. I love that island!

I’m interested to hear that Aruba has some fractional ownership properties in the pipeline. Do you know when these will start to be marketed and become available? My parents were there a couple of weeks ago and loved the island.

Fractional ownership is still a new concept in the US and Europe, but more and more people are looking at it seriously. I suspect that this is because fractional ownership satifies two usually conflicting desires: people’s desire for luxury and a wish not to waste resources (environmental concerns are making people think this way without even realising).

Anyone considering FO should look at resale values, and also the total value of the property versus the number of share x share value, to get a view on the likely increase in value of the share (or not).

I run the yours2share website which provides a place to find all the fractional offerings and also a place to advertise resales. There is also extensive guidance here.
http://www.yours2share.com

Hi Sophie, Thanks for your question about Aruba fractionals. Since you have a company that serves fractionals I am surprised you are unaware of the awesome frationals that are already on-line in Aruba. Also, just for your information, fractionals are a main stream product in the U.S. and Europe. In fact, this aspect of real estate generally started at the ski resorts of Colorado. You may want to look at your website and search for Aruba fractionals for your parents if they are truly interested. Check in anytime with me.

Hi Jim, Thanks for your reply. I work hard to keep track of all the fractional opportunities for property throughout the world as well as boats, cars, and anything else valuable. But it is a major task. So I’m sorry I wasn’t aware of what was hsppening in Aruba!
Can you post some links to the fractionals already on-line? I’ve had a look and find references to the Aruba Palace, but no information about the properties available. I also don’t think this can be all the 2000 units that I read about.
Regards Sophie

You are correct. It is a daunting task to keep up with the real estate trends in the Caribbean. A source regarding the future of Aruba fractionals that may be of use is Hotels Magazine’s issue that focused on this topic. Here is their link.
http://www.hotelsmag.com/search/siteall?q=Aruba+Fractionals&x=19&y=11 Enjoy your day. Until next time.

Hi Jim,
Quite an interesting article but with somewhat very strange information:
- “property purchased by non-citizens is done as a co-op partnership”
What do you mean by that? Any property purchased in Aruba comes with a full deed to the owner, co-owners in case of FO. There is no need of any partnerships.

- “over 2,000 units already planned for Aruba”
The only offerings in Aruba come from Tierra del Sol and their Luxury FO which represents 50 units, and our company which offers Affordable FO villas.
Did you mistake FO with Timeshare which has been a long time success in Aruba, even if today there are no more new projects?

- “the major portion of the people buying up “fractionals” in Aruba are from England and mainland Europe”
The market is 90% US and Canadian. The remaining buyers are mostly Dutch (Aruba was part of the Netherland Antilles). Almost no Brits, Germans nor Frenchs.

Any time you need information about Aruba, do not hesitate to call us.
Regards,
Patrick

Hello Patrick,
Thank you for the corrections to my information posted in January 2008. I am a real fan of Aruba, and your information provides my readers corrections on the important details of ownership. I look forward to staying in touch.