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  • Business vs. Real Estate, in which I can invest in Aruba

    Real EstateOne question always asked by the foreign investors who come to this site highly interested in investing in Aruba: How I can invest in Aruba, in a business or a property?, What would be my best alternative? Repeatedly usually respond with ” depends “.

    When a person wants to invest abroad must be clear what the purpose of your investment, how much money (capital) to invest and what your risk tolerance.

    Business vs. Properties
    Make a quick comparison between investing in a profitable business or property is not easy because you have to take into account a large number of variables. However, the main objective of both types of investment is the same: the return on investment .

    Not to mention that when small investors (<$ 600 000 for the standard of Aruba) are planning to invest in Aruba, in most cases only consider investing in real estate. This is universally regarded by most as the most safe and “clean” to produce ROI. Again, this point compared to a risky investment (companies).

    Place funds in companies is considered more risky. In fact, there is no guarantee (collateral) and owning shares of a company simply is not enough. In addition to investing in a company must constantly deal with the business and monitor its development. This is not something that an investor is longing to do, especially when it comes to an investment in a foreign company.

    However, with which way we get a greater return on investment? What requires a lower initial capital? What is better after a risk analysis? These are just some questions that investors should take before embarking on any purchase in Aruba.

    Real estate
    Let’s be a little more specific. According to Global Property Guide Net rental yield of a property on an annual basis in Aruba is located approx. 6.5%. Aruba Real Estate manages figures put the net rental yield about 8% in the properties. With an annual average inflation of 3.2% on investment is still profitable.

    The downside of real estate investing are high input prices. Higher yields are achieved condominium properties donate prices start at $ 300 000.

    Business
    There are several ways to invest in business in Aruba. Start his own small business (which has restrictions), purchasing an existing business, pumping money into a company or invest more than $ 600 000 which would give more freedom to operate in Aruba.

    Aruba’s economy is robust and stable, but it is a mono-economy, based mainly on tourism revenues. It is geologically and politically stable and offers many opportunities beyond tourism.

    Certainly there are many opportunities available in Aruba, perhaps more risky than buying a property, but certainly more lucrative.

    Conclusion
    The opportunities to invest in Aruba are large and I would invite interested readers to express their concerns via email. Gladly try to guide them on the basis of the experiences that I have personally accumulated in this dynamic market.

    Before closing, I would like to stress upon the necessity for every investor to perform due diligence research before making any decisions. This will avoid unpleasant surprises.

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