Has anyone had any experience with mortgages for buying real estate on Bonaire?
We are planning to buy property on Bonaire and want to know if anyone else knows about if U.S. citizens can get loans to buy property on Bonaire with good terms.
Thanks,
Dennis

Unlikely from a Bonaire bank, the interest rates are about twice what you would find in the states.

I can only talk about using the local banking system. As far as I can tell, "Good" terms here are 15 years and 11%. Bad is 10 yrs & 12.5%. Local bank rates are tightly controlled by our "central" bank of the Netherlands Antilles. The N.A. are considered "high risk" areas, hence the higher rates. I think it's just supply & demand. I have no idea if you'd be eligible, but your real estate agent & attorney should know.

For example, the person selling the property may be willing to accept a private mortgage between you & him--that would be arranged here via the notary, & of course your attorneys, etc...rates & terms to be negeotiated.

This is by far and away my favorite subject. I have a rep. as a very successful business man, and tough negotiator, and yet I am confounded by the N.A. real estate market...

Unless you are planning on paying cash, your best bet is to obtain financing in the U.S. using U.S. based assets to obtain a long term mortgage at a decent rate.

Be careful... I am sure that you have noticed during your research that identical (or nearly identical) homes can vary in price by up to 100K. Prices also vary from real estate agent to agent (again sometimes up to 100K, more likely 10-30K).

Also, since Lenny (the Hurricane), the prices crashed right after it and have since skyrocketed 200% (or more). But because the homes aren't really selling (more on that below) and because so many homes are for sale (the Dutch are fleeing the island a) b/c the tax benefits are gone and b) to be with their grandkids - so I am told), such price increases aren't justified in my mind...Plus some still show signs of hurricane damage (cracks, etc.) How long ago was that hurricane?!?! At least 4 years.

Also, owners are notoriously non-negotiable in their terms. Expect to get no inspection and and an "as-is." Kind of tough when the houses have the water pipes embedded in poured concrete and many of them have cracks in the foundations.

Further, unless you have oceanfront property, in many cases your "view" may be easily obstructed later by some other or adjacent land owner who builds between you and whatever your view is of... (This is the case of one house I really like, and exactly why the asking price is so ridiculous...)

Also, the normal protections home buyers enjoy here up north (in my case, the southern U.S.) don't apply. I wouldn't trust the sellers any further than I can throw them...

Lastly, most of the nicer homes on Bonaire have been for sale for years (3+ or more)... So once you buy on Bonaire, unless you want to lose money, you may be handing it down to the kids, whether you want to or not. God forbid if you wind up in financial trouble and need to sell it in a hurry...

Best of luck to you, you have more guts than I do for buying there. FWIW, the only way I would do it is with cash, no financing (U.S. or otherwise) and for about 55-60% of the asking price, no matter the location.

Many of your facts lack research ie, protection for the buyer, etc. If one is interested in speculation and turning a quick buck, then I suggest another island. For a more accurate picture, check with Sunbelt realty, etc

Island life on Bonaire is not for the faint of heart, or wallet. Some islander-wannabees just never make it past the modern version of Darwinism (permits in a foreign country, a mortgage in Dutch, newspapers in Papiamento, a notary that costs more than $2.99 at the drugstore, etc.), which I guess those of us living here should be thankful for.

well said!

"Don't Stop the Carnival".....required reading for anyone who thinks they want to live on a tropical isle, right? LOL. Carole

For me the best part is Lenny the Hurrican .... he cracked houses ???? How did he do it, as he stayed about 5oo miles west of us ???

The only problem for some houses directly at the waterfront could have been some water damage because of the high waves

Tidal surge was the biggie on Bonaire. Not the wind or the rains. cb

Brigette...You do understand that some folks judge an elephant by his trunk only....

Ohh Mike ... you mean that is the expert ???

Or, perhaps, the leg puller??

Hi-it was our original question on mortgages that sparked this fun and I want to thank all the talkers for their replies-We have taken all the counsel to heart and yet we press full steam ahead-despite all the potential problems with buying, perhaps never selling, no financing, and plenty of cranky and wonderful locals we will still find our way there a year from now. After years of dreaming and scheming to get to Bonaire we just can't be deterred. Want to fill the house with local art so artists get ready-also plan to help all the Support Bonaire folks-sounds like we'll fit right in after all!

Hi,

Have you considered long term rental. The market is a little depressed and $1000 per month gets a really nice property at the moment.

Compare this with a 30 year mortgage of 360 payments. A $1k rental property is going to be priced for sale at $300k+

When you look at the local mortgage rates and factor in the interest or the need to secure a US mortgage with a US asset (where similar sized houses are much cheaper and less likely to provide the sort of asset value required) you could probably rent for 40 years and come out on top.

House prices are so artifically high and the vendors so difficult to deal with it may be better to rent for the next five years and see both what happens to the economy and the way in which the Dutch / European Union / Netherlands Antilles decide to let the political structure develop.

The comments about pipes in concrete are true. I now have a patchwork ceiling after the plumber played hunt the leaky pipe...