The steps to buying a house on Bonaire
Bonaire is a beautiful Island. However, the bulk of the Island is unpopulated with the majority of Bonairian living in the cities of Kralendijk or Rincon. Bonaire has a population of 19.2 thousand people. Having so many people chasing so few homes has created a very hot real estate market on Bonaire for anyone looking to buy a house on Bonaire. Fortunately, the process isn’t too complicated if you’re really motivated to be a homeowner.
Get finances in order
The first thing any would-be Bonaire homeowner must do is get their finances in order. This means paying off debt, including student loan debt, and raising your credit score. Because the housing market is so competitive, many people will offer to buy a house on Bonaire without a financing condition. Without a financing condition, a buyer cannot back out of the sale if they can’t get a mortgage.
Although pre-approvals aren’t a guarantee, they’re the closest a Bonaire house-hunter can come to knowing that they will get a mortgage. If you find that the amount for which you are pre-approved is too low, you have three choices:
1. Improve your income
2. Reduce your debt
3. Look at cheaper real estate
Tips for Buying Property on Bonaire
Many visitors to Bonaire (Dutch Caribbean) dream of owning a little slice of this divers paradise. Particularly as Bonaire is one of the most wanted destination for divers vacation and retirement homes. So if you are considering purchasing a home on Bonaire for vacation or retirement here are tips to ensure the purchase goes smoothly.
Do your research
Your six-day vacation may have felt like a little piece of heaven but that is not enough time to tell you what you need to know. If you’re buying a house on Bonaire for investment, i.e. you plan to rent the home, be sure that the property is close to amenities and facilities such as shops or the beach. If you’re looking a property for retirement, find out if adequate health and support services are available close to your house. On Bonaire are the infrastructure developed we have roads, water, electricity, phone and internet. Issues like safety and emergency response should also be taken into account.
Secure a lender early
Before you go searching for property you should be aware of how the purchase will be financed. If you intend to secure a mortgage, seek pre-approval from your lender before you go house hunting. Bonaire require that you have all the funds needs to purchase. Whereas in some bank, you can get a mortgage. Getting a mortgage from a lender on Bonaire varies only slightly from the institutions in your home country, as you will still need to show documentary evidence of your ability to repay the loan.
Hire a real estate agent
Real estate agents working on Bonaire are usually well versed on the property laws and regulations. They will be able to help you find the dream property on Bonaire and steer you to the shortcuts to bypass red tape that can frustrate the process. A good real estate agent will have in-depth knowledge of Bonaire, is well connected and able to recommend you to other professionals and services you will need to complete the purchase.
Make sure you are eligible to purchase property
Some countries like Bonaire require you to be on the island to sign the conveyance documents for purchasing property. Other islands have mandatory requirements for overseas property buyers but not on Bonaire.
Get a surveyor’s report
In addition to registering your tax obligations, you will need a valuation and survey report. The valuation should provide information about the property to determine its true market value. The survey report will determine the legal boundaries of the property and whether there are any encroachments.