Bonaire Real Estate

The basics/background – The island of Bonaire is located in the extreme south of the Caribbean Sea, just north of the Venezuela coast. Bonaire is one of the "ABC" islands - together with Aruba and Curacao. It is roughly 112 square miles in size. Bonaire's population is around 18,000 and it is part of the Netherlands Antilles. The primary airport is Flamingo Airport (airport code BON). Most flights in are connecting from Antigua (via Liat) or San Juan (via American Eagle) (or from Aruba, Curacao, St Maarten or Venezuela on smaller airlines), though there are direct flights in from some American airports (e.g., Delta has added a Saturday only non-stop from Atlanta) and KLM from Europe. Currency is the Netherlands Antillean Guilder (or Florin in local parlance), which is tied to the US Dollar at a fixed rate of about 1.77/1.78 Naf to 1 US Dollar. The official language is Dutch, however the primary language is Papiamento. English is widely spoken as is Spanish to a lesser degree. US Dollars are accepted virtually everywhere.

Bonaire's primary claim to fame, thus far, is its exceptional scuba diving and snorkeling. The primary reason for this is that the area from the high water line to 200' into the water is protected as Bonaire Marine Park. It also has few rivers to churn-up sediment and obscure visibility, ala Grand Cayman. Climate is extremely consistent year-round - lows in the 70s and highs in the 80s or 15-32 Celsius all the time. There is sparse precipitation much of the year and the landscape is rather notably different from most of its northerly, less dry island counterparts in the basin. Cacti abound and the vegetation is more reminiscent of a desert than a lush, tropical island. The other and, perhaps, most important note regarding this lack of rain is that Bonaire lies so far south that the gulf stream, jet stream and prevailing weather patterns not only carry most moisture well north of the ABC islands, but also carry most hurricanes away, as well! There are no major hotel chains on island with most existing options catering toward onsite dive operations.

Crime appears to be more of a concern on Curacao, but Bonaire has some issues with vehicles left near shore diving areas and such, and seemingly more than on many of the other islands we have reviewed.

Desirability for investment - We feel that Bonaire has a wonderful charm and simplicity about it, perhaps, largely due to its small size and tourism-stature. Bonaire is also not a traditional Caribbean locale as it is drier, less lush, a bit further south, has little truly postcard-beautiful scenery,, etc, though it does have the advantage of being out of regular hurricane paths. There are not many nice beaches for swimming, as the water can be rough, but Lac Bay is one gorgeous exception. It also has good access from South American ports and is generally well-stocked with foods and general goods making construction and day-to-day living a bit more convenient (and cheaper) than many other islands where goods are not as readily available. Cell phone service, internet and cable television are all widely available.

Location: WITH MAPS OF CARIBBEAN AND AREA

Bonaire's location (at 6 o'clock just north of Venezuela))

Bonaire

Investment Appeal:

OVERVIEW

The tax and land use landscape of Bonaire:

There are no restrictions on private ownership of land in Bonaire. Property taxes are very low, at about 0.35% of the purchase amount. Fees for purchase are quite reasonable at around 4-6% in stamp duties/transfer fees and notary closing.

Building costs are anywhere from $100 to $300 per square foot or slightly below Caribbean average.

East coast

RENTAL

Rental of properties is difficult to generalize… Caribbean rules apply. There is a high season of about four months (December through April, usually starting around Christmas) and a big drop-off to the off-season. The weather is very consistent year-round, but these seasonal rules still apply. Costs and rates tend to be a little below average for the Caribbean. A well-appointed villa may be $1,000 or more per week, but most properties are more like average apartments. Management or caretaker services, housekeeping, carrying costs, etc. are also below average. Expect 20-30% plus or minus from a management company for short-term (seasonal) rentals and 10-15% for long-term rental..

OWNERSHIP AND TITLE INFORMATION

Ownership is freehold and subject to few restrictions. The process will generally be an offer coupled with funds equal to around 1% of the purchase price, though, at times simple verbal agreements are made to start.. If accepted, further down payment to 10-15% will be expected. The balance of the purchase price will be paid and the title transferred at closing.

Representative listings:

Like most of the Caribbean basin, Bonaire is without a MLS system to help in your search for properties. That being said, Bonaire has a decent group of real estate agencies and they can assist most buyers competently. The area around Kralendijk is the epicenter of the island - restaurants, activities, dive sites, shopping, the airport, etc.. Smaller towns include Rincon to the north, which are sparsely visited by tourists. Most residential options are on the western side of the island ranging from Boka Di Tolo in the north to the Cargill salt operation in the south. The prettiest shoreline appears to be in the Belnem area just south of the airport - an area which is seeing a good share of development action. Most of the eastern side of the island looks like Mars and is sparsely visited or populated. Rocky shoreline, rough waters and little scenery keep this part of the island quiet. Lac Bay and Sorobon Beach to the southeast are quite beautiful and offer myriad recreational options. Unfortunately, there appears to be little in the way of residential opportunities here.

Homes range from $105,000 (1,130' s.f./105 sq. meters) near Kralendijk to upwards of $4 million for 6,000+ s.f./580 sq. meters oceanfront.

Lots range from $35/square meter or $4/s.f. A few development parcels are currently available in the 30-40 acre (150-190,000 sq. meters) size range, priced from between $1- 1.5 million.

Most multiple-dwelling units are villas or small condo/apartment complexes. There are no high-rises or even mid-rises on island. Examples of these small complexes are: Bellafonte, Harbour Village, Perla Bonaireano, Sand Dollar and Portobello.

For listings, check some of the following sites (the majority of listings on ReMax or Sunbelt). NOTE: Word of mouth on island will find you many properties not currently listed with an agent.

www.bonairehomes.com - ReMax

www.sunbeltbonaire.com - Sunbelt Realty

www.caribbeanhomesbonaire.com - Caribbean Homes Bonaire

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