Building equity—the portion of the property you truly own—is one of the most valuable aspects of real estate investment. The more equity you build, the more financial flexibility you gain, whether through resale, refinancing, or long-term wealth.
Here’s how you can accelerate that process in Aruba:
1. Make Extra Payments Toward Your Principal
Even small additional monthly payments toward the principal of your mortgage can significantly reduce your loan term and interest payments.
2. Renovate Strategically
Focus on improvements that increase property value: modern kitchens, updated bathrooms, or outdoor living spaces. In Aruba, enhancements like solar panels add appeal and value.
3. Increase Rental Income
If your property is a rental, consider ways to boost income, offering short-term stays during peak season, adding amenities, or improving guest experience. Higher income may allow you to reinvest or pay down your loan faster.
4. Refinance for Better Terms
If interest rates drop, refinancing to a lower rate can free up funds to accelerate payments or reinvest in other properties.
5. Buy Below Market Value
Look for deals where there’s room for appreciation. Whether it's an up-and-coming neighborhood or a property that needs some love, starting with equity potential puts you ahead from day one.
In a stable, appreciating market like Aruba’s, equity grows naturally over time, but with the right moves, you can speed up the process and build wealth faster.
