Buying or selling a home involves a lot of things, it also raises questions. In this column ‘Ask Bob’, real estate expert/broker Bob Bartikoski of RE/MAX Paradise Homes Bonaire answers a real estate question from a reader. This time:
Question: I want to buy a lot and build a new house. How do I get started and what should I do first?
The best way to start the process is to contact a local bank and find out from them how much you can borrow in total based on your income and the amount you have in savings as a down payment. Once you know the amount of your potential mortgage and add in your saving amount that you want to invest in a house, then you know what you total budget to purchase a lot and build your dream home.
Traditionally, you should expect to spend around one third of your total budget on purchasing the lot. The other two thirds of your budget is what you should expect to spend on construction costs.
Once you have a budget, you can start looking for a lot to build on. If you have enough money to purchase the lot in cash, or with a small mortgage from the bank, that’s the best way to start. When you have found a building lot to buy, then you can start working with a local architect to design your new home. After you have selected your lot, then the architect or builder can design a home that meets your needs and fits well on the lot.
When you are building on Bonaire, it is important to make sure that your home is designed take advantage of the location of the sun during the year and also the direction of the wind allowing you to cool your home naturally using the local breezes and the shade.
When you have the lot selected and a home design you will need to have lot and finished home appraised (taxatie) for the bank so they can give you final approval for your mortgage. Once your mortgage is approved you can select a building contractor and apply for a building permit.
Do you want to buy or sell a house in Bonaire, or do have a real estate question for Bob? email him at: [email protected]. Call for free from the US: 1-866-611-7362 or Bonaire: +599-717-7362. See all our listings here.