St. Croix Real Estate

One of the big decisions you will need to make if you are considering relocation to St. Croix is whether to build a new home, buy an existing home, purchase a condo, or rent. There are pros and cons associated with each choice. Here are basic questions to consider that will help you in this decision process:

1. How soon do you want to be "in" your own space in St. Croix?

2. Would you be able to personally oversee a construction project in this tropical climate? Have you ever done this before? If you won't be here, do you feel comfortable hiring a "general contractor" to be responsible?

3. How much "square footage" do you want/need, beds/baths?

4. What about stairs? Any limitations now or expected in the future?

5. Do you want / need a view?

6. How important is a pool?

7. How close do you want to be to the water? Do you want to be able to see it from afar, have it lapping at your feet, or does it really matter? Remember, in St. Croix, you are never more than a 10 - 20 minute drive away from the Caribbean.

8. What is the maximum amount of money you want to spend on the purchase?

9. What is the maximum amount of money you want to spend each month on fees and services for your home or condo?

10.What is the maximum amount of money you can spend on a mortgage or rent payment?

11.Will you live in your home full time, or will you rent it out part time?

12.Do you want additional income from your property (i.e., a home with a guest house can provide additional income as well as security when you are away)?

13.How close do you want to be to shopping or other community amenities?

Thinking through your answers to these questions about buying property in St. Croix, even if you want to invest in property and hold until retirement, will help you narrow your choices and prioritize the available properties.  Contact me with any questions, and to receive my monthly newsletter on the real estate market in St. Croix.

Livin' the dream in St. Croix,

Kim Lucas, REALTOR
kim@coldwellbankervi.com
www.retireinthevi.com
340-626-3758

(photo courtesy of John Ballard)

"Can you buy a condo here that will pay for itself?" is a question I am frequently asked.  Here are the questions you need to answer for ME so that I can answer that question for YOU and your unique circumstances:

1.  Do you want a beach front condo?
2.  How much are you willing to spend (initial capital outlay)?
3.  What monthly outgo can you live with for a property here?
4.  Will you procure the renters (i.e., thru VRBO or other advertising you do on your own) or will you need a rental manager?
5.  How often, and WHEN do you plan to use the condo for yourselves or your family? 
6.  Are you willing to do any "fix up" or do you want a "turn-key" condo? 


 A LONG-TERM RENTAL

The long-term market here is fairly good, with rates running around $800 / month for a one bedroom; $1500 - $2000 for a two bedroom; and $2000 - $2800 for a  three bedroom.  

Of course, if you rent out long term, your personal use here is going to be limited to times between renters - which may or may not be when you want to come.  Renting out to long-term tenants is much less headache and hassle - and can be a good way to go if your purpose in investing is to get a place that YOU want to live in several years from now - but want to secure it at TODAY's prices.  Visit my Retire in the Virgin Islands web site for information on retirement.

A SHORT-TERM RENTAL

Condos without a sea view and/or pool generally do NOT rent well on the short-term market. The short-term market is pretty seasonal.  With good marketing, you can generally rent out your place for 12 - 18 weeks a year - and most of the rentals will occur in the winter months (Dec. - April).  So if YOU are planning to "winter" here - then you are going to have limited rentals.  

Rates for short-term rentals range from $600 - $1200 a week for a one bedroom; $800 - $2500 a week for a two bedroom;  $1500 - $3000 for a three bedroom.  Of course, the range in the rates takes into consideration the location and desirability of the condo.  

EXPENSES

Condo fees here are very high, ranging from $450 - $1200 A MONTH.  

When people ask me if a condo will "pay for itself" - it really does depend on WHICH condo!  If your fees are $1200 a month - then you'll be very lucky to break even - and that's NOT considering debt service - just "expenses."  

WILL YOU WANT A PROPERTY MANAGER?

There are a number of condos here that have on-site property management and rental agents.  These are the most "hassle free" condos to own if you plan to rent your unit out most of the time.  I didn't say they were the "cheapest" or "most desirable" - but certainly the easiest.  

These include Club St. Croix, Sugar Beach, Mill Harbour, and Colony Cove.  Most of these complexes have websites - so google them to see the rates.  Their occupancy calendars are typically not up to date - but they do well in season.  

Most people who own these units at least break even (not including debt service).  Note that some of these condos are self-insured, which means that if you must get a mortgage, the bank will REQUIRE you to have windstorm insurance.  That will add another $350 - $500 per month to your monthly fees.  Better to pay cash, if you can.

I have wonderful tools at my disposal to help you figure your return on investment.  Once I know more about you and what you want, I can run the numbers and give you a really good picture of whether or not owning a condo here would be a good investment decision for you.   First, you can Search the St. Croix MLS from my web site.

Then, in order for me to help you, YOU really need to get clear about your plans.  Thinking through the questions above will help both of us!  See you at the beach?

Kim Lucas, Realtor
340-626-3758
www.retireinthevi.com
www.kimlucasvi.com
kim@coldwellbankervi.com