Investment Properties in the Virgin Islands
There are many types of investments that can be made here in the Virgin Islands, in particular on St. Thomas. I have personally made a number of investments here: 1) a home in which I live 2) a piece of land near my home, which may become a future site for building a newer home 3) a piece of land in Sprat Bay, Water Island 4) Several condominiums, used for income purposes (vacation rentals), as well as gains upon a sale (the old buy low, sell high goal).
The LAND investments are pretty straightforward. They do not generate income. I am relying solely upon an increase in value over time. I have some land in the States as well, with the advantage there in that it is leased for farming which effectively eliminates my property tax and holding costs. However here in the VI, I pay property tax each year, and in the case of Sprat Bay, also have Homeowners dues. This will decrease my gain at the time of the sale. However, a purchase like this cannot be looked at solely as an investment for money, it is equally, or even more so, and investment for me as a person. How? I have no intent of selling either property. I would like to build upon them in the future. When I purchased them, I felt I got an excellent deal, below the market value at the time of purchase. I have no idea what the market will do in the future, especially ten plus years down the road. So I focused solely upon where I thought things stood in the present, picked properties that I personally love and would want a home in the future, and purchased for those reasons. Where things stand financially twenty years down the road is NOT my worry for these investments.
The CONDOS, however, were a very different mindset. FYI, each of my purchases has been at Sapphire Beach Resort. Not because I think it is the only place that can be a good investment, but because it: 1) fit my budget 2) I knew it would be lucrative from a cash flow / income standpoint, and 3) I felt confident I would make additional money upon a sale at some point in the future (while still making income while owning the property). Now some complexes may be better for vacation rental income, others better for long term rental income, and others presenting an opportunity to be flexible for either. As for capital gains from a future sale, there are some properties that hold their values very well while also giving room to grow. Cowpet Bay West and Cowpet Bay East are two that I find very attractive in this respect, while also being flexible for either income approach. But again, they are not the only complexes that offer such opportunities. If you are looking for an investment condo in the Virgin Islands, I truly understand these things very well and would love to discuss it with you. We can detail which complexes are the best fit for your needs and price range, as there are so many factors to consider.
The last area I would like to discuss in this blog is HOMES. Cara and I have been discussing the purchase of a particular home on island, which we really really like. First it should be stated that we absolutely love where we have lived for more than ten years now. It is a small home, but has excellent views and is the perfect size for us. Our consideration is the purchase of a larger home with a rental apartment, where we would use the main home as a vacation rental, then use the apartment for ourselves. The search for the perfect place has been ongoing for quite some time, and just recently did we find something we thought could be a perfect fit. This is it:
http://davidjones.vi/property-listings/beachfront-magens-bay-large-home-...
Why this home?
1) we love the location. We like Peterborg a lot, but this home is exceptional as it offers direct sandy beach access to Magens Bay. Being on an island, you would think there are more homes like this, but the truth is there are very few homes with a secluded beach and easy access to the water. The value of this home is tremendous in large part due to this location.
2) the home has several apartments, all of which would be suitable to us. We would likely choose to live in the 1BR/1BA apartment, which is quite large for our needs. We do not need guest quarters because we would have the rest of the home to use when we have guests. The point being, if we lived in the 1BR, we would still have three apartments to lease for income: 2BR/2BA, 2BR/1BA, and studio. We already work in property management for a living, we are here on island 99% of the time, and have much experience in this business. So it is very simple for us to take over management of a home like this, book it, and the income should be more than enough to pay our mortgage and expenses. Even with living in the 1BR.
3) Because of the location and water access, we feel this is a property that will appreciate very well into the future, since very few other properties offer such a quality. So we would expect to do very well on our investment on the back end.
Now, with that being said, everybody has different ideas on what type of home they would like. Some may choose not to lease the home, and just use it as a second home for their personal pleasure. Others may rent just enough to help with expenses, but the focus is still upon their personal usage. While some may look at things similar to me and Cara and try to capitalize upon rental income, and simply use the home when it is available, without interrupting paying guests. Then you also have the long term rental option for a home, which may make a little money but doesn't allow your personal usage. So looking for an investment home means something a little different for everyone.
If you have interest in the purchase of a second home in the Virgin Islands, then this is another area which we can help. These things all change depending upon the price range. So just reach out with your particular needs, and we can discuss the options.