Buying versus Renting: Real Estate in St. Thomas Virgin Islands

One of the toughest choices we face in our life is making the decision for when to buy a home. What many people don't know are the benefits and pitfalls for both sides- buying versus renting. There are certainly advantages to both, and just because you can afford to buy a home doesn't mean it is the right choice.

There are dozens of blogs related to the buying versus renting question, and most I have seen list the same advantages and disadvantages for each side. See the following blog from YAHOO Real Estate: http://realestate.yahoo.com/info/guides/buying-vs-renting;_ylt=AtmYejlQX...

The most widely accepted advantages to buying are:

tax write off of interest from your mortgage payments
building equity in the home versus "throwing away rent"
you can lock in a set loan payment and not worry about a rise in rent
pride of home ownership

The most widely accepted advantages of renting are:

ability to move easier- no long term tie to the property
repairs are the responsibility of the landlord
smaller financial commitment

But there are other reasons I find equally advantageous which often are not listed in the various blogs you may read.

1. Many rental units do not accept pets, specifically dogs. Owning your property allows you to have pets if you would like.
2. I have witnessed a lot of tension between tenants and landlords, which can be avoided if you own your property. These differences are typically the related to maintenance issues which would be in your control.
3. I have already listed pride in ownership, which cannot be understated. But this topic also relates to having more care for your house. Rentals typically are NOT treated as if it is your home, whereas ownership tends to lead to better upkeep of the home since you have not only the pride factor, but also financial repurcussions if you do not maintain it well.
4. Most importantly with regard to purchase is timing. Buying at a time when prices are depressed can reap rewards for a long time to come. This is one of those times. If a buyer is patient, knows the local market, and is ready to react when a great deal is available, it will prove to be a very valuable financial investment.

In support of renting, there is one big advantage for new arrivals to the island. That advantage is learning the island BEFORE deciding on where you would like to permanently settle. St. Thomas is so diverse and people do have choices on where to settle- Northside, Northeast, East End, South Side, West, high in the mountains or close to the beach. I have seen dozens of people think they want to own next to the beach, only to learn they prefer being high on a mountain with views, breezes, and typically more rain. So renting for a new arrival provides advantages to 1) make sure you will stay on the island, and 2) give you time to decide where you would like to live on St. Thomas.

So, my advice is to really think about the various advantages and disadvantages for both sides before rushing to a decision. But in the long term, understand that purchasing a home will be the wisest financial move provided you intend to stay in the house for at least a few years.