Make Yourself at Home in the Islands
In real estate, location is everything, but so is timing, and there's never been a better time than now to buy that first or second home or investment property in the USVI.
Though the market has remained relatively stable in the Virgin Islands, a struggling economy in the United States has trickled down to create a "buyer's market" in paradise, with more motivated sellers, lower selling prices than previous years and a higher inventory of properties to choose from on all three islands.
Property prices in the Virgin Islands vary quite a bit depending on the island, location and view. For the last several years St. John has been considered the most expensive market among the three, but since high-end real estate is moving much slower in the current economy, St. John sellers have become more willing to negotiate, and there are a lot more bargains to be had than ever before.
The Virgin Islands National Park occupies about two-thirds of the island; however, there are some homes within the park boundaries, including the gated Peter Bay development. Buyers will find that most land and homes for sale are located outside the park in the island's main town of Cruz Bay or in the more rural Coral Bay area, where prices are slightly lower. On St. John, condos can be purchased for as low as $225,000 and standalone homes can go as high as several million. Since St. John has only two major hotels, many investors turn their homes into rental villas and enjoy good occupancy rates and returns on their investments.
According to local Realtors, there has also been an increase in the number of houses and condos available for sale on St. Croix, many of which now have lower price tags compared with just a few years ago. As the largest of the U.S. Virgin Islands, St. Croix has a much greater inventory of land for sale, including prime beachfront property that can be purchased for a fraction of the cost of recent years. Waterfront condos have become more affordable as have hillside condos with stunning views, and there are many top-notch luxury condo properties and expansive homes with pools that are coming on the market for less than half a million dollars.
St. Thomas has long been a popular location for people wanting a second home to put in the vacation villa business or to escape to during the long winter months. This island also has seen an increase in the inventory of properties for sale, especially condos. Some condo prices have come down as much as 30 percent, but high-priced homes of more than $1 million have seen the deepest price reductions. Many St. Thomas sellers have become more flexible in their negotiations and making a reasonable offer can result in a great purchase.
With the U.S. flag flying overhead, buyers can rest assured that their offshore property investments in the USVI are safe under a stable government. Banks in the USVI follow the same rules and regulations as in the U.S. mainland, and the sales process is the same with buyers getting a warranty deed and title insurance.
Most Realtors in the USVI are members of and abide by the code of ethics of the U.S. National Association of Realtors, and most properties are listed on the Multiple Listing Service (MLS) and on www.realtor.com.
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