CONDO/PROPERTY OWNERS...Need Advice!!

James & Marie:

You sound much like us (about a year ago). We too were looking for a "future retirement" property. We thought about Florida, but found what we wanted in St. Thomas. We looked at a few properties during a cruise stop over in January 2004 and then spent a week at a place we thought we would like. Well we bought a condo at the Point Pleasant Resort, East End, St. Thomas, in May 2004. We chose Point Pleasant because of the view and hotel management company, on site. We bought now with the thought to spend vacations throughout the year, then ultimately (when we retire) spend the winters there. To answer your questions....

1. We do not live on-island.

2. The management company, Antilles Resorts, rents our condo by the day. Since July 2004 the most we experienced a vacancy was 7 nights in any one month. In other words we have had a high occupancy rate.

3. Our condo fee (per month) was $700. last year, $760. this year. The fee includes hazzard (hurricane) insurance, which is very expensive. You can also expect....utilities, cable T.V., taxes, misc. maintenance & repairs and occasionally a special assessment. We put some money into the property, in the beginning, to bring the condo up to "our standards".

4. We started with a realtor, but during our visit in April 2004, we came accross an owner ready to sell. We bought directly from him.

5. We have had to replace some small appliances from time to time, but it may have been from "accidents" or just plain "it broke". Nothing expensive. No damage to speak of...just normal wear. We're very happy with Antilles' management of our condo.

6. Rent a place like Point Pleasant Resort for a week or so .... visit several properties during your stay (we visited about 8). Decide which one you like the best. We're very happy with our chioce.

Regards,

Future Islander

One thing to consider is that each condo association has different rules. For example, some allow individual owners to rent out their units, others do not- you have to go through the association's approved property management company. I know a lot of folks who have condos in rental plans, and they say, don't do it if you HAVE to make money. Right now occupancy is up, but who knows what tomorrow brings.

Re: the condo fees...They are very high because we are smack dab in the middle of the hurricane belt. Many insurance companies stopped writing insurance because of problems that go back many years. So, no competition= high rates. Some associations have taken the step of self-insurance. You will have to find out how each potential association stands.

There are realtors who specialize in condo properties. Fiona Stewart at John Foster is one.

Also, there is a guy who puts out a newsletter about owning property in the VI. He is a little radical, but has some interesting things to say. I can't remember the name of it-probably something like "Virgin Islands Property Owner's Newsletter"! 😉 Maybe someone else knows the name...

The news letter you are referring to is:

The US Virgin Island News. See link below.

I think a more correct description of the editor is reactionary rther than radical. He does make some interesting points regarding the VI's government and the amount of debt they have piled up.

It does track real estate trends on all three islands so it is worth reading if you are thinking of buying.

My experience with condo rentals has been is that it is easy to rent properties Jan - April, but other nonths are tougher. Don't build your plan expecting to break even or even make a profit. Assume the worst (minimal rentals ) and hope for the best. If you get twelve weeks of in season rental income and a few weeks of summer rentals.

Jim

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