Cost of living versus income

Hello Nickey,

Different stories - there are people that make a little more to much more then 25K.

There are some that make less and with the help of government programs like WIC, MAP, Food Stamps, Housing programs ect. make ends meet.

There are some people that have additional forms of income (small businesses, odd jobs, under the table jobs...), some of which get under reported if reported at all - so those incomes of course are not factored into the stats you saw.

There are some people who through illegal activites have money coming in.

Some residents live in extended families so parents, grandparents,children and grandchildren might live live all together with their families so this factors into making housing cost less.

Certainly there are people who work more then one job; some have two jobs some have three.

--Islander

Islander,

Thank you for the eye opener. It sure seems like a nice place to live when you're visiting on vacation, but quite more difficult when researching it more indepth. I've been trying to mull over the numbers, but not all are available. Such as house insurance, I realize that must cost a pretty penny, but there are no numbers showing the average cost. Some of the houses we viewed on the net were reasonably priced, of course others were very high. Does anyone have an idea what the average cost for home insurance is?
Sadly to say, the more we research it, the more difficult and elusive moving to the islands becomes. I guess living in paradise isn't cheap.

Homeowners insurance is very high. We pay $3800/year for a average home and this is the discounted rate through AARP. Much higher than the states. You will find that your lifestyle is different here so what you spend is different. There is no sales tax, there is no state tax. Also you don't drive as far so usually money spent on gas is less despite the fact that gas costs more than most places in the states.

Also, there is not an abundance of stores (i.e. shoe, clothes, furniture, electronics), so you are less likely to spend all of your hard-earned money on a pair of Manolos or a Sony plasma TV that you probably didn't need anyway. 🙂

Previous postings on other sites have indicated that a good rule of thumb is to figure that the annual homeowners insurance premium will be about 3% of purchase price.

And don't forget property tax which is 1.25% of assessed value. (Last I knew, assessed value in USVI equated to 60% of purchase price, with a minimal homeowners exemption value deducted from the tax amount for a homestead exemption. There are also additonal exemptions for veterans and seniors with lower income.)

I doubt anyone will have the purchasing power of the USD here compared to DC, you certainly won't get the same quality -dollar for dollar- that you would have around DC.

PH

You seem to be familiar with the different areas of the islands. What do you thing of the Coakley Bay Condos? Do you thing it would be a comfortable place for a retired couple?

I'm not Islander, but I do know Coakley Bay Condos. Nice complex on a hill on the east end of St. Croix. Great views. Many of the condos are short-term rentals, so you neighbors will change from week to week. On a steep hill. On the east (arid) end of the island.

When you are quoted a price, ask about extra monthly costs. Water, for example, can cost $0.04 a gallon out there. Water costs of more than $100 a month are not uncommon.

It's a nice complex. Are you planning to buy there or lease? My opinion is lease for a while (6 months or a year). Use the time to become familiar with the island and make a more informed choice about where you want to live.

Give me a call when you get on-island. Ric and I will buy you a drink. Good Luck.

Hello Bobbyrick, I am not familiar with the Coakley Property. So thanks Linda for helping with this.

--Islander

Thanks Linda!