Looking for advice

Good afternoon,

I can't answer all of your questions, However, I do have some information regarding Insurance, and a great real estate agent.

"IslandEd" answered one of my insurance posts here, and I think he summed it up nicely:

Windstorm (Hurricane) Coverage is unbelievably high here. Very high for frame construction (if you can get it), a little better for mixed, and the least for all concrete. For a very, very general ballpark idea of what to expect to pay, take the purchase price times 80%, and that result times 3%, to get your annual premium. For new policies, everyone requires hurricane shutters as well. You can look at increasing your windstorm deductible from 2-3% to maybe 5% if the lender will allow it. Most FNMA lenders require a 2% deductible in their guidelines, but allow 3% because most insurers don't offer 2% so it is impracticable (yes, correct word) to demand it. Some local banks will allow even 10% deductible for windstorm. You can also look at increasing the other hazards deductible as well (as most insurers will quote you with a $500.00 deductible and you don't notice because you fell off your high heels with the windstorm portion). If you have a mortgage and you cancel your hazard/windstorm coverage, keep in mind that a lender will force place insurance on the property which is about 30% higher in cost. If you have a high loan-to-value mortgage, this will not be in your best interests. If you have a low balance, it may be preferable, but it only covers the lender and will not pay for reconstruction. I haven't heard anything yet, but I can't imagine we won't have a significant increase in premiums due to Katrina and Rita.

I have also found out , that if you are paying cash for you home, you can self insure, or , partially self insure, your property.

Here are a few email links to local insurance companies where you can get a more specific quote:

info@guardianinsurance.com

tom@stcroixinsurance.net

lance@executiveinsurancevi.com

stc@marshallsterling.com

I have been working with Alexandra Marshall, Alexandra is a great resource on this website, and a great real estate agent.
I have been planning a move to STX and "meet" Alexandra on this website, she answered many of my questions about life on STX.
I had the opportunity to meet Alexandra in person. Alexandra was very knowledgeable, and professional, and took so much time out of her day to show us properties, familiarize us with the island, and answer all of our many questions.

I understand from your message that you are looking for real estate on STT or STJ, I believe Alexandra works just on STX, however, maybe she would have a recommendation for you.

Her website:
http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+pubweb/index.html&entity=stcroixhomes&no_html_header=true

I hope this helps,
Dante

Thanks for the reply.

Lou

Here is my $.02:

1. For vacation rentals which is better to own, a condo or a villa?

I think this is a personal preference and budget decision. Condos tend to be less expensive than Villas and Condos tend to have a management company in place which makes it more of a turnkey operation. On the other hand, some people like a standalone home, especially if they plan to spend considerable time staying there now or in the future. So it really depends upon your goals.

2. For a villa or condo near Megan's bay, Hull bay or Red hook how many weeks of the year could I assume it would be rented?

I am not familiar with the STT market, for STJ, 30 or more rented weeks considered doing well.

3. I noticed that condo fees often include insurance. Does that mean windstorm also?

Not always. What is included in the fees varies by complex and is one of the items to be researched.

4. For a home, is insurance based on the selling price or the appraised price of the house?

I think the previous post did an excellent job of describing the insurance options. I believe most mortgage companies will require insurance to cover the mortgage at least.

5. Any opinion on buying a house vs. a condo vs building your own?

Again, I think this is a personal preference based on your objectives. Do be aware, it is not unusual for the building process on STJ to take well over a year.

6. What do management companies charge to manage the rentals?

This varies depending upon the services the management company is performing. I have heard that it can be as high to 40-50% of the rental fee (on STJ anyway). If you advertise and schedule the rentals yourself, the fee comes down but you still have cleaning, pick-up service and maintenance to consider.

7. Can anyone recommend a trust worthy real estate agent?

I am a Real Estate Agent on STJ and would be happy to help in anyway I can. 🙂