Prices of housing

Being from the D.C. area I would agree with you in part. Price is driven by location and demand. The main difference is the quality of what you purchase. Here on St. Thomas I have walked into houses that are on the market from 800k to 1.5mil and they have spectacular views but other than that are pretty much a dump and most the time need about 100k in upgrades. The house I am renting right now has an appraised value of 1.6mil and has an awesome view but I would have a difficult time justifying purchasing it for its current value based on its quality. The amazing thing about most the houses I viewed, is that just 4-5yrs ago they were selling for 400k so now if you purchase you are rolling the dice of buying in at the top of a realestate cycle that could change overnight My parents just purchased a home in northern VA for 850k and it's brand new with 5bedrooms 2,000 sq ft basement and has every amenity you could ever want. Put their house in front of the water here and that is a 4mil dollar house. You are right about STX there are some great deals over there but again that reflects the demand for their housing market.

true, but give me a tent on a $1M piece of land on st john and ill be happier than *anywhere* in a $1M house in the 'burbs 😉

Yes, you get less square footage for the $$$ here versus in DC area in some instances. But I lived in one of those large sq ft homes and I personally prefer a small cottage on the island to the 3,000 suburbia box. It seems much more justifiable to me to spend the money for the island home versus for the house we had that was built in 1976 costing about what your parents just paid. I know not all would agree, but I do agree whole heartidly with kudzo! Give me a tent!!!!!! ;o)

Dont get me wrong, you could offer me a 1mil house in D.C. for 200k and I still would still never go back. My fear with purchasing here has more to do with timing than anything. My argument is if you are looking to purchase here just do your due diligence before purchasing. Real Estate in the U.S.V.I has never been higher and when you purchase you are taking a calculated risk that best case it willcontinue to appreciate and worst case the market will not see a large correction. You must also factor in external influences in the market such as EDC, Local Govt, Tourism, Terrorism, Natural Disasters. There are good deals on the islands if you are patient. My decesion as a person with 20yrs experience in the mortgage industry was to wait 1yr to get a better feel for the Island and the market. It is breaking my heart to spend $4500 month on rent but since I know I will only be here on a full time basis 3-5yrs, I want to be comfortable before making a long term investment. I also am cognicant of the fact that I could of made a huge financial mistake by not purchasing right away, but hey that is Real Estate.

I gotcha, I didn't think you were singing the benefits of DC suburbia. I ws just trying to explain that the smaller sq footage on STJ for the same price as DC seems much more justifiable to me. I know many in my neighborhood would not agree with us. That is why we are moving to STJ and they are not. (many gasp in horror that I will not have a Target or a BJ's to shop at.) LOL
We are not buying right away. We are still in the exploration stage and will be renting for some time. We want to watch and network so we get , if not exactly, then very close to what we want and make improvements as we go. We don't have to have new and sterile housing. We like character in our houses and if it needs additions or fixing up, even better.
The market around DC (and the VI's) has gotten so out of control, I wish we had moved out earlier. But alas, always a day late and a dollar short seems to be out motto. We are coming down again in June. Then again as moving time gets closer to secure a place.
Thanks again for your posts!

THE PROBLEM IS NOT NOW IT IS GOING TO ARISE IN 5OR 10 YEARS WHEN YOU LOOK BACK AND SAY WOW I SHOULD HAVE BOUGHT BACK THEN.LIKE EVERYONE ELSE DOES