St John homes

[msfcambridge]

We've been tossing around buying a vacation home in St.John since we started visiting every year/5 years ago. The research shows A LOT of homes for sale and they don't move off the market with any speed whatsoever. Does anyone have insight as to whether or not this is a bad sign? Is it better to rent than own & rent a unit due to the taxes? Thanks in advance-- any insight is appreciated.

[loria]

we bought a year and half ago-- the market is somewhat soft-- but seems to be moving/picking up a bit . We had a great broker experience with Les Otis at St John Properties -- if you like i can put you in touch with him (pm me here or email me lori48oak@yahoo.com) I am happy to give you my two cents!

all the best,

Loria

[Tracy in WI]

My husband and I also toyed around with the idea of buying on St. John after numerous annual and then semi-annual trips. We finally purchased a condo back in 2010 which we rent out and also use ourselves. We also used Les Otis at St. John Properties and were incredibly comfortable with his knowledge and advice.

We were so pleased that we purchased a second condo in 2012 and hope to eventually move to the island once our kids are done with school.

It is so important to work with someone who will be honest with you on the good and also the challenging aspects of owning property in the islands. From financing, to closings, to actual differences in owning on an island vs. stateside, Les was and continues to be a great source of knowledge for us.

[Coconuts]

As you mention, homes on St. John tend to stay on the market for a while; the two homes that we bought had both been on the market for four years before we purchased them. To be fair, they listed shortly before the Great Recession began, but this general notion of island illiquidity has been around longer than that, and is likely to continue. We have been thrilled with how our two purchases turned out, but we also had no idea at the outset just how much work would be involved. Fortunately, we enjoy the work With the overbuilding during the first half of the last decade, there is lots of inventory on the market (and lots of competition, should you buy a villa and plan to rent it out). We were fortunate in that a lot of the elements that really appealed to us, also appeal to folks looking to rent a villa. Win-win!

All the best,

Kevin

[msfcambridge]

Thank you for your replies and advice. When we're ready to make the decision I will reach out. Sounds like there's much more to consider than the typical stateside purchase (which is stressful in it's own way). Also, thanks for the explanation/confirm that it's also an inventory issue and not some hidden horror.
Best, Marie

[DonnaM]

We bought an unfinished villa in 2011 and had a builder finish it. We come down 4-5 times a year now and plan to spend more time once our son is out of college. It has been more work and expense than we thought but arriving in STJ and going to your own home....priceless. That being said, getting someone trustworthy to caretake your villa is really important. We really liked our mgmt company but they have gone downhill and we are now looking for someone else.
Good luck!

[inuny]

msfcambridge,

We built our home (completed 2010). As you noticed there are a lot of homes for sale. You can pm me if you have any questions. And a big shout out to Coconuts and Ioria!

[Betty]

We purchased property from the best realtor on St John, Les Otis And we built our home. I would never build a home on St John without living here full time to supervise. We love living here and love our home. I was a realtor in Bay Bay/Beacon Hill in the 80's. And picking a good realtor was very important to us. We could not have been happier with Les!

To answer your question about the large inventory of listings that do not seem to move. I think a lot of homes that were built or purchased during the real estate building boom are over priced for todays market. Unfortunately during St John's hot market, people over paid. Since owners are able to rent the homes with St John's hot rental market, they are not in a hurry to take a loss in the sale of the home. The rentals cover most expenses or even make a profit for some owners. You can find owners that are willing to take a loss, we just had one on our street. They went on the market over two years ago at 2.3 If I am recalling correctly and they slowly dropped the price down to 1.499,000. and it sold for 1.275,000.

I am also seeing a lot of fixer uppers coming on the market. These are homes that were purchased or built in the 70'-80-90's and the owners are now getting to the age for wanting assisted living or to be closer to good medical care, so they are selling their winter homes. These are quality construction homes that just need updating. Another of my neighbors on Rock Ridge Road sold her house in 2 months for almost asking and it closes end of August.

I feel like the market is picking up and it is still a good time to get a home here for a good price before prices start going back up. If you want any more information, I am happy to help, just pm me.

[iheartsj]

Do you want a home or a business? If you will only be using it yourself a couple weeks a year, it is a business. You need to look into what you need to run the business and how much this will cost you. Manager, landscaper, maintenance, cleaners, business tax, etc.

[msfcambridge]

Thanks again to all that have responded. Would love to be a part of such a helpful & giving community someday!

[RickG]

I looked at buying for about 20 years. The numbers never added up, it was cheaper for us to rent. What did work out was buying a boat that we keep in a marina on St. Thomas, about an hour away from St. John. We can fly in and spend that night at Maho Bay for $15 per night mooring fee. Total cost was about 5% of what a villa would have cost. We have ten weeks planned between now and the end of March.

Cheers, RickG

[msfcambridge]

thanks RickG! You're always a great resource. We are looking into this. Seems like a potential option. Why do you go until March and bugger out after? Just curious. Also, do you have to spend fees for the marina so your boat is maintained/secure?
Best,
M.

[Ken]

I looked at buying for about 20 years. The numbers never added up, it was cheaper for us to rent. What did work out was buying a boat that we keep in a marina on St. Thomas, about an hour away from St. John. We can fly in and spend that night at Maho Bay for $15 per night mooring fee. Total cost was about 5% of what a villa would have cost. We have ten weeks planned between now and the end of March.

Cheers, RickG

Damn, Rick! I want your job! I love reading the stuff you write about the islands. Interesting take, and one I can certainly understand.

Ken