St. Thomas · Real Estate

What You Need to Know When Buying Real Estate on St. Thomas

Buying a piece of paradise is not only possible, but is quickly becoming a reality for many investors and those looking to enjoy island living at its best

As an investment, vacation home or primary residence, the real estate market in the U.S. Virgin Islands remains strong among those looking to shed their winter gear and enjoy summer-like temperatures year round

If you are thinking about buying real estate on St. Thomas in the Virgin Islands, it's always a good time to invest in paradise. These islands, which form the easternmost point of the United States, are a popular destination for both tourists and hopeful residents. Whether you are purchasing land or a home, the St. Thomas real estate market will remain popular because people will always long for tropical living that offers warm temperatures year round.

As an unincorporated territory of the United States, the Virgin Islands are comprised of St. Thomas, St. John, St. Croix and Water Island. Property that is purchased here entitles the owner to the same guarantees and Constitutional protections as they would otherwise hold in any locality of the United States. On the U.S. Virgin Islands, real estate is bought and sold as fee simple with the deed being recorded and filed at the Recorder of Deeds.

As you may expect, island living isn't cheap. But, there are several ways to cut back on the costs and still enjoy the beauty that St. Thomas can offer at a more affordable price. If you are interested in a particular property, you may consider inquiring about seller financing. This simply means that no lenders are involved and the transaction is directly between the property owner and the buyer.

The main difference between seller financing and conventional bank loans is the down payment, loan term and closing costs. Typically, a lender will require a larger down payment than a seller who wishes to offer seller financing. In addition, closing costs are often eliminated with seller financing and the loan terms are typically not as long as those offered from a lender. Upon the property being paid in full, the owner transfers the deed into the purchaser's name and the transaction is complete.

Virgin Islanders have been U.S. citizens since 1927

Another popular way to purchase real estate and save some money in the process is by taking over an already existent mortgage. If you have ever read an ad that asks potential buyers to 'take over payments,' then you may already be familiar with the process. When you assume someone else's mortgage, the lender must approve you as they would any other loan. But, because you are not taking out a new loan, you may end up saving some money in fees and interest rates.

Shopping for real estate on St. Thomas is much like shopping for it anywhere else in the United States. If you are buying a home, hiring an inspector and appraiser is a good idea. Those who are buying land as an investment should become familiar with restrictions, needed improvements and always conduct a title search to make sure that the property is free of any liens or encumbrances.

If you are building a home on St. Thomas, you can expect a starting price at $200.00 per square foot for an average home. All plans must be approved by a licensed U.S. Virgin Islands architect or engineer and permits, which can take 3-4 months for approval, must be obtained prior to the start of any construction. If a condominium is your preference, a studio style home starts at $100,000.00 and increases depending on the number of bedrooms preferred.

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See you on the Island, John "Big Hat" Walsh