|
Ownership:
Ownership is in fee simple, under the U.S. flag. Fee simple is the
highest interest one can have in real estate. It is ownership for
an indeterminate duration that can be freely sold, transferred or
inherited.
Property Taxes:
Property taxes are low relative to many stateside areas: 1.25% of
60% of the assessed value. The rule of thumb is that for every $100,000
of value, the tax is $750.
Mortgage Loans:
Mortgage loans are available through a variety of financial institutions
doing business in the Virgin Islands, including:
- FirstBank (340) 776-6881
- Scotiabank (340) 776-6552
- Merrill Lynch (800) 884-1994
- Banco Popular (340) 693-2777
- Coastal Financial (800) 701-4021
- First Liberty Mortgage, LLC (340)
774-1101
Windstorm and Earthquake Insurance:
Windstorm and earthquake insurance is required for all home mortgage
loans. The cost is approximately 2-3% of the replacement value of
the structure; wood frame is higher than masonry.
Transfer Tax:
Usually paid by the seller, all real estate transactions are subject
to a transfer tax as follows:
- 2% for property valued up to
$350,000
- 2.5% for property valued from
$350,001 to $1,000,000
- 3% for property valued from $1,000,001
to $5,000,000
- 3.5% for property valued at over
$5,000,000
Costs to the Seller:
Exposure of bound posts for land or home,
transfer tax (which can be negotiable), deed preparation, attorney
fees, etc..
Costs to the
Buyer:
Title insurance, structural inspection and termite inspection (for
home), surveyors certificate and report (land) or as-built survey
(home),
recordation of the deed (approximately $1 per $1,000 of transaction
amount), bank fees if required, attorney fees
Construction:
All new construction must be engineered to withstand a minimum wind
speed of 110 mph and Zone 4 earthquakes, and an architect or engineer
licensed in the Virgin Islands must approve and stamp new construction
plans. Owners should allow a minimum of 2 months for issuance of
building permits. Building costs start at approximately $275 per
square foot for masonry construction and vary depending on finish
materials.
Utilities:
Electricity is supplied by underwater cable from St. Thomas; a backup
generator is located on St. John.
Homes on St. John have their own cisterns and septic tanks.
Rainwater is collected from roofs and stored in cisterns. Ten gallons
of cistern storage is required per square foot of roof area on a
single-story home; fifteen gallons of cistern storage is required
per square foot of roof area on a two-story home. St. John has a
desalinization plant and water can be delivered for approximately
$150-$200 for 3,000 gallons.
Rental Income:
On our island with only two major resorts, both the long-term and short-term
rental markets are strong. This gives property owners the opportunity
to receive income to offset the expenses of owning a home or condo
on St. John. There are a number of rental management companies here
to choose from. Owners can generally expect to net approximately
45% to 60% of their gross rental income after management commissions
and expenses are paid.
Home • Properties • Just Listed • About St. John • About Us • Contact Us • Links
Homes • Land • Condos • Fractional • Commercial • Sitemap
American Paradise Real Estate, Inc.
Toll Free: (888) 757-7325
Cruz Bay Town:
(340) 693-8352
(340) 693-8818 fax
PO Box 8313
St. John, VI 00831
|
