PROPERTY TAXES: Levied at 1.25% per $1,000.00 of assessed value of the property. Assessed value is 60% of actual value.

MORTGAGES: Available through banks and lending institutions; including First Bank of Puerto Rico, Antilles Mortgage Company, Banco Popular, & Scotia Bank. Most banks require the buyer to pay for the tile search, title insurance, property appraisal, written certificate of surveyors property, perimeter survey and the bank‘s attorney fees. Second homebuyers can qualify for up to 70% loan to value mortgages.

TITLE INSURANCE: Available and recommended.

TRANSFER TAX (Stamp Tax): There is a sliding scale government transfer tax (stamp tax) on residences and land at closing and is based on the purchase price.
A.) 2% for property valued up to $350,000
B.) 2.5% for property valued from $350,001 to $1,000,000
C.) 3% for property valued from $1,000,001 to $5,000,000
D.) 3.5% for property valued over $5,000,001

WINDSTORM / EARTHQUAKE INSURANCE: About 2% to 3% of property value for masonry/stone, more for wood frame construction.

VI ZONING, BUILDING AND HOUSING LAWS AND REGULATIONS: May be obtained from the office of the Lieutenant Governor, Accounting Section, 18 Konens Gade, St. Thomas VI 00802 Tel. 340-774-2991.

BUILDING SPECS: All new buildings must withstand a minimum wind speed of up to 110mph and zone 4 earthquake provisions.

BUILDING COSTS: From $200.00 a sq. ft. to $450.00 a sq. ft. A VI licensed architect or enginner must sign off on house plans. Building specs may be obtained from Planning and Natural Resources (DPNR) at (340) 774-3320. Permits take 3-6 months for approval.

ELECTRIC: Supplied by underwater cable from St. Thomas . A backup generator is located on island that supplies Cruz Bay only.

WATER: Collected from the roof and stored in a cistern. Required capacity is 10 gal. of cistern for every sq. ft. of roof on single story homes and 15 gal. for a two story home.

TAXES AND BUSINESS INFORMATION: USVI residents taxed on worldwide income according to standard (IRS) tax code. Non-resident US citizens taxed on income from USVI sources only. Corporations have a 10% surcharge on income with the exception of those enjoying investment incentives. Businesses pay 4% gross receipts tax on money earned from all transactions including services and may not deduct expenses. Ask about IDC and other tax incentives.

MAIL: Service provided through the US Postal Service as well as UPS, Fed Ex, DHL and American Airlines.

CELLULAR PHONES: Cellular service is available from Sprint, ATT/Cingular, and Centennial.

INTERNET: Connections can be made through AOL, ATT, Worldnet, CompuServe/AOL, and Virgin Islands Paradise Freenet (free online service). Western Union, World Communications and AT&T provide international telex and telegraphic services.

MEDICAL: Air Service insurance is $260.00 annually for a family. Myrah Keating Smith Clinic on St. John (with helicopter pad) and Roy L. Schneider Hospital on St. Thomas (via ambulance boat).

NEWSPAPERS: The Daily News, The Tradewinds, St. John Sun Times and the St. Croix Avis are the local papers. USA Today, The Wall Street Journal and several US metropolitan and Puerto Rico newspapers are flown in daily.

VEHICLE SHIPPING: From West Palm, FL to St. Thomas costs approximately $1,000. Cars made in the US are duty free, if made outside the US there is a 6% duty, if made with foreign parts there is a 3.5% duty.

MISC: Grocery prices are 25% higher than in the Washington DC area and 20% higher than in Puerto Rico.

Imagine a place where donkeys still roam the land; a place where the beaches are full of white sand, and the water is crystal clear; imagine being able to reach this place by a short three hour plane ride.

When you first look at Google Maps, the Virgin Islands are non-existent. It is not until you zoom halfway in towards Puerto Rico, do you begin to see our little piece of the Caribbean.

I once heard someone say "the price of real estate will always go up, because it is limited" - this was before the market crashed and prices went down all over the world. However, when it comes to niche markets and waterfront property, there really is a limit of how much is available.

The US Virgin Islands is made up of four main islands: Saint Thomas (the tourist and business hub), Saint Croix (the largest of the islands), Saint John (75% is National Park), and little known Water Island (bring your golf carts!).

While I was not born and raised in the islands, I strongly believe that there is something for everyone here. St. Thomas offers a faced paced environment with shopping, movies, a vibrant nightlife, and much more. One thing to note about St. Thomas is that if you want to go to St. John, you will pass through St. Thomas. One thing I love about this island is Red Hook. You have the night life, the people, the boats; St. John is a short ferry ride away - there is the Yacht Club, the Ritz Carlton, Sapphire Beach is awesome, Coki Beach is beautiful, and there are plenty of places to stay. You can walk into town, there is the Marina Market which has great sandwiches.

St. John is small, quiet, and amazing. The beaches are beautiful, the snorkeling is amazing, the restaurants are on the water, the people are great; I could go on forever. With that said, St. John does not have many amenities. You don't have great cell reception all over the island, the island is much smaller than St. Thomas, and the cost of living is much higher. On the other hand, St. John real estate is truly limited. Prices will continue to rise.

St. Croix offers a large island with room to roam. Prices are great, there is plenty to do and I personally believe that their market is on the up-and-up. St. Croix doesn't get the cruise ship traffic or have the amount of visitors as St. Thomas, but what St. Croix does have is an island three times larger than St. Thomas. There are two towns: Christiansted and Frederiksted. Both offer something different, and it comes down to personal taste. Definitely worth a visit. As for real estate investments on St. Croix, the prices are right and as they continue to add infrastructure and amenities, the island will continue to become more and more popular.

Water Island is like something out of a book. There are no stores, no gas stations, very few cars, and many golf carts. They have one main beach "honeymoon beach" and the general feeling is a "small community". To get food, clothes, civilization you need to take the Water Island - Crown Bay ferry or have your own boat.

I would like to add that your adventure on any of these islands can be made or broken by who you know. So if you are coming down to take a look at our properties, or just want to go out for a drink, give me a call. The last thing you should do is come to paradise and not have an amazing time!