May 1, 2023 | QA
Published on our April 2023 Newsletter
Question: “I have concerns about the higher interest rates, and don’t know if I should buy now?”
Christie’s Answer:
Although interest rates are higher than a year ago, Buyers are understanding that if they see a property they really like, they should go ahead and buy it. Every property on St. Croix is truly unique. As we tell people, it may be your “forever home”, but it doesn’t have to be your “forever loan”. When interest rates go down, you can refinance, and you will have the property you love!
Contact us with any questions about home buying on St. Croix. We have worked with many Buyers on and off the island to purchase their dream home on St. Croix. We can help you with every step of the process.
Mar 31, 2023 | QA
Published on our March 2023 Newsletter
Question: ““Sometimes I see 3 units for sale on a property zoned R-1 or R-2 when there should only be 2 permitted by code. Why is that?”
Chris’ Answer:
This is permitted if there are two separate lots involved being sold together. If they are both R-1 or R-2, buying both lots means that you can have 3 units, and even 4.
Another reason you see this is that the building codes could have changed after the units were built. After Hurricane Hugo in 1989, building codes did change, and anything built or repaired after the hurricane was built to the new codes.
Sometimes people put in another apartment without thinking about the zoning. Unless it’s a cash sale, to meet mortgage lenders’ requirements, the building would need to meet the current code as to the number of living spaces. For example, if it’s a single lot zoned R-1, and there are 3 kitchens (denoting a separate apartment), one kitchen would need to be removed for the property to qualify for financing.
See our discussion about the different zones for multi-unit listings here.
#multiunitlistings #stcroixusvi #usvi #virginislands #realestate #realestateagent #realtor #coldwellbanker #chrisrealestate #realestatequestions
Mar 31, 2023 | QA
Published on our March 2023 Newsletter
Question: “What zoning allows multiple units?”
Christie’s Answer:
When buying or building a multi-unit property, the zoning is important. R-1 is Residential — Low density and R-2 is also Residential — Low density, both allow accessory buildings and Detached Single-Family and Two-Family Dwellings.
R-3 Zoning is Residential — Medium density which allows Attached, Detached, Group, Multiple, Semi-detached and Single-Family and Two-Family Dwellings.
#multiunitlistings #stcroixusvi #usvi #virginislands #realestate #realestateagent #realtor #coldwellbanker #christiesrealestate #realestatequestions
Feb 28, 2023 | QA
Published on our February 2023 Newsletter
Question: “What are the different advantages of renting as long-term vs vacation rental?”
Chris’ Answer:
As a long-term rental you will have a steady income all year, and potentially a tenant you will know. Your costs are lower due to the tenant taking care of the cleaning and other expenses which would accompany vacation rentals.
With a vacation rental there is the possibility of a higher income. Our high season is roughly mid-December through mid-April. This is when you will be earning the most. May, June, July, and November can be good rental months, too. Between each guest the property will be professionally cleaned, and your manager will be able to take care of any issues. You will have more eyes on the property.
#stcroixusvi #usvi #virginislands #realestate #realestateagent #realtor #coldwellbanker #rentalproperty #longtermrental #vacationrental
Feb 28, 2023 | QA
Published on our February 2023 Newsletter
Question: “I am planning to move to St. Croix in a few years. Should I buy something I like now?”
Christie’s Answer:
Definitely! If you, like us, visited St. Croix and fell in love with the island and the people, you may be planning to move or retire here. Because every single property on the island is truly unique, if you see something you like, buy it!
If you purchase land, you can spend the time between the purchase and your move drawing up building plans and going through the permitting process. If it’s a home or condo, you can rent it either as a long-term rental, or as a vacation rental. This will give you an income, and the property will be occupied. If you plan on visiting the island a few times a year, renting it as a vacation rental allows you to visit and enjoy your property.
#stcroixusvi #usvi #virginislands #realestate #realestateagent #realtor #coldwellbanker #rentalproperty
Jan 30, 2023 | QA
Published on our January 2023 Newsletter
Question: “What are the basic qualifications for a 1031 Exchange?”
Chris’ Answer:
Your new purchase also needs to be an investment property and not a primary residence. The new investment property must be of “like-kind” to the property being sold.
Vacation homes or condos can qualify.
- Key Considerations:
- To achieve the maximum tax benefit, the reinvestment must be of equal or greater value.
- The Qualified Intermediary must ensure that all eligibility requirements are adhered to. The investor must not have access to the funds from the sale.
- There are limitations on the amount of capital gains that may be tax deferred.
Did you see our other article about 1031 exchanges and how can you benefit from them? Read it here.
*For more information on 1031 Exchanges, their requirements and additional stipulations, consult a licensed tax professional before making arrangements to begin a 1031 Exchange.
#taxbenefit #realestate #realestateagent #realtor #coldwellbanker #1031exchange #investmentproperty
