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
Jan 30, 2023 | QA
Published on our January 2023 Newsletter
Question: “What is a 1031 Exchange, also referred to as a Like-Kind Exchange? How could I benefit?“
Christie’s Answer:
If you have owned investment or rental property for at least 2 years, a 1031 Exchange enables you to defer some of the tax liability from the sale of that property by reinvesting those proceeds into a similar kind of property of the same or greater value.
With the sale of your property, the funds go to a Qualified Intermediary who will hold those funds until you purchase the next property. Usually you close the sale of your current property before you close the sale of the new property. Although, a “Reverse 1031 Exchange” can be done.
There is a 45 day period after the sale of your property to identify up to 3 properties for your new purchase, and a 180 day period, which runs concurrently, for you to close on your new investment property.
In addition to deferring capital gains taxes, other advantages could include:
- The potential to increase investment income by moving to more profitable real estate markets.
- Property consolidation; combining multiple investment properties into a single property.
- Diversification; dividing one investment property into several properties.
For the basic qualifications, visit our other article 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
Dec 7, 2022 | QA
Published on our November 2022 Newsletter
Question: “What does RENE mean, and why is important to me?“
Chris’ Answer:
The Real Estate Negotiation Expert (RENE) certification is for real estate professionals who have taken classes to sharpen their negotiation skills. It gives us the tips and tools we need to be skillful advocates for our clients. In the classes and following information sent to us, we learn how to handle a wide range of situations, and how to sort out the competing objectives of the parties involved in a transaction.
Contact us if you are in the market to buy or sell your property on St. Croix. We are an experienced team who work with buyers and sellers. We would be happy to help in every step of the sales and purchase process.
For a list of our sold properties sold in 2021-2022, click here. Search for properties for sale here.
#realestate #realestateagent #realtor #coldwellbanker #islandhomes #caribbean #stcroixusvi #virginislands
Nov 30, 2022 | QA
Published on our November 2022 Newsletter
Question: “What does ABR stand for?“
Christie’s Answer:
The Accredited Buyer’s Representative (ABR®) designation is for real estate agents who focus on working directly with buyer-clients at every stage of the home-buying process. We have taken special classes focused on improving our skills and knowledge toward assisting home buyers. We receive ongoing specialized information and updates on the issues and trends facing home buyers.
Are you interested in purchasing a new home on St. Croix? Contact us, and we will be happy to help you find a home which fits your needs.
#realestate #realestateagent #realtor #coldwellbanker #islandhomes #caribbean #stcroixusvi #virginislands
