ABOUT ST. THOMAS: Residents and travelers alike love St. Thomas for its sophisticated atmosphere, fine dining, designer shopping, and golf courses set amid a warm and tropical climate. Locals enjoy the comfort and convenience of this beautiful island, as well as easy access to St. John and St. Croix via regular ferries.
St. Thomas is home to the Bay of Magan, which is known as one of the most beautiful beaches in the world. It should come as no surprise that St. Thomas is a major destination for yachting. Conditions are perfect for sailors due to the steady sea winds of the USVI and the abundant sea breezes of St. Petersburg.
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St. Thomas Real Estate Information
The St. Thomas real estate market is strong, with properties ranging from luxury homes to condo communities and investment property opportunities. Fortunately, St. Thomas homes are protected by U.S. laws and residents can benefit from EDC tax benefits.
St. Thomas Real Estate Market
The Canadian Real Estate Association reports that 2020—despite the pandemic—was the second-best year for residential real estate sales in London-St. Thomas area. There were fewer than 10,000 home sales, with an average sale price of about $44,000. Housing prices in St. Thomas increased by more than ten percent in 2020. Most of the sales were for single-family homes, but a small number of apartments and townhomes were also sold. This is at least partly due to the low volume of inventory.
Average home prices in St. Thomas are on par with those of the entire province, and of course, almost half the price of homes in the Toronto area. As more people move to smaller cities (especially because of the proliferation of remote working), experts predict that home prices will continue to rise. If you are looking to invest in residential real estate or developing land, you may want to start before prices rise even more.
When it comes to commercial real estate, St. Thomas is ready for investment. St. Thomas Economic Development Corporation provides investors with promotional programs, market data, and modernization programs. If you plan to invest in the area, they can be a valuable resource. Land ready for development is currently available starting at $98,000 per acre.
Real Estate Professionals in ST. THOMAS
We’ve searched high and low for real estate investment professionals in St. Thomas. Here, you can find the experts we’ve researched and can verify are experts in going with real estate investors.
To ensure maximum benefit in real estate funding in St. Thomas, or any city, you should always use professionals who understand and work with investors who depend on your income.
Where to Buy Property St. Thomas
The island of St. Thomas is small and mostly mountainous. Half of its 50,000 population lives in the USVI’s capital, Charlotte Amalie, and the rest in three other residential areas: the North Side, East End, and West End. Condominiums, villas, guesthouses, resorts, and vacation homes are located on the island from the beaches inland. St. Thomas is a very attractive living and tourist area.
There are guided snorkeling and kayaking tours of the St. Thomas Mangrove Lagoon Wildlife Sanctuary and Marine Preserve. A modern aerial cable, the St. Thomas Skyride to Paradise Point, offers breathtaking views of the island and sea. Visitors to Coral World Ocean Park can get up close and personal with the marine life of the Caribbean through shows and exhibits such as shark and turtle encounters.
St. Thomas is not only a paradise for tourists. It is also a major destination for real estate investment in the Caribbean. Listed and detailed below are the most common investment opportunities you will find on the island.
Second Home and Leisure Properties
A second home is a great option if you frequently visit St. Thomas, but there are no plans to permanently settle on the island. You won’t need to book or rent a room at a hotel—you have your own home, and if you buy the right space, hopefully, more than enough rental income to cover your expenses.
Rental property
If you want to earn passive income, investing in rental property is the best way. Since St. Thomas is a popular tourist destination, it is a potentially lucrative venture. Most importantly, your rental property can be a beachfront condo, a luxury family home, or a comfortable single-family home- all of these properties can generate a decent income.
You have the option to convert your property into a short-term or long-term rental.
Short-term rentals are for short-term stays. Tenants typically rent a house, or condo, for a few days to a week. Short-term rentals can have faster turnover rates, especially during peak season, and thus require a more practical management approach. It also provides more flexibility, as you can turn off the dates for your personal use.
Long-term rentals are typically leased for six months to one year. It is common for long-term rentals to set a minimum number of days. Rates are paid monthly and tenants are paid their utility and maintenance bills. It can be a steady source of additional income, but it can be difficult to block dates if you want to use the property.
If you are already living in St. Thomas, managing a rental property may not be a big problem. However, this can be a challenge if you live elsewhere. For that, hiring a professional property manager can help you. Contact Barbara for suggestions.
Land
St. Thomas is a mountainous island. It is unusual to find flat patches of land, but local builders are apt to build houses on slopes, even on steep slopes. A long-term investment in land provides you with minimal maintenance as you plan your Caribbean home. Or, hang on to your property for several years until you are ready to build, or sell, in the hopes of making a decent profit. Depending on where you buy the land from, this can be a very worthy investment.
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