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BUYING CONDO FOR INVESTMENT - STT OR PR?

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BUYING CONDO FOR INVESTMENT - STT OR PR?

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(@oceanman)
Posts: 16
Eminent Member
Topic starter
 

Anyone have any thoughts on this, STT or Puerto Rico? Seems PR has newer condos, STT nicer beaches?

 
Posted : April 13, 2008 11:13 am
(@tmanvi)
Posts: 49
Trusted Member
 

It's not even close in my book ! STT hands down !

 
Posted : April 13, 2008 2:38 pm
(@islandrealtor)
Posts: 82
Trusted Member
 

For me it would be St. Thomas because I would want to use it as well and I would much rather vacation where the beaches are fantastic. I am a realtor so let me know if you want some help finding a condo.

Donna Wheeler
David Jones Real Estate
340-514-4309
www.stthomasvirginislandrealtor.com

 
Posted : April 14, 2008 8:33 am
(@east-ender)
Posts: 2023
Noble Member
 

The problem with new condos in Puerto Rico is that they are in Puerto Rico... 😉

 
Posted : April 14, 2008 8:44 am
 TomB
(@tomb)
Posts: 763
Prominent Member
 

are you speaking PR proper or considering Cublera/Vieques as part of the target area
I have also lived on the western side of PR and there are some pretty awesome beaches

I think the question to you would be - is this just a profit driven condo or you looking also to get some quality time.

 
Posted : April 14, 2008 9:53 am
(@marty-on-stt)
Posts: 1514
Noble Member
 

Gee, with the real estate market in the condition it is in...is this a good time to buy? Or a really bad time?

 
Posted : April 14, 2008 11:37 am
 TomB
(@tomb)
Posts: 763
Prominent Member
 

the right answer is probably yes to both questions
just a matter of each indivduals resources

 
Posted : April 14, 2008 12:27 pm
(@oceanman)
Posts: 16
Eminent Member
Topic starter
 

Looking to rent it out to others primarily and use personally periodically. I don't know if it is a good or bad time to buy. Should be good time to buy, but resort area condos, other than in FL, have simply not yet dropped like the US mainland, which is off as much as 40% or more from just 3 years ago. The killer of these properties is the Real Estate taxes, condo association fees and then rental management fees on top of that, not to mention the very high electric and water charges, at least in USVI, I don't know about PR.

 
Posted : April 14, 2008 5:42 pm
(@iamolly)
Posts: 564
Honorable Member
 

Oceanman,

Puerto Rico does look full of possibilities. I've never thoroughly researched real estate there, but I have always been interested. My biggest obstacle is the fact that I don't speak Spanish. In all fairness I've never spent any time on Puerto Rico with the exception of the airport. With that said, we chose to buy a condo on STT. We felt comfortable with the market and felt that we negotiated an excellent price for our unit. Although our condo does not have a clientele base, we were able to have a ballpark figure of what the average income is for our property. Most real estate appraisers will factor in the income basis with the value of the property (if you are securing a mortgage), or talk to your accountant about actual cost to operate your property vs. income. I would assume that all of us that do invest in the housing markets expect our property values to go up. So with that said if you can secure a property that after expenses has a positive cash flow and a growing property value it's a winner. Don't forget depreciation if it's investment property.

Expenses are high on the Islands, but In my opinion I don't see the market dropping anything drastic, if at all. Too many people love the USVI's and with the new passport restrictions even more people may be on the way to discover the islands.

I'm not sure if it was you that had an earlier post on the USVI's vs. Cayman Islands. We were somewhat restricted in our investment to US Territories only with a 1031 exchange.

Keep us posted as to what you find out or decide. We have owned quite a few properties over the years but this is the most exotic and fun investment to date. We return in early May to finish our renovations. What fun it is to return time and again to a great destination like STT. We have met many friends and look forward to meeting many more. It is such a treat to be recognized by the locals with a smile and on a first name basis. STT is beginning to feel more like home on every visit.

Molly

 
Posted : April 14, 2008 6:30 pm
(@oceanman)
Posts: 16
Eminent Member
Topic starter
 

Hi Molly, yes it was me who was also contemplating the Caymans, and yes, a 1031 is restricted to US, but I believe PR would qualify, same status as USVI I believe. I guess the fear is the absentee nature of ownership and renting out by using others, scary proposition. I have been trying to secure recommendations for trustworth rental companies, but seems they are all problematic in one way or another.

 
Posted : April 14, 2008 6:36 pm
(@iamolly)
Posts: 564
Honorable Member
 

Oceanman, You are right that Puerto Rico is a US territory and you can do a 1031 exchange.

When I go back in May I will be meeting with both long-term and short-term rental property management. I'll keep you posted as to how well those interviews go. One of the best rescources at our association are the full-time residents and rental owners work very well together. Many of them list their properties on VRBO and share housekeepers. It seems to be a nice mix. Many of the condo associations have employee's that will moonlight after work if any situation does arise.

I'll pass on any helpful information as it comes my way.

Molly

 
Posted : April 14, 2008 6:44 pm
(@poohwear)
Posts: 154
Estimable Member
 

I am looking for a rental agent for my 2BR Mahogany run condo...ocean view, short term if possible.

 
Posted : April 15, 2008 2:13 pm

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