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St Thomas condo investment?  

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wiley1827
(@wiley1827)
New Member

As to condos/townhouses, it is hard to make a case for them as pure investment - almost anywhere in U.S. etc. They can not get appreciation of house. And even the old idea of house appreciation has been sorely tested. However, the USVI is unique - property values have climbed even in rough times.

I suggest if one buys condos, think of it as a time share and do your best to get personal use from it with some cash from rentals. Over time, if you even break even, you've had reduced cash need for nice personal use. If you're lucky, you'll have some gain. But expenses will chew into that. As most timeshare people find out, the best they provide is knowledge of the place (no surprises) and possible access to others places worldwise- although the stories about restrictions make it seem a nightmare.

We have all of these things - house, rental, condo, timeshare. In truth, these days some/all can be good use of funds. But the investment angle is hard - unless you are into big ticket stuff which means putting a lot of capital/mortgage into a distant place - not my cup of tea.

Properties that "convert" to condos or start out as "hotels" and go condo can be a disaster. I would stay miles away. All through the Caribbean there are "dead" hotels who go the timeshare or condo route. There's a reason the hotels died - they are lousy properties or horrible management - or both. Forgot guarantees they will make - you have NO recourse and local courts don't give a damn.

St. Martin is good case - they have strong visitor interest from NY and east coast for years. Their hotels range from dog house to top class. But the locals and national chains are goosing visitors with "deals" for ownership and the blood is on the streets. I visited some for business study and the "deals" from lousy places were too good to be true.

Many people are finding that renting other people's houses is a damned good way to have a nice time. We do it now and to hell with all the clever ideas. If the toilet breaks, someone else has to worry. Find a plumber in St. John or St. Thomas? Sure, if you have a lot of time.

Good luck.

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Posted : February 27, 2015 1:30 pm
meritks
(@meritks)
New Member

@alana33

That is very good information to know. Thanks for that.

ReplyQuote
Posted : January 23, 2020 12:41 pm
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