St. Thomas is not only a haven for tourists. It is also a prime destination in the Caribbean for real estate investments. Listed and detailed below are the most common investment opportunities you will find in the island.
Second Homes and Vacation Properties
Second homes are great options if you frequently visit St. Thomas but have no plans (as of the moment) to settle permanently on the island. You won’t have to book a room at a hotel or stay at a rental− you have your own home, and if you buy the right place, hopefully, more than enough rental income to offset your owning expenses.
If you are looking to earn passive income, investing in a rental property is the way to go. Since St. Thomas is a popular tourist destination, it’s a potentially lucrative venture. Most importantly, your rental property can be a beachfront condo, a luxury family, or a comfortable single-family home− all of these properties can generate good income.
You have the option to turn your property into short-term or long-term rentals.
- Short-term rentals (also called villa rentals) are for short-term stays. Tenants usually rent the home, or condo, for a couple of days to a week or so. Short-term rentals can have a fast turnover rate, especially during the peak season, and thus require a more hands-on management approach. It also offers more flexibility, as you can block off dates for your personal use.
- Long-term rentals are typically leased for six months to a year. It is common for long-term rentals to have a set minimum number of days. Rates are paid monthly and tenants shoulder their utility and maintenance bills. This can be a stable source of additional income, but dates can be hard to block off if you want to use the property.
If you are already living in St Thomas, managing a rental property might not be much of an issue. It can be a challenge, however, if you live somewhere else. For that, hiring a professional property manager can help you. Contact Barbara for suggestions.
St. Thomas is a hilly island. It’s uncommon to find flat patches of land, but local builders are well suited to building homes on slopes, even steep slopes. A long term investment in land affords you minimal maintenance while you plan your Caribbean home. Or, hang on to your property for several years until you’re ready to build, or to sell at what will hopefully be a good profit. Depending on where you purchase land, it can become a very worthy investment.