true costs of ownership

loria · Post by **loria** » Mon May 14, 2012 11:55 am

So, we are kind of starting to toy with the idea of buying a place ........and so i was wondering if anyone can give me some idea of the actual costs of owning a place-- property taxes? WAPA bills? maintenance/landscaping , etc-- the idea i think would be to buy something that could be a vacation rental as well (so i guess the costs of a management company? cleaners? what else?)

this is still very much a pipe dream... but wanted to try to get a basic idea.

thanks

PA Girl · Post by **PA Girl** » Mon May 14, 2012 12:45 pm

I would love to hear about this as well, not that we are in the position to do it but because I am obsessed with all things STJ in general.

I remember Frank Barnako had a pod cast on his News of St. John site where he interviewed someone that had purchased a house years before things boomed. It was really interesting.

msgcolleen · Post by **msgcolleen** » Mon May 14, 2012 1:20 pm

Pia could give you the lowdown. PIA!

Teresa_Rae · Post by **Teresa_Rae** » Mon May 14, 2012 1:30 pm

I'll bump for you, there are a bunch of forumites who are also villa owners...I can think of at least a half a dozen off the top of my head.

RidgeRunner · Post by **RidgeRunner** » Mon May 14, 2012 6:22 pm

According to:

http://www.americanparadise.com/stjrealfact.html

So on a 1M residence where 500K building/500K lot you'd be looking at annual costs of:

property taxes: ~7500
insurance: ~ 12,500

Can't comment on WAPA bills, would guess 1K a month at least if running AC.

My understanding is the rental management companies keep approximately half of rental incomes.

A tough sell these days obviously.

waterguy · Post by **waterguy** » Mon May 14, 2012 6:51 pm

Not an owner but I stayed at holiday inn last night. Also talked to some friends. Can't say about taxes. But i've been told Insurance vary's buy type of construction and location there first house was wood const. and down low where you had to worry about storm surge it was almost 30,000 there second house is all concrete suposeably H proof hight up and it is 13,000. They are making people pay I think about 500 a week more for AC in the kitchen and living room area as it was almost 2,000 more a month when renters were in then when they were staying there because they would leave the patio doors open and try and cool the whole island. so now there bills are about 1500 for wapa. you can't forget the gardener and maint.man cleaning water deliveries pool boy I think their managment company takes about35% off the top. They don't break even. But you get to write it off your taxes woopie.

Tracy in WI · Post by **Tracy in WI** » Mon May 14, 2012 7:02 pm

I own a two bedroom condo at Grande Bay and can provide some data - but it sounds like you're looking for information on a villa/house.

If you'd like some details, let me know and I'll share what I can!

loria · Post by **loria** » Mon May 14, 2012 7:07 pm

Tracy in WI wrote:I own a two bedroom condo at Grande Bay and can provide some data - but it sounds like you're looking for information on a villa/house.

If you'd like some details, let me know and I'll share what I can!

Tracey -- any insight into the whole process would be more that welcome! Ridgerunner-- thanks for that link-- it was very helpful--
Waterguy-- yeah-- not a money making investment-- the reality checks are coming in fast and furious!
thank you to anyone who can respond-- and thanks also to INUNY who i had a lengthy phone discussion with --that was really nice of you to take the time
anyone else who wants to weigh in,, I really could use any shreds of insight-- like i said-- this is sort of a pipe dream at this point and i want to go into it with my eyes fully open -- many, many thanks to all!

Myheart'sinSTJ · Post by **Myheart'sinSTJ** » Mon May 14, 2012 7:15 pm

Tracy-

I would also be interested in hearing what the reality of owning is down there, I assume you pay condo fees as well, is your insurance included in the condo fee or is that separate? If you rent it, are people respectful of the condo? Any insight you could provide would be great! Thanks!

Pia · Post by **Pia** » Mon May 14, 2012 7:28 pm

Pia checking in here

Give us a call if you would like or we can call you - we are happy to discuss all options. Les, being the "detailed orientated" Realtor that he is, has a spreadsheet that might help.

Pia

Tracy in WI · Post by **Tracy in WI** » Mon May 14, 2012 7:41 pm

We have owned at Grande Bay since October 2010 and were incredibly happy to work with Les at St. John Properties (Pia's better half.....!).

We chose a two bedroom lock out unit since it offers our guests the option of renting a studio, one bedroom or both combined as a two bedroom unit.

We currently pay our mortgage - which will vary depending on your financial situation. We pay a condo fee of just over $1900 per month, our insurance is separate and we pay $1800 per year. WAPA fees vary based on AC use and days rented, but we pay about $700 per month averaged out over 12 months. We also pay for three separate VRBO listings which are $350 each per year and this is our sole advertising expense (# 328461). We have not yet received a tax bill but are estimating that at $3-4,000 per year.

We use an on island management company and have been very happy - we pay a monthly fee, a meet and greet fee for each arriving guest, and the cleaning fee which varies depending on which unit our guest reserves. I handle all the reservations, contracts and payments myself.

For us, it has worked out wonderfully and we try to make about three trips down per year to "work"....

Hope that helps - if there are more questions, let me know!

Tracy in WI · Post by **Tracy in WI** » Mon May 14, 2012 7:46 pm

I forgot to respond about my experience with guests in our suite - we charge a refundable security deposit to our guests and I have not had to cash one yet! I do have some incidental things - like a broken glass here or there, a broken iron and a beach towel that flew off of the Wet Woody's boat.....

All my guests emailed me to let me know of these instances and I was happy just being aware so we have replacements/adequate supply for the next guests.

We have white furniture (provided by the developer with our purchase) and I was very concerned about durability. We have had no issues thus far and have had several repeat guests who receive a discount.

Myheart'sinSTJ · Post by **Myheart'sinSTJ** » Mon May 14, 2012 8:33 pm

Thanks for your reply Tracy, I am astounded by the condo fee, and pleasantly surprised regarding the insurance and WAPA fee, jeez our electricity here at home in PA averages 425.00 a month a we have had a super mild winter. It is sure an eye opener and still just a dream of owning a second home there. If you have a chance, send me a link to your VRBO listing, I'm always looking for our next place to stay! Thanks you very much for the info!

Pia · Post by **Pia** » Mon May 14, 2012 8:41 pm

"We have owned at Grande Bay since October 2010 and were incredibly happy to work with Les at St. John Properties (Pia's better half.....!). "

"Better half" ......what am I - Real Estate Fluff

(Just kidding - it's a joke among those who know me)

Luv ya Tracy and Juicy

Pia

loria · Post by **loria** » Mon May 14, 2012 8:48 pm

thanks Tracey-- lots to consider-- sounds like it really has worked out well for you guys!!!!

usvi-on-line

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true costs of ownership

true costs of ownership