RETURN TO HOMERealtor Thursday
A conversation with Kim Lucas, Buyer Agent St Croix, located in the East End Plaza on the beautiful island of St. Croix in the US Virgin Islands.
If you’ve ever dreamed of living on a tropical island, I’m here to tell you that this dream can become a reality easier than you might think…
I used to fantasize about living someplace warm and beautiful, but didn’t think I’d ever be able to afford it. After a series of major life events, I decided to explore that dream to see if I could make it a reality, and I found St Croix. Many people have not heard of this island, which is 26 miles long and 8 miles wide, with an average temperature of 82 degrees year round. It is a US territory, and owning real estate here is not much different than owning in Poughkeepsie (except it’s a lot prettier and warmer)! The island has a rich history, a stable government, and some large employers (Hovensa, the largest oil refinery in the western hemisphere, and Diageo, which produces all the Captain Morgan rum shipped to the mainland here in St. Croix). And, while tourism is a major driver of St. Croix’s economy, it is not the only driver, which makes this a more livable island than many others in the Caribbean.
The People
The “locals”, called Cruzians, are predominantly black and of African decent and are some of the nicest, most polite and friendly people you will ever meet. Our population swells a bit here in the winter months, when lots of “snow birds” flock here from colder climates to make this their winter home. The weather here is absolutely perfect here in the winter, and “season” (December 15 – April 15) means lots of good music, plays, festivals, carnival, and events to look forward to. The most difficult thing about living here full time is trying not to feel like you are on a permanent vacation!
The Towns
St. Croix is home to two towns; one on the west end of the island, called Frederiksted, and one more easterly, on the North shore, called Christiansted. Christiansted is the larger of the two towns and is home to lots of lawyers, the bottom restaurants, and businesses. Frederiksted is where the cruise ships come in and boasts the nicest beaches on the island. It has a “50’s” feel to it – it’s a sleepy little town where life is slower. You’ll frequently hear those who live west saying: “west is best”! East-enders are just as passionate about their side of the island – as are the folks who live on the North Shore, near Cane Bay. If you are a diver, the Cane Bay area would truly be a paradise for you! There you will find the closest land to deep water in the world! In swimming distance from the shore, a wall drops from about 90 feet to 13,200 feet! Just imagine having lunch at a great little restaurant, grabbing a couple of tanks and swimming out to the “wall” for a nice dive! Easy, economical, and so much fun!
History
St. Croix has been home to many different cultures and under the rule of seven different flags. In the early 1400’s, Indians (Tainos or Arawaks) inhabited the island. The Carib from South America then took over and were the ones to greet Columbus on his second voyage through the islands in 1493, when he named the island Santa Cruz, now known as Holy Cross.
The first Europeans in St. Croix were the Dutch, English, and a few French Protestants. In the early 1600’s, Britain and the Netherlands co-existed on the island, but conflicts ensued and many years of battles over possession of the island followed.
Dutch and French settlers slowly retreated leaving the English in power here, and the colony grew under British rule. The Spanish, on nearby Puerto Rico, were concerned by the growth and attacked and killed many settlers and forced the others to leave. The French heard of the overthrow of the English and took the opportunity to move in and take over St. Croix around 1650. Then, Philippe de Poincy, an official of the Knights of Malta, sent troops to capture St. Croix and then imported 300 planters from St. Kitts to establish settlements here.
In 1665, the French West India Company was formed and sent to St. Croix where it ruled for seven years, when it was then dissolved and replaced with Crown rule, but most of the French settlers had left the island by 1695. In 1733, the Danish West Indies Company bought the island from France and wasted no time in sending settlers to St. Croix. About 20 years later, the islands became a royal colony and a long period of growth followed.
For some time, St. Croix was one of the wealthiest islands in the West Indies. The prosperity was due greatly to sugar cultivation, rum production and slave labor. St. Croix‘s economy existed through trade. The island exported five commodities; sugar, rum, cotton, molasses and hard woods and imported almost everything it needed. Prosperity here came to a halt with the closure of Denmark‘s role in the slave trade. An increasing number of slave revolts motivated governor general of 21 years Peter von Scholten to abolish slavery in the Danish colonies on July 3rd, 1848, a date which is celebrated here as “Emancipation Day!”
The late 1800’s were filled with changes, rebellions and progress. In 1917, the United States of America purchased the islands from the Danish government for military reasons. In the late 1930’s, St. Croix‘s agriculturally based economy was not improving. Economic insecurity continued until the fifties, when tourism became a leading industry here. Movie stars like John Wayne and Maureen O’Hara spent time here and had grand parties! This was “THE” place to be on New Year’s Eve in the 50’s!
Schools and Taxes
While there are several public schools on the island, most people who move here from the mainland choose to put their children in a private school. There are several good ones here, and the fees run about $10,000 per year. This expense is typically offset by our low tax structure. Residents here do not pay any “state” income taxes and property taxes are only about $400 per $100,000. So for a $300,000 home, your annual tax bill is less than $1200 a year! If you are an entrepreneur here, you’ll pay a “gross receipts” tax of 4.5% on anything you make in excess of $9,000 a month. If you form a business here, you may be eligible for benefits thru our Economic Development Authority – which can save you thousands of dollars in taxes. For more information, go to www.usveida.org.
Economy
As in most places, St. Croix is experiencing a recession and real estate here is a buyer’s market. The prices have fallen since our peek in 2008, but the foreclosure rate here is very low. I used to tell people that they could not get a nice home with a great view, pool in a good location for under half a million here; now you can. And you can get a beachfront condo for around $100,000!
Going Green
With the abundance of sunlight and trade winds available to us in St. Croix, many residents and certainly those who are buying land and building here are going green. One of the few drawbacks of living here is that our electric costs are very high. Our water and power authority (WAPA) is still a fuel based generating company, and we pay dearly for electricity. There are many companies here that offer solar and wind alternatives, and many of us are going green just as fast as we can!
The Future
St. Croix has been the less well known of the three US Virgin islands for many years, and there have not been as many flights here as, say, to St. Thomas, so we are victims of that chicken and egg thing – not enough hotel rooms to fuel more flights here. There is also a problem of not enough flights here to fuel building more hotels. However, there have been three major developments approved recently (hotels, casinos, etc.) that I believe will change all of that in the next decade. If I won the lottery today, I would be buying real estate here as fast as I could. I truly believe this place is going to boom in the next 10 to 20 years. Right now, I think it is perfect, and I absolutely love living here. As an investor with an eye to making money in the long run, this is where I want my money. When the boom comes, I may move elsewhere to escape the crowds, but I’ll be laughing all the way to the bank!
Preparing to Buy
If you’re considering buying here, you need to spend at least a week here to get a feel for the place and see what part of the island you like best. For some, they would not consider anywhere but the east end. Others fall in love with the beaches, quaintness and charm of the west. And divers are passionate about the north shore. Your realtor can’t tell you where to live; you have to feel it and experience it – and believe me, after a week, you’ll know! Stay in a condo or home to really get the feel for “living” here. Go to the grocery, the bank, Kmart, and yes, Home Depot! See if you can live with the prices, the pace, and the “laid back” culture here! Some people love it; others find it’s just not for them. Once you decide on the part of the island you like best, get pre-approved by a mortgage broker here. You do have to get your financing locally and please, don’t quit your job and come here thinking you’ll get a loan! Most folks have to purchase here as a second home, even if they are planning on living here permanently. Be realistic about your budget and understand that things are different here; your cost of living here is most likely going to be higher than in the states. For example, condo fees here range from $300 – $1200 a MONTH. I know that’s higher than in the states, but it is what it is – there is a price for paradise!
Personal Experience
I’ll have to say, showing real estate here in the Virgin Islands is generally pretty awesome and I have met so many wonderful people and helped them make their dreams of paradise a reality! However, sometimes the weather can result in some interesting showings. There was a couple who actually came down for a week to look at property during a hurricane! The power was out the whole time they were here, streets were closed, many sellers would not let us come in their homes and those that did were boarded up for the storm and did not show very well. They bought anyway, amazingly, and love their home here!
I’ve lived in St Croix for about six years and it is my passion to help fellow Caribbean souls find their place in paradise! I work with Buyer Agent St. Croix, and am one of the few Buyer Agents on the island. I’ve prepared quite a few documents and reports to help you learn more about St Croix and what it’s like to live here.
Or, to learn more about St. Croix and real estate here, check out my websites and order my reports:
www.retireinthevi.com; www.alist.vi; www.buyeragentstcroix.com;.
About Kim:
Kim Lucas was born in Kentucky and originally raised in South Carolina but later receieved her education in Tennessee and Georgia. Her list of professions ranges from professional matchmaker to holding a Master’s Degree in Measurement and Human Differences to founder of a professional assessment firm, Assessment Plus. Although Kim received her real estate license in 2003, she has been selling real estate for investing for over thirty years. Kim’s mother was a top Coldwell Banker Realtor in St. Croix and she took after her mom’s shoes. She first started in the profession as a buyer’s agent and property manager but Kim has years of experience that makes her ideal for buyers.
Kim Lucas, Buyer Agent
340-626-3758
www.activerain.com/blogs/kimlucas
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This guest post is part of our Realtor Thursday Series. We invite realtors from towns and cities all over the country, big or small, to participate. Our goal is to “travel” to as many towns as we can in every state. Every town is unique and wonderful to our readers. If you would like to showcase your town, your neighbors and your talents as a realtor, please contact us at liz@dalesiegel.com