David Fedeles, St. Croix Real Estate

Coldwell Banker St. Croix Realty

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Mid-Vacay Update: Italy, Greece and Croatia

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Ciao! Yassas! Bok! Mario and I are taking advantage of the slower season on St. Croix to take a summer vacation. We are on a spectacular Mediterranean cruise and I thought I’d share a few highlights. So far we have made stops in Italy, Greece and Croatia. Given that my mind is always on real estate, it’s no surprise that I am drawn to the incredible architecture, as are many.

The waters in Gytion, a charming old port town in Greece, remind us of the Caribbean.
A beautiful Palazzo on our home tour in Lecce.

Lecce, Florence of the South in Italy, is rich with Baroque architecture from the 14th century. It is all done with their own sandstone called Piense Leccese, or “stone of Lecce”, which was quite interesting. The houses are still inhabited from extended families since that time. We took a tour of homes, which included lunch in one Palazzo — Mario had to hold me back from sneaking upstairs! I asked why they open their house to private tours and the owner said it was to create an income stream to help defray the expenses to maintain their house.

Dubrovnik, Croatia is one of the most enchanting cities we have ever seen. There are walls that run almost 2km (1.2 miles) around the city. The wall system is intended to protect the city; however, the Walls of Dubrovnik have also been a popular filming location for Game of Thrones. A small 1-2 bedroom flat starts at 300,000€ ($335,000 USD) in the Old Town.

   

One more stop in Croatia and then we’re off to Venice where we’ll spend four days. Hope you’re enjoying the start to your summer too!

USVI and Airbnb Announce an Agreement

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The U.S. Virgin Islands and Airbnb have signed a tax agreement which will allow the online accommodations booking platform to collect the Territory’s 12.5% Hotel Room Occupancy Tax on behalf of hosts and remit the funds to the Virgin Islands Bureau of Internal Revenue. The first agreement of its kind in the Caribbean, it goes into effect June 1, 2017.

Earlier this year on our blog, we shared the St. Croix Source‘s article stating that it’s possible the USVI is missing out on millions of dollars in revenue due to the rise in vacation rental web sites, like Airbnb and VRBO. This new agreement will ensure that taxes are being paid on Airbnb rentals, which we can hope will go back into our infrastructure so that St. Croix and our sister islands continue to be a vacation, snow bird and moving destination for years to come.

The agreement with Airbnb is a component of the Mapp-Potter Administration’s Five Year Plan to restore economic stability to the V.I. Government. Governor Mapp is quoted saying, “This is good for our Government because it streamlines the collection process and enables more of our residents to participate in the visitor industry. Our hospitality sector will also greatly benefit from the promotional reach of this multibillion-dollar organization.”

According to the local Government, Airbnb has about 2,000 active listings across the USVI and a typical Airbnb host earns $7,700 a year.

For our clients who use rental web sites to rent your home, condo, apartment, or villa, if you are using sites other than Airbnb, the Virgin Islands Bureau of Internal Revenue Form 722 VI still applies.

Time is flying on “The Don’t Hurry”

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Cruzan Rum may call St. Croix “The Don’t Hurry” island, but time sure is flying. It’s hard to believe we’re almost halfway through 2017! So far, the year has been full of milestones.

The new ferry between St. Croix and St. Thomas started service in early April. The ferry makes two round-trips, seven days a week, and a one-way trip costs $50. Though it has had a few challenges, reviews have been mostly positive.

Speaking of hurrying, more than 300 athletes were moving as fast as they could toward the finish line of the Ironman 70.3 St. Croix triathlon. May 7 was the final running of the race that started as the America’s Paradise Triathlon in 1988 and became the Ironman 70.3 St. Croix in 2001. The Ironman franchise has grown from 10 races to more than 200 worldwide, which has led to declining participation here on St. Croix. We’re sad to see it come to an end, but have heard several supporters talk about ways to keep the triathlon going.

The USVI Department of Tourism has upped the ante with a Centennial Plus Package to incentivize tourism to St. Croix, St. Thomas and St. John. In partnership with travel booking services, book before June 1 to receive $400 in VI spending credits plus get a fourth night free!

As you may see periodically on my Facebook page, restaurants on St. Croix have been getting quite a bit of attention lately — and now you have two opportunities to own prominent St. Croix commercial properties that are currently restaurants. An island favorite, the Cultured Pelican is located at Coakley Bay condos, overlooking Buck Island. Gertrude’s is in a high-traffic location with expansive space for restaurant seating or a number of different commercial uses.

Have you ever wondered what the “Beachfront Bargain Hunt” couples are up to post-television stardom? I stopped in on Kyle and Ania earlier this month to say “hello” and see what they’ve been up to. They bought their house last summer and have been busy with some major renovations to turn their investment into their dream home.

Are you ready to buy or sell your island home? Home sales are up on St. Croix. The Market Watch shows that 25% more homes were sold during April 2017 compared to April of last year. Give Kristi and I a call!

Warm regards,
The Fedeles Team

Beachfront Bargain Hunt Follow Up

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Do you ever wonder what’s happening with all of those househunter TV show couples now? Well, I stopped by to say hello to Kyle and Ania this week to see how their “Beachfront Bargain Hunt” house is coming along. Watch what they’ve been up to and check out their incredible view.

As you can tell, they’ve been very busy with some major renovations that will turn their investment into their dream island home. From raised ceilings to an expansive pool deck, this is a big undertaking that will be well worth it when they get to relax poolside with their family. And it’s no surprise that their neighbors are welcoming them into the neighborhood. That’s St. Croix!

Visit USVI Ups the Ante

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The U.S. Virgin Islands Department of Tourism recently announced the Centennial Plus Package in effort to provide an added incentive to visitors to travel to St. Croix, St. Thomas and St. John during the traditionally slower seasons. Visit USVI has now partnered with travel booking partners to offer $400 in VI spending credits plus the fourth night free!

Spending credits may be used for shopping, dining, and activities. Book before June 1, 2017, using code SFCP17 and travel between June 1 and October 31, 2017.

Book Your Vacation to St. Croix Through These Travel Partners

  • American Airlines Vacations
  • Apple Vacations
  • CheapCaribbean.com
  • Costco Travel
  • Delta Vacations (MLT)
  • Expedia Inc.
  • Flight Center Travel Group (Libgo)
  • Funjet Vacations
  • JetBlue Vacations
  • Pleasant Holidays
  • Travel Impressions
  • Tourico Holidays
  • United Vacations

Stay at One of These St. Croix Hotels

  • The Inn at Salt River
  • Caravelle Hotel & Casino
  • Club Comanche Hotel St. Croix
  • Divi Carina Bay Beach Resort & Casino
  • Holger Danske Hotel
  • Hotel on the Cay
  • Mount Victory Camp
  • Renaissance St. Croix Carambola Beach Resort & Spa
  • The Buccaneer Hotel
  • The Palms at Pelican Cove
  • Sand Castle on the Beach
  • Sugar Beach Condo Resort

Our client, Caribbean Breeze, is still part of the original Centennial Package. You will receive $300 in VI spending credit for stays in 2017 when booked by Oct 1, 2017, with promo code CP17. What are you waiting for?! Book your vacation to St. Croix now. You might decide to stay…

1031 Exchange Tax Strategy

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The following is an article from the Coldwell Banker St. Croix Realty April 2017 Newsletter:

It’s tax time. If you talk to real estate investors, many are doing 1031 Exchanges. A tax-deferment strategy, a 1031 Exchange allows sellers to postpone recognition of capital gains if they purchase a like-kind property (or properties—and “like-kind” doesn’t mean land for land or a condo for a condo. As long as it’s an investment property, it can work.) with profits from their sale. Rules apply, and sometimes the rules change.
In his Real Wealth Network article “How To Do a 1031 Exchange: Important Rules and Definitions to Know for 2017,” Ben Erik Smith explains the procedure. He also advises use of a 1031 Exchange facilitator. You may speak to one of our excellent St. Croix attorneys about this because many have been involved in these transactions.
Takeaways:
  • A 1031 Exchange pertains to investment or business properties only.
  • “Like-Kind” means you swap a property for another investment or business property. You may exchange a rental house for a commercial space.
  • The purchase price and the loan amount on the new property must equal or surpass that of the replaced property.
  • You must identify a like- kind property or properties within 45 days of your original closing.
  • You must purchase the new property within 180 days of your closing.
  • The title holder must match on both the old and new properties.
  • The IRS permits partial 1031 Exchanges when the new property is of lesser value; you pay capital gains taxes on the difference.
Note: 1031 Exchanges are not limited to real estate transactions.

About David Fedeles

Twice voted Best Real Estate Broker on St. Croix. Coldwell Banker President's Circle three years in a row. Read More…

St. Croix and New York

David Fedeles is a licensed real estate broker in both St. Croix USVI and New York. If you are looking for your dream home in America’s Paradise, David is ready to work with you!

Contact David Fedeles today!

Tel: 340-778-7000
Cell: 917-494-2729
davidfedelesstx@gmail.com
Office Location:
Coldwell Banker St. Croix Realty | Gallows Bay Mkt
5030 Anchor Way, Suite 12 | Christiansted, VI 00820