What's New - David Fedeles, St. Croix Real Estate

St. Croix and Buck Island Featured in National Geographic

February 1, 2017 by Team Fedeles

National Geographic photographer, Brian Skerry, described his experience in the waters around Buck Island as, “you feel like you’re in a storybook.” We believe Skerry is more than a photographer — he is a storyteller and has captured the very best of St. Croix. His breathtaking National Geographic video takes you underwater to the incredible elkhorn coral and up to the shores where tiny sea turtles emerge from the sand.

Skerry reminds us that there are few places in U.S. waters that are protected. Buck Island is America’s first protected underwater monument, thanks to President Kennedy in 1961. He says he feels privileged to be able to see it — and what a treat for the rest of us to see this treasure captured by such a prestigious publication as National Geographic.

National Geographic photo at Buck Island — National Geographic photo of elkhorn corals at Buck Island Reef National Monument

The photographer also mentioned the National Park Service Centennial, which was on August 25, 2016. Such an interesting tie-in to the celebration of the upcoming USVI centennial celebration of Transfer Day on March 31, 2017.

A wonderful feature story of Why It’s Important to Save Our Seas’ Last Pristine Places is in the February issue of National Geographic, including a lengthy history of Buck Island and stunning photography. We encourage you to read it when you have a chance and do what you can to help protect the natural beauty of St. Croix!

A New Year – Celebrating the USVI Centennial

January 19, 2017 by Team Fedeles

On March 31, 1917, the Danish West Indies were ceded to the United States by Denmark in exchange for $25 million. The original interest in the islands was primarily their strategic location — a much-needed foothold for the Navy and, later, a base to guard the Panama Canal.

One hundred years later, the United States Virgin Islands is a tourist destination or home for Americans, Danish, and many others who appreciate the tropical location. On St. Croix, the Contessa Castle is now on the market for $15 million. The times have changed!

To commemorate the 100th Anniversary of Transfer Day, the USVI is offering $300 in spending credits to anyone booking a 3-night hotel stay between now and December 31, 2017 (book by October 1). Imagine the fun you could have with an extra $300 — and we could find time to see a few houses for sale too!

As for St. Croix real estate, we have definitely seen an uptick in residential and condo sales, as the most recent Market Watch stats show (see below). As an overview, the residential market has been most active in the $400,000-$800,000 range with well-priced inventory moving in a matter of weeks. Further, condos priced right are also seeing offers quickly after going on the market. We listed a unit in Coakley Bay for $329,000 and it was under contract within 17 days. Similarly, a listing in Boetzburg was listed for $779,000, received an acceptable offer in 50 days, and closed in a total of 70 days for $725,000 cash. We’re feeling very positive about St. Croix’s real estate market conditions.

St. Croix yoga retreat gardens In our past newsletters, we’ve shared Featured Client stories from buyers who we’ve helped find their St. Croix home, so this time we thought we’d share a seller’s story. With a strategic home valuation and excellent photography, we were able to sell Mia Pirnat’s Magical Yoga Retreat home quickly and at full price. Would you like to discuss your home value and its potential in the current St. Croix real estate market? Give us a call at 340-778-7000 or shoot us an email!

Featured Client: A Magical Yoga Retreat

January 18, 2017 by Team Fedeles

Mia Pirnat owned her St. Croix home – a peaceful, sprawling oasis where she hosted yoga classes and retreats – for 14 years. Her favorite features of her home were the magical sunsets and the beautiful and plentiful gardens.

St. Croix yoga retreat sunset St. Croix yoga retreat gardens

This past summer, Mia decided it was time to sell. We’re thrilled that our reputation led her to Team Fedeles and I’m flattered to hear that she describes me as, “He’s the guys who sells!” Of course, I am also pleased to hear that she enjoyed working with my assistant, Kristi, who Mia describes as “very intelligent and helpful.” Mia specifically mentioned the wonderful photos taken to sell her home – also thanks to Kristi’s artistic talent and creativity.

As Mia’s seller’s agent, we worked closely with her right from the start to ensure a smooth process in selling her island home. Perhaps one of the most important factors in preparing a listing is analyzing the market and determining a home’s value based on Virgin Island and St. Croix market trends. We were very strategic with Mia’s home value and after we listed it, we instantly had two buyers. This ultimately led us to a full price sale!

We couldn’t be happier for Mia as she starts her new, low-maintenance life in a condo on St. Croix. Thank you for trusting us with your beautiful island retreat, Mia!

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Indiana Bank to Buy Bank of St. Croix

January 16, 2017 by Team Fedeles

Bank of St. Croix Gallow's Bay — Bank of St. Croix Gallow’s Bay

It was recently made official that United Fidelity Bank, based in Evansville, Indiana, will buy Bank of St. Croix. The two Banks first announced the purchase in mid-2016, but still needed to get final regulatory approval. According to the media, “The deal should close by the end of the month. Full integration between United Fidelity and The Bank of Saint Croix will happen within a few months.”

Bank officials say that with the acquisition we can expect to see expansions in the services offered by Bank of St. Croix, including mobile banking and enhanced lending opportunities. A news story in June of 2016 said that United Fidelity Bank will enable Bank of St. Croix to offer 30-year fixed rate mortgages, increasing its lending limits. We will certainly be keeping tabs on United Fidelity to bring you any news about mortgage opportunities.

That news story also stated that the bank will continue to use the name Bank of St. Croix and the two branches, Gallow’s Bay and Peter’s Rest, will continue to operate. The Bank’s management team and employees will retain their jobs. The acquisition will also allow Bank of St. Croix to offer increased support services in a more cost-effective way.

We’re encouraged by this transaction and eager to continue partnering with Bank of St. Croix to help our clients buy their dream homes!

What Homeowners Should Know About AirBnB, VRBO and Other Rental Sites

January 5, 2017 by Team Fedeles

View vacation rentals and long-term rentals from my colleagues at St. Croix for Rent

The St. Croix Source offered a good reminder to homeowners with vacation rentals at the start of the new year in their local news piece: V.I. Answer Desk: Is USVI Collecting Tax on Villas and AirBnB Rentals? If you own a vacation rental or if you’re looking to buy property with a vacation rental, the first step in legally renting a vacation property, whether it be a room, studio, apartment, villa or house, is to get a business license.

And owners must pay hotel occupancy tax, income tax and gross receipts tax as required by law. Hotels, villas, timeshare owners and anyone else renting any lodging for a period of less than 90 days, must pay 12.5 percent of the price of the room rental.

You can find the appropriate tax forms on the Virgin Islands Bureau of Internal Revenue web site. According to Form 722 VI, the return should be filed monthly and tax due should be paid within 30 days.

The article says that the rise in vacation rentals on web sites like Airbnb and VRBO has likely meant that the USVI is missing out on millions of dollars in revenue. As a territory where our main industry is tourism, it is vital to our economy that the appropriate taxes be paid by homeowners. In recent years, the Internal Revenue Bureau has begun enforcing increased penalties, which seems to have been effective as revenues and the number of taxpayers have gone up slightly.

Collections and the number of entities paying hotel occupancy taxes have increased steadily. According to the Office of Management and Budget, in 2012, the government received $20.9 million in hotel occupancy tax revenue from some 818 taxpayers. In 2013, revenues went up a tiny bit, to $21.5 million, and the number of taxpayers/property owners increased by 41 to 859. There was a larger increase in 2014, with $22.9 million in revenue and 81 more taxpayers. And 2015 saw 73 more taxpayers, generating $24.6 million.

The VI Internal Revenue Bureau met with Airbnb officials at the end of 2016 to discuss a model for getting information on VI-based vacation rentals to further their collection efforts.

An Active Real Estate Market on St. Croix

December 20, 2016 by Team Fedeles

A recent article, Caribbean Luxury Real Estate Market Sees Hopeful Signs, references the Caribbean Insight 2016 report when stating that “major markets in the Caribbean are looking attractive again for investors.” While the report assesses only a handful of the Caribbean’s second-home destinations, we’re feeling positive about St. Croix’s market conditions as well.

We have definitely seen an uptick in residential and condo sales, as the most recent stats show.

As an overview, the residential market has been most active in the $400,000-$800,000 with well-priced inventory moving in a matter of weeks. Further, condos priced right are also seeing offers quickly after going on the market. We listed F13 Coakley Bay for $329,000 and it was under contract within 17 days. Similarly, Plot 7 Boetzburg was listed for $779,000, received an acceptable offer in 50 days, and closed in a total of 70 days for $725,000 cash.

We have seen an uptick in pricing as a result of this activity as well. All indicators are that we will have an active real estate market during our peak winter season. Call (340-778-7000) or email Team Fedeles for a market evaluation and to discuss your specific goals!