Why Should You Invest in US Virgin Islands Real Estate?
As the perfect location for both adventurous spirits and relaxed retirees, the US Virgin Islands is a location that anyone can enjoy. There are countless reasons to make the Virgin Islands your home but there are pros and cons to renting vs. buying USVI real estate. In terms of purchasing Caribbean investment property, here are five compelling reasons to choose the US Virgin Islands for your long-term investment.
1. The Virgin Islands are a US Territory
The US Virgin Islands are a US Territory protected by US Laws. That means buying real estate on St. Thomas, St. John, or St. Croix is much like purchasing property stateside. Plus, with only a short flight to the U.S. mainland, it’s easy to travel back and forth from the islands to the states if you are a property owner in both places.
2. Competitive Tax Benefits for Residents
The USVI’s Economic Development Commission offers one of the most competitive tax benefits packages in the world. For those who qualify, this can result in up to a 90% reduction in income taxes and a 100% exemption on property taxes. Learn more about USVI Tax Advantages.
3. Promising Rental Prospects for Property Managers
Rental real estate has a high occupancy rate and promising long-term prospects; making now the perfect time to consider owning investment property in the US Virgin Islands. In 2018, Airbnb named St Thomas its top Caribbean destination as it took the 6th spot in Spring bookings with a year-over-year growth of 600%. In 2019, year-over-year growth continued at 338% for Airbnb bookings. And in 2020, with the widespread shift to remote work, the demand for vacation rentals is unprecedented. Heard enough? Explore Carribean Investment Properties Under 300,000.
4. Investment Properties are 1031-Exchange Eligible
Investment properties in the US Virgin Islands are eligible for a tax-deferred property exchange, also known as a like-kind exchange. So, if you already own investment or rental property, you could use the 1031 exchange to seize on investment opportunities in the US Virgin Islands. Learn more about 1031 Exchanges in the USVI.
5. Warm Weather Year-Round
With more people working and schooling remotely than ever before, many people are looking to relocate to warm weather locales. An exceptional demand has risen throughout the US for short-term and long-term home rentals in warm weather locations. Whether you plan to live in the USVI full time or rent your property to travelers, the consistent warm weather creates a long vacation season that anyone can enjoy.
Ready to Invest in US Virgin Islands Real Estate?
Explore US Virgin Islands Homes for Sale. For homeowners who are ready to begin renting their vacation home, Sea Glass Properties offers a variety of services for property owners and renters on St. Thomas, St. Croix, and St. John. Virgin Islands. Services range from property management, monitoring, tenant placement, long term rental assistance, short term vacation rentals. Let us show you why we are the most popular Virgin Islands property management company. Contact us below for more information on our property management services.