Condo Fees & Ins????!!!!
I honestly wanted to help, even if some of my observations taste a little like castor oil, and I'm sure Jim and Donna do as well.
You know, I almost wrote in my last post that I wasn't sure it made much sense to try to help you, because it seems painfully clear that you are determined to hear whatever numbers you want to hear that will justify your dream, whereever you have to find them and no matter how achievable they may be. Sometimes Island Fever distorts our perceptions and our critical thinking. In hindsight I think I made a mistake by "thinking better" of what I said and leaving that comment out.
That's okay, we're saying what we are not to discourage you or burst your bubble, but to help you keep your Island Fever in check with a dose of reality. If you aren't looking for that input don't ask and that's fine. In the meantime we hope we have given valid information to people reading this thread that really are interested in the practical aspects of investing in the VI.
So this time you're telling me that you should be able to get HOTEL occupancy rates as a substitute for condo vacancy rates. The billboards, the magazine advertisements, the banners on web pages, the word of mouth reputation of past customers and their friends -- for as many years as that hotel has been in business -- won't be any more effective than you at finding tenants for your 3 one bedroom condos in their first year of availability. Okay, whatever. I'm sure you're a real estate marketing genius.
The people that wanted to work with real figures, no matter how disappointing they might be, would contact the property managers that rent for some of the condo developments as I said before. Those potential investors should get some practical numbers they can really work with. I don't pretend I know all the numbers (who knows, maybe I'll be surprised and you'll tell me they're running 99.999%?), but I've seen Jim's posts on this subject enough to know that his experience supports the model rather closely. And Donna's comments don't sound off target either.
I try to be creative in my business but I also try to give my clients serious information based on established models. Maybe I am stuck in my box.
I just hope you don't get stuck in your four boxes.
First of all, please allow me to beg forgiveness for the extreme rudeness of my prior post. I should have been in bed instead of up reading message boards and I haven't attempted to master the edit fucntion here yet.
Secondly, part of my frustration with your replies stems from the fact that you're being entirely too literal. Just because I post 4 units at 175k each as an example or place holder doesn't mean that that is my "plan" or that there even is a "plan". The numbers used are just SWAG's meant to be replaced with less fictional data as it becomes available. If you have data, by all means, share it. Obviously, if I were to seriously pursue what I have suggested in this thread, I would get as close to the actual source of accurate data as possible (i.e. trade assoc, property owners, government entities...). Right now, I'm just playing "What If". It's a common practice in the engineering world.
Thirdly, you're very quick to say something can't be done, then caveat it with, "but I'm not in that business" and without providing any alternative data. There IS an average weekly rent and an average occupancy for any given level of property in any area. You seem quick to point out what those numbers aren't, but hesitant to offer up what they are.
Lastly, if you expect me to believe that investors routinely buy rental property in VI knowing full well that they won't be able to charge rents sufficient to cover their expenses, but do so anyway on the expectation that the value of the property will appreciate over time, I'll tell you those people are fools. There are much better investments offering far better ROI available.
I purchased the unit with the plan of living full time in the VI. Have a few things I have to accomplish before I can make this happen. We use the unit when it isn't rented. Give first preference to rentals, but if the unit isn't rented we make use of it during the down time.
Purchased the unit because we got a great deal and my wife loves the VI. We visitied the VI on numerous occassions before purchasing so not to many surprises
Rental rates are set by the association. Two bedrooms go for $1,525 a week during high season $955 during low season. Discounts on monthly and seasonal rates. Unit has ocean view on a golf course with tennis courts and a swimming pool on the grounds. The association has its own beach.
I use a rental agent and have my own web site done in English, Swedish, French Spanish and German. My mother in law promotes the unit in Stockholm.
I'm sure you can make money on rental properties in the VI, it is just a lot harder than stateside properties.