TravelTalkOnline Forums Travel and Vacation Forums St. Maarten - St. Martin buying property in St Martin

Is anyone willing to share reliable resources for potentially or eventually buying a villa in St Martin. We've really loved our trips there and thought it would be fun to explore the options. We're American and concerned about any differences with buying internationally, sourcing a realtor and local financing.

Also wondering if anyone has an opinion on the current state of the market (sellers vs buyers), cost of having a property manager for rentals and managing rental expectations.

Any feedback really is greatly appreciated.
DJL

There was a couple from this board that just purchased a place on the island and they were featured on HGTV Caribbean Life. If you search for the past 2-3 weeks, you will find their thread and can send them a pm for help.

ligot,

No personal firsthand experience but a lot of years worth of talking to those who have done this, and the reality is, we thought very seriously about doing this many years ago.

Among the the turn offs to us were the fact that rules and laws are NOT the same as those in the States, and you need to know you don't have a lot of legal protections. You really can't depend on needing rental income to help offset the expenses and costs involved - there are many rental properties available and they don't all get rented all of the time. And the big one to me is managing the maintenance of the property from such a distance. At one time we had a home in the South and being an absentee owner was not a great experience.

And of course these are just my opinions and there are many absentee owners here on the forum who may think I'm nuts for worrying about these things. We had actually considered SXM as a retirement option but after exploring the possibilities we decided WE weren't of the mindset to be comfortable with this idea. There's a small part of me that has always regretted not making that leap in faith but every time I hear of some of the issues others have had I've never regretted our ultimate decision NOT to follow our plan to make an island purchase. Well, not much, anyway..... <img src="http://www.traveltalkonline.com/forums/images/graemlins/duh.gif" alt="" /> <img src="http://www.traveltalkonline.com/forums/images/graemlins/duh.gif" alt="" />

Pat, I agree with you. Being an absentee owner is very scary even with a property manager. Our property was vandalized to such a degree (and inhabited by homeless people) that we can no longer stay there. Fortunately, it seems that "they" haven't been back but it's always a scary thought when we go back to imagine what we might find.

I think I would consider buying a property if I lived there half of the year. I might even go there once or twice in the six months I didn't live there. But I don't want to think of a property there for rental income, unless it was in someplace like the Cliff that was managed very well, and you would need to offset the monthly ownership costs, over and above the cost of the unit. But I don't know that I would retire there either, I think maybe 3 - 4 months to a different location every year might be a better option for me.

You have received some very good information from several people. One item, I do not think has been mentioned is the cost of upkeep in the tropics. The heat and humidity can be hard on the structure, keeping the home critter free and appliances/furniture.

Enjoy, what ever you decide to do.

We opted for long term rental and have done so for the last 15 yrs. (3-12 months) and now live here full time. It takes all the worry off the table and in the hands of the Landlord. There are many places to rent long term on both the French and Dutch side...We are on the French. We know many people that purchased a place and have heard so many complaints that we decided it was not in our best interest.

You have received many good opinions on the matter and I agree totally with Pat and the others who have decided against purchasing on the island. We have friends who have purchased and they seem relatively happy about their purchase and we have other friends who have had to confront severe frustrations now for a few years. It is a decision you ultimately have to make for yourself, but be sure before you purchase that you have a good health care policy intact, lots of money for unexpected maintenance and management and you are aware of the high cost of water and electricity on the island. You must do lots of research and go into your purchase with an open mind and the realization that you may lose money if you choose to sell and move on.

Seven years ago, after using timeshares for our annual visits, we purchased a condo on the Dutch side. Security is an important factor in selecting a home. To get a good understanding of your costs and the reporting requirements you should speak with an island attorney and accountant. You can partner with a realtor who helps you find rentals and also manages the property in your absence. You will want someone who can handle the many minor items that arise.

Until you have a strong rental pattern you will need excess cash. If you buy an existing rental property, ask to see the rental history. Most rentals are Christmas to Easter. The economy has a direct tie to your income, so again, have some liquid investments.

It is a wonderful feeling to walk through the door and immediately decompress because it's your home. We only get to stay a couple of months a year right now but when we're there, it's marvelous! We've had some terrific vacations with family and friends there too.

Local financing requires lots of paperwork and everything must be documented. The banks expect a high down payment, like 40% and interest rates are higher than the states. The mortgage term is influenced by your age. Just have patience for it can take a long time to be approved.

It will be a journey that you will never forget!

So far there have been some excellent words of wisdom shared on this topic. The one concern that I would have is if at some point you decided to sell then that creates one of the biggest headaches to owning. As a renter you can simply walk away. Owing takes on new meaning. There are many properties that have been on the market for years and years. My favourite one is a villa in Oyster Pond that had been on the market for 10 years.

Although not a property owner on SXM, but a long time visitor and timeshare owner, the comments above are are valid. One additional to consider, repairs. It's not like the States where the NAPA store has the gasket you need for your car, or can get it from another store within hours. Also many structures were built using metric standards, making replacements (windows, doors, faucets) difficult to obtain. Our unit in SBMR (Pelican) was damaged by hurricane Lenny in the 1990's and it took two years to replace the window frames and sliding doors (metric - not available from Miami). A close friend who lives on SXM had to purchase 3 hand garden sprayers from Ace because a simple valve broke (Ace on SXM didn't carry replacement parts). He could have ordered from internet, but the local mail service is slow at at times undependable. FedX or DHL costs for a $2 item are expensive and forces you to buy a new one (and hope the same part doesn't break again). Medical care is questionable. Most travelers carry air-evacuation insurance. BTW Medicare and Obamacare is not accepted. All said we love SXM and savor our weeks spent there each year, but would not consider moving there permanently unless we were independently wealthy.

Friends bought a condo a little over two years ago. Year one was a med student lease. $2,500 per month rent.
Year two was vrbo Averaged $2000 per week, at about 20 weeks rented
Not a bad deal. Cupecoy area, three bedroom unit

It is working for them.

Friends of ours purchased a large condo in Orient Bay. They paid 1.2 Million $ for it. The first yr it was rented for about 20 weeks, the next yr about 15 weeks. Last 2 yrs, maybe 5 weeks!! They are ready to sell, but the resale value is now $350,999. Only a very small percentage of people, in my opinion, make any money owning something on Island.

We bought a beautiful condo on Beacon Hill in 2008 (new construction). Our experience has been very rewarding and we are very pleased with our decision today.
We hired a top law firm in SXM as well as a SXM firm to manage and pay all our SXM related bills and filing tax reports.
I would suggest that you speak to neighbors about any issues in the area you choose as well as location and which direction your Villa or Condo is facing for if your terraces or pool face the west , it can get unbearably hot after 12 Noon as the sun will beat down on your terraces and pool area. Also wind direction comes mainly from the eat so having your terraces and pool area facing the east not only protects from the blazing sun but also offers cooler breezes. I find this to be a major factor in my buying decision.
Be careful in renting as choosing a rental agent that understands your needs is very important. Decide if you want to rent to families with small kids or pets is another factor to consider.
All in all we are extremely happy with our property. I cannot say that for all owners as many are not happy with their property managers as well as upkeep of the property.
If I would do it again ; my answer is a STRONG YES!!!! <img src="http://www.traveltalkonline.com/forums/images/graemlins/Thumbsup.gif" alt="" />

As with purchasing property anywhere, if you dot all of the I's and cross all of the T's your chances of success are greatly enhanced. No one is guaranteed to make money or even break even selling property, whether it be in the Caribbean or at home. Congrats on your purchase Benni !! <img src="http://www.traveltalkonline.com/forums/images/graemlins/Clapping.gif" alt="" />

Good for you . We bought our first Home in Beacon Hill 1993 and bought land in 2003 and built our current six bedroom also in Beacon Hill. <img src="http://www.traveltalkonline.com/forums/images/graemlins/handshake.gif" alt="" />

We bought in SXM 5 years ago after having timeshare for 18 years at Belaire. We bought it after taking for years about owning a place here. Looked at a few places on line and contacted our rental car agent for a realtor. She recommended Arun Jagtiani from Island Real Estate Team. He did several shows for the first few House Hunters shows. He's a really great guy and not pushy. We looked at one house of several and I knew the owners were in trouble and need to sell quick. They just dropped the price $70k a month earlier and the house was abandon and was on the market for 2 years. I offered them $30,000 less and told them I could close in a month to 6 weeks They took my offer for $25,000 less and now we're owners. The ownership was transferred by notary appointed by the government (Dutch side) no lawyers no fees to the notary, just a 5% one time tax to the government never any property taxes. Did everything through email and one Fedex Letter for final documents. I won't rent the place because there is high taxes to the government and they will give you big headaches if you make a mistake. Plus I just use a carry on and i go on th days when air fair is cheep. About 6 times a year. tips: Pay cash in SXM get your financing in the states and have the ready when you stray looking. Not many turn down a quick turn around. It's no problem with the IRS to do large wire transfers to the Islandun less your hiding something. I never heard anything from the IRS. But you do have to clamp how much you have in any Banks on the Island, Patriot Act. Get an Island bank account. You'll need 2 bank reference letters from you banks in the USA to open an account in SXM.
The prices are high but there are alot of bargains to be found. PM us and I'll fill you in on more details

Pat & Alyson

It could be a good idea to read "A Beach Less Travelled" by John Berglund co-owner of Tijon the perfumerie in Grand Case
He had the experiences of buying there.