Own a Piece of Paradise
“The 2000s were a great decade for real estate overall” according to forbes.com. even after the housing bubble and mortgage crisis, there is still an average annual gain of 4.3% in value per square foot.
A sample of St. Croix property values indicates St. Croix real estate is appreciating at an even better rate.
In 1999 a typical home in Judith’s fancy sold for $200,000, and today that same home sells for $500,000. That an appreciation rate of 8.69% per year.
At Coakley Bay condos, the average price of a two bedroom condo was $100,000 in 1999, while in 2010 its price is $250,000. That’s also an increase of 8.69% annually.
The case-Schiller Index tracks sales of the “same” home. This index indicates an annual appreciation rate nationally of 3.4%. on St. Croix, a home at Estate Green Cay sold for $275,000 in 1996, and the same house sold in 2006 for $500,000. That’s 8.92% per year of appreciation.
Owning a home provides security for you and your family. Rent keeps going up. If you choose a 30 year fixed rate mortgage, house payments don’t go up. House payments remain the same for the 30 years of the loan. Of course, once your home has appreciated, you can always refinance and take cash out. My parents did this the year they had three children in college.
Presently, the St. Croix Board of Realtors’ Multiple Listing Service has 282 homes for Sale with prices ranging from $135,000 to $5.9 million, and there are 199 condominiums for Sale with prices ranging from $55,000 to $1.3 million. Due to slow sales in 2009 and 2010, buyers may choose from a beautiful selection of properties.
Interest rates are around 4.5% for a 30-year fixed rate loan. If you choose to buy a home for $437,500 and put 20% down, your loan amount will be $350,000 and your monthly payment will be $1773. Plus the Government wants you to own a home. You are entitled to a tax credit. If you are in a 28% tax bracket, you will receive a tax credit for 28% of the interest paid each year on your primary residence and also on a vacation second home.
Good appreciation rates - the enjoyment and security of owning your own property – a fabulous selection of properties for Sale – and low mortgage interest rates. Start shopping!
Patrice Kelly, Certified Residential Specialist
HAMILTON REAL ESTATE