Ownership
Ownership is in fee simple, under the U.S. flag. Fee simple is the highest and best interest one can have in real estate. It is ownership for an indeterminate amount of time that can be freely sold, transferred or inherited.

Property Taxes
Property taxes are low compared with many stateside areas: 60% of the assessed value times 1.25% = tax amount. A good rule of thumb is that for every $100,000 invested, the tax is $750. We don't have school, water and sewer taxes typical of the States.

Mortgage Loans
Mortgage loans are available through a variety of financial institutions doing business in the Virgin Islands , including these:

Windstorm and Earthquake Insurance
Windstorm and earthquake insurance is required for all home mortgage loans. The cost is approximately 2–3% of the replacement value of the structure; wood frame is higher than masonry.

Transfer Tax
VI government views the seller as the responsible party to pay this tax at closing. All real estate transactions are subject to a transfer tax as follows:

Costs to the Seller
Exposure of bound posts and property lines for land or home, transfer tax (which can be negotiable), deed preparation and attorney fees.

Costs to the Buyer
Title insurance, structural inspection and termite inspection (for home), surveyor certificate and report (land), as-built survey (home), recordation of the deed (approximately $1 per $1,000 of transaction amount), bank fees (if required), attorney fees

Construction
All new construction must be engineered to withstand a minimum wind speed of 110 mph and Zone 4 earthquakes, and an architect and or engineer licensed in the Virgin Islands must approve and stamp new construction plans. Owners should allow a minimum of at least three months for issuance of building permits. Building costs start at approximately $200. per square foot for masonry construction and vary depending on finish materials.

Utilities
Electricity is produced by diesel generators. We have the occasional power outages due to malfunctions at the power plant. They seldom last more  than an hour.

Most homes on St. Thomas have their own cisterns and septic tanks. Rainwater is collected from roofs and stored in cisterns. Ten gallons of cistern storage is required per square foot of roof area on a single-story home; fifteen gallons of cistern storage is required per square foot of roof area on a two-story home. St. John has a desalinization plant and water can be delivered for approximately $150–$200 for 3,000 gallons.

Rental Income
Depending on the condo or home you are thinking about purchasing, there are many rental management companies to choose from. Owners can generally expect to net approximately 50% of the gross rental income after management commissions and expenses are paid.