5 Things to Check Before Buying a Luxury Villa in Sint Maarten

Buying a luxury villa in Sint Maarten is easy to get emotionally right and financially wrong. The view is what you remember from the viewing. What decides whether it was a good purchase is less visible: where the villa sits, how it was built, what it costs to hold, and what the title says.

We sell villas on both sides of the island, from Indigo Bay to Terres Basses, where we closed Villa Always at €3.5M. These are the five things we look at first, in the order we look at them.

1. A location that works for living and for renting

Location drives resale value and rental demand more than any finish or feature. Each area attracts a different buyer and a different guest:

• Terres Basses (French side). Large private estates on the Baie Rouge, Plum Bay and Baie Longue side of the island. Privacy and space, at the top of the market.

• Indigo Bay (Dutch side). A gated community with newer villas and condos. Villas start around $1.5M. The Setai St. Maarten resort, announced for the former Vie L'Ven site and targeted for 2028, will change the neighborhood's profile.

• Cupecoy and Pelican Key. Close to Simpson Bay, the marinas and the restaurants. Easy to rent, easy to live in.

• Dawn Beach and Oyster Pond. The quieter east side, with the JW Marriott now open on Dawn Beach.

• Orient Bay, Anse Marcel, Baie Nettlé (French side). Beach-oriented, with a different rhythm from the Dutch side.

Ask how long it takes to reach the airport, a supermarket and a beach. Ask what is planned on the empty lot next door. A villa that suits your holidays but not a renter's week narrows your future buyers too. Our island guide covers each area.

2. The layout and the land

Luxury here is not square footage. It is a layout that works in a hot climate and a lot that works with the hill.

• Indoor-outdoor living. Covered terraces, shade in the afternoon, a pool that is used, not just photographed.

• Ensuite bedrooms. Renters and resale buyers both expect a bathroom per bedroom.

• Privacy. Look at what the neighbors can see, and what you will see when the lot below is built.

• Access. Many hillside villas sit on steep roads and driveways. Check them in a normal car, and think about deliveries and guests.

• Airflow and orientation. A villa that catches the trade winds needs less air conditioning.

3. Construction built for hurricanes

The Atlantic hurricane season runs from June 1 to November 30. Irma, a Category 5 storm, hit the island in September 2017, and newer construction generally follows stronger codes. That makes the construction file one of the most important documents in a villa purchase.

Have an independent inspector look at:

• The roof structure and how it is tied down.

• Impact-rated windows and doors, or shutters for every opening.

• Waterproofing, drainage and signs of past water damage.

• Corrosion from salt air on railings, fixtures and electrical panels.

• The generator, the water cistern and how the villa copes after a storm.

• What was repaired or rebuilt after Irma, by whom, and with which permits.

Then read the insurance quote before you sign. Windstorm deductibles are often a percentage of the insured value, not a fixed amount, and on a villa that difference is large.

4. The real numbers

Even if you plan to use the villa yourself, look at it the way a buyer will look at it when you sell.

• Rental history, not projections. Ask for the booking calendar and gross income for the last two seasons. A villa that rents well has a record.

• Holding costs. Insurance, staff or management, pool and garden service, utilities, maintenance and the reserve you will need for the roof and the pool.

• Management. A villa rented to short-stay guests needs someone on the ground. Our rental management service charges 20% of rental revenue.

• Tax on rental income. It is taxable, and short-term rentals can be subject to turnover tax and room tax. Confirm the current rates and registration with a local tax adviser.

Buy a villa that works in an average year. A strong year is then a bonus.

5. The paperwork

• Which side, which law. On the Dutch side, a civil-law notary handles the transfer, with a 4% transfer tax paid by the buyer and total closing costs of about 5.5%. On the French side, a notaire handles the sale, closing costs are higher, and owners pay an annual taxe foncière.

• Freehold or long lease. On the Dutch side, some land is held on long lease (erfpacht). Check the term and the annual fee.

• Boundaries and permits. Get a survey. Make sure extensions, pools and guest houses were permitted.

• Rental permission. If rental income is part of the plan, confirm that the property can legally be rented short-term.

Our buyer's guide explains the process on each side in more detail.

Questions we get

Dutch side or French side for a luxury villa? It depends on what you want. Terres Basses offers the largest private estates. The Dutch side has lower closing costs and more villas close to the marinas and restaurants.

Is a pre-Irma villa a bad buy? Not necessarily. Many were properly rebuilt. What matters is what was done after 2017, and whether you can see the records.

Can a luxury villa pay for itself with rentals? Some cover their costs; few pay back the purchase price quickly. Judge it on documented booking history, not on a brochure.

How much should I budget above the price? About 5.5% for closing costs on the Dutch side, more on the French side, plus furnishing, insurance and any work the inspection finds.

When you are ready, browse the villas for sale, or talk to us about a specific property.

Ready to look at what is on the market? Browse our condos for sale in Sint Maarten and villas for sale in Sint Maarten, or see every property for sale.

More questions? Our Sint Maarten real estate FAQ answers the ones buyers and sellers ask most.