Under 400,000 US dollars is a real budget on this island, not a fantasy one. It generally buys a studio or a one bedroom condo in an established building, an older two bedroom unit away from the beachfront, or a house or apartment inland or on a hillside where you trade walkability for space and a view.
What it usually does not buy is new construction on the sand at Cupecoy or Maho. Accept that early, because the buyers who do well at this level are the ones who choose the right building rather than the best photograph.
The most important number at this budget is not the price. It is the monthly association dues. Dues can quietly consume a third of your gross rent, and two units at the same price can produce completely different results because of it. That, and the 5 to 6 percent it costs to close on the Dutch side, is where this guide spends most of its time.
What 400,000 dollars realistically buys
- Studios and one bedroom condos in established buildings in Simpson Bay, Cupecoy, Maho and Pelican Key. The largest category at this level and the easiest to rent.
- Older units in good buildings. Stock from before Irma that has been maintained and repaired properly is often better value than newer stock in a building with thin reserves.
- Inland and hillside property in districts such as Cay Hill, South Reward, St. Peters, Madame Estate, Middle Region and Belvedere, where you get more square footage per dollar and, higher up, real views.
- Quieter coast and marina apartments around Oyster Pond, Dawn Beach and Point Blanche. More space for the money, but a drive from restaurants.
- Land in the inland districts, although building costs more and takes longer than most first time buyers expect, because materials are imported.
Where to focus
Simpson Bay
The broadest rental demand and buyer appeal on the island: restaurants along the strip, Simpson Bay Marina and Palapa Marina, the beach, and nightlife you can walk to. Older buildings here regularly come in under 400,000 dollars. The main annoyance is traffic, especially when the Simpson Bay bridge opens for yachts and everything stops. The Causeway is the alternative route across the lagoon.
Cupecoy
Modern condo buildings on the cliffs, Porto Cupecoy for the marina and restaurants, Blue Mall nearby, Mullet Bay Golf Course next door and the airport minutes away. At this budget you are looking at studios and smaller one bedroom units. Read the dues schedule carefully, because amenity heavy buildings cost more to run.
Maho
The resort district: hotels, casinos, Maho Plaza and the beach at the end of the SXM runway that people fly in specifically to see. Holiday occupancy is strong and guests walk to everything, including the Sunset Bar and Grill. Studios turn up in this budget. Dues and rental program terms are what to scrutinise.
Pelican Key
Elevated, established, low density and quieter than the strip, with sea views and Simpson Bay minutes away. Older one bedroom units here can be very good value, and the area holds appeal with long term tenants as well as holiday guests.
Philipsburg, Cay Hill and the inland districts
Around the capital and the districts behind Great Salt Pond you get the most space per dollar on the island. Front Street, the Boardwalk and Port St. Maarten are close, Sint Maarten Medical Center is in Cay Hill, and Walter Nisbeth Road, the Pondfill, gets you across town quickly. Holiday demand is thinner here, but long term rental demand from residents is steady.
Hillside residential
Almond Grove, Point Blanche, Guana Bay and the higher parts of Cole Bay give you views and quiet. At this budget that usually means an older house or an apartment in a small building. You will drive everywhere, and you should drive the access road yourself before you commit.
Association dues will make or break the deal
At this end of the market, dues matter more than the asking price. A unit priced 25,000 dollars higher with dues 400 dollars a month lower is normally the better buy over any reasonable holding period.
Here is an illustration, using example figures only, not market data. Say a one bedroom grosses 30,000 dollars a year. Dues of 750 dollars a month take 9,000 of that, which is 30 percent, before management, cleaning, platform fees, GEBE bills, insurance and repairs. Move dues to 400 dollars a month and you keep another 4,200 dollars a year. Nothing about the apartment changed. Run your own numbers in the Mietertragsrechner.
Ask every one of these before you offer:
- What are the dues, and what exactly do they cover? Insurance? Water? Internet? Pool and grounds?
- What is in the reserve fund, in cash, today?
- Has there been a special assessment in the last five years, and is one being discussed?
- How many owners are in arrears?
- Is the building fully insured, including windstorm cover, and what is the premium trend?
- Does the building permit short term rental, and are there restrictions on nights or platforms?
Ask for the budget, the reserve balance and two years of meeting minutes in writing. A building that will not produce those documents has told you something.
Worked example: cash needed at closing on a 350,000 dollar purchase
Dutch side closing costs run roughly 5 to 6 percent of the purchase price when you are not taking a local mortgage: a 4 percent transfer tax plus a notary fee of roughly 1 to 2 percent. Applied to a 350,000 dollar purchase, as an example:
| Line | Lower estimate | Higher estimate |
|---|---|---|
| Purchase price | 350,000 | 350,000 |
| Transfer tax at 4 percent | 14,000 | 14,000 |
| Notary fee at 1 to 2 percent | 3,500 | 7,000 |
| Total closing costs, 5 to 6 percent | 17,500 | 21,000 |
| Total cash to complete | 367,500 | 371,000 |
So plan on roughly 367,500 to 371,000 US dollars to own the property outright, which is the currency Dutch side property trades in. Then budget separately for the first year: dues in advance, an insurance premium including windstorm cover, GEBE deposits and bills, furniture if the unit is unfurnished, and working capital for the quiet months. Check your own figure in the buyer cost guidance, and remember that Sint Maarten has no annual property tax and no capital gains tax on resale. Rules change, so confirm the current position with the notary handling your file or a tax adviser before you sign.
If you need a mortgage
With a local mortgage, total closing costs typically rise to about 6 to 7 percent, because a mortgage deed and its registration are added. On a 350,000 dollar purchase that is roughly 21,000 to 24,500 dollars, on top of whatever down payment the bank requires.
Lenders operating here include Windward Islands Bank, RBC, Republic Bank and Orco Bank. Terms for buyers who are not resident vary considerably between them, so get an indication in writing before you make an offer. The notary registers everything at the Kadaster, the Land Registry, when the deed is signed.
Rental strategy for a smaller unit
Studios and one bedrooms have two viable strategies, and they are not the same business.
- Short term holiday rental. Higher gross, higher cost, more work. This is the play in Maho, Simpson Bay and Cupecoy, where guests walk to the beach and to dinner. High season runs mid December to mid April, and the island fills further around the Heineken Regatta in early March, SXM Festival and Carnival. Late August through October is the slow stretch and the peak of hurricane season.
- Long term rental to residents. Lower gross, far lower cost, far steadier. This is the play in Cay Hill, Philipsburg, Cole Bay and the inland districts, where a working population lives all year. A furnished one bedroom in a decent building rents reliably to professionals working on the island.
Many owners mix the two: holiday rental through the winter, a longer let through the summer. Whichever you choose, deduct everything before you call a number a yield. Management, cleaning, platform commission, GEBE, TelEm, insurance, dues and a maintenance allowance all come out first. No rental outcome is ever guaranteed.
Renovation potential
Older units are where the value usually sits at this budget. Kitchens, bathrooms, flooring, air conditioning and impact glass or shutters are the improvements that change both the rent and the resale. A tired one bedroom in a well run building with strong reserves is a far better project than a smart looking unit in a building with no money in the bank.
Three warnings. Get written approval from the association before touching anything structural or anything on the exterior, including windows. Get more than one contractor quote, because good trades here are busy. And carry a real contingency, because materials are imported and a delayed container becomes a delayed project.
What to avoid
- Buildings with an empty reserve fund or a history of repeated special assessments.
- Units where dues plus insurance already consume a large share of realistic gross rent.
- Buildings that ban short term rental when short term rental is your entire plan.
- Anything with unresolved title issues, unpermitted additions or unclear boundaries. The notary will surface these, so let the process run.
- Properties with no clear answer about what was repaired after Irma made landfall on 6 September 2017, or no insurance history at all.
- A price that looks too good. On an island this small, that usually reflects something: a roof, a legal issue, an assessment coming, or a building that cannot get affordable windstorm cover.
Häufig gestellte Fragen
Can a foreigner buy property in St. Maarten under 400,000 dollars?
Yes. There is no nationality restriction on freehold ownership, and the process is identical whatever your budget. Dutch side property is priced and traded in US dollars in practice.
What are total closing costs on the Dutch side?
Roughly 5 to 6 percent of the price: 4 percent transfer tax plus a notary fee of roughly 1 to 2 percent. With a local mortgage, budget about 6 to 7 percent.
Is there an annual property tax in Sint Maarten?
No, and there is no capital gains tax on resale either. The French side is different: taxe fonciere applies annually and a resale at a profit can be taxed at up to 34 percent, with relief where it was your main home.
Which area is best for rental income at this budget?
Maho and Simpson Bay usually have the strongest holiday occupancy, because guests can walk to the beach and to restaurants. Cay Hill, Cole Bay and the inland districts are better for steady long term tenants.
How much are association dues?
They vary enormously, from modest in a small walk up building to substantial in a resort condominium with a pool, front desk and grounds staff. Always ask for the current schedule and what it includes before you offer.
Start with the numbers
At this budget, discipline wins. Pick the building before the view, read the association accounts before the listing description, and run the closing costs and the yield before you fall for anything. Our property tools give you a closing cost figure and a realistic yield in a few minutes, and you can see current inventory on our listings page.
When you are ready to look properly, talk to us. We know which buildings on this island are well run and which have a history of assessments, and that knowledge is worth more at 350,000 dollars than at any other price point. Get in touch through our contact page.
