Unlocking Urban Potential: Act 182 and Puerto Rico’s Investment Renaissance

Puerto Rico has long been a land of opportunity, celebrated for its breathtaking natural beauty, vibrant culture, and unique tax incentives for investors. Now, a groundbreaking legislative development is setting the stage for a revitalized urban landscape: Act 182 of 2024. This transformative legislation offers unprecedented tax incentives to stimulate housing development in Puerto Rico’s urban centers, presenting a remarkable opportunity for investors and developers. At Paraiso Realty, we’re here to guide you through this exciting chapter and help you find the perfect property to maximize your investment.

Act 182: A Game-Changer for Urban Housing Development

Enacted on August 27, 2024, Act 182 amends Puerto Rico’s Incentives Code (Act 60-2019) to prioritize urban revitalization. This act directly addresses the island’s housing challenges by encouraging the development, restoration, and rehabilitation of urban properties. The ultimate goal? To attract a growing professional class eager to call Puerto Rico home while breathing new life into the heart of its cities and towns.

What Defines an Urban Center?

Act 182 defines an Urban Center as the geographic heart of a municipality, encompassing historic zones or areas designated by the local mayor’s office for revitalization. By focusing on these vital areas, the legislation aims to transform Puerto Rico’s urban cores into thriving, sustainable hubs of activity.

Key Investment Criteria

To qualify for the benefits of Act 182, projects must meet specific criteria:

1. Investment Threshold:

• A minimum investment of $1,000,000 (excluding the acquisition cost of the property).

2. State of Abandonment:

• Properties considered “in a state of abandonment”—such as unoccupied structures or vacant lots deemed unsafe or uninhabitable—are eligible.

3. Residential Units:

• Each project must include at least seven residential units designed for sale or lease.

Generous Tax Benefits for Investors

Act 182 offers a suite of tax incentives designed to maximize returns for investors:

• Flat 4% Income Tax Rate: On income generated from sales or rentals.

• 100% Tax Exemption: On earnings and profits distributions from eligible activities.

• 75% Property Tax Exemption: On both real and personal property taxes.

• 50% Municipal Tax Exemption: Including license taxes and excise taxes.

• 75% Exemption on Construction Excise Taxes: For contractors and subcontractors.

• 40% Tax Credit on Eligible Investments: This credit can be sold, transferred, or assigned, providing additional flexibility.

Application Timeline and Conditions

Investors have until December 31, 2025, to submit their applications for these incentives. Eligible construction activities must begin after July 1, 2024, though exceptions may apply for earlier projects that meet certain conditions. Given the complexity of these requirements, it’s essential to have expert guidance.

Why Invest in Puerto Rico’s Urban Centers?

1. Addressing a Housing Shortage

Puerto Rico’s urban areas face a growing demand for modern, well-designed housing to accommodate professionals and families. Act 182 provides a pathway for developers to meet this need while benefiting from significant financial incentives.

2. Revitalizing Historic Areas

Urban centers are often rich in history and culture, offering unique opportunities to restore and reimagine iconic buildings. These projects not only preserve Puerto Rico’s heritage but also enhance the appeal of its cities.

3. Sustainable Urbanization

By promoting development within existing urban frameworks, Act 182 aligns with global trends in sustainable urbanization. Compact, walkable communities reduce environmental impact while fostering vibrant local economies.

How Paraiso Realty Can Help

Navigating the complexities of Act 182 and finding the right property for your investment requires local expertise and market knowledge. At Paraiso Realty, we specialize in:

• Identifying Prime Investment Opportunities: We’ll help you locate properties in eligible urban centers that align with your goals.

• Market Analysis and Guidance: Our team provides data-driven insights to help you make informed decisions.

• Streamlined Transactions: From due diligence to closing, our team will handle the details so you can focus on your vision.

Making the Most of Act 182’s Tax Credits

One of the most compelling aspects of Act 182 is the 40% tax credit on eligible investments. This credit applies to a wide range of expenses, including:

• Construction and development costs.

• Infrastructure and utility improvements.

• Furniture, fixtures, and equipment during the first year of operations.

• Debt-related expenses for project financing.

The flexibility to sell or transfer these credits further enhances their value, making them a powerful tool for maximizing your returns.

Don’t Wait—Act Now!

With applications open until the end of 2025, there’s still time to take advantage of Act 182’s benefits. However, the process can be competitive and detailed, so early action is crucial. Whether you’re a seasoned investor or new to Puerto Rico’s real estate market, Paraiso Realty is your trusted partner for success.

Why Choose Paraiso Realty?

Investing in Puerto Rico is about more than numbers; it’s about becoming part of a vibrant community and building a legacy. At Paraiso Realty, we combine professional expertise with a deep passion for our island, providing you with local expertise, personalized service, a commitment to excellence and proven results. Start your property search with Paraiso Realty.

Take the First Step Today

Puerto Rico is on the cusp of a new era, and Act 182 is your gateway to being part of its transformation. Whether you’re interested in developing residential projects or seeking other investment opportunities, Paraiso Realty is here to guide you every step of the way. Contact us today to explore how we can help you turn vision into reality.

The "Salmón Boricua": A Unique Niche of Buyers Returning to Puerto Rico

A Unique Niche of Buyers Returning to Puerto Rico

Over the past few years, I’ve noticed an interesting trend among some of the people reaching out to buy property in Puerto Rico. It’s a niche group I’ve come to call the “Salmón Boricua.” The name might sound a little unusual at first, but the story behind it—and the buyers it describes—makes it a surprisingly fitting metaphor.

Like salmon swimming upstream to return to their place of origin, these buyers are Puerto Ricans or people with deep Puerto Rican roots who feel an undeniable pull to reconnect with the island, often by purchasing a home. It’s a pattern that’s as heartwarming as it is fascinating, and I wanted to share a bit more about this unique phenomenon.

Who Are the "Salmón Boricua"?

To understand this group of buyers, it helps to think about the lifecycle of a salmon. Salmon are born in freshwater rivers high in the mountains. After growing up and spending much of their lives in the ocean, they eventually swim back to the rivers of their birth. For salmon, this return is about spawning before the end of their lives. For “Salmón Boricua,” it’s about coming home—not to spawn, of course, but to reconnect with their heritage, find a sense of belonging, and often to create a lasting legacy for their families.

The “Salmón Boricua” I’ve encountered typically fall into two main groups:

1. Puerto Ricans Born on the Island but Raised Abroad
   Many of these individuals were born in Puerto Rico but moved away as children or young adults. Perhaps their families sought better job opportunities on the mainland, or maybe they joined the military or left for college. After spending years—or even decades—living abroad, they now feel a powerful urge to return to the island and reclaim their connection to the place where they were born.

2. Descendants of Puerto Rican Parents or Relatives
   This group includes those who may not have been born on the island themselves but grew up hearing stories about Puerto Rico from their parents or grandparents. Their connection to Puerto Rico might be cultural, emotional, or even spiritual. For these buyers, owning a home in Puerto Rico represents a way to honor their family’s history and keep their heritage alive for future generations.

Why Are They Coming Back?

The reasons why “Salmón Boricua” are making their way back to Puerto Rico are as varied as the buyers themselves. Here are a few common themes I’ve observed:

1. A Deep Sense of Nostalgia and Belonging
   For many, Puerto Rico is more than a place—it’s an integral part of their identity. They feel a magnetic pull to the island, its culture, and its natural beauty. Whether it’s the sound of coquí frogs at night, the smell of café con leche in the morning, or the warmth of family gatherings, these buyers are drawn to the comforts of home that only Puerto Rico can provide.

2. A Desire to Preserve Family History
   For those with parents or grandparents from Puerto Rico, buying property here is often about keeping a connection to their family’s roots. It’s a way to honor their ancestors and ensure that future generations have a tangible link to their heritage.

3. Retirement or Lifestyle Changes
   Some buyers in this niche are planning ahead for retirement, envisioning a simpler and more fulfilling life on the island. Others are seeking a slower pace of life, away from the hustle and bustle of the mainland. Puerto Rico offers the perfect balance of tranquility, vibrant culture, and breathtaking landscapes, making it an attractive destination for those looking to settle down.

4. An Emotional Response to Global Events
   In the wake of significant global challenges like the COVID-19 pandemic, many people began reevaluating what truly matters to them. For some Puerto Ricans living abroad, this has meant a renewed appreciation for their homeland and a determination to create a meaningful connection to it.

Is This Feeling Unique to Puerto Ricans?

The phenomenon of feeling drawn to one’s homeland isn’t exclusive to Puerto Ricans. Or is it? Many people around the world experience similar emotions when they leave their birthplaces or ancestral homes. However, there’s something uniquely profound about the “Salmón Boricua” experience.

Perhaps it’s the deep cultural pride that Puerto Ricans carry with them wherever they go. Or maybe it’s the island’s magnetic allure—the stunning beaches, lush mountains, and vibrant communities that make Puerto Rico so special. Whatever the reason, the desire to return “home” to Puerto Rico often feels more like a calling than a choice.

What Does This Mean for the Real Estate Market?

For Paraiso Realty and other real estate professionals on the island, this niche group of buyers represents an exciting opportunity to help people reconnect with Puerto Rico. These buyers often approach the process with a strong emotional investment, and they tend to value homes that reflect the island’s charm and character. Properties with historical significance, breathtaking views, or proximity to family often resonate most with them.

Are You a "Salmón Boricua"?

If you’re a Puerto Rican who’s felt the pull to return to the island, or if you’re someone of another nationality who’s felt the same about your own homeland, I’d love to hear your thoughts. What drives this feeling? Is it nostalgia, heritage, or something else entirely? And what do you think of the term “Salmón Boricua”? Does it capture the spirit of this journey home?

At Paraiso Realty, we’re here to help guide you through the process of finding your dream home in Puerto Rico, whether you’re returning after decades away or discovering the island for the first time. Let us help you reconnect with the place where your heart belongs.

Share your story or leave a comment below—I’m curious to learn more about what brings people home.

Calculating Cap Rates for Short-Term Rentals

What is a Cap Rate?

A Short-Term Rental (STR) Capitalization Rate (Cap Rate) is a vital metric used to evaluate the profitability of a short-term rental property. The cap rate represents the expected annual return on investment for a property, expressed as a percentage. It is calculated by dividing the property’s Net Operating Income (NOI) by its current market value or purchase price. Understanding the cap rate helps investors assess potential returns, compare different properties, and make informed decisions about property purchases and pricing. By calculating the cap rate yourself, you can gain a clearer understanding of your potential return on investment (ROI). Let’s explore how to calculate it using a target property on Vieques, listed for $800,000.

How to Calculate Cap Rates.

To calculate your STR cap rate, you’ll follow three steps. First, determine the annual gross rental income. Estimate the property’s yearly revenue from bookings by researching similar properties in the market and their rental histories or obtaining past revenue figures from the seller if the property is already a short-term rental. Keep in mind that past performance is no guarantee of future results, so arrive at a realistic gross rental income figure that aligns with market conditions. For example, let’s say the target property generates $130,000 in annual gross rental income.

Second, subtract annual operating expenses. These expenses cover the costs of managing and maintaining the property. Typical costs include cleaning fees for regular guest turnover, maintenance for routine upkeep such as pool and lawn care, property management fees for handling reservations and emergencies, utilities like water and electricity, HOA fees if applicable, taxes including property and tourism taxes, and insurance for both property and liability coverage. If the property is already operating as a short-term rental, the seller may share these figures with you. The more years of rental history you have, the more accurate your projections will be. For our target property, annual operating expenses total $78,000. Subtracting this from the gross rental income of $130,000 leaves us with a Net Operating Income (NOI) of $52,000.

Finally, divide the NOI by the market value of the property. To calculate the Cap Rate, divide the NOI by the property’s market value or purchase price and multiply the resulting number by 100 to express it as a percentage. In our example, the NOI is $52,000 and the market value is $800,000, the calculation is $52,000 divided by $800,000, which equals 0.065. Multiply 0.065 by 100 to get a Cap Rate of 6.5%. In this example, the Cap Rate for the target Vieques property is 6.5%.

This Cap Rate can guide your financial decisions based on your investment goals. For instance, if you are satisfied with a 6.5% Cap Rate, the $800,000 price aligns with your purchase range. If your goal is a 4.0% Cap Rate, you can calculate the property value using the formula Property Value = NOI / Desired Cap Rate. With an NOI of $52,000, dividing it by 0.04 gives a property value of $1,300,000, making the $800,000 price seem like a bargain. Conversely, if you prefer a 9% Cap Rate, the property’s value would need to be sold at $577,000, calculated by dividing $52,000 by 0.09.

What’s considered a good Cap Rate?

A favorable Cap Rate for short-term rental properties generally falls between 8% and 12%. However, acceptable Cap Rates vary depending on factors such as location, property condition, and market trends. High-demand areas may have lower Cap Rates due to higher property values, while emerging markets might offer higher Cap Rates. Well-maintained properties can command higher rental rates, positively affecting NOI and Cap Rate. Additionally, economic conditions and tourism trends impact occupancy rates and rental income. On Vieques, some buyers simply want to buy a rental property with a positive Cap Rate, as they are looking for a place that will pay for itself, and which they can use for a few weeks of the year. They see it as a free vacation. Everyone’s Cap Rate is based on different goals.

While Cap Rate is a valuable metric, it has limitations. It does not account for financing costs or debt service, nor does it predict future changes in income or expenses. It should be used alongside other metrics, such as cash-on-cash return and occupancy rates, for a comprehensive investment analysis.

Calculating and understanding Cap Rates is essential for evaluating the profitability of short-term rental investment properties. While it provides a clear snapshot of potential returns, it is just one piece of the puzzle. Ensure you’re making informed decisions by consulting with an accountant or financial advisor before finalizing any property purchase. Paraiso Realty is here to guide you through every step of your real estate investment journey in Puerto Rico. Contact us today to explore opportunities in the vibrant Vieques market and beyond!

Below are three properties that Paraiso Realty currently has for sale, and would make great rental properties. Click on an image to see more details.

CASA VIENTO NORTE

SUAVE BRISA

LA COMBA

Start Off the New Year By Planting A Tree

Everyone in Puerto Rico Should Plant a Tree in Their Front Yard

The environmental, economic, and emotional benefits of greening your space.

Imagine stepping out your front door into the shade of a tree, its rustling leaves carrying a gentle breeze. That simple pleasure goes beyond aesthetics. Planting a tree in your front yard is one of the most powerful acts of personal environmental stewardship and self-care, especially here in Puerto Rico. From cooling your home naturally to improving your mood and even adding dollars to your property’s value, the benefits of trees are as numerous as their branches.

Let’s explore why you should have at least one tree in your yard—and why now is the perfect time to plant one.

1. Feel Younger, Wealthier, and Happier: The Emotional Power of Trees

According to a study cited in Fast Company, living near trees can make you feel up to seven years younger and as if you’re $10,000 richer. How? Trees create a sense of well-being by reducing stress, improving air quality, and fostering a connection with nature.

Here in Puerto Rico, where the pace of life can already feel relaxed compared to mainland living, adding a tree to your yard amplifies that effect. The shade, the chirping of birds it attracts, and the coolness under its canopy make your outdoor space feel like an oasis. Researchers have linked tree-lined streets and green spaces to lower rates of anxiety and depression. So, planting a tree is more than a landscaping choice—it’s an investment in your mental health.

2. Trees Are Climate Warriors: Cooling and Carbon Storage

Puerto Rico’s tropical heat is no joke, and with rising global temperatures, natural cooling solutions are becoming more critical. A single mature tree can cool your yard by up to 10°F, reducing your reliance on air conditioning and slashing energy bills. And that’s not all—trees also act as powerful carbon sinks. According to Fast Company, urban trees can store nearly as much carbon per acre as tropical rainforests.

Given Puerto Rico’s susceptibility to the impacts of climate change, including rising sea levels and more intense storms, every tree planted contributes to the island’s resilience. By soaking up carbon dioxide, providing shade, and mitigating urban heat, trees help slow climate change and protect your home environment.

3. Boost Your Property Value

For homeowners, planting a tree is one of the smartest financial decisions you can make. Studies show that homes with mature trees sell faster and at higher prices compared to properties without them. Why? Trees enhance curb appeal, signaling a well-maintained, inviting property.

In Puerto Rico’s hot real estate market, particularly for vacation homes, a tree in the front yard can set your home apart. It’s not just about looks, either; buyers know that trees reduce energy costs and provide long-term benefits. Adding a tree now means enjoying the perks while you live there—and cashing in when it’s time to sell.

4. Cleaner Air and Water for Everyone

Living near a tree isn’t just good for your wallet—it’s good for your lungs. Trees naturally filter the air, absorbing pollutants like nitrogen dioxide and particulate matter. For Puerto Ricans living in areas with busy streets or industrial activity, planting trees can dramatically improve air quality.

Trees also play a crucial role in managing stormwater. Puerto Rico’s rainy season can overwhelm urban drainage systems, leading to flooding. A tree’s root system absorbs excess water, reduces runoff, and stabilizes the soil, preventing erosion. This is especially important in areas prone to landslides after heavy rainfall.

5. A Home for Wildlife

One of the joys of living in Puerto Rico is its vibrant biodiversity, and planting a tree is an invitation for nature to visit your yard. Native species like the flamboyant (royal poinciana) or maga tree attract birds, butterflies, and other pollinators. The presence of these creatures creates a dynamic, thriving ecosystem right outside your door.

For prospective homeowners looking to reconnect with nature, a yard with mature trees offers a front-row seat to Puerto Rico’s incredible flora and fauna. It’s like having your own private nature reserve.

6. Shade That Saves Energy

The Puerto Rican sun can be relentless, and keeping homes cool without running the AC around the clock can be a challenge. A strategically planted tree can shade your home, reducing energy consumption by up to 30% during the hottest months. It’s a win-win: lower utility bills and a reduced carbon footprint.

7. A Community-Wide Impact

Planting a tree is a personal act with community-wide benefits. One study found that neighborhoods with more trees have lower crime rates and stronger social connections. Why? Green spaces foster outdoor activity, encourage neighbors to interact, and create a sense of pride and care for the community.

Puerto Rico’s towns and cities are already rich with culture and history. By adding more trees, we can make our neighborhoods even more inviting, fostering a sense of community that benefits everyone.

Choosing the Right Tree for Puerto Rico

When selecting a tree for your front yard, it’s essential to consider Puerto Rico’s unique climate and your property’s specific needs. Here are some tips:

• Opt for Native Trees: Native species like the ceiba (silk-cotton tree) or guayacán are adapted to the local environment, require less maintenance, and support native wildlife.

• Think About Size: Choose a tree that fits your space. A flamboyant tree, for instance, grows wide and creates an impressive canopy—perfect for larger yards.

• Consider Maintenance: Some trees, like mango or breadfruit, provide delicious fruit but require regular upkeep. Make sure you’re ready for the commitment.

How to Plant and Care for Your Tree

• Location is Key: Plant your tree where it will get the sunlight it needs while avoiding interference with utility lines or nearby structures.

• Water Regularly: Young trees need consistent watering to establish their root systems, especially during dry spells.

• Prune as Needed: Regular pruning keeps your tree healthy and prevents overgrowth that could damage your home or block views.

Start Off The New Year On The Right Foot, Start Your Tree Legacy Today

Planting a tree in your front yard is about more than beautifying your space. It’s an investment in your health, your wallet, and the planet. In Puerto Rico, where the natural environment is such a big part of the island’s charm, a tree is a perfect symbol of sustainability and community spirit.

Whether you’re buying your first home, upgrading to a dream property, or preparing a vacation home for renters, adding a tree to your yard can create a lasting legacy. At Paraiso Realty, we believe in not just finding you a house, but helping you make it a home—one rooted in the beauty of Puerto Rico.

Embracing Traditional and Modern Cooling Techniques in Puerto Rican Homes

In Puerto Rico, a blend of traditional and contemporary architecture offers unique solutions to cooling homes naturally, minimizing the reliance on air conditioning and enhancing energy efficiency. With preoccupations about the cost of electricity and concern for the planet, let’s explore age-old methods and innovative designs that cater to the tropical climate of the Caribbean.

Traditional home in Old San Juan with high ceilings, large windows, and veranda; all ways of naturally cooling.

Historically, homes in Puerto Rico and similar tropical regions were designed with the climate in mind. Elements such as high ceilings, large windows, and broad verandas were commonplace, facilitating natural ventilation and shading. Such designs allowed air to circulate freely and kept the interiors cool by protecting them from direct sunlight. The use of local materials, which were often lighter and reflected heat better than modern materials, also contributed to a cooler indoor environment.

The principle of passive cooling, which involves architectural strategies that do not require mechanical systems, was inherent in traditional Puerto Rican homes. These methods are not only sustainable but are also highly effective in tropical climates where the sun and humidity dominate.

A Moriviví House design by Marvel Marchand Architects

In contemporary Puerto Rican architecture, there’s a resurgence in integrating these traditional methods with modern building technologies. For example, projects like the Moriviví House, designed by Marvel Marchand Architects, demonstrate a commitment to eco-friendly and resilient housing. This home employs modular designs that are adaptable and easy to assemble, featuring open layouts that maximize natural light and airflow. The use of reinforced concrete and treated wood enhances durability while supporting passive cooling strategies.

Moreover, other innovative solutions include the use of energy-efficient materials that reflect sunlight and insulate properties more effectively. High-performance windows with low-emissivity coatings, for example, can prevent heat gain without sacrificing light. Modern homes also integrate green roofs or walls that not only insulate the building but also reduce the urban heat island effect.

NIU Studio home by Casa-i

CASA-i's approach to building in Puerto Rico exemplifies how modern techniques can align with environmental sustainability. Their prefab homes are designed with materials that withstand severe weather while also optimizing energy use. Features like superior insulation and sun protection are standard, ensuring that homes remain cool during the hot months without excessive energy consumption.

Badgirs cooling towers in Iran

Looking beyond Puerto Rico, other regions offer valuable lessons in natural cooling. In the Middle East, wind towers (badgirs) have been used for centuries to channel cool breezes into buildings. Similarly, the Jaali walls in India provide not only intricate aesthetics but also enhance indoor ventilation through their unique geometric patterns that facilitate air movement.

Green wall example.

One cannot overlook the role of landscaping in enhancing the natural cooling of homes. Strategic placement of trees, water bodies, and other landscape elements can shield homes from heat and channel cool breezes through living spaces. In Puerto Rico, native plants that require minimal water and maintenance can create a microclimate that significantly lowers surrounding temperatures.

As global temperatures rise and energy costs increase, the relevance of integrating traditional cooling methods with modern technologies becomes more apparent. Puerto Rico’s architectural evolution shows a promising path toward sustainable living, reflecting a deep understanding of local environmental conditions and cultural heritage. These practices not only promote ecological resilience but also offer a blueprint for other regions grappling with similar climate challenges.

This blend of old and new, natural and engineered, exemplifies the potential for architectural design to meet modern needs while respecting and utilizing traditional wisdom. As we continue to innovate, these principles can lead to more sustainable living environments that honor the past while building for the future.

Wedding Registries for Home Down Payments: A New Trend or Taboo?

Wedding Registries for Home Down Payments?

For decades, weddings have been associated with gift registries—beautifully curated lists of household items to help newlyweds furnish their first homes. Toasters, blenders, elegant china sets, and luxurious bed linens have long filled the wish lists of couples stepping into married life. But a new trend is shaking up this long-standing tradition: couples are now asking their wedding guests for cash—not for honeymoons or savings, but for something much more substantial—a down payment on their future home.

As covered in a recent New York Times article, couples in the U.S. are increasingly bypassing traditional wedding registries, instead asking guests to contribute directly to their dream of homeownership. It's a bold move that raises questions about changing cultural norms and the practicality of wedding gifts. But is it acceptable? Or does it go against the grain of long-standing traditions? And how would this concept be received in Puerto Rico, where traditions around weddings and gift-giving also hold deep cultural significance?

The Evolving Landscape of Wedding Registries

In the U.S., the concept of giving practical gifts to newlyweds dates back to the early 20th century when the first wedding registry was introduced by a department store. The idea was simple: young couples needed housewares to set up their new lives together, and guests could choose items that fit within their budgets.

But times have changed. Today’s couples are often getting married later in life, when they already own many of the items that traditionally filled wedding registries. Many have established careers and fully furnished apartments long before their wedding day. As a result, there’s a growing shift toward more personalized gifts—or cash gifts—targeted toward experiences, such as a honeymoon or shared adventures.

Now, many are taking this one step further, asking guests to contribute to their most significant financial goal: buying a home. It’s a practical request, especially considering the rising cost of real estate in the U.S. and Puerto Rico alike. But while some view this shift as a forward-thinking approach, others wonder if it’s pushing the envelope on wedding etiquette.

Is Asking for Cash Taboo?

Wedding gifts have always been a way for friends and family to help a couple start their new life. But the shift from tangible items to monetary contributions raises the question: Is it appropriate to ask for cash?

For some, the idea of requesting money for a down payment feels impersonal or even taboo. Wedding gifts are traditionally a way to show thoughtfulness and care, something that a toaster or a set of wine glasses can convey with a personal touch. Asking for cash, on the other hand, can feel transactional, as though the gift-giving is reduced to a financial contribution rather than an expression of love and support.

On the flip side, many couples argue that asking for money toward a house is actually a deeply personal request. A home represents stability, security, and the foundation of a new family. By contributing to a down payment, guests are helping to build that future, a gift that will last far longer than any material object.

The etiquette experts are split on the matter, but one thing is clear: the trend is gaining traction. In a world where financial priorities are changing, many couples view this as a practical and meaningful alternative to traditional gifts.

The Puerto Rican Perspective: Is It Acceptable Here?

Puerto Rico, like many cultures around the world, has its own unique traditions when it comes to weddings and gift-giving. Traditionally, Puerto Rican wedding gifts often include household items, cash, or even gold coins, known as arras, which symbolize prosperity and good fortune for the couple.

In some ways, the idea of gifting cash isn’t entirely foreign to Puerto Rican culture. Many guests give envelopes with money at weddings, a custom that reflects generosity and support for the couple’s future. However, the specific request for contributions toward a home down payment might raise a few eyebrows. While it’s not unheard of to gift cash in Puerto Rico, directing it toward such a large financial goal could be seen as a more Americanized trend, rather than a natural evolution of local customs.

Some Puerto Ricans might view the request as practical and modern, especially given the island's high cost of living and the importance of homeownership. Others may see it as a break from the more intimate, traditional gift-giving that reflects personal connection and cultural values.

A Global View on Wedding Gifts

Around the world, wedding gift traditions vary widely. In Japan, guests often give envelopes of money, but the amount is carefully calculated based on the closeness of the relationship. In India, guests typically present gold jewelry, while in Italy, it’s common for the bride and groom to receive lavish gifts of money.

In many cultures, cash is a common wedding gift, but it’s often given without specific instructions on how it should be used. This new trend, however, turns the gift-giving process into something more targeted, a way for guests to directly contribute to a couple’s life goals. Whether it's for a honeymoon or a home, it adds a new layer of intention to the act of giving.

The Practical Benefits

For couples getting married in Puerto Rico or elsewhere, the request for home down payment contributions is often born out of necessity. With home prices rising across the island and in the U.S., affording a down payment can be a major financial hurdle for many. A wedding, with its built-in gathering of loved ones, presents a unique opportunity to ask for meaningful financial support.

Moreover, wedding costs themselves have skyrocketed, with many couples spending tens of thousands of dollars on their big day. Asking for help toward a home down payment rather than for gifts that may not be needed makes sense from a financial standpoint. It ensures that guests’ contributions have a lasting impact.

Is It Right for You?

Whether this new trend is right for your wedding ultimately depends on your values, your financial situation, and your cultural background. For couples who already have everything they need in terms of housewares, asking for contributions toward a home might be a no-brainer. For others, it might feel like too much of a departure from tradition.

If you’re considering this option, here are a few tips:

• Be clear and thoughtful: If you’re asking for money toward a home, explain why it’s important to you and how much it means for your future. Transparency helps guests understand that their gift is truly meaningful.

• Offer options: Some guests may prefer to give a more traditional gift. Including a few registry items alongside your request for home contributions can strike a balance.

• Respect cultural sensitivities: In some cultures, asking for money in such a direct way may be frowned upon. Consider your audience and their preferences, and be mindful of traditions.

A Thought-Provoking Trend

The trend of requesting wedding contributions for home down payments is still relatively new, but it’s clear that it’s catching on. For couples, it offers a practical solution to the financial challenge of buying a home, while for guests, it’s an opportunity to contribute to something that truly matters.

What do you think? Is asking for money for a down payment on a home the new normal, or does it feel too impersonal? Would this idea work for weddings in Puerto Rico, or does it go against tradition? Share your thoughts—we’d love to hear your take on this evolving trend!

If you’re a couple planning to buy a home in Puerto Rico, Paraiso Realty is here to help you navigate the process. Whether you’re looking for your dream home or considering a wedding registry for a down payment, we can help you make that dream a reality. Reach out to us today!

Why Is Money an Uncomfortable Conversation for Most People?

Why Is Money an Uncomfortable Conversation for Most People?

“Money talks—but so few are willing to listen.”

Sound familiar? For many, money is a topic we’d rather avoid. Whether it’s with family, friends, or even within ourselves, talking about finances can feel like a minefield of stress, judgment, and anxiety. Yet, the more we avoid it, the harder it becomes to take control of our financial future. So, why does discussing money make us so uncomfortable?

The Roots of Financial Fear

Money is often linked to deep emotions: fear, insecurity, or even guilt. We’ve been socially conditioned to view finances as something private, sometimes even shameful. In fact, a recent study revealed that over 70% of Americans feel uncomfortable talking about money. Why? For some, it’s the fear of not knowing enough, of being judged for their spending habits, or simply not wanting to confront financial realities.

Think about it: When was the last time you openly talked about your financial goals or concerns with someone? It’s easier to avoid the conversation than face uncomfortable truths, right?

Why Avoiding the Conversation Hurts You

The problem with avoiding discussions about money is that it often leads to bigger issues. Avoidance doesn’t erase financial challenges; it amplifies them. Maybe you're feeling uneasy about budgeting, or you don’t know where to begin with investing. Or perhaps you're wondering if you can truly afford a significant purchase—like a new home.

Here’s the thing: avoiding financial conversations can cost you opportunities. One of the biggest missed opportunities? Real estate.

Real Estate: The Elephant in the Room

Buying property is often the largest financial decision you’ll make in your life. And yet, for many, it’s a decision made in silence. Whether it’s uncertainty about securing a loan, hesitation about budgeting for ongoing expenses, or even confusion over the market, these concerns all stem from one thing—unspoken fears about money.

But here’s where it gets interesting: When you start having open conversations about your finances, buying real estate becomes less intimidating. Talking about money doesn’t just mean discussing your savings or debt; it means defining what financial security looks like for you. It means understanding your long-term goals, and how real estate fits into them.

How to Start Talking About Money (and Real Estate)

Ready to stop letting discomfort hold you back? Here are three actionable steps to start talking about money—and how it relates to buying your dream home:

1. Assess Your Financial Health
   Take an honest look at your financial situation. Where do you stand in terms of savings, debts, and long-term goals? This isn’t about self-judgment; it’s about gaining clarity. Once you know your numbers, you’ll feel more confident approaching a real estate investment.

2. Have an Open Dialogue with Professionals
   Whether it’s a financial advisor, a mortgage broker, or your real estate agent, having honest conversations with experts is key. Ask the tough questions. Be upfront about your concerns. The more information you have, the better positioned you’ll be to make a smart buying decision.

3. Plan for the Future
   Real estate is a long-term investment. It’s not just about whether you can afford a home now—it’s about understanding how it fits into your broader financial goals. What does financial freedom look like to you? How does buying a home support that vision?

Start the Conversation Today

Money shouldn’t be something that holds you back from building the life you want. And neither should real estate. By getting comfortable with the uncomfortable—by talking about money—you unlock the doors to financial confidence. Whether you’re just starting to think about buying a home, or you’re ready to take the plunge, it’s never too late to start the conversation.

Ready to explore your options in real estate? Let’s talk about how you can make that dream a reality—without fear, without stress, and with all the information you need.

Talking about money doesn't have to be intimidating. When you understand your financial position, you're not just buying a house—you're investing in your future. Let's start the conversation today.

Understanding the Closing Costs on a Property in Puerto Rico

Costs of Closing on a Property in Puerto Rico

When buying a property in Puerto Rico, especially with cash, the excitement of sealing the deal can often be overshadowed by the complex array of closing costs. These expenses, which arise after signing the Option Agreement, are crucial for a smooth and legally sound transaction. Here we’ll try to demystify these costs, ensuring you are well-prepared and confident as you navigate the closing process.

Title Search

A title search is a fundamental step in the closing process. This procedure involves investigating the property's history to ensure there are no liens, disputes, or other encumbrances that could affect your ownership. The cost of a title search can vary, but it is an essential expense to guarantee the property’s clear title.

Title Insurance

While optional, title insurance provides significant peace of mind. This insurance protects you against future claims or issues related to the property’s title, which might not have been uncovered during the initial title search. Considering the potential legal complexities and costs associated with title disputes, purchasing title insurance is often a wise decision.

Legal Fees

Legal fees encompass various expenses, including the drafting of the purchase deed, stamps, vouchers, and other notary-related costs. In Puerto Rico, these fees are typically outlined in the Option Agreement and can be negotiated with the seller. It's crucial to have a clear understanding of these costs upfront to avoid any surprises at closing.

Prorating of Taxes and Utilities

Depending on your closing date, you may need to pay a prorated portion of property taxes, insurance, and utilities such as water and electricity. In Puerto Rico, property taxes are due twice a year, aligned with the fiscal year starting on July 1. It’s possible to pay these taxes one semester in advance. This prorating ensures that both the buyer and seller cover their fair share of these ongoing expenses.

Property Inspection

Conducting a thorough property inspection is highly recommended to assess the condition of the property before finalizing the purchase. In Puerto Rico, buyers have the right to inspect the property within 10 days of signing the Option Agreement. The cost of inspections, which may include general home inspections, termite inspections, and other specialized assessments, is borne by the buyer.

Real Estate Broker Fees

Traditionally, real estate brokers in Puerto Rico charge 6% commission, and the fees are paid by the seller. However, from August 2024, it might become more common for buyers to pay their broker’s commission. This expense is negotiable and should be clearly outlined in the Option Agreement. Understanding this potential shift is vital for budgeting your closing costs.

Cashier Checks

For a cash transaction closing, buyers must prepare certified checks as specified in the closing disclosure (as known as the Settlement Statement). These checks ensure the secure transfer of funds, and banks may charge small fees for preparing them. It’s a minor but necessary expense in the closing process.

Travel Expenses

Closing in Puerto Rico must be done in person or through a Power of Attorney. If you are traveling from outside Puerto Rico, plan for travel and possibly lodging expenses. Being physically present or having a trusted representative is crucial for a smooth closing process.

Power of Attorney

If attending the closing in person is not feasible, you can appoint someone else to act on your behalf through a Power of Attorney. The costs associated with creating this legal document are the buyer’s responsibility. It’s a convenient alternative but requires careful consideration and planning.

Incorporations

If you are purchasing the property under a Limited Liability Company (LLC), you will be responsible for creating the LLC, including any legal fees. Additionally, there might be costs related to drafting a Corporate Resolution for the closing. These steps ensure that your purchase aligns with your business structure and legal requirements.

Importance of Negotiation and Advice

Many of the costs associated with closing on a property in Puerto Rico are negotiable. It is essential to work with a knowledgeable real estate broker and a competent notary to understand these expenses thoroughly. Their expertise can help you navigate negotiations effectively and prepare for all associated costs.

Closing on a property in Puerto Rico involves several expenses that go beyond the purchase price. From title searches and insurance to legal fees and inspections, each cost plays a critical role in ensuring a secure and transparent transaction. Being aware of these costs and understanding their implications will help you make informed decisions and smoothly transition to property ownership.

By working closely with experienced Realtors and thoroughly understanding each expense, you can confidently navigate the closing process and enjoy your new property in beautiful Puerto Rico.

Pelican House, Vieques Island

Casa Vieques, Vieques Island

Casa Mudejar, Miramar, San Juan

What Time Is It in Puerto Rico? Understanding the Island’s Unique Approach to Time

What’s the Time in Puerto Rico?

Understanding the Island’s Unique Approach to Time

Have you ever found yourself wondering, “What time is it in Puerto Rico?” Whether you’re planning a vacation, coordinating a business call, or simply curious about this tropical paradise, it’s essential to understand the timekeeping practices of this vibrant Caribbean island. Unlike many places around the world, Puerto Rico has a unique approach to time that sets it apart. One of the most significant aspects of this is its decision not to observe Daylight Saving Time (DST). Let’s dive into the fascinating world of Puerto Rican timekeeping.

Puerto Rico’s Time Zone

Puerto Rico operates on Atlantic Standard Time (AST), which is four hours behind Coordinated Universal Time (UTC-4). This time zone is shared with several other Caribbean islands and parts of South America. What makes Puerto Rico’s timekeeping particularly interesting is its stance on Daylight Saving Time.

No Daylight Saving Time: A Historical Context

Daylight Saving Time is a practice where clocks are set forward by one hour during the warmer months to extend evening daylight. Many countries, including the United States, observe DST from spring to fall. However, Puerto Rico chooses not to participate in this practice.

The history of DST dates back to World War I when it was first implemented to save energy by making better use of daylight. The practice was adopted again during World War II and has continued in various forms since then. The United States, for instance, has observed DST since 1966 under the Uniform Time Act, although there have been some modifications over the years.

Despite being a territory of the United States, Puerto Rico does not follow DST. This decision is rooted in several practical and cultural reasons:

1. Geographical Location and Climate: Puerto Rico is located close to the equator, where the length of daylight remains relatively consistent throughout the year. Unlike more temperate regions that experience significant variations in daylight between seasons, Puerto Rico enjoys approximately 12 hours of daylight each day, all year round. Thus, the perceived benefits of DST—longer evenings and energy savings—are minimal for the island.

2. Energy Consumption Patterns: The primary rationale for DST has historically been to reduce energy consumption by making better use of natural daylight. However, studies have shown that the impact on energy savings is relatively small, especially in regions close to the equator. In Puerto Rico, the energy consumption patterns do not significantly change with the implementation of DST.

3. Consistency and Convenience: Not observing DST means that Puerto Rico remains on Atlantic Standard Time year-round. This consistency simplifies scheduling for both residents and visitors. There’s no need to adjust clocks twice a year, and it avoids confusion for travelers and businesses operating with partners in other time zones.

Time Zone Comparisons

To better understand Puerto Rico’s time zone, it’s helpful to compare it with major cities around the world. For example:

• New York (Eastern Time): During the winter months, when New York is on Eastern Standard Time (EST), Puerto Rico is one hour ahead. In the summer, when New York shifts to Eastern Daylight Time (EDT), the time is the same as in Puerto Rico.

• Los Angeles (Pacific Time): Los Angeles operates on Pacific Standard Time (PST) in the winter, which is four hours behind Puerto Rico. During Pacific Daylight Time (PDT) in the summer, Los Angeles is three hours behind Puerto Rico.

• London (Greenwich Mean Time / British Summer Time): London is typically four hours ahead of Puerto Rico during its winter months (GMT). In the summer, when London shifts to British Summer Time (BST), it becomes five hours ahead.

Benefits for Digital Nomads and Remote Workers

Puerto Rico is an increasingly popular destination for digital nomads and remote workers, and its time zone plays a significant role in this appeal. Here are some benefits to consider:

• Convenient Overlaps with Major Markets: Being in AST, Puerto Rico’s time zone overlaps conveniently with the working hours of major markets like New York and other Eastern Time locations. This makes it easier to schedule meetings and collaborate in real-time without the need for early morning or late-night calls.

• Consistency in Scheduling: Since Puerto Rico does not observe DST, there’s no need to adjust schedules twice a year. This consistency can be particularly beneficial for remote workers who manage teams or clients across different time zones, as it reduces the complexity of planning and avoids potential scheduling errors.

• Reduced Jet Lag for Travelers: For travelers from the United States, the adjustment to Puerto Rico’s time zone is minimal. For instance, flying from New York or other East Coast cities involves little to no jet lag due to the small or non-existent time difference. This makes it easier to hit the ground running upon arrival, whether for business or pleasure.

Practical Tips for Managing Time Zones

For digital nomads and remote workers in Puerto Rico, managing time zones effectively is crucial. Here are some practical tips:

• Use World Clock Tools: Utilize world clock tools and calendar apps that allow you to view multiple time zones at once. This makes it easier to schedule meetings and keep track of different time zones.

• Set Clear Working Hours: Establish clear working hours and communicate them to your team and clients. This ensures that everyone knows when you are available and can plan accordingly.

• Leverage Asynchronous Communication: Make use of asynchronous communication methods, such as email and collaboration platforms like Slack or Trello. This allows you to work effectively with colleagues in different time zones without needing to be online at the same time.

Embracing Island Time

Living or vacationing in Puerto Rico offers a unique opportunity to embrace a more relaxed pace of life. The island’s decision to forgo DST is just one example of how Puerto Rico maintains its distinct cultural identity while providing a stable and predictable environment for residents and visitors alike.

So, the next time you wonder what time it is in Puerto Rico, you can confidently check your clock, knowing that the island’s time remains constant and reliable, just like its warm hospitality and beautiful landscapes. Enjoy your time in Puerto Rico, where the sun always shines brightly, no matter the season.

Suitable Properties from which to Work

At Paraiso Realty we have a number of homes that are suitable for Digital Nomads or folks that want to work from home. Below are three that we think would be suitable for either. Click on an image to see more details:

Vista Linda, Vieques Island

Villa Sandcastle, Vieques Island

Suave Brisa, Vieques Island

Hurricane Season 2024 Has Arrived: Time To Prepare If You Live In Puerto Rico

Preparing for Hurricane Season 2024 in Puerto Rico

Hurricane season has arrived in Puerto Rico, and residents must take proactive measures to safeguard themselves, their families, and their homes against the potential impact any storms. Despite the predictions, it is prudent every year to prepare for the worse and hope for the best. Hurricanes are a common occurrence in the Caribbean, and while they bring destruction and disruption, proper preparation can significantly mitigate their effects. They are one of the few downsides to living in the tropics, but can be dealt with accordingly if one is prepared. And since June 1 is the start of hurricane season, today is a great day to start preparing!

Understanding Hurricanes and Tropical Storms

Before delving into preparation, it's crucial to understand the nature of hurricanes and tropical storms. These weather phenomena are characterized by strong winds exceeding 74 mph, heavy rainfall, and potential storm surges. Hurricanes are classified into five categories based on their wind speed, with Category 5 being the most severe.

Preparation Before the Storm

1. Stay Informed: Keep abreast of weather forecasts and warnings issued by local authorities and trusted sources like NOAA. Familiarize yourself with evacuation routes and emergency contacts.

2. Emergency Supplies Kit: Stock up on essential supplies to sustain you and your family during and after the storm. Keep in mind these items will come in handy year-round in the vent we have to deal with a bad earthquake. Here's an expanded list of items to include:

   • Food: Ensure you have a variety of non-perishable items such as canned goods, dry fruits, nuts, energy bars, and ready-to-eat meals. Consider dietary restrictions and preferences when stocking up.

   • Water: Store at least one gallon of water per person per day for drinking and sanitation purposes. Bottle water is best for drinking, while a cistern comes in handy for flushing toilets and storing larger quantities of water.

   • First Aid Kit: Include bandages, gauze, antiseptic wipes, adhesive tape, pain relievers, scissors, tweezers, thermometer, and any necessary prescription medications.

   • Emergency Tools: Pack a multi-tool with various functions, duct tape, work gloves, and a whistle for signaling for help. We learned after Hurricane Maria that having extra cans of “Fix A Flat” were necessary as the debris in the streets constantly caused flat tires. If you are familiar with the use of Chainsaws, axes, shovels and crowbars, they should be readily accessible as well. Having extra plastic tarps around may come in handy as well.

   • Hygiene and Sanitation: Include items such as soap, hand sanitizer, disinfectant wipes, toilet paper, feminine hygiene products, and garbage bags for waste disposal.

   • Lighting and Communication: Have multiple flashlights with extra batteries, a solar-powered or hand-crank radio for receiving updates, and a power bank to charge essential devices. Satellite internet service like Starlink could help if there is no power to cell towers, and a satellite phone could come in handy as well.

   • Clothing and Bedding: Pack a change of clothes for each family member, including sturdy shoes and rain gear. Additionally, include blankets, sleeping bags, and comfort items for children.

   • Important Documents: Keep copies of vital documents such as identification, insurance policies, medical records, deeds, birth and marriage certificates, financial records, and proof of residence in a waterproof container.

   • Pet Supplies: Don't forget about your furry friends. Stock up on pet food, water, medications, and comfort items for your pets.

   • Back Up Power Supply: Having solar panels or a generator available is key to running communication equipment, cooking and other valuable activities. Be sure to have enough fuel on hand if using a generator. There will be a rush at the gas stations before the storm, so always keep a few gallons handy, just in case.

   • Cash: There is a good chance that after a large storm, bank cash machines will run out of money, and store credit card machines will not work. Stock up beforehand with cash, preferable in small bills.

   • Entertainment: Having books, board games and jig saw puzzles around will help pass the time.

3. Protect Your Home: Inspect your property for vulnerabilities, reinforce windows and doors, and secure outdoor items. Consider installing storm shutters or boarding up windows for added protection. Before a storm, be sure to tie down, or bring inside anything that might be susceptible to high winds.

4. Evacuation Plan: Plan your evacuation route and identify nearby emergency shelters. If you do not feel safe in your home as the storm approaches, get to an emergency shelter as safely as possible. Make arrangements for pets and ensure you have a plan in place for their safety.

During the Storm

1. Stay Indoors: Remain indoors away from windows and doors. Keep pets inside as well and listen to updates from authorities on a portable radio.

2. Be Prepared for the Eye: If the eye of the hurricane passes over, there may be a temporary lull in the wind. Stay in a safe place and wait for the storm to fully pass.

After the Storm

1. Wait for Instructions: Do not venture outside until authorities declare it safe to do so. Inspect your home for damage and hazards, but exercise caution as there may be downed power lines and debris.

2. Beware of Hazards: Avoid flooded areas and do not use tap water until it's been confirmed safe. Document any damage to your property for insurance claims. Take photos and call your insurance company sooner rather than later.

3. Emotional Recovery: Hurricanes can be traumatic, so prioritize your emotional well-being and seek support if needed from family, friends, or professionals.

4. Check on your Neighbors: Once you have established that you and your family are safe, be sure to check on your neighbors to make sure that they are safe also.

5. Be Patient: The storm may have passed through in a few hours, but the recovery time always takes much longer. Pace yourself as you work on your property, and tackle only as much as you can in one day. Try working in the early mornings, as that is the coolest time of the day and be sure to stay hydrated. Don’t over extend yourself and keep in mind that the recovery phase takes longer than one thinks.

By preparing diligently and following these guidelines, we can better protect ourselves, our families, and our property during hurricane season. Remember, early preparation is key to weathering the storm and ensuring a quicker recovery in its aftermath. Stay safe, stay informed, and stay resilient!

Paraiso Realty has a number of homes that are well equipped for storms and other emergencies. The best example is Villa Esperanza, in a gated community in Rio Grande. It has solar panels which feed into two lithium batteries. In the event that there is not sufficient sunlight for a few days, there is a backup generator. And it is connected to Luma street service. The house has a cistern and storm windows that roll down with the push of a button. The property is also situated on a hill, so as to prevent worry about flooding. Below is an image of the house. Click on the image for more info about the property.