How do I get to Vieques and Culebra from San Juan?

Getting to Vieques and Culebra from San Juan, Puerto Rico?

When folks get enchanted with photos they see of Vieques and Culebra on Instagram or in magazine articles and then decide they need to visit our jewels in the Caribbean, ultimately the question comes up of how do I get from San Juan to Vieques & Culebra?

Taking the ferry to Vieques and Culebra

By land and sea would be the simple answer, with the sea being the easiest to explain. There are ferries to both islands that run out of the Ceiba ferry terminal on the old Roosevelt Roads naval base. Located on the east side of mainland Puerto Rico, in the town of Ceiba, one can catch a cargo ferry or passenger ferry to either island. It should be noted that in November of 2022 it is nearly impossible to bring a car on the ferry if you are not a resident. And it should also be noted that mainland rental car companies will not allow you to take your rental car to Vieques & Culebra either, so it is best not to even consider that option. The ferry system now has a website, with the opportunity to buy tickets in advance. Ticket prices are currently around $2 per person each way, and there is a senior citizen discount. Yes, you read that correctly, $2 per person. The website for the ferry company is www.puertoricoferry.com

Flying to Vieques and Culebra

For air options, there are a number of airlines and airports to choose from. Vieques Airlink, Cape Air and Flamenco Air are all commercial airlines that serve Vieques & Culebra from mainland Puerto Rico. Occasionally Vieques Airlink and Cape Air will serve Vieques from the island of St. Croix. They all have prop planes that seat up to 9 passengers.

As for airports, Vieques & Culebra can be reached via San Juan International, San Juan Isla Grande, Ceiba and St. Croix. San Juan International is where all of the major commercial jets land (i.e. Jet Blue, American & Delta), and Cape Air has the most flights to Vieques and Culebra from there. Isla Grande airport is a smaller airport near Old San Juan and the cruise ship terminals. Ceiba airport is located on the old Roosevelt Roads airbase in Ceiba, on the east side of the island. Vieques Airlink and Flamenco fly primarily to Vieques and Culebra from Ceiba and Island Grande.

The shortest and cheapest of the flights will be out of Ceiba. Because of landing fees, San Juan International will be the most expensive. Flight time from Ceiba is around 7-10 minutes to Vieques & Culebra. Expect flight times of around 30 minutes from International or Isla Grande.

Here are websites for the above-mentioned airlines:

Vieques Airlink: https://www.viequesairlink.com/

Cape Air: https://www.capeair.com/

Flamenco Air: https://flyairflamenco.com/

Regardless of how you get here, it will be worth the time and effort!

Of these options, which do you prefer?

The Cats Of Old San Juan

Animals are often the charm of many places around the world. There is a whole tourism industry set up for travelers that want to see the “Big 5 “ in Africa, bears feeding on Salmon in Africa, or bird watching in Panama. On Vieques we have the horses that roam the island, grabbing the adoring attention of tourists. And in Old San Juan, everyone has seen the cats living on the streets and around the El Morro park. They have become social media stars. Sometimes they are as hard to ignore as the pigeons in El Parque de las Palomas on Calle Cristo.

The National Park Service is now wanting to make a change to the cat population in Old San Juan, and as one can imagine, it is raising the attention of those humans living amongst their feline friends. What do you make of this situation?

#cats #oldsanjuan #viejosanjuan #gatos #gato #puertorico

Is it safe to live in Puerto Rico?

As a Realtor, the topic of safety always comes up at some point of the home buying process. Those not familiar with the archipelago of Puerto Rico may start out by asking what towns are safe. Those focused on a particular town will ask when it comes down to specific neighborhoods or streets. This is such a difficult topic, that I often cringe when a listing agent tells my clients, without missing a beat, that they will be “safe” in a certain house. Besides the liability that one takes on when they tell someone they will be safe buying a product, no one can predict the future. And safety is ultimately a relative subject.

Legally, the Fair Housing Act prevents Realtors from answering questions about neighborhood safety. So, when a client asks me if they will be safe living in a certain neighborhood, I can’t give them an answer. This is a boundary that has been set justifiably to prevent discrimination. The buyer will have to do their own legwork on whether they will feel comfortable walking to their favorite neighborhood restaurant at night, or the likelihood of someone breaking into their car if they park it on the street overnight. As a Realtor, I can give clients resources to check out, such as the local police department, websites that compile data, or local community groups that have social media pages. But I can’t guarantee or tell them whether they will be safe anywhere.

While the online resources with crime data are limited in Puerto Rico, and most likely unreliable, there are other options for buyers. The best option is to talk with the locals that live in the neighborhood. Take a good walk around the neighborhood, talk with folks you see in their yard or at the corner grocery store, and ask them about their experience of living in the area. Ask if there are any safety issues of which you should be aware. The same conversations should be started when you meet folks at the beach, local watering holes, retail shops and restaurants. Local knowledge the most powerful. And if at anytime during this process you feel uncomfortable, then trust your gut instincts. You know yourself, your daily routines, and what makes you uncomfortable. You should seriously trust any red flags or gut instincts that give you pause. But if you like what you see, hear, and feel during that process, then perhaps that town, neighborhood or house is right for you?

Marry The House, Date The Rate

With the change in interest rates lately, there has been a popular slogan being pushed towards home buyers that says one should “marry the house, and date the rate.” The idea being that you should not worry about the current interest rate, as you can always refinance when the rate drops later. Instead, focus and commit to the house you want to buy. Has a nice ring to it, no?

In theory it sounds nice and simple, but in certain scenarios it might cost you more in the end. As with everything else, home buyers need to do their homework and figure out their own best scenario. Not everything is one size fits all. Buying a home can be the biggest buying decision one can make in their lifetime, and deserves proper attention.

Jon Brooks recently published one such scenario where he explained how this friendly slogan could actually be costly for home buyers. Here was his example:

The Assumptions.

If you buy a house for $400,000 today and put 20% down ($80,000), you'll have a $320,000 loan balance. Let's say you locked in a great rate of 6.5%. With these inputs your monthly payment would be approximately $2,675 (including taxes and insurance).

Private Mortgage Insurance.

You saved up and put 20% down (80% LTV) on your mortgage so you could waive private mortgage insurance (PMI). Your mortgage insurance that you avoided ranges from 0.58% to 1.85% depending on your credit score, loan-to-value (LTV) ratio, and debt-to-income (DTI) ratio. So let's just meet in the middle and say your PMI is 1%.

Housing Price Expectations.

Now, the base case for most economists is that home prices will drop 10-15% in 2023 due to rising interest rates, which destroys buyer demand, and causes listings to stack up on the market. more supply = more competition = lower prices. This could mean if you buy a house today for $400,000, it's very likely it could be worth $360,000 next year (let's assume 10% less). Your principal pay down over your first year was only $3,576. Meaning you lost net equity of $36,424.

The Costs of Refi & PMI

Now let's say that mortgage rates also went down from 6.5% to 5.0% (unlikely but possible) and you try to refinance your interest rate in late 2023 or 2024. You now have to pay 2% in closing costs again to complete the refinance, which is $6,400. Your new monthly payment is $2,348, a good $327 less in a monthly payment, BUT now since your house is worth less, during your refinance you found out you have to either bring $36,424 to the table to make the LTV 80% to avoid the PMI again or actually pay the PMI, which is $266 per month.

If you don't have the money to bring to the table to close the refi, tough luck, your new PMI from your refi has eaten up 81% of your savings from the refinance. It still helps - but you have to pay the closing costs again to refinance. If you do have the money to refinance plus pay the closing costs, good for you.

Most Americans do not have $36,424 (equity loss) plus $6,400 in closing costs to bring to the table to lower their monthly payment by $327 per month. And, even so, most people wouldn't pay this money out of pocket to change the payments by that amount.

As much as we would like to live in a world of simple slogans, Jon Brooks’ example confirms that home buyers need to constantly sharpen their pencils and figure out what works best for them. The more work done during the home buying process, the happier one will be with their purchase.

Mortgaged Home Prices Down 15% in Puerto Rico

El Vocero newspaper published an interesting article today about current mortgaged home prices in Puerto Rico, and where interest rates might be headed. The quoted professional said that prices are down 15% and that mortgage interest rates will soon rise above 8%.

The average mortgage interest rate in Puerto Rico right now is between 7.5% and 8%, about 1 percentage point higher than the continental USA. That difference is normal. Rates are always higher in Puerto Rico by about that amount. Because of that difference, many second home buyers in Puerto Rico will often take out a home equity loan on their primary residence and use that cash for a quicker close here in Puerto Rico.

It is expected that mortgage interest rates in Puerto Rico will go above 8% as the Fed is expected to raise rates later this week.

Meanwhile, the price of mortgaged homes in PR has dropped 15%, and the mortgage industry expert quoted in the article expects that prices will level off from here. She did not give the time metrics for the decrease, but I’m guessing she means to say that mortgaged-prices are down 15% year-over-year? This decrease in price is typical during a time of rising interest rates. As interest rates level off or drop down, we can expect an increase in prices again as demand from buyers will no doubt increase.

Here is a link to the full article:

https://www.elvocero.com/economia/finanzas/cae-el-valor-de-las-propiedades-en-la-isla/article_f1956ea2-58a7-11ed-aa13-93f0dfc1a363.html

#mortgage #interestrates #puertorico #realestate #puertoricirealestate #paraisorealtypr

World Championships in San Juan

Stand Up Paddle Boarding can be enjoyed and seen throughout Puerto Rico. There are tours anywhere from Rincon to Vieques, with lots of bays and lagoons in-between to explore. And this week, the World Stand Up Paddle Board Championships will be taking place in the Condado Lagoon and “La 8” public beach in San Juan. Check out the following link for further details:

https://www.standupjournal.com/2022/10/29/2022-isa-world-sup-paddleboard-championships-puerto-rico/

#sup #standuppaddle #sanjuan #puertorico #worldchampionship #condado

30-Year Mortgage Rate Continues To Rise

As of October 21, 2022 the average 30-year mortgage rate in the USA was 7.16%. This is still lower than when the rate hovered above 8% at the beginning of the century. How high do you think this rate will go, and at what date do you see the rate starting to level off or drop?