As a friendly reminder, the new fiscal year in Puerto Rico has begun, which means that it is time to pay the first semester of your property taxes. If you own real estate property in Puerto Rico, you should have recently received your tax bills for the first and second semester. First Semester runs July 1 through December 31, and Semester 2 runs January 1 through June 30. To receive a 10% discount on your payment, you will need to make a payment before July 31. Payment can be made at your nearest CRIM office, or online at the following link: CENTRO DE RECAUDACION DE INGRESOS MUNICIPAL
Home Renovation Tips For 2023
Are you considering diving into the exciting world of home renovation? Before you reach for that paint sample or start ordering lavish finishes, take a moment to learn from those that have been through the ups and downs of a major home improvement project. Many have been there before you, and it's not all pretty wallpaper and paint swatches. Home remodeling can be a rollercoaster ride, but with the right knowledge, you can make it a smoother journey. Let's delve into some valuable tips to keep in mind as you embark on your renovation adventure:
1. One recommendation isn’t enough.
Choosing the right general contractor is crucial to the success of your home renovation. Think of your contractor as your project partner, and just like finding the perfect life partner, you should never rush into the decision. Get multiple bids and check references from previous clients. Ensure that your contractor has a good track record of paying subcontractors on time to avoid conflicts and delays. Take the time to build a strong foundation of trust with your contractor before diving into the project.
2. It’s not just milk that’s gotten more expensive.
As you plan your budget for the renovation, keep in mind that construction costs have been rising in recent times. What might have been a reasonable budget a few years ago may not cut it now. Industry experts suggest budgeting around 25% to 30% for unforeseen overages. This will help you be better prepared for any unexpected expenses that may arise during the renovation process.
3. Begin with the not-so-fun stuff.
It's tempting to jump straight into selecting beautiful finishes and furnishings, but before you do that, prioritize the less glamorous but essential aspects of your home renovation. Ensure that your home's infrastructure is in good shape before investing in the decorative elements. Check the condition of your plumbing, electrical wiring, and heating systems. Remember, a beautiful paint job won't matter much if you have faulty plumbing or electrical issues.
4. Make a list of must-haves—and check it (more than) twice.
Creating a list of must-haves for your renovation is essential, but it's equally important to communicate those priorities clearly to your contractor. Sometimes, in the whirlwind of decision-making, essential elements might be overlooked. Ensure that your contractor knows your priorities and that you have regular check-ins to monitor progress and discuss any changes or adjustments needed.
5. That cool old piece? It’s going to be a hassle.
Antique or salvaged pieces may add character to your home, but they often come with their fair share of challenges. Installing these items may take more time and specialized skills, which can increase labor costs. While they might look stunning, be prepared for the extra effort and expense they might entail. Consider balancing vintage pieces with more modern elements to strike a practical and aesthetically pleasing balance.
6. Plan for the long haul.
A home renovation project can be exhausting, both physically and mentally. The disruption to your daily life can take a toll on your well-being. To minimize stress and decision fatigue, make a comprehensive plan before starting the renovation. Engage with a professional designer to help manage the project and ensure that all design decisions are made upfront. Additionally, create a long-term calendar that incorporates personal time, vacations, and moments to relax and rejuvenate.
In conclusion, embarking on a home improvement project can be both exciting and challenging. By keeping these tips in mind, you can navigate the renovation process with greater confidence and reduce the likelihood of encountering major pitfalls. Remember, it's essential to have a strong foundation with your contractor, be prepared for unforeseen costs, prioritize the critical aspects of your renovation, communicate your must-haves clearly, and plan for the long-term impact on your life. With careful planning and a bit of patience, you can turn your fixer-upper into the home of your dreams.
Sarah Karnasiewicz has been through a number of home renovations, and she recently wrote about her experiences in this Wall Street Journal article: THE 30% RULE AND OTHER THINGS…
Navigating Puerto Rico's Vibrant Real Estate Market Amid Inventory Challenges
The lack of inventory in the middle-class housing segment remains the biggest challenge for real estate in Puerto Rico this year. However, industry experts assure that the overall market on the island is "vibrant." The scarcity of middle-class residential properties poses a challenge for real estate brokers, especially at a time when there are federal aids and funds that have left many buyers ready to acquire new homes.
According to Vanessa Rivera, former president of the Puerto Rico Association of Realtors, the real estate market is currently vibrant, despite the shortage of inventory. She mentions that there is a high demand for middle-class residential properties, particularly due to the CDBG Housing program, which has attracted many buyers looking for properties priced up to $200,000. However, there is insufficient inventory to meet this demand.
Another challenge faced by the market in general is the high cost of materials and the lack of skilled labor. Prospective buyers who are interested in properties needing repairs, such as foreclosed houses, are uncertain about the costs of materials and the availability of workers to carry out the repairs.
Aileen Guzmán, Vice President of Production at Fembi Mortgage Puerto Rico, highlights that the lack of inventory, high material costs, and labor shortage are the major challenges for people looking to buy properties in Puerto Rico. This not only applies to new projects but also to the purchase of foreclosed homes that require renovations.
Rivera believes that investors who buy, renovate, and sell properties, as well as those entering the short-term rental market, should not be viewed negatively. She argues that these buyers provide solutions to existing problems in the industry, such as abandoned or poorly maintained houses. Investors who repair abandoned properties contribute to making them eligible for financing, thereby increasing accessibility to the public.
The short-term rental market has also provided a second chance for properties that were previously unattractive to the residential market. Rivera notes that the interest of buyers extends beyond tourist areas and is now spreading to the interior regions of Puerto Rico. Both Americans and Puerto Ricans from the diaspora are investing in these locations to experience the cultural aspects of living in Puerto Rico.
Guzmán shares that there is a new profile of buyers in Puerto Rico, with an increasing number of Americans relocating and establishing residency on the island. This represents a shift from the previous trend of Americans purchasing properties as second homes or for retirement purposes. Changes in legislation, such as Law 52, which allows employers to have remote employees in Puerto Rico without tax liabilities, have encouraged this type of relocation and home buying.
Although there has been a slight decrease, cash sales still play a significant role in the local market. Guzmán emphasizes the importance of documenting cash transactions and obtaining data to assist with financing transactions.
Regardless of the segment or financing method, real estate broker Ricardo Antonio Martínez Sarmiento advises buyers to enlist the services of a realtor. A good realtor can provide the necessary information for market analysis, ensuring that the property is fairly priced and not overvalued. They can also guide buyers through the process, connect them with reliable lenders, explain different financing options, and find properties that align with their objectives.
Living in off-Grid Luxury on the Puerto Rican Island of Vieques
The prominent and popular website Mansion Global wrote a great piece on one of our exclusive listings, “Lionheart.” Located in the La Llave hill of Vieques Island, Puerto Rico, this property is situated on 6 acres, with amazing Caribbean Sea views, and is completely off-grid.
To read the article, click on the following link: https://www.mansionglobal.com/articles/living-in-off-grid-luxury-on-the-puerto-rican-island-of-vieques-2e3eea8d
Choosing Between Condos and Houses in Puerto Rico: Exploring the Pros and Cons for Real Estate Investors
Investing in Puerto Rico real estate comes with a crucial decision: choosing between condominiums and single-family homes. Both options have their advantages and it's important to consider them before making a decision. In this blog post, we will explore the pros and cons of condos versus houses in Puerto Rico, helping you make an informed choice for your real estate investment.
Condominiums, or condos, have gained immense popularity in Puerto Rico's real estate market. These multifamily units offer a convenient and modern lifestyle, along with a range of amenities. Here are some key points to consider when looking at condos as a real estate investment option:
Amenities and Facilities: Condos often come with shared amenities such as swimming pools, fitness centers, security services, and maintenance. These facilities not only enhance your living experience but also attract potential tenants or buyers.
Maintenance and Management: In a condominium, the responsibility for maintaining common areas, landscaping, and external repairs is usually managed by a homeowner's association (HOA). This relieves you of the burden of managing these tasks individually.
Affordability and Accessibility: Condos are often more affordable compared to single-family homes, making them an attractive option for investors with a limited budget. Moreover, condos are frequently located in prime areas, providing easy access to amenities, entertainment, and transportation.
Rental Income Potential: Due to their desirable locations and amenities, condos in Puerto Rico can generate a steady rental income. With tourism thriving on the island, you can tap into the vacation rental market, attracting visitors who seek a comfortable and convenient place to stay. Be sure to check the HOA Bylaws to see that they allow short term rentals.
On the other hand, investing in a single-family home offers a different set of advantages and considerations. Here are some key points to consider when contemplating the purchase of a house:
Privacy and Space: Single-family homes provide a greater sense of privacy and more living space compared to condos. If you value a larger yard, the freedom to personalize your property, and fewer shared walls, a house may be the ideal choice.
Appreciation and Equity: Historically, single-family homes have demonstrated steady appreciation in value over time. By owning a house, you have the potential to build equity and enjoy long-term financial benefits.
Rental Flexibility: While condos are often associated with vacation rentals, single-family homes offer more flexibility in terms of rental options. You can choose between long-term rentals or even convert the property into a vacation rental if desired.
Customization and Lifestyle: Owning a house allows you to customize and personalize the property according to your preferences. Whether it's remodeling, expanding, or landscaping, you have the freedom to create a home that suits your lifestyle and vision.
When investing in Puerto Rico's real estate market, it's important to evaluate your investment objectives, budget, and lifestyle preferences before making a decision. Paraiso Realty can provide expert advice tailored to your specific needs on real estate investment options. With thorough research and informed decision-making, you can embark on a successful real estate investment journey in Puerto Rico.
Both condos and single-family homes offer unique advantages for real estate investors in Puerto Rico. Condominiums provide a modern lifestyle, affordability, and convenience, with attractive rental income potential. On the other hand, single-family homes offer privacy, space, customization, and the potential for long-term appreciation. Carefully evaluating your investment goals, budget, and lifestyle preferences will help you make the right choice. With the guidance of a Paraiso Realty real estate agent and thorough research, you can make an informed decision and embark on a successful real estate investment journey in Puerto Rico.
The True Value of Home Ownership: Why Every Puerto Rican Should Own Their Home
Buying and owning a home is a milestone that goes beyond financial benefits. It brings a sense of accomplishment, happiness, and pride, while offering a range of non-financial advantages. In this blog, we will explore the true value of home ownership and why every Puerto Rican living in Puerto Rico should consider owning their own home. From improved mental health and community engagement to the freedom of customization, owning a home offers a plethora of benefits that enhance your overall well-being.
Improved Mental Health and Well-being: Studies have consistently shown the positive impact of homeownership on mental health and overall well-being. According to Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), homeownership has emotional and psychological benefits that enhance self-esteem and overall health. Similarly, Habitat for Humanity highlights the link between residential stability among homeowners and improved life satisfaction, as well as better physical and mental health. By owning a home, you can experience increased happiness and a sense of fulfillment, fostering a healthier and more balanced lifestyle.
Engaging in Your Neighborhood and Fostering Community: Homeownership creates a sense of belonging and facilitates community engagement. Homeowners tend to stay in their homes longer than renters, allowing them to establish deeper connections within their communities. As Gary Acosta points out, homeowners are more likely to be actively involved in their local communities. When you have a long-term commitment to an area, it naturally motivates you to contribute to its improvement. By owning your home, you become a part of a larger community, fostering relationships, and actively participating in initiatives that enhance the neighborhood's quality of life.
Customization and Personalization: Owning a home means having the freedom to customize and improve your living space according to your preferences. Unlike renting, where you often face limitations imposed by landlords or leasing agreements, homeownership allows you to create a space that reflects your unique personality and style. Whether it's making small improvements or embarking on major renovations, you have the autonomy to mold your house into a true reflection of your taste and lifestyle. As Investopedia notes, homeownership gives you the knowledge that you own your little corner of the world, allowing you to remodel, paint, and decorate without seeking permission. The ability to personalize your living space fosters a greater sense of ownership, pride, and emotional connection with your home.
Owning a home offers far more than just a place to live. It brings a profound sense of accomplishment, happiness, and pride. Research has shown that homeownership positively impacts mental health, leading to improved overall well-being. Additionally, owning a home encourages community engagement, as homeowners tend to stay in one place for an extended period, allowing for stronger relationships and active involvement in local initiatives. Furthermore, the freedom to customize and personalize your living space provides a unique sense of ownership and connection. By owning your own home, you gain a higher level of satisfaction, happiness, and the opportunity to create lasting memories. If you're ready to explore the benefits of homeownership, reach out to your Paraiso Realty agent today and embark on this life-changing journey.
Tips for Stunning Curb Appeal When Listing Your Property for Sale in Puerto Rico
When it comes to selling your house, the first impression is everything. The moment potential buyers lay eyes on your property, they begin to form opinions. That's why it's crucial to enhance your curb appeal and captivate buyers from the very beginning. In this blog post, we'll explore four valuable tips from the National Association of Realtors that will help you achieve top-notch curb appeal and maximize the potential value of your home in Puerto Rico.
1. Enhance Your Home's Exterior: Just as the interior of your house should be clean and inviting, the exterior deserves equal attention. Begin by thoroughly cleaning the exterior walls using soapy water to remove dirt, grime, and any unsightly stains. Additionally, take the time to clean your windows both inside and out, allowing natural light to fill your home and create an inviting ambiance. These simple tasks will significantly improve the overall appearance of your property.
2. Apply a Fresh Coat of Paint: A new coat of paint can work wonders in revitalizing the look of your home. Consider applying a fresh coat to your exterior, paying attention to the front entrance and any visible areas that may require touch-ups. When selecting a color, try to remain consistent with the general aesthetic of the neighborhood. Harmonizing with neighboring homes will enhance the perceived value of your property and attract potential buyers.
3. Maintain a Lush and Well-Tended Front Yard: The front yard is often the first thing buyers notice when they approach your home. Ensure your lawn is well-maintained, with green grass that is regularly trimmed. Take the time to tend to your shrubs and flower beds, adding colorful and appealing plants to create an inviting atmosphere. A vibrant and fresh yard will entice buyers, providing them with a positive first impression and a sense of serenity.
4. Clean and Repair the Roof: A damaged or unkempt roof can be an instant turn-off for potential buyers. Take the necessary steps to clean and repair any issues with your roof, as this can significantly impact your home's value. Consider hiring professionals to conduct a thorough inspection and perform any required repairs. In some cases, a good cleaning and minor fixes can restore your roof's appearance, making it look as good as new.
Starting Early and Contacting Your Paraiso Realty Agent: It's essential to begin preparing your home for sale as soon as possible, allowing ample time for necessary improvements and staying within your budget. Remember, first impressions matter, and by investing in curb appeal, your home will stand out in the competitive real estate market. To further enhance your selling process, reach out to your trusted Paraiso Realty agent. They possess invaluable knowledge and expertise, ensuring you receive additional tips and tricks tailored specifically to your property.
In the realm of real estate, curb appeal plays a crucial role in attracting potential buyers and securing a successful sale. By following the tips provided by the National Association of Realtors, you can significantly increase your home's curb appeal and command a higher selling price. Clean the exterior walls and windows, apply a fresh coat of paint, maintain a well-kept front yard, and address any issues with your roof. Don't underestimate the power of a captivating first impression. With these strategies in place, your property will make a lasting impact on potential buyers, ensuring a swift and successful sale in the vibrant market of Puerto Rico. Contact your Paraiso Realty agent today to get started on maximizing the appeal of your home.
Emergency Contacts in Puerto Rico: Who to Call During Hurricanes and Earthquakes
When faced with natural disasters such as hurricanes and earthquakes, it is crucial to have a list of emergency contacts readily available. Being prepared and knowing who to reach out to can make a significant difference in ensuring your safety and the well-being of your loved ones. Here are some essential contact numbers to keep in mind during emergencies in Puerto Rico:
Agencia Estatal para el Manejo de Emergencias y Desastres - Contact Number: 787-724-0124 The Agencia Estatal para el Manejo de Emergencias y Desastres (State Agency for Emergency Management and Disasters) is responsible for coordinating emergency response efforts in Puerto Rico. They provide vital information, resources, and assistance during crises.
FEMA - Contact Number: 787-296-3500 The Federal Emergency Management Agency (FEMA) plays a crucial role in disaster response and recovery. They provide support and resources to individuals and communities affected by emergencies, including financial assistance and guidance.
LUMA - Contact Number: (844) 888-5862 LUMA is the company responsible for managing Puerto Rico's electrical grid. In case of power outages or electrical emergencies, contacting LUMA can help ensure a prompt response and restoration of services.
Bomberos - Contact Number: 787-343-2330 The Bomberos (Fire Department) is trained to handle fire emergencies, search and rescue operations, and provide assistance during natural disasters. They are equipped with the necessary expertise and resources to protect lives and property.
Servicio Nacional de Meteorología - Contact Number: 787-253-4586 The Servicio Nacional de Meteorología (National Weather Service) monitors weather patterns and issues forecasts, warnings, and alerts. Staying informed about weather conditions is crucial during hurricanes and other severe weather events. They can also be reached via the following website: www.Weather.gov
Policía - Contact Number: 787-343-2020 The Policía (Police) are responsible for maintaining law and order, as well as providing assistance during emergencies. They can offer guidance and coordinate rescue operations when necessary.
Cruz Roja - Contact Number: 787-758-8150 The Cruz Roja (Red Cross) is renowned for their humanitarian efforts during emergencies. They provide essential services such as shelter, first aid, and emergency supplies to affected individuals and communities.
Placas Solares con Batería Tesla - Contact Number: 787-974-7742 For individuals relying on solar power, Placas Solares con Batería Tesla (Tesla Solar Panels with Battery) offers support and maintenance services to ensure continued power supply during emergencies.
Calentadores y Cisternas Solares - Contact Number: 787-635-5575 Calentadores y Cisternas Solares (Solar Heaters and Cisterns) provide alternative water heating solutions that can be crucial during periods of limited or disrupted electrical power.
Estufas de Gas - Contact Number: 787-788-2269 Having a gas stove can be beneficial during extended power outages. Estufas de Gas (Gas Stoves) specializes in gas appliance installation, maintenance, and repair.
In addition to these contact numbers, it is important to be aware of the services provided by various government agencies and organizations. Here are a few more contacts to keep in mind:
ASSMCA (Administración de Servicios de Salud Mental y Contra la Adicción) - Helpline: 1-800-981-0023
AAA (Autoridad de Acueductos y Alcantarillados) - Contact Number: 787-521-3434
Hurricane Season 2023 has Arrived in Puerto Rico
Five days into June 2023, Puerto Rico has now officially entered hurricane season. Living in a region prone to hurricanes requires diligent preparation to ensure the safety of yourself, your loved ones, and your property. With hurricane season lasting from June 1st to November 30th, it is essential to plan ahead and take proactive measures. Here is a brief guide on how to prepare your house and yourself for the upcoming hurricane season in Puerto Rico. We will also provide a list of essential items to have on hand for dealing with the aftermath of a hurricane, along with valuable tips on purchasing a property that is less likely to be damaged during a hurricane.
Creating an Emergency Plan: Before hurricane season arrives, it is crucial to have an emergency plan in place. This plan should include:
Writing down emergency phone numbers and keeping them on the refrigerator or near every phone in your house. It is also recommended to program them into your cell phone.
Identifying the nearest shelter and mapping out different routes to get there from your home.
Pre-identifying pet-friendly shelters, pet-friendly hotels, or out-of-town friends or relatives who can accommodate your pets during an evacuation.
Gathering emergency supplies, including food, water, medicine, flashlights, batteries, important documents, and a fire extinguisher.
2. Preparing Your House and Property: Taking preventive measures to secure your house and property can significantly reduce potential damage caused by hurricanes. Here are some steps to consider:
Clear your yard of any items that could become projectiles during strong winds, such as bicycles, lawn furniture, grills, propane tanks, and building materials. Store them indoors or secure them properly.
Cover windows and doors with storm shutters or use plywood to protect them from shattered glass.
Be ready to turn off your power if flooding occurs, downed power lines are present, or if you need to evacuate your home.
Fill clean water containers and sinks with drinking water in case your water supply is interrupted.
Regularly check and replace the battery in your carbon monoxide (CO) detector to prevent CO poisoning
3. Characteristics to Look for When Buying Property: If you are considering purchasing property in Puerto Rico, it is wise to look for certain characteristics that can make it less susceptible to hurricane damage. Some factors to consider include:
Elevated location: Choose a property located on higher ground to minimize the risk of flooding.
Strong construction: Opt for houses built with hurricane-resistant materials, such as reinforced concrete and impact-resistant windows.
Roof strength: Ensure that the roof is designed to withstand strong winds by using hurricane straps or clips to secure it to the walls.
Proper drainage: Look for properties with well-designed drainage systems that can effectively handle heavy rainfall.
4. Essential Items for the Aftermath of a Hurricane: In the aftermath of a hurricane, access to basic necessities may be limited. Therefore, it is crucial to have the following items readily available:
Emergency food and water supply: Stock up on non-perishable food items and water that can sustain your family for at least a week.
Emergency medicine supply: Keep a well-stocked first aid kit and an ample supply of necessary prescription medications.
Flashlights and extra batteries: Ensure you have reliable sources of light when the power goes out.
Safety and personal items: Include essential items like a radio, extra clothing, blankets, hygiene products, and a toolkit.
Important documents: Safeguard important documents, including medical records, wills, passports, and personal identification, in a waterproof container.
Cash: With power out, many business will not have operating ATM or credit card machines. Cash will be the only method of payment available.
Preparing for hurricane season in Puerto Rico requires a proactive approach to ensure the safety of yourself, your family, and your property. By creating an emergency plan, securing your house and property, and having essential supplies readily available, you can mitigate potential risks and enhance your preparedness. When considering a property purchase, look for elevated locations, strong construction, roof strength, and proper drainage to reduce the chances of hurricane damage. Stay informed, follow the advice of authorities, and prioritize the safety and well-being of your loved ones during hurricane season.
Short Term Rental Battle Continues, this time in New York City
The on-going battle between cities and short term rental App Airbnb continues. Here in Puerto Rico, San Juan has recently implemented a new fee for landlords. And the latest firing shot is taking place in New York where Airbnb has filed a lawsuit against New York City in response to a new law that imposes additional restrictions on short-term rentals within the city. The law, known as Local Law 18 or the short-term rental registration law, is set to take effect in July and requires hosts using home-sharing platforms to register with the city. Airbnb argues that the new rules essentially amount to a ban on short-term rentals and has left the company with no choice but to take legal action.
Among the requirements of the law, hosts must be the lawful occupants of the unit and be present during any rental period. Airbnb claims that the registration process is burdensome and invasive, forcing hosts to disclose extensive personal information and comply with complex regulations scattered across various laws, codes, and regulations. For example, one provision cited by Airbnb prohibits hosts from having internal locks on bedroom doors.
New York City officials maintain that the law is necessary to curb illegal short-term rentals and protect the city's housing stock. City councilman Ben Kallos, who supports the law, believes it will help reduce illegal rentals and increase the availability of permanent housing.
Airbnb's net revenue from New York City listings was $85 million in 2022, making the city a significant market for the platform. The company claims that over 5,500 short-term rentals, accommodating more than 10,000 guests, are scheduled to begin in the first week of July when the new law takes effect.
This legal dispute is not the first time Airbnb and New York City have clashed over regulations. The city has previously targeted what it considers illegal hotels listed on home-sharing platforms, leading to ongoing conflicts and legislative actions. In 2020, Airbnb agreed to dismiss a lawsuit against the city regarding the sharing of host information after reaching an agreement to collect less data.
The Wall Street Journal reported on this latest development, and the article can be read here: https://www.wsj.com/articles/airbnb-fights-new-nyc-short-term-rental-requirements-a001e173
What do you make of Short Term Rentals where you live?