How do I buy Real Estate in Puerto Rico?

How do I buy Real Estate in Puerto Rico?

Puerto Rico, known for its breathtaking beaches and pleasant climate, beckons international buyers with the allure of Caribbean living. As a U.S. Commonwealth, Puerto Rico offers unique advantages, including tax benefits and an open market for property acquisition in a unique part of the United States. In this guide, we'll take you through the practical steps and considerations for purchasing real estate in Puerto Rico, shedding light on essential information you need to navigate the process, including the use of an Option Agreement instead of a traditional Purchase Agreement and the role of a closing Notary who is also a lawyer, representing both the buyer and seller.

How to Buy Real Estate in Puerto Rico

1.   Engage a Local Real Estate Agent:

·       Start your journey by securing a knowledgeable local real estate agent. Their expertise will be invaluable in guiding you through the local market and the intricacies of property acquisition. At Paraiso Realty, there are a number of markets where we can help. In those we unfamiliar, we have connections with other agents who are specialized in those geographic areas.

·       It's advantageous to find an agent who is fluent in both Spanish and English to ensure effective communication throughout the transaction.

2.   Property Search and Negotiation:

• Rely on your agent to identify properties that match your preferences and budget.

• Once you've found a suitable property, your agent will assist in negotiating the terms of the purchase.

3.   Option Agreement:

• In Puerto Rico, rather than a traditional Purchase Agreement, an Option Agreement is commonly used as a preliminary step towards closing.

• The Option Agreement grants the buyer the exclusive right to purchase the property within a specified period, typically 60 to 90 days, at an agreed-upon price.

• During this period, the buyer pays a fee, known as the option fee, to the seller to secure the exclusive right to buy the property. This fee is non-refundable and is typically a small percentage of the property's purchase price.

• The Option Agreement allows the buyer time to conduct due diligence, secure financing, and prepare for the closing.

• The Option Agreement is an outline used by the closing Notary to write up the Deed for the closing.

4.   Inspection and Due Diligence:

• Before exercising the option to purchase, conduct a thorough inspection of the property, including both the property itself and any shared facilities.

• Verify the property's title and ownership history to ensure there are no legal issues.

5.   Financing Options:

• While cash purchases are an option, explore financing alternatives with a Puerto Rico based financial institution, or a home equity loan on your U.S. residence or line of credit.

• Be prepared for the necessary paperwork and consult with a lawyer to review your financing arrangement.

6.   Legal Assistance:

• Engaging a lawyer who is also a Notary and well-versed in Puerto Rican real estate law is advisable to protect your interests.

• The closing Notary represents both the buyer and seller at the closing, ensuring a smooth transition from the Option Agreement to the final purchase.

• Your lawyer/notary can assist in reviewing contracts, conducting title searches, and overseeing the legal aspects of the transaction.

7.   Property Registration:

• As in traditional purchases, all real estate titles must be recorded in the correct subsection of the Registry of Property based on the property's location.

• Proper registration is crucial to prevent objections from Registry officials.

• The closing Notary handles the submission of the Deed to the Registry officials, and keeps all original copies of the Deed in their files.

8.   Corporate Route (Optional):

• If desired, you can acquire property through a corporation.

• This process involves specific steps and additional costs, including Corporate Resolution and Internal Revenue Stamps.

• The closing Notary can often help with the creation of such entities, as well as any Corporate Resolutions that might be needed for the closing.

• If buying with a corporation from the states, keep in mind the corporation should be registered to do business in Puerto Rico as well. Again, check with your closing Notary.

Understanding the costs associated with buying real estate in Puerto Rico is essential. Here are some key transaction costs to consider:

• Option Agreement Fee: The option fee paid to the seller, typically a small percentage of the property's purchase price, is non-refundable.

• Notary Fees: Notary fees apply at the final closing and are typically 1% of the property value for the first $500,000 and 0.5% for any amount exceeding $500,000.

• Registration and Filing Fees: Various fees must be paid to different offices, including the Municipal Revenues Collection Center (CRIM), Treasury Department, and Registry of Property.

• Attorney's/Notary's Fees: Fees may vary depending on location and transaction complexity, with most lawyers/notaries charging a percentage of the selling price, typically around 1% of the sales price.

Purchasing real estate in Puerto Rico offers a wealth of benefits, from favorable tax advantages to access to beautiful beachfront properties. By following the steps outlined in this guide and understanding the use of an Option Agreement as the initial contract, along with the crucial role of a closing Notary who is also a lawyer, you can confidently navigate the process of buying property in Puerto Rico.

Engaging with local experts, conducting thorough due diligence, and seeking legal assistance from a qualified lawyer/notary are key elements of a successful real estate transaction on this beautiful Caribbean island. Whether you're seeking a vacation home, an investment property, or a permanent residence, Puerto Rico provides a diverse range of opportunities for buyers eager to embrace the Caribbean lifestyle.

The Appeal of Micro-Mobility in San Juan Neighborhoods

In the vibrant cityscape of San Juan, Puerto Rico, a transformative trend is reshaping the way residents live, commute, and invest in real estate. The rise of micro-mobility options, including electric scooters, bike-sharing programs, and electric skateboards, is revolutionizing urban living. As a prospective real estate buyer, here’s why you should consider the neighborhoods of Old San Juan, Condado, Miramar, and Rio Piedras, where micro-mobility options are readily available, as an asset to both your lifestyle and investment.

The Micro-Mobility Revolution: A Game-Changer for Urban Living

Micro-mobility refers to the use of small, lightweight vehicles for short-distance trips within cities. These innovative transportation options have redefined the urban experience in San Juan. Here's why they matter to you:

1. Convenience and Efficiency: Micro-mobility options like electric scooters and bike-sharing programs offer a convenient and efficient way to navigate the city. Whether you're commuting to work, running errands, or exploring the city's vibrant neighborhoods, these modes of transportation provide a stress-free and eco-friendly alternative to traditional cars.

2. Reduced Environmental Impact: As environmentally conscious buyers, you'll appreciate the reduced carbon footprint associated with micro-mobility. By choosing these sustainable options, you contribute to a greener, cleaner San Juan, ensuring a more environmentally responsible lifestyle.

3. Freedom from Parking Woes: Imagine a life without the hassle of searching for parking spaces or worrying about parking fees. In neighborhoods with micro-mobility options, you can bid farewell to these concerns. With easy access to shared scooters and bikes, you'll find it easier to get around, all while reducing your reliance on personal vehicles.

Neighborhoods with Micro-Mobility: A Buyer's Paradise

Now, let's dive into why living in San Juan neighborhoods that embrace micro-mobility is an asset to both your lifestyle and investment:

1. Enhanced Quality of Life: When you choose a neighborhood with micro-mobility options, you're selecting a lifestyle that prioritizes convenience and well-being. These neighborhoods are designed for easy mobility, allowing you to explore your surroundings with ease. Whether you're strolling along the cobblestone streets of Old San Juan or enjoying the beachfront views in Condado, you'll experience a higher quality of life.

2. Lower Transportation Costs: Micro-mobility options can significantly reduce your transportation expenses. You'll spend less on fuel, maintenance, and parking, leaving you with more disposable income to enjoy the city's attractions, dining, and cultural experiences.

3. Investment Potential: Beyond the immediate lifestyle benefits, investing in real estate in neighborhoods with micro-mobility options is a wise decision. These areas are experiencing increased demand, which can lead to higher property values over time. As the city's infrastructure continues to adapt to accommodate micro-mobility, your investment stands to appreciate.

4. Access to Urban Amenities: Neighborhoods with micro-mobility options tend to be rich in urban amenities. You'll find a wide array of restaurants, cafes, shops, and cultural venues within easy reach. Whether you're seeking a morning coffee, a leisurely brunch, or an evening of entertainment, you'll have it all at your doorstep.

Choosing the Right Neighborhood

As you consider your options in San Juan, here are some neighborhoods where micro-mobility options are thriving:

1. Old San Juan: This historic gem is known for its charm, culture, and accessibility. Imagine exploring centuries-old forts, dining at waterfront restaurants, and meandering through colorful streets—all within reach using electric scooters or bikes.

2. Condado: With its beachfront location and a wealth of luxury properties, Condado is perfect for those seeking a resort-like lifestyle. Micro-mobility options make it easy to enjoy the beach, visit trendy boutiques, or dine in the area's upscale restaurants.

3. Miramar: This up-and-coming neighborhood offers a mix of historic charm and modern living. Micro-mobility options provide convenient access to the nearby Condado Lagoon, parks, and cultural attractions.

4. Rio Piedras: As a thriving university district, Rio Piedras combines a youthful energy with a rich cultural scene. With micro-mobility options, you can easily explore the campus, visit local markets, and discover hidden gems in this dynamic neighborhood.

5. Santurce: As the artistic heart of San Juan, Santurce is a vibrant neighborhood with a thriving arts scene. Micro-mobility options make it easy to explore art galleries, street murals, and the vibrant local culture.

6. Hato Rey: If you seek a bustling business district with excellent connectivity, Hato Rey is the place to be. Micro-mobility options enhance your access to the area's corporate offices, shopping centers, and dining establishments.

Embrace the Future of Urban Living

The rise of micro-mobility in San Juan's neighborhoods is a testament to the city's commitment to modern, sustainable urban living. As a real estate buyer, choosing a neighborhood with readily available micro-mobility options can enhance your quality of life, reduce your transportation costs, and position you for a smart investment. Explore the unique charm and convenience of San Juan's micro-mobility neighborhoods, and you'll unlock a new chapter in urban living that's both exciting and eco-conscious.

If you are interested in living in a San Juan neighborhood with access to micro-mobility, check out the two listings below that Paraiso Realty is currently selling in the Condado and Santurce neighborhoods. One is a sub-Penthouse on Calle Taft, and the other is a two bedroom on Calle Loiza. Click on the images below to see the details of each property:

Navigating Home Purchase with Prudent Contingencies in Puerto Rico

You've walked through the front door of your dream house in Puerto Rico – the sun-kissed beaches, vibrant culture, and lush landscapes have won you over. But before you dive into homeownership paradise, it's crucial to take a step back and consider the importance of contingencies in your Option Agreement. These are safeguards that protect both your interests and your investment as you embark on this exciting journey. In this blog, we'll explore the key contingencies you should negotiate into your Option Agreement when buying a house in Puerto Rico.

1. Home Inspection Contingency: Ensuring Your Investment The tropical beauty of Puerto Rico might be mesmerizing, but beneath the surface lies the need to ensure your prospective property is in excellent condition. A Home Inspection Contingency allows you to evaluate the property's state comprehensively. If unexpected issues arise during the inspection, you have the opportunity to negotiate repairs or, if necessary, withdraw from the deal without financial repercussions.

2. Financing Contingency: Safeguarding Your Purchase Life is unpredictable, and sometimes financing plans can be affected by unexpected changes. A Financing Contingency gives you the flexibility to exit the agreement if you're unable to secure suitable mortgage financing. This contingency shields you from potential financial strain and allows you to pursue homeownership with confidence.

3. Title Contingency: A Clear Path to Ownership Amidst the excitement, don't overlook the importance of a clear title. A Title Contingency ensures that there are no legal disputes or complications tied to the property's ownership. It's your shield against potential headaches down the road, providing a smooth transition to becoming a proud homeowner.

4. Sale of Current Home Contingency: Managing Transition Life transitions often involve a domino effect. If you need to sell your current home to finance your new one in Puerto Rico, a Sale of Current Home Contingency offers you security. It prevents you from being trapped with two properties and gives you the time needed to manage the transition effectively.

5. Homeowners Association (HOA) Contingency: Rules and Financial Security If your prospective Puerto Rican property is part of a homeowners association (HOA), don't rush into it blindly. The HOA Contingency allows you to review and agree to the association's rules and regulations before finalizing the purchase. Additionally, ensure the HOA has sufficient financial reserves for future repairs, preventing unexpected costs.

6. Insurance Contingency: Master Policies and Coverage In an HOA scenario, delve deeper into the realm of insurance. An Insurance Contingency gives you the chance to review the HOA's master policies and assess their coverage. Ensuring adequate protection aligns with your investment's security.

7. Septic/Water Contingency: Health and Functionality If your chosen property relies on a well or septic system, a Septic/Water Contingency is indispensable. This contingency allows for inspections to ensure these systems are functioning correctly. Avoid the risk of water-related complications that might dampen your homeownership experience.

8. Environmental Contingency: Preserving Value and Safety Nature's wonders are abundant in Puerto Rico, but sometimes they can lead to unexpected challenges. An Environmental Contingency shields you from potential environmental issues that could impact your property's value or safety. This is your chance to secure your investment against unforeseen natural circumstances.

In conclusion, purchasing a home in Puerto Rico is a thrilling adventure, but it's crucial to approach it with caution and foresight. Including well-negotiated contingencies in your Option Agreement is like weaving a safety net that cushions you from potential pitfalls. These contingencies grant you the freedom to make informed decisions and pursue your homeownership dream with peace of mind.

As you embark on this journey, remember that having a knowledgeable real estate agent by your side can make all the difference. At Paraiso Realty, we specialize in guiding individuals like you through the intricate process of home buying in Puerto Rico. Our expertise ensures that you're equipped with the necessary tools to navigate option agreements with confidence and achieve success in your real estate endeavors.

If you have any questions or uncertainties about contingencies, don't hesitate to reach out. Let's work together to turn your dream of owning a home in Puerto Rico into a reality. Your paradise awaits – let's make it yours, responsibly and thoughtfully.

Discovering Vieques: A Tropical Paradise of Adventures and Relaxation

Discovering Vieques: A Tropical Paradise of Adventures and Relaxation

Vieques, Puerto Rico, offers a world of enchantment for visitors seeking both adventure and relaxation. To ensure you make the most of your island getaway, we've compiled a list of essential tips for an unforgettable experience.

1. BioBay Magic: Experience the mesmerizing BioBay, a bioluminescent wonder. Visit during moonless nights for the best glow. Best nights are 4 days before and after a New Moon. Leave your camera behind, as capturing its ethereal beauty can be challenging. Live in the moment and your mind will thank you.

2. Conquer Mount Pirata: Embark on a morning hike up Mount Pirata. The cooler shade and breathtaking views make the ascent more pleasant. Bring water, as the 987-foot elevation requires about 40 minutes to climb. Enjoy the new observation deck atop the peak, and bring binoculars if you have them.

3. Snorkeling Adventures: Dive into the crystal-clear waters around Vieques. Opt for the best snorkeling beaches, but never venture alone. Be cautious of strong currents, especially around the tip of Mosquito Pier. In the winter months there is a group that goes out snorkeling a few times of week. ask your favorite bartender for more info.

4. Beach Bliss: Vieques boasts splendid beaches. Discover the iconic Caracas, Sun Bay, and La Chiva beaches. If you crave solitude, explore the lesser-known ones for your private slice of paradise. When at the beach, leave nothing in your car and leave the car unlocked. Better safe than sorry.

5. Dining Delights: Make dinner reservations in advance to savor the island's culinary treasures. Especially during the busy Christmas week and Semana Santa, securing a table is a must. El Quenepo, Coqui Fire, Gonzo’s, Bili, Trade Winds & Taverna are especially prone to reservations during winter season.

6. Festive Cheer: Experience the magic of Christmas, New Year’s, Semana Santa and the Vieques Patronales. Immerse yourself in the vibrant celebrations that showcase Vieques' rich culture and traditions. July's Patronales party and Carnival Parade are not to be missed.

7. Rainy Season Wisdom: Be prepared for occasional rain showers, especially during September and October, the rainy season. You'll find great deals on airfare and hotels during this time – there's a reason for that.

Vieques promises an unforgettable getaway filled with natural wonders, cultural celebrations, and serene beaches. With these tips in mind, you're ready to embark on a remarkable journey of exploration and relaxation.

And remember, Vieques deserves more than a one-night stay. With so many restaurants, beaches, and activities, plan on staying at least 3 nights. You won't be sorry. There’s a good chance you'll even want to buy your future home here!

What is closing time for bars in San Juan, Puerto Rico?

San Juan, the vibrant capital of Puerto Rico, has long been celebrated for its lively nightlife, where revelers dance into the early hours of the morning along the picturesque streets of Old San Juan and other bustling neighborhoods. However, a recent shift is underway, as Mayor Miguel Romero signed a new municipal code that will restrict alcohol sales during specific hours, aiming to address concerns of safety and noise. This development has sparked debates and discussions within the community, igniting conversations about cultural preservation, economic impacts, and the future of San Juan's renowned nightlife.

For years, San Juan's culture has been synonymous with the idea that "anything goes." Its streets have teemed with locals and tourists alike, all seeking to immerse themselves in the city's vibrant atmosphere. While change can be daunting, it's essential to remember that even in the face of these new regulations, the heart of San Juan's culture remains intact. The spirit of celebration, music, and community will continue to thrive, albeit in a slightly different form.

Starting in November 2023, the new municipal code will govern alcohol sales in San Juan. Bars and restaurants can serve or sell alcohol from 6 a.m. to 1 a.m. on most days, with an extension until 2 a.m. on Fridays, Saturdays, and Sundays that precede a holiday. While these regulations might alter the typical late-night revelry, they are intended to foster a safer and more controlled environment for both residents and visitors.

The decision to implement these changes was driven by a desire to curtail violence and noise, creating a more harmonious coexistence between nightlife and residential areas. Recent incidents, such as the unfortunate fatalities and altercations, have highlighted the need for a more regulated environment. By enforcing these regulations, city officials aim to enhance the overall well-being of the community, ensuring that everyone can enjoy the vibrant city while feeling secure.

The new regulations have raised concerns among business owners, particularly those who operate bars and restaurants. Many worry that these changes will lead to decreased revenue, impacting an already fragile economy recovering from the challenges posed by the pandemic and natural disasters. However, Mayor Romero emphasizes that a stronger adherence to the code could bolster San Juan's economy and tourism sector over time.

Critics of the new regulations argue that they risk diluting Puerto Rico's distinct cultural identity—one that celebrates spontaneity, music, and communal joy. While change is inevitable, it's crucial to recognize that cultural traditions can adapt and evolve without losing their essence. San Juan's spirit of celebration will continue to shine through, albeit in a way that aligns with the changing times and growing concerns.

As San Juan prepares for this transformative shift, it's important to approach the changes with an open mind. Residents, business owners, and visitors alike must come together to find a delicate balance between preserving cherished traditions and ensuring the safety and well-being of the community. This is an opportunity to foster creative solutions, such as earlier start times for celebrations and the exploration of alternative entertainment options that don't rely solely on extended alcohol sales.

Is Single-Family zoning to blame for Puerto Rico's affordable housing shortage?

Is Single-Family zoning to blame for Puerto Rico's affordable housing shortage?

In the early 20th century, a seemingly innocuous concept took root in American cities, shaping neighborhoods and inadvertently setting the stage for the current severe housing shortage: single-family zoning laws. These zoning laws, originally intended to organize urban expansion and uphold the suburban dream of idyllic homes with porches and backyards, have evolved into a double-edged sword, both protecting and limiting opportunities for homeownership.

At its core, zoning is a straightforward concept: designate specific areas for different types of development. Factories in one zone, apartment buildings in another, and single-family homes in yet another. These regulations offered protection and maintained property values, all while fostering the charm of classic neighborhoods.

However, as time went on, these laws started to reveal their darker side. Critics argue that single-family zoning perpetuated social and racial segregation, closed doors to potential homeowners, and resulted in artificial scarcity and skyrocketing prices.

CNN recently tackled this issue with an interesting article. To read this article, click here.

With concern over unavailable affordable housing in Puerto Rico, could building more ADUs or changing the zoning law alleviate the issue? What are your thoughts?

Time To Pay Your CRIM Property Taxes In Puerto Rico

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:

1. 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.

2. 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.

3. 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.

4. 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:

1. 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.

2. 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.

3. 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.

4. 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.

1. 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.

2. 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.

3. 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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

1. 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?

A Brief Guide to Buying Your Dream Vacation Home in Puerto Rico

A Brief Guide to Buying Your Dream Vacation Home in Puerto Rico

Dreaming of owning a vacation home where you can escape to paradise? Puerto Rico, with its stunning landscapes, vibrant culture, and tropical beauty, offers a perfect setting for your dream getaway. Whether you envision a beachfront retreat or a lush mountain hideaway, buying a vacation property in Puerto Rico can be an excellent investment. Here are some benefits of purchasing a vacation home in Puerto Rico as well as some valuable insights into the process.

1.     The Appeal of Puerto Rico's Vacation Home Market: Puerto Rico, known as the "Island of Enchantment," entices buyers with its year-round warm climate, breathtaking beaches, and rich history. As a U.S. territory, it offers the advantage of using the U.S. dollar as its currency, eliminating the need for currency exchange. Furthermore, Puerto Rico's tax incentives, including Act 20 and Act 22, attract investors seeking favorable tax benefits and financial opportunities.

2.     Choosing the Perfect Location: When it comes to buying a vacation property in Puerto Rico, location is paramount. The island offers a diverse range of regions, each with its unique appeal. For beach lovers, areas such as Rincon, Vieques, or Dorado offer magnificent coastal properties and opportunities for beachfront living. Those seeking a tranquil mountain retreat may consider properties in areas like El Yunque Rainforest or the Cordillera Central. It's essential to explore different regions, considering factors like proximity to amenities, accessibility, and the lifestyle you desire.

3.     Evaluating the Investment Potential: While your vacation home should provide a personal haven, considering its investment potential is crucial. Puerto Rico's thriving tourism industry creates opportunities for rental income when you're not using the property. Searching Google for keywords like "Beachfront Properties on Vieques," "Vieques Investment Properties," and "Vieques Vacation Homes" highlight the market potential of this specific location. Analyze the demand for vacation rentals, consult your Paraiso Realty agent, and research rental rates to make an informed decision.

4.     Finding Your Ideal Vacation Property: Once you've determined the location and investment potential, it's time to start the search for your dream vacation home. Paraiso Realty can guide you through the process, provide insights into local regulations, and help you find properties that match your preferences and budget. Utilize online platforms, attend open houses, and visit Puerto Rico to get a firsthand experience of potential properties.

5.     Key Considerations for Vacation Home Buyers:

*Location Amenities: Consider the proximity to attractions and amenities that initially drew you to Puerto Rico. Whether it's pristine beaches, hiking trails, or lively downtown areas, ensure your vacation property is conveniently situated to enhance its appeal to future renters.

*Property Size: Assess the number of bedrooms and overall space based on your personal needs and the potential rental demand. More bedrooms provide versatility and may command higher rental rates, but keep in mind the associated maintenance and cleaning costs.

*Homeowners Association Rules and Local Regulations: Research any restrictions on rental properties imposed by homeowner associations or local municipalities. Ensure your chosen property aligns with your rental plans and meets all legal requirements.

*Accessibility: Evaluate the ease of travel to your vacation home, considering the proximity to airports or major transportation routes. Convenience is essential for both personal use and managing the property when you're not there.

*Property Management: If you live far from Puerto Rico, hiring a caretaker or property management company is advisable. They can oversee regular inspections, handle maintenance issues, and ensure your property is well-maintained, giving you peace of mind.

6.     Financial Considerations:

*Consult a Tax Advisor: Puerto Rico's unique tax incentives, such as Act 20 and Act 22, offer potential advantages for investors. However, tax regulations can be complex. Seek guidance from a tax advisor who specializes in Puerto Rico to understand the tax implications of owning a vacation property and any potential benefits you may be eligible for.

*Financing Options: Explore financing options available for purchasing a vacation home in Puerto Rico. Interest rates and down payment requirements may differ from those for primary residences. Research local lenders, mortgage brokers, and banks to find the most suitable financing solution for your needs.

*Insurance Coverage: Protect your investment by obtaining homeowners insurance for your vacation property. Research insurance providers that offer coverage in Puerto Rico, taking into account the property's location and any specific risks associated with the area. Adequate insurance coverage will provide peace of mind and protect you against unexpected events.

*Property Management Costs: If you plan to rent out your vacation home, budget for property management costs. Engaging the services of a professional property management company will ensure efficient management, regular property inspections, and handling of rental logistics. Research local property management companies and obtain cost estimates to include in your financial planning.

7.     Making an Informed Decision:

*Due Diligence: Before finalizing a purchase, conduct thorough due diligence on the chosen property. Engage the services of a professional home inspector to identify any potential issues or necessary repairs. Review the property's title and legal documents to ensure a smooth and transparent transaction.

*Negotiation and Closing Process: Work closely with your Paraiso Realty agent to negotiate the purchase price and terms of the transaction. Once an agreement is reached, engage an attorney to assist you with the closing process, including reviewing contracts and ensuring all legal requirements are met.

*Ongoing Property Management: Once you've acquired your vacation property, establish a plan for ongoing property management. If you live far away, enlist the services of a reputable property management company to handle day-to-day operations, maintenance, and guest relations. Regularly communicate with your property manager to stay informed about the property's performance and address any concerns.

Investing in a vacation property in Puerto Rico offers a unique opportunity to own a piece of paradise while potentially generating rental income. By considering location, investment potential, financial aspects, and key considerations for vacation home buyers, you can make an informed decision that aligns with your goals. Remember to consult with Paraiso Realty Broker, conduct thorough research, and seek professional guidance throughout the process. With careful planning and due diligence, your dream of owning a vacation home in Puerto Rico can become a rewarding and profitable reality.

Wealthy Homebuyers are Flocking to Puerto Rico: Per WSJ

Wealthy Homebuyers are Flocking to Puerto Rico: Per WSJ

The Wall Street Journal published an article this morning as to why wealthy homebuyers are flocking to Puerto Rico. A link to the article is down below. For those that don’t have a subscription, here is a synopsis:

Wealthy homebuyers are increasingly attracted to Puerto Rico due to favorable tax policies, warm weather, and the rise of remote work. This has transformed the island into a full-time destination for high-net-worth individuals. Luxury housing market in Puerto Rico is booming, with investors and developers capitalizing on the growing demand for high-end homes. Tax incentives, known as Act 60, play a significant role in driving the surge in the market. These incentives allow individuals and corporations relocating to Puerto Rico to enjoy tax benefits, such as not paying federal income taxes on income sourced in Puerto Rico. The requirement to own a home on the island has further fueled the buyer pool. The island's warm climate, coupled with the adoption of remote work and low cost of living, has accelerated the trend of wealthy individuals buying primary and vacation homes in Puerto Rico.

The luxury housing market has seen several notable deals, including a $40 million home sale, setting a record for the island. Dorado Beach Resort, a wealthy enclave on the north shore of the island, has experienced a significant increase in median sale prices for homes priced above $1 million. Other areas, such as Condado, Bahia Beach, and Palmas del Mar, have also witnessed rising prices.

The tax benefits offered by Puerto Rico have attracted wealthy individuals, including crypto entrepreneurs and hedge funders, who have the flexibility to move their businesses. The island's tax policies have transformed it from a place people wanted to visit to a destination for wealthy homebuyers seeking an incredible lifestyle and tax savings. The tax benefits introduced in 2012 have led to an increase in the number of individuals granted tax-exempt status under Act 60. However, the number dropped in 2022 due to the crash in the crypto market.

Early movers who took advantage of the tax benefits include crypto investor Michael Terpin, who relocated to Puerto Rico from Nevada in 2016. Terpin has seen the formation of a crypto community on the island and has found Puerto Rico to be a welcoming place with ample networking and business opportunities. Other individuals, such as business coach Christian Mickelsen, have also embraced the island's tax benefits and resort lifestyle.

Real estate investment has surged in Puerto Rico, with investors capitalizing on the booming market. Some aspirational sellers have listed their properties at high prices, taking advantage of the increased demand for finished homes. Local builders and developers from the mainland U.S. are racing to construct new homes to meet the growing demand.

Here is a link to the full article: https://www.wsj.com/articles/puerto-rico-real-estate-market-58ec50da

Puerto Rico's Top 5 Walkable Neighborhoods (and 5 with Potential)

Puerto Rico's Top 5 Walkable Neighborhoods (and 5 with Potential)

Walkable neighborhoods are in high demand throughout the world, as more and more people prioritize the benefits and convenience they offer. Puerto Rico offers a range of walkable neighborhoods that provide residents with the perfect blend of convenience, cultural experiences, and access to amenities. Living in a neighborhood with a high walkability score offers numerous advantages, including improved health and well-being, convenience, environmental sustainability, social interaction, and financial savings. Let's explore the top walkable neighborhoods in Puerto Rico and some with the potential for further development.

Puerto Rico, with its vibrant culture and rich history, is home to several neighborhoods that score high on walkability. They all have the ingredients for healthy walkable neighborhoods with nearby parks, cultural experiences, retail stores, grocery options, and popular bars and restaurants. Walkability scores provide an objective measure of how easy it is to accomplish daily errands without a car. Factors considered include proximity to amenities, access to public transportation, street connectivity, and pedestrian infrastructure. The higher the walkability score, the more walkable and convenient the neighborhood is deemed to be.

Here are the current Top 5 Walkable neighborhoods in Puerto Rico:

Old San Juan

1.     Old San Juan: (Average Walkability Score: 98) Old San Juan, the historic heart of the capital city, is renowned for its picturesque cobblestone streets and colorful colonial architecture. With a near-perfect walkability score of 98, it epitomizes urban charm and accessibility. Residents can wander through the narrow streets, discovering enchanting plazas, boutique shops, and delightful cafes. Parque de las Palomas, a serene oasis with stunning views of the ocean, and Parque de Armas is ideal for people watching and sipping a cup of coffee. For a cultural experience, Castillo San Felipe del Morro, a UNESCO World Heritage Site, stands as a testament to Puerto Rico's rich history. The Museo de las Americas hosts permanent and temporary exhibits worth visiting, as does the Museo de San Juan. Popular retail stores include boutique clothing stores Pure Soul Boutique and Collective Request, and of course everyone’s favorite discount store, Marshalls. SuperMax is the go-to grocery store for everyday necessities, located right on Plaza de Armas, while La Factoria and La Lanterna are among the favorite bars and restaurants in the area.

Miramar

2.     Miramar: (Average Walkability Score: 94) Miramar combines the charm of a residential neighborhood with the convenience of urban amenities. With a high walkability score of 94, Miramar offers an abundance of parks and recreational spaces, including the popular walking path around Condado Lagoon and the Parquecito de Miramar. The neighborhood boasts a vibrant arts scene, with the Puerto Rico Conservatory of Music, the Museum of Art and Design, and Caribbean Fine Arts movie theater adding to its cultural allure. For retail therapy, Plaza Las Américas, the largest shopping mall in the Caribbean, is just a short distance away. La Hacienda and Supermercado Pueblo cater to grocery needs, while Melanzana and the Rare 125 offer exceptional dining experiences.

Santurce Sur

3.     Santurce Sur: (Average Walkability Score: 92) Santurce, known for its eclectic atmosphere, is a hub of artistic expression and creativity. With a walkability score of 92, this neighborhood offers a lively urban experience. As a cultural hotspot, Santurce is home to various art galleries and museums, such as the Museum of Contemporary Art of Puerto Rico. The Mercado Santurce provides an array of retail options, including fresh produce and artisanal goods. For grocery shopping, Econo and Pueblo are popular choices. La Placita de Santurce is a must-visit for its vibrant nightlife and renowned restaurants like Santaella and Vianda can be found nearby.

Condado

4.     Condado: (Average Walkability Score: 89) Condado, located in the heart of San Juan, is a bustling neighborhood known for its upscale residential areas, beautiful beaches, and vibrant nightlife. With an average walkability score of 89, Condado offers a blend of urban convenience and beachfront allure. Parque Ventana al Mar provides a lovely green space and a perfect spot for outdoor activities. Luxury boutiques and designer stores line Ashford Avenue, catering to retail enthusiasts. Freshmart and Super Max are popular grocery stores, while trendy bars and restaurants like Jose Enrique, Kasalta, and Via Appia present an array of dining and entertainment options.

Ponce

5.     Ponce Historical Zone: (Average Walkability Score: 88) Ponce Historical Zone, located in the city of Ponce, exudes historic charm with its well-preserved Spanish colonial architecture. Despite being the smallest neighborhood on our list, it boasts a respectable average walkability score of 88. The neighborhood is home to Parque de Bombas, a striking red-and-black firehouse turned museum, which serves as a cultural landmark. Plaza Las Delicias, the central square, is surrounded by shops, cafes, and the iconic Cathedral of Our Lady of Guadalupe. For retail needs, Plaza del Caribe offers a variety of stores. Super Max and Econo are the main grocery stores in the area. In terms of dining, Lola Eclectic Cuisine and Nispero Asador provide memorable culinary experiences.

While Puerto Rico already has several neighborhoods with high walkability, there are other areas that have the potential to further develop and improve their walkability. These cities and neighborhoods have the foundation to become highly walkable areas by implementing urban planning strategies that prioritize pedestrians, promote active transportation, and enhance the overall quality of the public realm. Let's explore five cities or neighborhoods in Puerto Rico that have the potential to become the next high walkability areas:

Rio Piedras

1.     Rio Piedras, San Juan: Rio Piedras, a district of San Juan, has the potential to enhance its walkability. It is home to the University of Puerto Rico and has a vibrant commercial center. By improving pedestrian infrastructure, expanding sidewalk networks, and implementing traffic calming measures, Rio Piedras can further encourage walking and create a more pedestrian-friendly environment. Current Score: 73

Hato Rey

2.     Hato Rey, San Juan: Hato Rey, another district in San Juan, is a major financial and business hub. While it already has some walkable areas, there is room for improvement. Enhancing pedestrian connectivity, creating more green spaces, and implementing complete streets policies would help make Hato Rey a more walkable neighborhood. Current Score: 87

Mayaguez City Center

3.     Mayagüez City Center: Mayagüez is a vibrant city on the western coast of Puerto Rico. Its city center has the potential to become a highly walkable area. By prioritizing pedestrian-friendly infrastructure, improving sidewalks and crosswalks, and revitalizing public spaces, Mayagüez City Center can create a more inviting environment for pedestrians and enhance its walkability. Current Score: 86

Caguas City Center

4.     Caguas City Center: Caguas, located in the central region of Puerto Rico, has a historic city center that can be further developed to enhance walkability. Investing in pedestrian-oriented infrastructure, creating shared-use paths or bike lanes, and improving connectivity between key destinations can transform Caguas City Center into a more walkable and attractive area. Current Score: 86

Bayamón Centro

5.     Bayamón Centro: Bayamón, a city near San Juan, has the potential to enhance the walkability of its central area. By improving pedestrian infrastructure, creating pedestrian zones or plazas , and increasing access to green spaces, Bayamón Centro can improve its walkability and create a more inviting environment for residents and visitors. Current Score: 82

These cities and neighborhoods mentioned above have great potential to become highly walkable areas in Puerto Rico. By focusing on urban planning strategies that prioritize pedestrians and promote active transportation, these areas can unlock their full potential and create more walkable and liveable environments.

Key Elements to be Considered Walkable

To enhance walkability, several key elements need to be considered. First and foremost, the development of pedestrian-friendly infrastructure is crucial. This includes well-maintained sidewalks, clearly marked crosswalks, and pedestrian-friendly intersections. Implementing traffic calming measures, such as speed bumps and reduced speed limits, can help create safer streets for pedestrians. Additionally, creating dedicated bike lanes or shared-use paths can encourage cycling as an alternative mode of transportation.

Green spaces and parks also play a vital role in enhancing walkability. Accessible and well-maintained parks provide residents with opportunities for recreation, exercise, and social interaction. Incorporating greenery and landscaping in urban areas not only improves aesthetics but also contributes to the overall well-being of residents. These green spaces can serve as gathering places for community events and activities, further fostering a sense of belonging and social interaction.

Another important aspect of walkable neighborhoods is access to amenities and services. The presence of grocery stores, retail shops, restaurants, and cultural venues within walking distance reduces the reliance on private vehicles for daily errands. Mixed-use developments that combine residential and commercial spaces can contribute to vibrant and walkable neighborhoods. By integrating a variety of amenities, residents can meet their daily needs conveniently and efficiently.

Public transportation also plays a significant role in enhancing walkability. Well-connected and accessible public transportation systems, such as buses or light rail, provide an alternative to private vehicles for longer journeys. Integrating public transportation routes with pedestrian infrastructure ensures seamless connectivity and encourages the use of sustainable transportation options.

Keys to Walkability Success

Community involvement and engagement are essential for the success of creating walkable neighborhoods. Engaging residents, local businesses, and community organizations in the planning process fosters a sense of ownership and ensures that the development aligns with the needs and desires of the community. Inclusive public spaces that accommodate people of all ages and abilities contribute to a more diverse and vibrant community.

Puerto Rico offers a range of walkable neighborhoods that provide residents with the perfect blend of convenience, cultural experiences, and access to amenities. The top five walkable neighborhoods, including Old San Juan, Miramar, Santurce Sur, Condado, and Ponce Historical Zone, showcase the rich history, vibrant culture, and unique characteristics of Puerto Rico. These neighborhoods offer residents and visitors the opportunity to explore on foot, discover local treasures, and engage with the community.

Moreover, cities and neighborhoods such as Rio Piedras, Hato Rey, Mayagüez City Center, Caguas City Center, and Bayamón Centro have the potential to become highly walkable areas by implementing urban planning strategies that prioritize pedestrians, promote active transportation, and enhance the overall quality of the public realm. By investing in pedestrian-friendly infrastructure, creating green spaces, improving access to amenities, and involving the community in the process, these areas can unlock their potential and create more walkable, sustainable, and livable environments for everyone to enjoy.

To find out the Walkability of your home or neighborhood, check out the WalkScore website to enter your specific address: www.walkscore.com .

Can I use a mortgage company from the continental USA to finance my purchase in Puerto Rico?

Can I use a mortgage company from the continental USA to finance my purchase in Puerto Rico?

While it is possible for a US-based bank or mortgage company to provide financing for the purchase of property in Puerto Rico, there are some reasons why it may be more advantageous to use a mortgage company based in Puerto Rico.

Firstly, Puerto Rico has its own laws and regulations that govern the purchase and financing of property, and a mortgage company based in Puerto Rico will have a better understanding of these laws and regulations. This can be particularly important if you are not familiar with the local laws and regulations, as it can help ensure that your financing process goes smoothly.

Additionally, using a Puerto Rico-based mortgage company may provide access to financing options that are specifically designed for Puerto Rico. This can include programs that offer lower interest rates or better terms than what may be available from a US-based bank.

Furthermore, using a local mortgage company may also provide more personalized service, as the company will be familiar with the local real estate market and may be better equipped to provide guidance and assistance throughout the financing process.

At Paraiso Realty we have not recently seen any bank in the continental US finance a deal in Puerto Rico. While Puerto Rico is part of the US, it appears the US and PR banking systems treat each other as if they are separate international entities. While it is worth talking with your local lender in the US about purchasing a property in PR, we doubt they will finance a mortgage here for you.

We have had clients pull money out of their homes in the states with home equity loans, and then use that cash to purchase homes down here, however we have not had anyone use a US based bank to receive direct mortgage financing.

If you will need financing for your purchase in PR. We suggest lining up the financing ahead of time before starting your property search. Most real estate brokers in PR will require Proof of Funds or a PreQual letter from a lender before seeing any properties, so it is prudent to work on this due diligence in advance.

If you are looking for a PR based mortgage company, we have a few banks and names to recommend. When you first talk with them, feel free to let them know we recommended their services:

First Bank: Giulianna Perlloni, giulianna.perlloni@firstbankpr.com, 787-307-3606

Oriental Bank: Alison Ramos, alison.ramossuarez@orientalbank.com, 939-282-0608

Cross Country Mortgage: Lawrence Johnson, Larry.Johnson@ccm.com, 720-684-7141

Capital Mortgage: Maribel Rivera, mr@tucapitalpr.com, 787-608-3545