Is this the time to invest in Puerto Rico?

[DangerousDave]

The housing market has crashed. People are abandoning the island in droves. After decades of neglect, the electrical grid couldnt handle a hurricane.

Unemployment and poverty are extremely high.

Property prices have nowhere to go but up?
Lots of $ coming in, repairing the old infrastructure.
Once that is stable, tourism will return, and with it, people looking to buy and live in the Caribbean for a reasonable cost.

So is this the time to get in? Or wait a couple years to see how things pan out?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Scot]

Oddly enough, this came across my feed today.




I think that might be a little extreme. But it also would suck to see a total land grab by outside investors. Here in Florida, we have a huge influx of Puerto Rican’s moving here and abandoning their home because of the disaster.

I would say, if you chose to invest, do it in a way that that investment benefits the local economy.

 

[Spencer Norton]

Good Day!

As someone who has both vacationed in Puerto Rico several times and done business with medical facilities on the Island, I would absolutely go for it. While primarily Spanish speaking, most Puerto Ricans that I have encountered speak some semblance of English, particularly if they are educated. There are plenty of high quality luxury malls and the highway system is "Decent".

PROS:
- Housing there is INSANELY CHEAP, I often find homes with beachfront property that are "livable" for pennies compared to florida/California/Carolina/etc
- Lifestyle. The culture and lifestyles of Puerto Rico are much more South American then any lower 48 state. this means you can live in a place that doesn't feel like America at all, while still living in the US. this is strengthened by the cost of living changes and the average wealth of Puerto Ricans. in constrast to many resort style cities I have visited in south america, PR was nearly absent of hustlers and pan handlers/
- Space. despite PR being an island, once you are outside of San Juan you'll encounter a lot of open spaces that have never really been developed.
- no Currency Conversions
- No Passports / Visas for Americans

PRO OR CON?:
- Hurricane. this is a bit morbid, but the devastation of the recent storms has vastly accelerated the outcomes of major problems the island has faced. power plant issues, 4G availability, reliable infrastructure in general, water, MASSIVE Debt. the good side of this: the government can not ride this out, they will have to make very real and serious decisions in order to ensure the survival of the island and their way of life.

CONS:
- Infrastructure. PR has one of the only (if not the only) state run power plants in the Country. it was badly maintained and dilapidated. this can lead to rolling blackouts if you do not own a whole home reserve battery / generator
- Crime. some areas of San Juan have serious crime, but mostly gang violence and drug cartels.
- I will edit as I remember more

In summary,

I have always described Puerto Rico as the easiest way to experience visiting another country, without actually leaving the country. The unmistakable qualities of PR that are huge assets are THE BEACHES, some of the most beautiful in the world, and many are completely void of tourists.
BUT
I would wait and keep an eye on 1) the relative price of self sustaining power (solar/wind) and utilities (water). 2) the employment rate in PR 3) discussions PR has with the Federal government / internal political decisions. As soon as we can be certain that their impending debt crisis or infrastructure will be resolved, move.

Hope this helps.