Hello, I was born and raised in PR. I visit at least once a year for a month at a time and most of my family still live there, and yes, my first language is Spanish. I have also been pondering the idea to invest in PR real estate, however, these are some of the reasons I have not done so:
1) Many Puertoricans had to abandon their mortgages because they lost their jobs and the banks might still be in the foreclosure process trying to get as much for the homes as possible. I would wait until the supply of properties is so high that the banks are willing to part with them taking pennies on the dollar.
2) Even though there will be an excess of real estate at a bargain price - who will rent, buy, or lease the property that you buy at a great discount? One of the major problems that the island had, even before the last hurricane, is that college graduates (same requirements as the mainland USA) would earn their degrees and have to take a job making $8 an hour. Now you may think that $8 dollars an hour is ok for an area that has a low cost of living, however, although true, to a certain point, it is important to consider that PR has a 11.5% IVO tax on all purchases and most consumer products are much more expensive than the mainland as everything has to be either flown or shipped there. For example, the same brand new vehicle that you can purchase in the mainland for $30000 will cost you around $35000 in PR. All this to say, that young professionals were leaving the island before, and the hurricane was just the straw that broke the camel's back. So maybe if the island can attract retirees from the mainland and the rest of the world, buying real estate would work?
3) Because PR had it's right to apply for bankruptcy taken away (pork added in some bill with no explanation) years ago, the government's only recourse is to continue increasing taxes, taking away tax incentives for big companies, denying cops their overtime pay, taking away pensions, closing schools down, and others.
4) With our current climate change, if PR experiences another natural disaster it may take the island to a developing country status.
5) Unfortunately, even though PR is USA and all born there are American citizens, permanent residents cannot vote for the President and don't have the same representation as the mainland States have. I don't see many Americans willingly giving up their right to vote for their president...
I am no expert in PR law and the above are just my opinions and personal experience, but I hope my opinions may give some insight into the island. If I can think of other pros and cons, I will share.
1) Many Puertoricans had to abandon their mortgages because they lost their jobs and the banks might still be in the foreclosure process trying to get as much for the homes as possible. I would wait until the supply of properties is so high that the banks are willing to part with them taking pennies on the dollar.
2) Even though there will be an excess of real estate at a bargain price - who will rent, buy, or lease the property that you buy at a great discount? One of the major problems that the island had, even before the last hurricane, is that college graduates (same requirements as the mainland USA) would earn their degrees and have to take a job making $8 an hour. Now you may think that $8 dollars an hour is ok for an area that has a low cost of living, however, although true, to a certain point, it is important to consider that PR has a 11.5% IVO tax on all purchases and most consumer products are much more expensive than the mainland as everything has to be either flown or shipped there. For example, the same brand new vehicle that you can purchase in the mainland for $30000 will cost you around $35000 in PR. All this to say, that young professionals were leaving the island before, and the hurricane was just the straw that broke the camel's back. So maybe if the island can attract retirees from the mainland and the rest of the world, buying real estate would work?
3) Because PR had it's right to apply for bankruptcy taken away (pork added in some bill with no explanation) years ago, the government's only recourse is to continue increasing taxes, taking away tax incentives for big companies, denying cops their overtime pay, taking away pensions, closing schools down, and others.
4) With our current climate change, if PR experiences another natural disaster it may take the island to a developing country status.
5) Unfortunately, even though PR is USA and all born there are American citizens, permanent residents cannot vote for the President and don't have the same representation as the mainland States have. I don't see many Americans willingly giving up their right to vote for their president...
I am no expert in PR law and the above are just my opinions and personal experience, but I hope my opinions may give some insight into the island. If I can think of other pros and cons, I will share.
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