Tips on Buying a Beach Homes and Condo in Puerto RicoYou’ll find some of the world’s best beachfront properties for sale in Puerto Rico. No doubt. With tax incentives, a recovering real estate industry, and paradise-level tranquility on the offing, it is a great time to buy a beach home or condo in Puerto Rico.
This quick guide to help you figure how buying a condo in Puerto Rico differs from the mainland, tips on getting through the process without pulling your hair, and how to ensure you get the best beach homes for sale Puerto Rico has to offer.
Is buying a beach home or condo in Puerto Rico a good investment?
After 14 years of depression, Puerto Rico’s economy is showing signs of getting back up.
The IMF projected the economy will contract by just 0.7% in 2020 compared to 9% in 2015, for example. So, if you are looking to invest and sell in 5-10 years, that might be great news.
In Q2 2019, reports showed the Puerto Rican house prices were up 13.24% year-over-year, a sharp increase over the previous period’s 0.38%.
If looking to make some cash right away, avail your beach home as a vacation rental. Use the likes of Airbnb to get repeat clients.
You can, later on, move in for retirement years.
Can U.S. citizens buy a home in Puerto Rico?
Yes. Not only that.
Puerto Rico is technically in the U.S.
That means mainland citizens can not only purchase an oceanview house in Puerto Rico, but they can also get financing from the mainland and local banks. No need to buy a condo in cash.
Just keep in mind interest on local banks’ loans will be significantly higher than on a home loan in mainland U.S.
It also means mainlanders can take up a home equity loan on their mainland residence to buy a vacation house in Puerto Rico.
And if you want to buy homes or condo in Puerto Rico in cash, you can use your U.S. line of credit for that.
Also, you can buy a home to relocate there, especially when you want to take advantage of tax incentives.
Talking of Puerto Rico real estate tax benefits...
What are Puerto Rico’s real estate tax benefits?
Passed in 2012, the Act 20/22 provides an attractive tax incentive to buy property in Puerto Rico.
Keep in mind that the tax incentives provided for by the Act are effective for when you
Get a reliable real estate agent in Puerto Rico for a hassle-free, beach home or condo purchase in Puerto Rico
Buying property in Puerto Rico is largely different from what you’d expect, especially if you are coming from the mainland.
- The "standard" MLS is not used here, instead, there are several best places to find a beach home or condo to buy in Puerto Rico
- Lenders, real estate professionals, and mortgage brokers, and others use the third-party site TasaMax for the latest Puerto Rico real estate statistics
- Expect most people to be fluent in Spanish, and not so much in English, even in local banks and insurance companies
- Many listings are usually expired or no longer available by the time you see them
Buying property in PR is a highly involved process. You'll need to have a local attorney for the close.
A great real estate agent in Puerto Rico will be sure to include a clause in the contract that allows you to inspect repairs before you purchase the house. The default happens to be making inspections after the sale happens due to the “As is” nature of home sales in PR.
Have someone local keep tabs on your contractor in case you need some repairs done.
With these tips alone, you are bound to approach buying ocean view residential homes and condos in Puerto Rico more assured. Again, have an experienced agent, proven through recommendations and a portfolio to boost, help you through the process and invest in a lawyer to make the process hassle-free for you.
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