Investing in Puerto Rico
Watervliet, NY · Member since 2016 · 1 post · 0 votes
Hi @Dan Bellinger We are actually excited about PR right now. Here are a few of the reasons:
US Territory:
As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk.
Tax incentives:
In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices:
The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition:
Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Hope this helps! Happy to connect and answer any questions you might have,
I would love to see the numbers for investment there it sounds interesting!
Greetings all! In the future I plan on investing in some type of real estate in Puerto Rico. I have a lot of family on the west side of the island so preferably Isabela county would be where we would want to live or have an investment. Basically I am wondering what is the best option for me. I know a lot of people who own land with nothing on it, once they pay off the land they have their house built. I have looked into multi families and condos as well. I know if I get a few professional opinions I will be on the right track. I know that jobs are scarce there right now and underpaying too so an investment opportunity may help round out the kinks. We probably will be purchasing around this time next year so I want to do as much research as possible.
Hi @Dan Bellinger We are actually excited about PR right now. Here are a few of the reasons:
US Territory:
As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk.
Tax incentives:
In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices:
The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition:
Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Hope this helps! Happy to connect and answer any questions you might have,
@Zack Giarrizzo great info here. Thanks for posting.
Good morning, As a retail investor I recently purchased a ocean front condo in Rincon. I am using it as an AirBNB and plan to expand into commerical real estate. I am happy to help
I'm purchasing my grandmother's home in Carolina, Puerto Rico. Built in 1957 it will need some TLC with that being said. Does anyone in this forum know of any trustworthy contractors that can do electrical work and plumbin? Please and thank you.