Investing in San Juan, Puerto Rico

11 Replies

Yes, we defaulted. However, the whole story is that there is a "Federal Oversight Board" coming which was signed into law yesterday. I believe this "remedy" of an Oversight Board was used in NYC, Detroit and DC before. They Board will be here until we can have a balanced budget for 4 continuous years. This is all off the top of my head so please research it yourself. Do not follow this advice blindly.

I believe investment in vacation rentals or a few areas, like Old San Juan, Condado, Isla Verde, is safe.

In my opinion, the Oversight Board is here to steady the financial ship and make sure the US debt holders get paid. In a few years, the US will either give us independence or make us a state of the union. I believe the former is more probable that the latter, but PR is split 50/50 on this.

IMO, the Zika epidemic is of greater concern than PR debt. I'd even put a declining population over PR debt. 

When you have Olympic athletes avoiding 2016 Olympic events held in the tropics, you have a macro issue. 

I worked in PR once a week for 3 years several years ago, and have drooled over an oceanfront vacation home since rates are so low, but no way I'm buying until a Zika vaccine is approved. 

Lack of tourism (aka cash flow) should shake out the weak hands and prices will fall further. 

Originally posted by @Victor Chico :
In a few years, the US will either give us independence or make us a state of the union. I believe the former is more probable that the latter, but PR is split 50/50 on this.

Having a few, perhaps a lot of Boricua friends, who live in the continent (Boston and NYC), I would imagine the latter solution is a more likely solution for Puerto Rico. There are major disadvantages you guys have to go through - if not put up with - of being a territory and it is already time for the US as country to do something as we all agree! 

If a plebiscite is likely, let us not follow Britain and their wishes to separate - united we are much stronger!!!

Good luck on your investments down there Victor - I have tried to get into the vacation rentals down there - Condado, Luquillo, Isla Verde, etc. but I had cold feet at occupancy rates as I wanted to finance the deal... 

Very interested to hear about what's next for PR!

Flavio

Matt Castle : I agree that the Zika is serious. However, the publicity has been much overhyped. Living here I only know one person who was infected and the effects were mild. That being said, if enough people get scared prices may fall due to a temporary dip in tourism.

@Victor Chico Respect your opinion, of course, but I'm an infectious disease person by education. 

Several golfers and other Olympic athletes made US national news by dropping out of Olympic competition in Brazil b/c of Zika. It's a pretty big story on mainland US b/c it's also occurring in southern mainland states. And few things Americans buy into like hype. We're sadly bombarded with it these days. 

Granted, if you're not of child bearing age or avoiding conception, then your risks are minimized. However, if you're a late teens to mid 50s couple -- peak traveling ages mind you -- and there is a small % you may conceive, even if unplanned, then many should and/or would think twice going tropical. 

I'm not saying this to be critical of PR. Love the island. Just a tropical black swan event and will be until an efficacious vaccine is approved. 

I agree with Victor, the zika we here think is way out of proportion. I know only of one case. And I interact with a lot of people.  

Concerning prices, they going to keep falling as the insecurity of whats to happen puts a lot of doubts in people minds. 

However, at the moment I am analyzing a flip as there still a lot of sales at the right price.

Diego

I totally agree with @Victor Chico . I'm a Realtor & I talk to alot of people on a daily basic and not even once have I met a person with Zika.

When I say people, I mean the news. People exagerate things to get more exposure but the Reality is that I haven't met a single person that has Zika & that's the Truth.

The REALITY  is plain & simple. We're enjoying this beautiful weather & enjoying our crystal clear beaches and the truth of the matter is that Zika is found in every Continent including US.


Originally posted by @Victor Chico:

Matt Castle : I agree that the Zika is serious. However, the publicity has been much overhyped. Living here I only know one person who was infected and the effects were mild. That being said, if enough people get scared prices may fall due to a temporary dip in tourism.

I'm going to PR this spring to check out a few places for future investment. We are planning on spending 2 weeks mostly in the Luquillo/Fajardo area and Culebra Island. I am really excited to check it out!!

@Jackie Botham

Hi Jackie

I saw your post above and was wondering if you invested in Puerto Rico

A few of my clients who are experts in real estate did a full study on the island after the hurricane and they bought in Old San Juan in 2018 - they love it down there and they say the area is expected to double in the next 3-5 years

Problem is there is nothing for sale in the main streets at this time

What has your experience been?