Home Renovation Tips For 2023

Are you considering diving into the exciting world of home renovation? Before you reach for that paint sample or start ordering lavish finishes, take a moment to learn from those that have been through the ups and downs of a major home improvement project. Many have been there before you, and it's not all pretty wallpaper and paint swatches. Home remodeling can be a rollercoaster ride, but with the right knowledge, you can make it a smoother journey. Let's delve into some valuable tips to keep in mind as you embark on your renovation adventure:

1. One recommendation isn’t enough.

Choosing the right general contractor is crucial to the success of your home renovation. Think of your contractor as your project partner, and just like finding the perfect life partner, you should never rush into the decision. Get multiple bids and check references from previous clients. Ensure that your contractor has a good track record of paying subcontractors on time to avoid conflicts and delays. Take the time to build a strong foundation of trust with your contractor before diving into the project.

2. It’s not just milk that’s gotten more expensive.

As you plan your budget for the renovation, keep in mind that construction costs have been rising in recent times. What might have been a reasonable budget a few years ago may not cut it now. Industry experts suggest budgeting around 25% to 30% for unforeseen overages. This will help you be better prepared for any unexpected expenses that may arise during the renovation process.

3. Begin with the not-so-fun stuff.

It's tempting to jump straight into selecting beautiful finishes and furnishings, but before you do that, prioritize the less glamorous but essential aspects of your home renovation. Ensure that your home's infrastructure is in good shape before investing in the decorative elements. Check the condition of your plumbing, electrical wiring, and heating systems. Remember, a beautiful paint job won't matter much if you have faulty plumbing or electrical issues.

4. Make a list of must-haves—and check it (more than) twice.

Creating a list of must-haves for your renovation is essential, but it's equally important to communicate those priorities clearly to your contractor. Sometimes, in the whirlwind of decision-making, essential elements might be overlooked. Ensure that your contractor knows your priorities and that you have regular check-ins to monitor progress and discuss any changes or adjustments needed.

5. That cool old piece? It’s going to be a hassle.

Antique or salvaged pieces may add character to your home, but they often come with their fair share of challenges. Installing these items may take more time and specialized skills, which can increase labor costs. While they might look stunning, be prepared for the extra effort and expense they might entail. Consider balancing vintage pieces with more modern elements to strike a practical and aesthetically pleasing balance.

6. Plan for the long haul.

A home renovation project can be exhausting, both physically and mentally. The disruption to your daily life can take a toll on your well-being. To minimize stress and decision fatigue, make a comprehensive plan before starting the renovation. Engage with a professional designer to help manage the project and ensure that all design decisions are made upfront. Additionally, create a long-term calendar that incorporates personal time, vacations, and moments to relax and rejuvenate.

In conclusion, embarking on a home improvement project can be both exciting and challenging. By keeping these tips in mind, you can navigate the renovation process with greater confidence and reduce the likelihood of encountering major pitfalls. Remember, it's essential to have a strong foundation with your contractor, be prepared for unforeseen costs, prioritize the critical aspects of your renovation, communicate your must-haves clearly, and plan for the long-term impact on your life. With careful planning and a bit of patience, you can turn your fixer-upper into the home of your dreams.

Sarah Karnasiewicz has been through a number of home renovations, and she recently wrote about her experiences in this Wall Street Journal article: THE 30% RULE AND OTHER THINGS…

Navigating Puerto Rico's Vibrant Real Estate Market Amid Inventory Challenges

The lack of inventory in the middle-class housing segment remains the biggest challenge for real estate in Puerto Rico this year. However, industry experts assure that the overall market on the island is "vibrant." The scarcity of middle-class residential properties poses a challenge for real estate brokers, especially at a time when there are federal aids and funds that have left many buyers ready to acquire new homes.

According to Vanessa Rivera, former president of the Puerto Rico Association of Realtors, the real estate market is currently vibrant, despite the shortage of inventory. She mentions that there is a high demand for middle-class residential properties, particularly due to the CDBG Housing program, which has attracted many buyers looking for properties priced up to $200,000. However, there is insufficient inventory to meet this demand.

Another challenge faced by the market in general is the high cost of materials and the lack of skilled labor. Prospective buyers who are interested in properties needing repairs, such as foreclosed houses, are uncertain about the costs of materials and the availability of workers to carry out the repairs.

Aileen Guzmán, Vice President of Production at Fembi Mortgage Puerto Rico, highlights that the lack of inventory, high material costs, and labor shortage are the major challenges for people looking to buy properties in Puerto Rico. This not only applies to new projects but also to the purchase of foreclosed homes that require renovations.

Rivera believes that investors who buy, renovate, and sell properties, as well as those entering the short-term rental market, should not be viewed negatively. She argues that these buyers provide solutions to existing problems in the industry, such as abandoned or poorly maintained houses. Investors who repair abandoned properties contribute to making them eligible for financing, thereby increasing accessibility to the public.

The short-term rental market has also provided a second chance for properties that were previously unattractive to the residential market. Rivera notes that the interest of buyers extends beyond tourist areas and is now spreading to the interior regions of Puerto Rico. Both Americans and Puerto Ricans from the diaspora are investing in these locations to experience the cultural aspects of living in Puerto Rico.

Guzmán shares that there is a new profile of buyers in Puerto Rico, with an increasing number of Americans relocating and establishing residency on the island. This represents a shift from the previous trend of Americans purchasing properties as second homes or for retirement purposes. Changes in legislation, such as Law 52, which allows employers to have remote employees in Puerto Rico without tax liabilities, have encouraged this type of relocation and home buying.

Although there has been a slight decrease, cash sales still play a significant role in the local market. Guzmán emphasizes the importance of documenting cash transactions and obtaining data to assist with financing transactions.

Regardless of the segment or financing method, real estate broker Ricardo Antonio Martínez Sarmiento advises buyers to enlist the services of a realtor. A good realtor can provide the necessary information for market analysis, ensuring that the property is fairly priced and not overvalued. They can also guide buyers through the process, connect them with reliable lenders, explain different financing options, and find properties that align with their objectives.

Living in off-Grid Luxury on the Puerto Rican Island of Vieques

The prominent and popular website Mansion Global wrote a great piece on one of our exclusive listings, “Lionheart.” Located in the La Llave hill of Vieques Island, Puerto Rico, this property is situated on 6 acres, with amazing Caribbean Sea views, and is completely off-grid.

To read the article, click on the following link: https://www.mansionglobal.com/articles/living-in-off-grid-luxury-on-the-puerto-rican-island-of-vieques-2e3eea8d

Choosing Between Condos and Houses in Puerto Rico: Exploring the Pros and Cons for Real Estate Investors

Investing in Puerto Rico real estate comes with a crucial decision: choosing between condominiums and single-family homes. Both options have their advantages and it's important to consider them before making a decision. In this blog post, we will explore the pros and cons of condos versus houses in Puerto Rico, helping you make an informed choice for your real estate investment.

Condominiums, or condos, have gained immense popularity in Puerto Rico's real estate market. These multifamily units offer a convenient and modern lifestyle, along with a range of amenities. Here are some key points to consider when looking at condos as a real estate investment option:

1. Amenities and Facilities: Condos often come with shared amenities such as swimming pools, fitness centers, security services, and maintenance. These facilities not only enhance your living experience but also attract potential tenants or buyers.

2. Maintenance and Management: In a condominium, the responsibility for maintaining common areas, landscaping, and external repairs is usually managed by a homeowner's association (HOA). This relieves you of the burden of managing these tasks individually.

3. Affordability and Accessibility: Condos are often more affordable compared to single-family homes, making them an attractive option for investors with a limited budget. Moreover, condos are frequently located in prime areas, providing easy access to amenities, entertainment, and transportation.

4. Rental Income Potential: Due to their desirable locations and amenities, condos in Puerto Rico can generate a steady rental income. With tourism thriving on the island, you can tap into the vacation rental market, attracting visitors who seek a comfortable and convenient place to stay. Be sure to check the HOA Bylaws to see that they allow short term rentals.

On the other hand, investing in a single-family home offers a different set of advantages and considerations. Here are some key points to consider when contemplating the purchase of a house:

1. Privacy and Space: Single-family homes provide a greater sense of privacy and more living space compared to condos. If you value a larger yard, the freedom to personalize your property, and fewer shared walls, a house may be the ideal choice.

2. Appreciation and Equity: Historically, single-family homes have demonstrated steady appreciation in value over time. By owning a house, you have the potential to build equity and enjoy long-term financial benefits.

3. Rental Flexibility: While condos are often associated with vacation rentals, single-family homes offer more flexibility in terms of rental options. You can choose between long-term rentals or even convert the property into a vacation rental if desired.

4. Customization and Lifestyle: Owning a house allows you to customize and personalize the property according to your preferences. Whether it's remodeling, expanding, or landscaping, you have the freedom to create a home that suits your lifestyle and vision.

When investing in Puerto Rico's real estate market, it's important to evaluate your investment objectives, budget, and lifestyle preferences before making a decision. Paraiso Realty can provide expert advice tailored to your specific needs on real estate investment options. With thorough research and informed decision-making, you can embark on a successful real estate investment journey in Puerto Rico.

Both condos and single-family homes offer unique advantages for real estate investors in Puerto Rico. Condominiums provide a modern lifestyle, affordability, and convenience, with attractive rental income potential. On the other hand, single-family homes offer privacy, space, customization, and the potential for long-term appreciation. Carefully evaluating your investment goals, budget, and lifestyle preferences will help you make the right choice. With the guidance of a Paraiso Realty real estate agent and thorough research, you can make an informed decision and embark on a successful real estate investment journey in Puerto Rico.

The True Value of Home Ownership: Why Every Puerto Rican Should Own Their Home

Buying and owning a home is a milestone that goes beyond financial benefits. It brings a sense of accomplishment, happiness, and pride, while offering a range of non-financial advantages. In this blog, we will explore the true value of home ownership and why every Puerto Rican living in Puerto Rico should consider owning their own home. From improved mental health and community engagement to the freedom of customization, owning a home offers a plethora of benefits that enhance your overall well-being.

1. Improved Mental Health and Well-being: Studies have consistently shown the positive impact of homeownership on mental health and overall well-being. According to Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), homeownership has emotional and psychological benefits that enhance self-esteem and overall health. Similarly, Habitat for Humanity highlights the link between residential stability among homeowners and improved life satisfaction, as well as better physical and mental health. By owning a home, you can experience increased happiness and a sense of fulfillment, fostering a healthier and more balanced lifestyle.

2. Engaging in Your Neighborhood and Fostering Community: Homeownership creates a sense of belonging and facilitates community engagement. Homeowners tend to stay in their homes longer than renters, allowing them to establish deeper connections within their communities. As Gary Acosta points out, homeowners are more likely to be actively involved in their local communities. When you have a long-term commitment to an area, it naturally motivates you to contribute to its improvement. By owning your home, you become a part of a larger community, fostering relationships, and actively participating in initiatives that enhance the neighborhood's quality of life.

3. Customization and Personalization: Owning a home means having the freedom to customize and improve your living space according to your preferences. Unlike renting, where you often face limitations imposed by landlords or leasing agreements, homeownership allows you to create a space that reflects your unique personality and style. Whether it's making small improvements or embarking on major renovations, you have the autonomy to mold your house into a true reflection of your taste and lifestyle. As Investopedia notes, homeownership gives you the knowledge that you own your little corner of the world, allowing you to remodel, paint, and decorate without seeking permission. The ability to personalize your living space fosters a greater sense of ownership, pride, and emotional connection with your home.

Owning a home offers far more than just a place to live. It brings a profound sense of accomplishment, happiness, and pride. Research has shown that homeownership positively impacts mental health, leading to improved overall well-being. Additionally, owning a home encourages community engagement, as homeowners tend to stay in one place for an extended period, allowing for stronger relationships and active involvement in local initiatives. Furthermore, the freedom to customize and personalize your living space provides a unique sense of ownership and connection. By owning your own home, you gain a higher level of satisfaction, happiness, and the opportunity to create lasting memories. If you're ready to explore the benefits of homeownership, reach out to your Paraiso Realty agent today and embark on this life-changing journey.

Tips for Stunning Curb Appeal When Listing Your Property for Sale in Puerto Rico

When it comes to selling your house, the first impression is everything. The moment potential buyers lay eyes on your property, they begin to form opinions. That's why it's crucial to enhance your curb appeal and captivate buyers from the very beginning. In this blog post, we'll explore four valuable tips from the National Association of Realtors that will help you achieve top-notch curb appeal and maximize the potential value of your home in Puerto Rico.

1.     Enhance Your Home's Exterior: Just as the interior of your house should be clean and inviting, the exterior deserves equal attention. Begin by thoroughly cleaning the exterior walls using soapy water to remove dirt, grime, and any unsightly stains. Additionally, take the time to clean your windows both inside and out, allowing natural light to fill your home and create an inviting ambiance. These simple tasks will significantly improve the overall appearance of your property.

2.     Apply a Fresh Coat of Paint: A new coat of paint can work wonders in revitalizing the look of your home. Consider applying a fresh coat to your exterior, paying attention to the front entrance and any visible areas that may require touch-ups. When selecting a color, try to remain consistent with the general aesthetic of the neighborhood. Harmonizing with neighboring homes will enhance the perceived value of your property and attract potential buyers.

3.     Maintain a Lush and Well-Tended Front Yard: The front yard is often the first thing buyers notice when they approach your home. Ensure your lawn is well-maintained, with green grass that is regularly trimmed. Take the time to tend to your shrubs and flower beds, adding colorful and appealing plants to create an inviting atmosphere. A vibrant and fresh yard will entice buyers, providing them with a positive first impression and a sense of serenity.

4.     Clean and Repair the Roof: A damaged or unkempt roof can be an instant turn-off for potential buyers. Take the necessary steps to clean and repair any issues with your roof, as this can significantly impact your home's value. Consider hiring professionals to conduct a thorough inspection and perform any required repairs. In some cases, a good cleaning and minor fixes can restore your roof's appearance, making it look as good as new.

Starting Early and Contacting Your Paraiso Realty Agent: It's essential to begin preparing your home for sale as soon as possible, allowing ample time for necessary improvements and staying within your budget. Remember, first impressions matter, and by investing in curb appeal, your home will stand out in the competitive real estate market. To further enhance your selling process, reach out to your trusted Paraiso Realty agent. They possess invaluable knowledge and expertise, ensuring you receive additional tips and tricks tailored specifically to your property.

In the realm of real estate, curb appeal plays a crucial role in attracting potential buyers and securing a successful sale. By following the tips provided by the National Association of Realtors, you can significantly increase your home's curb appeal and command a higher selling price. Clean the exterior walls and windows, apply a fresh coat of paint, maintain a well-kept front yard, and address any issues with your roof. Don't underestimate the power of a captivating first impression. With these strategies in place, your property will make a lasting impact on potential buyers, ensuring a swift and successful sale in the vibrant market of Puerto Rico. Contact your Paraiso Realty agent today to get started on maximizing the appeal of your home.

Emergency Contacts in Puerto Rico: Who to Call During Hurricanes and Earthquakes

When faced with natural disasters such as hurricanes and earthquakes, it is crucial to have a list of emergency contacts readily available. Being prepared and knowing who to reach out to can make a significant difference in ensuring your safety and the well-being of your loved ones. Here are some essential contact numbers to keep in mind during emergencies in Puerto Rico:

1. Agencia Estatal para el Manejo de Emergencias y Desastres - Contact Number: 787-724-0124 The Agencia Estatal para el Manejo de Emergencias y Desastres (State Agency for Emergency Management and Disasters) is responsible for coordinating emergency response efforts in Puerto Rico. They provide vital information, resources, and assistance during crises.

2. FEMA - Contact Number: 787-296-3500 The Federal Emergency Management Agency (FEMA) plays a crucial role in disaster response and recovery. They provide support and resources to individuals and communities affected by emergencies, including financial assistance and guidance.

3. LUMA - Contact Number: (844) 888-5862 LUMA is the company responsible for managing Puerto Rico's electrical grid. In case of power outages or electrical emergencies, contacting LUMA can help ensure a prompt response and restoration of services.

4. Bomberos - Contact Number: 787-343-2330 The Bomberos (Fire Department) is trained to handle fire emergencies, search and rescue operations, and provide assistance during natural disasters. They are equipped with the necessary expertise and resources to protect lives and property.

5. Servicio Nacional de Meteorología - Contact Number: 787-253-4586 The Servicio Nacional de Meteorología (National Weather Service) monitors weather patterns and issues forecasts, warnings, and alerts. Staying informed about weather conditions is crucial during hurricanes and other severe weather events. They can also be reached via the following website: www.Weather.gov

6. Policía - Contact Number: 787-343-2020 The Policía (Police) are responsible for maintaining law and order, as well as providing assistance during emergencies. They can offer guidance and coordinate rescue operations when necessary.

7. Cruz Roja - Contact Number: 787-758-8150 The Cruz Roja (Red Cross) is renowned for their humanitarian efforts during emergencies. They provide essential services such as shelter, first aid, and emergency supplies to affected individuals and communities.

8. Placas Solares con Batería Tesla - Contact Number: 787-974-7742 For individuals relying on solar power, Placas Solares con Batería Tesla (Tesla Solar Panels with Battery) offers support and maintenance services to ensure continued power supply during emergencies.

9. Calentadores y Cisternas Solares - Contact Number: 787-635-5575 Calentadores y Cisternas Solares (Solar Heaters and Cisterns) provide alternative water heating solutions that can be crucial during periods of limited or disrupted electrical power.

10. Estufas de Gas - Contact Number: 787-788-2269 Having a gas stove can be beneficial during extended power outages. Estufas de Gas (Gas Stoves) specializes in gas appliance installation, maintenance, and repair.

In addition to these contact numbers, it is important to be aware of the services provided by various government agencies and organizations. Here are a few more contacts to keep in mind:

• ASSMCA (Administración de Servicios de Salud Mental y Contra la Adicción) - Helpline: 1-800-981-0023

• AAA (Autoridad de Acueductos y Alcantarillados) - Contact Number: 787-521-3434

Hurricane Season 2023 has Arrived in Puerto Rico

Five days into June 2023, Puerto Rico has now officially entered hurricane season. Living in a region prone to hurricanes requires diligent preparation to ensure the safety of yourself, your loved ones, and your property. With hurricane season lasting from June 1st to November 30th, it is essential to plan ahead and take proactive measures. Here is a brief guide on how to prepare your house and yourself for the upcoming hurricane season in Puerto Rico. We will also provide a list of essential items to have on hand for dealing with the aftermath of a hurricane, along with valuable tips on purchasing a property that is less likely to be damaged during a hurricane.

1. Creating an Emergency Plan: Before hurricane season arrives, it is crucial to have an emergency plan in place. This plan should include:

• Writing down emergency phone numbers and keeping them on the refrigerator or near every phone in your house. It is also recommended to program them into your cell phone.

• Identifying the nearest shelter and mapping out different routes to get there from your home.

• Pre-identifying pet-friendly shelters, pet-friendly hotels, or out-of-town friends or relatives who can accommodate your pets during an evacuation.

• Gathering emergency supplies, including food, water, medicine, flashlights, batteries, important documents, and a fire extinguisher.

• 2. Preparing Your House and Property: Taking preventive measures to secure your house and property can significantly reduce potential damage caused by hurricanes. Here are some steps to consider:

• Clear your yard of any items that could become projectiles during strong winds, such as bicycles, lawn furniture, grills, propane tanks, and building materials. Store them indoors or secure them properly.

• Cover windows and doors with storm shutters or use plywood to protect them from shattered glass.

• Be ready to turn off your power if flooding occurs, downed power lines are present, or if you need to evacuate your home.

• Fill clean water containers and sinks with drinking water in case your water supply is interrupted.

• Regularly check and replace the battery in your carbon monoxide (CO) detector to prevent CO poisoning

• 3. Characteristics to Look for When Buying Property: If you are considering purchasing property in Puerto Rico, it is wise to look for certain characteristics that can make it less susceptible to hurricane damage. Some factors to consider include:

• Elevated location: Choose a property located on higher ground to minimize the risk of flooding.

• Strong construction: Opt for houses built with hurricane-resistant materials, such as reinforced concrete and impact-resistant windows.

• Roof strength: Ensure that the roof is designed to withstand strong winds by using hurricane straps or clips to secure it to the walls.

• Proper drainage: Look for properties with well-designed drainage systems that can effectively handle heavy rainfall.

• 4. Essential Items for the Aftermath of a Hurricane: In the aftermath of a hurricane, access to basic necessities may be limited. Therefore, it is crucial to have the following items readily available:

• Emergency food and water supply: Stock up on non-perishable food items and water that can sustain your family for at least a week.

• Emergency medicine supply: Keep a well-stocked first aid kit and an ample supply of necessary prescription medications.

• Flashlights and extra batteries: Ensure you have reliable sources of light when the power goes out.

• Safety and personal items: Include essential items like a radio, extra clothing, blankets, hygiene products, and a toolkit.

• Important documents: Safeguard important documents, including medical records, wills, passports, and personal identification, in a waterproof container.

• Cash: With power out, many business will not have operating ATM or credit card machines. Cash will be the only method of payment available.

Preparing for hurricane season in Puerto Rico requires a proactive approach to ensure the safety of yourself, your family, and your property. By creating an emergency plan, securing your house and property, and having essential supplies readily available, you can mitigate potential risks and enhance your preparedness. When considering a property purchase, look for elevated locations, strong construction, roof strength, and proper drainage to reduce the chances of hurricane damage. Stay informed, follow the advice of authorities, and prioritize the safety and well-being of your loved ones during hurricane season.

Short Term Rental Battle Continues, this time in New York City

The on-going battle between cities and short term rental App Airbnb continues. Here in Puerto Rico, San Juan has recently implemented a new fee for landlords. And the latest firing shot is taking place in New York where Airbnb has filed a lawsuit against New York City in response to a new law that imposes additional restrictions on short-term rentals within the city. The law, known as Local Law 18 or the short-term rental registration law, is set to take effect in July and requires hosts using home-sharing platforms to register with the city. Airbnb argues that the new rules essentially amount to a ban on short-term rentals and has left the company with no choice but to take legal action.

Among the requirements of the law, hosts must be the lawful occupants of the unit and be present during any rental period. Airbnb claims that the registration process is burdensome and invasive, forcing hosts to disclose extensive personal information and comply with complex regulations scattered across various laws, codes, and regulations. For example, one provision cited by Airbnb prohibits hosts from having internal locks on bedroom doors.

New York City officials maintain that the law is necessary to curb illegal short-term rentals and protect the city's housing stock. City councilman Ben Kallos, who supports the law, believes it will help reduce illegal rentals and increase the availability of permanent housing.

Airbnb's net revenue from New York City listings was $85 million in 2022, making the city a significant market for the platform. The company claims that over 5,500 short-term rentals, accommodating more than 10,000 guests, are scheduled to begin in the first week of July when the new law takes effect.

This legal dispute is not the first time Airbnb and New York City have clashed over regulations. The city has previously targeted what it considers illegal hotels listed on home-sharing platforms, leading to ongoing conflicts and legislative actions. In 2020, Airbnb agreed to dismiss a lawsuit against the city regarding the sharing of host information after reaching an agreement to collect less data.

The Wall Street Journal reported on this latest development, and the article can be read here: https://www.wsj.com/articles/airbnb-fights-new-nyc-short-term-rental-requirements-a001e173

What do you make of Short Term Rentals where you live?

A Brief Guide to Buying Your Dream Vacation Home in Puerto Rico

Dreaming of owning a vacation home where you can escape to paradise? Puerto Rico, with its stunning landscapes, vibrant culture, and tropical beauty, offers a perfect setting for your dream getaway. Whether you envision a beachfront retreat or a lush mountain hideaway, buying a vacation property in Puerto Rico can be an excellent investment. Here are some benefits of purchasing a vacation home in Puerto Rico as well as some valuable insights into the process.

1.     The Appeal of Puerto Rico's Vacation Home Market: Puerto Rico, known as the "Island of Enchantment," entices buyers with its year-round warm climate, breathtaking beaches, and rich history. As a U.S. territory, it offers the advantage of using the U.S. dollar as its currency, eliminating the need for currency exchange. Furthermore, Puerto Rico's tax incentives, including Act 20 and Act 22, attract investors seeking favorable tax benefits and financial opportunities.

2.     Choosing the Perfect Location: When it comes to buying a vacation property in Puerto Rico, location is paramount. The island offers a diverse range of regions, each with its unique appeal. For beach lovers, areas such as Rincon, Vieques, or Dorado offer magnificent coastal properties and opportunities for beachfront living. Those seeking a tranquil mountain retreat may consider properties in areas like El Yunque Rainforest or the Cordillera Central. It's essential to explore different regions, considering factors like proximity to amenities, accessibility, and the lifestyle you desire.

3.     Evaluating the Investment Potential: While your vacation home should provide a personal haven, considering its investment potential is crucial. Puerto Rico's thriving tourism industry creates opportunities for rental income when you're not using the property. Searching Google for keywords like "Beachfront Properties on Vieques," "Vieques Investment Properties," and "Vieques Vacation Homes" highlight the market potential of this specific location. Analyze the demand for vacation rentals, consult your Paraiso Realty agent, and research rental rates to make an informed decision.

4.     Finding Your Ideal Vacation Property: Once you've determined the location and investment potential, it's time to start the search for your dream vacation home. Paraiso Realty can guide you through the process, provide insights into local regulations, and help you find properties that match your preferences and budget. Utilize online platforms, attend open houses, and visit Puerto Rico to get a firsthand experience of potential properties.

5.     Key Considerations for Vacation Home Buyers:

*Location Amenities: Consider the proximity to attractions and amenities that initially drew you to Puerto Rico. Whether it's pristine beaches, hiking trails, or lively downtown areas, ensure your vacation property is conveniently situated to enhance its appeal to future renters.

*Property Size: Assess the number of bedrooms and overall space based on your personal needs and the potential rental demand. More bedrooms provide versatility and may command higher rental rates, but keep in mind the associated maintenance and cleaning costs.

*Homeowners Association Rules and Local Regulations: Research any restrictions on rental properties imposed by homeowner associations or local municipalities. Ensure your chosen property aligns with your rental plans and meets all legal requirements.

*Accessibility: Evaluate the ease of travel to your vacation home, considering the proximity to airports or major transportation routes. Convenience is essential for both personal use and managing the property when you're not there.

*Property Management: If you live far from Puerto Rico, hiring a caretaker or property management company is advisable. They can oversee regular inspections, handle maintenance issues, and ensure your property is well-maintained, giving you peace of mind.

6.     Financial Considerations:

*Consult a Tax Advisor: Puerto Rico's unique tax incentives, such as Act 20 and Act 22, offer potential advantages for investors. However, tax regulations can be complex. Seek guidance from a tax advisor who specializes in Puerto Rico to understand the tax implications of owning a vacation property and any potential benefits you may be eligible for.

*Financing Options: Explore financing options available for purchasing a vacation home in Puerto Rico. Interest rates and down payment requirements may differ from those for primary residences. Research local lenders, mortgage brokers, and banks to find the most suitable financing solution for your needs.

*Insurance Coverage: Protect your investment by obtaining homeowners insurance for your vacation property. Research insurance providers that offer coverage in Puerto Rico, taking into account the property's location and any specific risks associated with the area. Adequate insurance coverage will provide peace of mind and protect you against unexpected events.

*Property Management Costs: If you plan to rent out your vacation home, budget for property management costs. Engaging the services of a professional property management company will ensure efficient management, regular property inspections, and handling of rental logistics. Research local property management companies and obtain cost estimates to include in your financial planning.

7.     Making an Informed Decision:

*Due Diligence: Before finalizing a purchase, conduct thorough due diligence on the chosen property. Engage the services of a professional home inspector to identify any potential issues or necessary repairs. Review the property's title and legal documents to ensure a smooth and transparent transaction.

*Negotiation and Closing Process: Work closely with your Paraiso Realty agent to negotiate the purchase price and terms of the transaction. Once an agreement is reached, engage an attorney to assist you with the closing process, including reviewing contracts and ensuring all legal requirements are met.

*Ongoing Property Management: Once you've acquired your vacation property, establish a plan for ongoing property management. If you live far away, enlist the services of a reputable property management company to handle day-to-day operations, maintenance, and guest relations. Regularly communicate with your property manager to stay informed about the property's performance and address any concerns.

Investing in a vacation property in Puerto Rico offers a unique opportunity to own a piece of paradise while potentially generating rental income. By considering location, investment potential, financial aspects, and key considerations for vacation home buyers, you can make an informed decision that aligns with your goals. Remember to consult with Paraiso Realty Broker, conduct thorough research, and seek professional guidance throughout the process. With careful planning and due diligence, your dream of owning a vacation home in Puerto Rico can become a rewarding and profitable reality.

Wealthy Homebuyers are Flocking to Puerto Rico: Per WSJ

The Wall Street Journal published an article this morning as to why wealthy homebuyers are flocking to Puerto Rico. A link to the article is down below. For those that don’t have a subscription, here is a synopsis:

Wealthy homebuyers are increasingly attracted to Puerto Rico due to favorable tax policies, warm weather, and the rise of remote work. This has transformed the island into a full-time destination for high-net-worth individuals. Luxury housing market in Puerto Rico is booming, with investors and developers capitalizing on the growing demand for high-end homes. Tax incentives, known as Act 60, play a significant role in driving the surge in the market. These incentives allow individuals and corporations relocating to Puerto Rico to enjoy tax benefits, such as not paying federal income taxes on income sourced in Puerto Rico. The requirement to own a home on the island has further fueled the buyer pool. The island's warm climate, coupled with the adoption of remote work and low cost of living, has accelerated the trend of wealthy individuals buying primary and vacation homes in Puerto Rico.

The luxury housing market has seen several notable deals, including a $40 million home sale, setting a record for the island. Dorado Beach Resort, a wealthy enclave on the north shore of the island, has experienced a significant increase in median sale prices for homes priced above $1 million. Other areas, such as Condado, Bahia Beach, and Palmas del Mar, have also witnessed rising prices.

The tax benefits offered by Puerto Rico have attracted wealthy individuals, including crypto entrepreneurs and hedge funders, who have the flexibility to move their businesses. The island's tax policies have transformed it from a place people wanted to visit to a destination for wealthy homebuyers seeking an incredible lifestyle and tax savings. The tax benefits introduced in 2012 have led to an increase in the number of individuals granted tax-exempt status under Act 60. However, the number dropped in 2022 due to the crash in the crypto market.

Early movers who took advantage of the tax benefits include crypto investor Michael Terpin, who relocated to Puerto Rico from Nevada in 2016. Terpin has seen the formation of a crypto community on the island and has found Puerto Rico to be a welcoming place with ample networking and business opportunities. Other individuals, such as business coach Christian Mickelsen, have also embraced the island's tax benefits and resort lifestyle.

Real estate investment has surged in Puerto Rico, with investors capitalizing on the booming market. Some aspirational sellers have listed their properties at high prices, taking advantage of the increased demand for finished homes. Local builders and developers from the mainland U.S. are racing to construct new homes to meet the growing demand.

Here is a link to the full article: https://www.wsj.com/articles/puerto-rico-real-estate-market-58ec50da

Puerto Rico's Top 5 Walkable Neighborhoods (and 5 with Potential)

Walkable neighborhoods are in high demand throughout the world, as more and more people prioritize the benefits and convenience they offer. Puerto Rico offers a range of walkable neighborhoods that provide residents with the perfect blend of convenience, cultural experiences, and access to amenities. Living in a neighborhood with a high walkability score offers numerous advantages, including improved health and well-being, convenience, environmental sustainability, social interaction, and financial savings. Let's explore the top walkable neighborhoods in Puerto Rico and some with the potential for further development.

Puerto Rico, with its vibrant culture and rich history, is home to several neighborhoods that score high on walkability. They all have the ingredients for healthy walkable neighborhoods with nearby parks, cultural experiences, retail stores, grocery options, and popular bars and restaurants. Walkability scores provide an objective measure of how easy it is to accomplish daily errands without a car. Factors considered include proximity to amenities, access to public transportation, street connectivity, and pedestrian infrastructure. The higher the walkability score, the more walkable and convenient the neighborhood is deemed to be.

Here are the current Top 5 Walkable neighborhoods in Puerto Rico:

1.     Old San Juan: (Average Walkability Score: 98) Old San Juan, the historic heart of the capital city, is renowned for its picturesque cobblestone streets and colorful colonial architecture. With a near-perfect walkability score of 98, it epitomizes urban charm and accessibility. Residents can wander through the narrow streets, discovering enchanting plazas, boutique shops, and delightful cafes. Parque de las Palomas, a serene oasis with stunning views of the ocean, and Parque de Armas is ideal for people watching and sipping a cup of coffee. For a cultural experience, Castillo San Felipe del Morro, a UNESCO World Heritage Site, stands as a testament to Puerto Rico's rich history. The Museo de las Americas hosts permanent and temporary exhibits worth visiting, as does the Museo de San Juan. Popular retail stores include boutique clothing stores Pure Soul Boutique and Collective Request, and of course everyone’s favorite discount store, Marshalls. SuperMax is the go-to grocery store for everyday necessities, located right on Plaza de Armas, while La Factoria and La Lanterna are among the favorite bars and restaurants in the area.

2.     Miramar: (Average Walkability Score: 94) Miramar combines the charm of a residential neighborhood with the convenience of urban amenities. With a high walkability score of 94, Miramar offers an abundance of parks and recreational spaces, including the popular walking path around Condado Lagoon and the Parquecito de Miramar. The neighborhood boasts a vibrant arts scene, with the Puerto Rico Conservatory of Music, the Museum of Art and Design, and Caribbean Fine Arts movie theater adding to its cultural allure. For retail therapy, Plaza Las Américas, the largest shopping mall in the Caribbean, is just a short distance away. La Hacienda and Supermercado Pueblo cater to grocery needs, while Melanzana and the Rare 125 offer exceptional dining experiences.

3.     Santurce Sur: (Average Walkability Score: 92) Santurce, known for its eclectic atmosphere, is a hub of artistic expression and creativity. With a walkability score of 92, this neighborhood offers a lively urban experience. As a cultural hotspot, Santurce is home to various art galleries and museums, such as the Museum of Contemporary Art of Puerto Rico. The Mercado Santurce provides an array of retail options, including fresh produce and artisanal goods. For grocery shopping, Econo and Pueblo are popular choices. La Placita de Santurce is a must-visit for its vibrant nightlife and renowned restaurants like Santaella and Vianda can be found nearby.

4.     Condado: (Average Walkability Score: 89) Condado, located in the heart of San Juan, is a bustling neighborhood known for its upscale residential areas, beautiful beaches, and vibrant nightlife. With an average walkability score of 89, Condado offers a blend of urban convenience and beachfront allure. Parque Ventana al Mar provides a lovely green space and a perfect spot for outdoor activities. Luxury boutiques and designer stores line Ashford Avenue, catering to retail enthusiasts. Freshmart and Super Max are popular grocery stores, while trendy bars and restaurants like Jose Enrique, Kasalta, and Via Appia present an array of dining and entertainment options.

5.     Ponce Historical Zone: (Average Walkability Score: 88) Ponce Historical Zone, located in the city of Ponce, exudes historic charm with its well-preserved Spanish colonial architecture. Despite being the smallest neighborhood on our list, it boasts a respectable average walkability score of 88. The neighborhood is home to Parque de Bombas, a striking red-and-black firehouse turned museum, which serves as a cultural landmark. Plaza Las Delicias, the central square, is surrounded by shops, cafes, and the iconic Cathedral of Our Lady of Guadalupe. For retail needs, Plaza del Caribe offers a variety of stores. Super Max and Econo are the main grocery stores in the area. In terms of dining, Lola Eclectic Cuisine and Nispero Asador provide memorable culinary experiences.

While Puerto Rico already has several neighborhoods with high walkability, there are other areas that have the potential to further develop and improve their walkability. These cities and neighborhoods have the foundation to become highly walkable areas by implementing urban planning strategies that prioritize pedestrians, promote active transportation, and enhance the overall quality of the public realm. Let's explore five cities or neighborhoods in Puerto Rico that have the potential to become the next high walkability areas:

1.     Rio Piedras, San Juan: Rio Piedras, a district of San Juan, has the potential to enhance its walkability. It is home to the University of Puerto Rico and has a vibrant commercial center. By improving pedestrian infrastructure, expanding sidewalk networks, and implementing traffic calming measures, Rio Piedras can further encourage walking and create a more pedestrian-friendly environment. Current Score: 73

2.     Hato Rey, San Juan: Hato Rey, another district in San Juan, is a major financial and business hub. While it already has some walkable areas, there is room for improvement. Enhancing pedestrian connectivity, creating more green spaces, and implementing complete streets policies would help make Hato Rey a more walkable neighborhood. Current Score: 87

3.     Mayagüez City Center: Mayagüez is a vibrant city on the western coast of Puerto Rico. Its city center has the potential to become a highly walkable area. By prioritizing pedestrian-friendly infrastructure, improving sidewalks and crosswalks, and revitalizing public spaces, Mayagüez City Center can create a more inviting environment for pedestrians and enhance its walkability. Current Score: 86

4.     Caguas City Center: Caguas, located in the central region of Puerto Rico, has a historic city center that can be further developed to enhance walkability. Investing in pedestrian-oriented infrastructure, creating shared-use paths or bike lanes, and improving connectivity between key destinations can transform Caguas City Center into a more walkable and attractive area. Current Score: 86

5.     Bayamón Centro: Bayamón, a city near San Juan, has the potential to enhance the walkability of its central area. By improving pedestrian infrastructure, creating pedestrian zones or plazas , and increasing access to green spaces, Bayamón Centro can improve its walkability and create a more inviting environment for residents and visitors. Current Score: 82

These cities and neighborhoods mentioned above have great potential to become highly walkable areas in Puerto Rico. By focusing on urban planning strategies that prioritize pedestrians and promote active transportation, these areas can unlock their full potential and create more walkable and liveable environments.

To enhance walkability, several key elements need to be considered. First and foremost, the development of pedestrian-friendly infrastructure is crucial. This includes well-maintained sidewalks, clearly marked crosswalks, and pedestrian-friendly intersections. Implementing traffic calming measures, such as speed bumps and reduced speed limits, can help create safer streets for pedestrians. Additionally, creating dedicated bike lanes or shared-use paths can encourage cycling as an alternative mode of transportation.

Green spaces and parks also play a vital role in enhancing walkability. Accessible and well-maintained parks provide residents with opportunities for recreation, exercise, and social interaction. Incorporating greenery and landscaping in urban areas not only improves aesthetics but also contributes to the overall well-being of residents. These green spaces can serve as gathering places for community events and activities, further fostering a sense of belonging and social interaction.

Another important aspect of walkable neighborhoods is access to amenities and services. The presence of grocery stores, retail shops, restaurants, and cultural venues within walking distance reduces the reliance on private vehicles for daily errands. Mixed-use developments that combine residential and commercial spaces can contribute to vibrant and walkable neighborhoods. By integrating a variety of amenities, residents can meet their daily needs conveniently and efficiently.

Public transportation also plays a significant role in enhancing walkability. Well-connected and accessible public transportation systems, such as buses or light rail, provide an alternative to private vehicles for longer journeys. Integrating public transportation routes with pedestrian infrastructure ensures seamless connectivity and encourages the use of sustainable transportation options.

Community involvement and engagement are essential for the success of creating walkable neighborhoods. Engaging residents, local businesses, and community organizations in the planning process fosters a sense of ownership and ensures that the development aligns with the needs and desires of the community. Inclusive public spaces that accommodate people of all ages and abilities contribute to a more diverse and vibrant community.

Puerto Rico offers a range of walkable neighborhoods that provide residents with the perfect blend of convenience, cultural experiences, and access to amenities. The top five walkable neighborhoods, including Old San Juan, Miramar, Santurce Sur, Condado, and Ponce Historical Zone, showcase the rich history, vibrant culture, and unique characteristics of Puerto Rico. These neighborhoods offer residents and visitors the opportunity to explore on foot, discover local treasures, and engage with the community.

Moreover, cities and neighborhoods such as Rio Piedras, Hato Rey, Mayagüez City Center, Caguas City Center, and Bayamón Centro have the potential to become highly walkable areas by implementing urban planning strategies that prioritize pedestrians, promote active transportation, and enhance the overall quality of the public realm. By investing in pedestrian-friendly infrastructure, creating green spaces, improving access to amenities, and involving the community in the process, these areas can unlock their potential and create more walkable, sustainable, and livable environments for everyone to enjoy.

To find out the Walkability of your home or neighborhood, check out the WalkScore website to enter your specific address: www.walkscore.com .

Can I use a mortgage company from the continental USA to finance my purchase in Puerto Rico?

While it is possible for a US-based bank or mortgage company to provide financing for the purchase of property in Puerto Rico, there are some reasons why it may be more advantageous to use a mortgage company based in Puerto Rico.

Firstly, Puerto Rico has its own laws and regulations that govern the purchase and financing of property, and a mortgage company based in Puerto Rico will have a better understanding of these laws and regulations. This can be particularly important if you are not familiar with the local laws and regulations, as it can help ensure that your financing process goes smoothly.

Additionally, using a Puerto Rico-based mortgage company may provide access to financing options that are specifically designed for Puerto Rico. This can include programs that offer lower interest rates or better terms than what may be available from a US-based bank.

Furthermore, using a local mortgage company may also provide more personalized service, as the company will be familiar with the local real estate market and may be better equipped to provide guidance and assistance throughout the financing process.

At Paraiso Realty we have not recently seen any bank in the continental US finance a deal in Puerto Rico. While Puerto Rico is part of the US, it appears the US and PR banking systems treat each other as if they are separate international entities. While it is worth talking with your local lender in the US about purchasing a property in PR, we doubt they will finance a mortgage here for you.

We have had clients pull money out of their homes in the states with home equity loans, and then use that cash to purchase homes down here, however we have not had anyone use a US based bank to receive direct mortgage financing.

If you will need financing for your purchase in PR. We suggest lining up the financing ahead of time before starting your property search. Most real estate brokers in PR will require Proof of Funds or a PreQual letter from a lender before seeing any properties, so it is prudent to work on this due diligence in advance.

If you are looking for a PR based mortgage company, we have a few banks and names to recommend. When you first talk with them, feel free to let them know we recommended their services:

First Bank: Giulianna Perlloni, giulianna.perlloni@firstbankpr.com, 787-307-3606

Oriental Bank: Alison Ramos, alison.ramossuarez@orientalbank.com, 939-282-0608

Cross Country Mortgage: Lawrence Johnson, Larry.Johnson@ccm.com, 720-684-7141

Capital Mortgage: Hector Orta, ho@tucapitalpr.com, 787-310-6222

Why work with Paraiso Realty?

Moving to Puerto Rico can be a dream come true for many people. With its beautiful beaches, warm climate, and vibrant culture, it's easy to see why so many are drawn to this Caribbean paradise. Whether you're interested in being a full-time resident, making the move to a new home, owning a vacation property, or you’re a Puerto Rican looking to move back to your motherland, there are plenty of reasons to make Puerto Rico your home. And when it comes to finding the perfect property, Bob Gevinski of Paraiso Realty is the go-to realtor in the San Juan, Dorado, Vieques, and Luquillo markets.

Sales of Puerto Rican real estate have been on the rise since Hurricane Maria and the COVID-19 pandemic. Many people have realized that they can work remotely from Puerto Rico and even have their children attend school remotely, making it an ideal place to live. With that said, let's take a closer look at why people move to Vieques and what makes San Juan such a vibrant place to live.

Why People Move to Vieques

1. Beautiful Beaches: With over 40 beaches on this small island, Vieques is a paradise for beach lovers. The beaches are often uncrowded, and many of them are secluded, making them ideal for a romantic getaway or a peaceful day with the family.

2. Nature at Its Finest: Vieques is home to a National Wildlife Refuge, which means you'll be surrounded by beautiful natural scenery, including mangroves, lagoons, and a bioluminescent bay.

3. Peaceful Island Life: Life on Vieques moves at a slower pace, allowing you to enjoy a more peaceful and relaxing lifestyle. With a small community of around 9,000 people, you'll quickly feel at home on this charming island.

4. Diving and Snorkeling: With crystal clear waters and an abundance of marine life, Vieques is a popular spot for diving and snorkeling. You'll have the opportunity to explore coral reefs, shipwrecks, and underwater caves.

5. Unique History: Vieques has a unique history that is deeply intertwined with its relationship with the United States Navy. You can learn about this history by visiting the Vieques Historical Archives or exploring the remnants of the old Navy base.

What Makes San Juan a Vibrant Place to Live

1. Cultural Diversity: San Juan is a melting pot of different cultures, which is reflected in the food, music, and art scenes. You'll have the opportunity to experience everything from traditional Puerto Rican cuisine to contemporary art exhibits.

2. Beautiful Architecture: San Juan's architecture is a beautiful mix of Spanish colonial, Art Deco, and modern styles. From the colorful buildings of Old San Juan to the sleek skyscrapers of Condado, there is no shortage of stunning architecture to admire.

3. Nightlife: San Juan has a vibrant nightlife scene that caters to all tastes. Whether you want to dance the night away at a salsa club or enjoy a quiet drink at a cozy bar, you'll find something to suit your mood.

4. Beautiful Beaches: San Juan is home to some of the most beautiful beaches in Puerto Rico, including the popular Isla Verde and Condado Beach. With crystal clear waters and soft sand, these beaches are perfect for swimming, sunbathing, and water sports.

5. Convenient Location: San Juan is the capital of Puerto Rico and is conveniently located near the airport, making it easy to travel to other parts of the island or to the mainland United States.

Whether you're looking to move to Vieques or San Juan, Bob Gevinski of Paraiso Realty is here to help. With his extensive knowledge of the Puerto Rican real estate market, he can help you find the perfect home to fit your needs and lifestyle. And if you're looking to sell your home, Bob can help you navigate the market and find the right buyer for your property.

When it comes to moving to Puerto Rico, there are a few things to keep in mind. First, it's important to understand the local customs and culture. Puerto Rico has a unique history and culture, and it's important to respect and appreciate this when living on the island.

Second, it's important to consider the cost of living in Puerto Rico. While the cost of living is generally lower than in many parts of the United States, it's important to budget accordingly and be aware of the local prices for goods and services.

Finally, it's important to work with a knowledgeable and experienced realtor like Bob Gevinski. Bob can help you find the perfect property to fit your needs and budget, and can guide you through the process of buying or selling a home in Puerto Rico.

In conclusion, Puerto Rico offers a beautiful and vibrant place to live, whether you're looking for a peaceful island retreat or a bustling city atmosphere. With its beautiful beaches, rich history, and vibrant culture, Puerto Rico truly has something for everyone. And with the help of Bob Gevinski of Paraiso Realty, you can find the perfect home to make Puerto Rico your own.

Basic info about CRIM, the property tax collecting agency in Puerto Rico

Puerto Rico is a beautiful country with a rich cultural heritage and a thriving real estate market. However, owning property in Puerto Rico comes with its own unique set of challenges, including the need to pay property taxes twice a year to CRIM, the agency responsible for collecting property taxes for the municipalities.

CRIM, which stands for "Centro de Racecaudacion de Ingresos Municipales," translates to the Center for Municipal Revenue Collection Center in English. Property owners in Puerto Rico are required to pay their property tax payments in July and January each year.

When buying or selling property in Puerto Rico, it is crucial to register the deed at the Registrar's Office and file a change of ownership form with CRIM. These two agencies are both part of the government but operate independently from each other. This means that they don't always communicate, unlike in many US states where the deed is filed at the same location where properties are assessed, and taxes are collected. Therefore, it is important to ensure that these agencies are notified of any changes in ownership by the notary handling the closing process.

Despite being a government agency, CRIM is not as proactive as one might expect. While it is responsible for property tax collection, its focus is on collecting revenue from San Juan or federal grants. As a result, most properties in Puerto Rico have not been assessed in over 50 years, making property taxes very low compared to what owners are used to in other parts of the world. Additionally, there are no separate taxes for fire departments, police, or schools, as all of the budgeting for these services comes out of San Juan, rather than the municipalities.

However, property owners are still responsible for notifying CRIM of any changes to their property that could increase its value. For example, if you add an extension to your existing building, install a pool or tennis court, or make any other capital improvements, you need to notify CRIM upon completion. Although it may take years for an appraiser to visit and reassess the property, the property owner's responsibility is to notify CRIM of any changes. Failure to do so can result in fines if CRIM catches the improvement without prior notification.

In summary, owning property in Puerto Rico comes with the responsibility of paying property taxes twice a year to CRIM and notifying them of any changes that may increase the property's value. While CRIM may not be as proactive as some may expect, it is still important to ensure that all necessary steps are taken to comply with the regulations. By doing so, property owners can enjoy the beauty and richness of their piece of paradise.

Tips for Driving in Puerto Rico

We came across a post on the PuertoRicoDayTrips website the other day, and can’t help but share the driving tips they gave for life in Puerto Rico. Defensive driving is always prudent, regardless in which country you find yourself. These tips fit right into that category:

Some examples of the typical bad driving habits you need to watch out for include.

• Most people don’t use blinkers/turn signals when changing lanes. They just do it … quickly!

• Even if someone’s turn signal is flashing, don’t necessarily believe it.

• We have a "no passing on the right" rule, but people will pass in any lane (including using the shoulder as a passing lane).

• We also have "keep right except to pass" and "left lane is the fast lane" rules. But people will drive slowly or very fast in any lane.

• Motorcyclists make their lane in between lanes by riding on the line. Be careful changing lanes.

• People make U-turns when they have a red light all the time.

• People push the yellow light and end up running the red lights! Be extra careful at intersections. Do not jump the green light until you know the other traffic is stopped.

• Be CAREFUL early in the morning. It seems that if no is using the intersection, people don’t bother stopping or waiting at red lights.

• Be very careful around curves on small mountain roads or on small roads that don’t have a lot of traffic. Local drivers who know the curves take their lane in the middle! Go slowly and toot your horn before going around a narrow curve in the mountains, and keep a driver-side window cracked so you can hear others do the same.

• The police drive around all the time with their blue lights on, so do not panic or pull over unless they turn on the siren.

• Often, people will cut you off and even block a lane if they need to get into traffic. They do not wait for an opening.

• People will stop suddenly and backup if they missed a turn or exit.

• Don’t assume which direction people are going by the lane they are in. If they are in the wrong lane, they will turn from the lane the are in. You’ll see people turn left from the right-most lane, and other people turn right from the left-most lane.

What would you add to their list?

Is it smart to buy a house in Puerto Rico?

Puerto Rico is a beautiful island in the Caribbean that has long been a popular destination for tourists seeking sun, sand, and sea. With its warm weather, gorgeous beaches, and rich culture, it's no wonder that many people dream of owning a home in Puerto Rico. However, is buying a house in Puerto Rico a smart investment? We will explore the pros and cons of buying a house in Puerto Rico to help you make an informed decision.

Pros of buying a house in Puerto Rico:

• Lower cost of living

Compared to many other U.S. states, the cost of living in Puerto Rico is low. This can make buying a house more affordable, especially if you are on a tight budget. Additionally, property taxes in Puerto Rico are significantly lower than in most U.S. states.

• Tax benefits

One of the biggest advantages of buying a house in Puerto Rico is the tax benefits. The island is a U.S. territory, which means that Puerto Rican residents are subject to U.S. federal income tax. However, there are several tax incentives available to people who move to Puerto Rico, including Act 20, Act 22 and Act 60. These incentives can reduce your taxes significantly, making it a smart financial move for many investors.

• Beautiful weather and beaches

Puerto Rico is known for its beautiful weather and beaches. If you're looking for a place to retire or escape the cold winters up north, Puerto Rico might be the perfect destination for you. The island enjoys warm weather year-round and has some of the most beautiful beaches in the world.

• Cultural richness

Puerto Rico is rich in history and culture, with a unique blend of Spanish, African, and indigenous influences. The island's vibrant music, art, and food scene make it a fascinating place to explore and experience. Additionally, the island has many festivals and events throughout the year, celebrating everything from music and food to the arts and culture.

Cons of buying a house in Puerto Rico:

• Natural disasters

Puerto Rico is located in a hurricane zone and is prone to other natural disasters such as earthquakes. Hurricane Maria in 2017 was the most recent hurricane to cause problems throughout the archipelago. While the island is in the process of rebuilding and improving its infrastructure, natural disasters remain a potential risk for homeowners. Fortunately, with every storm, we learn what changes need to be made to better prepare ourselves for future storms. For this reason most homes now have generators, cisterns, and concrete structures.

• Property values

The real estate market in Puerto Rico can be volatile, with property values fluctuating significantly in recent years. While some areas have seen strong growth, like Dorado, San Juan, Palmas, and Rincon, other areas have remained flat.

• Infrastructure challenges

Puerto Rico has struggled with infrastructure challenges, particularly with its electrical grid and water supply. Many areas of the island experienced long power outages following Hurricane Maria, and the water supply can be unreliable in some areas. While the government is working to improve these issues, they remain a concern for homeowners. Creating a living space that is self-reliant on water and electricity has become a popular amenity.

Conclusion:

So, is it smart to buy a house in Puerto Rico? As with any investment, there are pros and cons to consider. Puerto Rico offers many advantages to homeowners, including a lower cost of living, tax benefits, beautiful weather and beaches, and a rich culture. However, there are also potential challenges to be aware of, such as natural disasters, property values, and infrastructure challenges. If you're considering buying a house in Puerto Rico, it's important to do your research and consider each of these factors with the particular property and town that interests you most.

If you are interested in shopping properties in Puerto Rico, Paraiso Realty has a gallery of properties to consider. Click on the image on the below left to see our Residential and Commercial Options. the image on the right will take you to our Land options. We’ll gladly answer any questions you may have about either.

CLICK HERE TO SEE RESIDENTIAL & COMMERCIAL

CLICK HERE TO SEE LAND LISTINGS

Puerto Rico to hold hearings on short-term rentals, with focus on Zoning and Taxation

Starting February 1, there will be hearings regarding short-term rentals in Puerto Rico, and certain companies like Airbnb are already sending up warning flags about any radical changes. There is a general feeling that short term rentals are more lucrative for landlords, thus creating a shortage of long term rentals. One focus of the hearings will be whether short term rentals should be allowed in residential zoned neighborhoods. As reported in El Nuevo Dia this past week, Airbnb states that if Airbnb is outlawed in those areas, it will be detrimental to the economy of Puerto Rico. Here is a link to the article, which is in Spanish:

https://www.elnuevodia.com/negocios/turismo/notas/airbnb-advierte-que-desaparecerian-miles-de-alquileres-si-limitan-su-operacion-en-zonas-residenciales

Those that follow Puerto Rican politics think that the end result of these hearings is that homeowners will be allowed to rent out their residential properties as short-term rentals for 30% of the year. If they rent out for more than that percentage, they will then be considered commercial entities. Classifying the property a commercial entity opens new tax revenue for municipalities and the PR government, which ultimately is what the Puerto Rican politicians are most focused on. As to what this means from a zoning change basis, no one seems to know. The professionals we have spoken with think these hearings have more to do with reviewing current taxation and collection procedures.

Stay tuned.

How are interest rate hikes effecting the Puerto Rico Real Estate Market?

There is an interesting Opinion piece in today’s El Vocero newspaper about the current market cycle of real estate in Puerto Rico and the Fed’s interest rate hikes. Will the lack of new construction in Puerto Rico combined with other financial incentives mean we jump quickly from the contraction phase to the recovery phase? What is your opinion?

To read the Opinion Piece in Spanish, click here: EL VOCERO

Here is an English translation of the piece:

The recent rise of the Federal Reserve of half a point in interest rates, represents an increase in the mortgage interest rate that brought it from 7.75% to 8.5%. Similarly, the Federal Reserve also announced that further interest rate hikes could emerge in 2023, depending on economic conditions.

To contextualize this phenomenon, it will only be necessary to understand that the local real estate market is adjusting jointly to the stabilization of the economy. That is the response of the dimension of real estate within an integrated economy, which the Federal Reserve wants to avoid its recession after the inflation that the pandemic produced.

This phenomenon is tied to the well-known real estate cycle (Real Estate Market Cycle) which guides the behavior of the property purchase and sale market. This cycle is made up of four stages, namely: expansion, contraction, recession and recovery.

As we all know, at the moment there is little inventory of properties, vis-a-vis the demand of buyers in a scenario where the construction of new projects is limited.

In this way we identify that we are in the contraction stage. How does rising mortgage interest impact the real estate cycle? The answer to this is the essence of the transformation or advancement of the cycle, to oscillate from the contraction in which we find ourselves towards the recovery that we all expect.

To better understand the above, in practical terms in the contraction we see the limited inventory of properties for sale above market value. It is for this reason that it is sold with the condition of "not subject to appraisal"; which contrasts with the previous offer when there was an excess of inventory where we saw properties sold below market value, those that were advertised with a "negotiable price".

The above phenomenon is part of a natural process of the recessionary moment in real estate. This increase in property prices causes the need to increase interest rates. In this way, with the rise in mortgage interest, it affects the purchasing power of the buyer. This seeks to balance the market again and bring it to a midpoint where stability is to the benefit of the seller and buyer of properties.

In short, inflation is at its highest level in the last four decades. We have to see the rise in interest rates as a necessary remedy to contain said inflation, even if we don't like it.

On the other hand, the country is at a point of modulation in its economy with the support of economic variables such as reconstruction funds. Similarly, funds from the buyer assistance program is another variable that will help stabilize the economy. These two positive variables cancel the negative effect of the rise in mortgage interest. The foregoing would produce economic activity in 2023, which in turn would bring economic growth to advance the real estate cycle to the expected recovery stage. That should be the expectation of the real estate and mortgage industry, for the good of all.

December 2022 MLS Statistics

The December 2022 MLS statistics for the Puerto Rico residential real estate market have been released. The inventory of available houses for sale was higher than December 2021, and the average sales price was up 25%. Pending sales decreased, while the months of inventory increased.