Offering select Real Estate services to buyers, investors and property owners throughout Western Puerto Rico, our boutique firm specializes in customer service. Combining a keen knowledge of the area and markets with a dedication to service and integrity, contact us today to find your ideal property or help manage your Puerto Rico vacation rental.
Isla Vida Real Estate is proud to call itself a Buyers Agency. Our goal is to help clients find the right home, condo, land or commercial property. We know our area and get the important information to best represent our buyer's interests. Our fees are paid by the seller, so using a buyer's agent makes fiscal sense and will save time. If you do not have a lot of time while in Puerto Rico, we can schedule viewings at multiple realtor's listings, often the most difficult part of buying property in Puerto Rico is arranging to see the property!
List Your Property with Isla Vida Real Estate!
As a small firm with an emphasis on service, Isla Vida Real Estate can market your property better than most firms can. We take on a limited number of listings to focus our marketing and get your property sold at the best price in the least amount of time. Every property listed over $200k will get its own website, photography and marketing budget. Contact us today to learn more about our property listing services.
In 2012, the Puerto Rico government established two laws to increase foreign investment in the island. They are known as Acts 20 and 22 and are geared toward two different investors.
Act 20, The Export Services Act, was created to encourage service-industry companies, such as financial services, consulting services and call centers, to conduct business out of Puerto Rico, providing a reduced corporate tax rate as well as exemptions on dividends to eligible service-related businesses in Puerto Rico.
Business Services That are Eligible:
View the Act 20 application here.
Act 22, The Individual Investors Act, was established to lure wealthy individuals to move to the island, providing 100% exemptions on interest, dividends and certain capital gains to eligible applicants who become bona fide Puerto Rico residents. The idea is to stimulate the economy with real estate investments, job creation, and general use of local services while stimulating the banking sector with capital.
Why Puerto Rico?
Unlike other “tax shelters,” like the Cayman Islands, when you become a resident of Puerto Rico you maintain your U.S. citizenship. In addition, you are not required to pay a painful 23.8% exit tax of your unrealized capital gains. Even though Puerto Rico is a U.S. territory, Section 933 of the Internal Revenue Code of the United States of 1986 (the “US Code”), determines bona-fide residents are exempt from federal tax. By becoming a Puerto Rico resident, they are only subject to federal income taxes on income derived from sources outside of Puerto Rico.
View the application for Act 22 here.
We at Isla Vida Real Estate are happy to answer any questions about purchasing real estate in Puerto Rico, and can recommend tax and legal advisers to help you take advantage of these laws, contact us today!
This beachfront cabana recently sold for under $100k, located at Buye Beach in Cabo Rojo, showing there are still some great properties at decent prices in Puerto Rico.
But if you want to spend just $100k, chances are you will not find anything beachfront, even land. To be realistic, $100k can by an older condo in Rincon at the Hotel Villa Cofresi or about 800 sq meters of land in the hills of Puntas in Rincon, or about land in Aguada, about 1/2 mile from the beach.
If you are willing to take on a fixer uper, there are more of these types of properties with a pretty good deal of land attached in the hills above Rincon and Aguada, also further inland from the beach in Cabo Rojo, but they are generally not financeable and would need to be a cash purchase.
If you can increase your budget to about $160k, the properties become much nicer, condos, houses, large lots and investment properties all come into play. As a buyer's agent it is my job to find your perfect Puerto Rico property whatever your budget. Our fee is paid by the seller so using a buyer's agent not only saves time, but adds no cost to your purchase!
If you are searching for Puerto Rico Real Estate, chances are you will also be looking at options for financing. There are a number of options for foreign or US based investors, as the banks in Puerto Rico operate separately from US banks. The normal requirements are 20% down with a good credit score. It is often helpful in your search if you can pre-qualify or show proof of existing funds.
One of the easiest and fastest ways to get financing is taking a secondary loan on your property in the US. Many of our clients have enough equity in their homes in the states to draw on an equity loan that is then used to pay for a condo or home here in Puerto Rico outright.
If you do not have that option, you will need to finance using a Puerto Rico based bank or finance company. I recommend First Bank or Oriental Bank as their mortgage units seem to move fast and most have an English speaking representative. Another option is the local co-op, here in Rincon, we have the Rincon Co-op that offers higher rates, but a rebate on the interest each year that make it very competitive. Also, the co-op knows the Rincon market best and may be more willing to loan on some properties that may not be appraised as well by the out of town banks.
If you want to get pre-approval before you come to Puerto Rico, Fembi Mortgage is another great option, they can help get you rate info and pre approval over the phone.
However you decide to obtain financing, it is always wise to consider a number of sources and get details of points, early payoffs and loan costs before going with any company. Feel free to contact us for any questions about Western Puerto Rico Real Estate!
Rincon is one of the most popular towns on the West Coast of Puerto Rico, and for good reason! The surf, beautiful beaches, hills and rural atmosphere provide a beautiful natural setting, add in a vibrant art community and some of the best restaurant not in San Juan and you will find Rincon to be a truly special place.
So if you want to get your piece of paradise, the time is now, while properties are still affordable and there are some fantastic ocean view lots still available for under $100k.
I've compiled a list of a few properties that I feel are great opportunities for investment in or relocation to Rincon.
The condos near the Balneario (Public Beach) are some of my favorite properties in RIncon. Offering close beach proximity without the threat of beach erosion, they are also close to the downtown plaza with its Sunday Farmer's market and great restaurants. At Chalet del Mar, there is a 2 bedroom condo listed for $140k. This property allows short term rentals and has low HOA fees,a great investment opportunity!
There are 3 pieces of land just up the road from Pools Beach that have recently been offered for sale, lots that vary from 850 sq meters to 995 sq meters for asking price of $135k. I like these lots because they are walking distance to great surf and can offer views of the Aguadilla Bay. For a more unique and private lot with a beautiful Bay view, there is an unlisted 1/4 acre lot for $300k, located just a short walk to Sandy Beach. This is the type of lot to build your Caribbean dream home; private, breezy, beach close and with fantastic views!
Homes and Multiple Units:
Puntas is a very good place to invest if you want to have rental property. There will always be surf and along with that surfers who need a place to say. There is a 3 bedroom home, completely remodeled with a studio apartment that is listed for $350k. It has a nice valley view and a short walk to great surfing. Also available is a 2 unit home with apartments on each level, needs some work, listed at $230k. Located in puntas just up the hill from great surf beaches.
For more info on any of these or other great Rincon properties, contact me, your Rincon Buyer's Agent, with details of what you are looking for, email@example.com.
Investing in property in Puerto Rico can be tricky, you really need to know the area you are investing in. What is the economic situation? What is the forecast for future units or inventory? Are rents stable? Is the tourist market consistent and will it continue to be? Of course many of these questions cannot be answered definitively, but they need to be asked.
Having lived in Western Puerto Rico for 9 years and worked with vacation rentals in Rincon for over 6 years, Jim Westfall and Isla Vida Real Estate understand the market on this side of the island. We can help you find a great investment property and will offer a market analysis of rental income and expenses. Whether it is a condo, vacation villa or land to build on, making a sound investment in income property starts with understanding the market. Contact us to help you start your Puerto Rico investment property search, firstname.lastname@example.org.