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puerto rico real estate market

Why Puerto Rico Is the Best Place to Invest in the World Right Now

A 7-bedroom beachfront property in TROPICAL PARADISE for the price of a home in Montgomery, Alabama? Where does this exist, Narnia? While Narnia sounds amazing, this paradise actually exists just 1,000 miles from the United States.  Puerto Rico is currently an investor’s dream.  Because Hurricane Maria caused catastrophic damage, the island faces unparalleled opportunities to rebuild.  The Caribbean island and unincorporated U.S. territory, with approximately 3 million tourists annually and a population of 3 million residents, is becoming a prime real estate market.  Here’s why it’s the perfect time to invest in Puerto Rico’s real estate market.  Prices According to Point2Homes, the current average selling price is $116,750. While the current average selling price of a home in Miami is nearly triple at $339,700.  Current prices in Puerto Rico, a popular tourist destination, are a STEAL. The median selling price of homes on the island decreased by 48% from 2010 to 2018, with Humacao and Aguadilla being the highest at a 74% decrease.  Hurricane Maria resulted in an extra 57,000 mortgages going into delinquency and caused many homeowners to sell their homes to escape the catastrophic conditions. While this tragic event wreaked havoc on the island, it does present ideal investment opportunities.  Income Opportunities  With rich history and culture, pristine beaches and world-renowned attractions, it’s no surprise that Puerto Rico is a popular tourist destination – hosting approximately 3.7 million people annually.  Airbnb provides investors with the perfect opportunity to capitalize on the current low acquisition costs and receive an expected return of 15 to 20%.  The California based hospitality company currently has 150 million users and more than 5 million listings worldwide. About 2 million people stayed in Airbnb rentals across the world during an average night in 2018, and the company continues to grow at a rapid rate.   $20,619 is the average expected profits of renting a two-bedroom apartment for a year.  With statistics like these, buying a property in Puerto Rico for 50% of its value is a no-brainer!  Our newbie’s guide to buying an Airbnb investment property outlines the following example of the potential ROI.  Example deal for Farjardo, Puerto Rico: This is a perfect Airbnb rental income opportunity. We just put a duplex for $85,000 under contract that needs very little rehab work to make it rental ready. The three options for the property are the following: Put in minor repairs under $12,000 and rent to section 8 tenants and generate a gross income of $1,450 a month. That would give the owner an ROI of 13% and get paid directly from the government. Improve the property more and get a higher rental rate. Spend $25,000 on the rehab work and generate $1800 a month for an ROI 15% a year. Complete the same repairs as the $25,000 and sell the property for $145,000 Profiting approximately $25,000 on a $110,000 investment in six months or less.  There are numerous opportunities for receiving a great ROI when purchasing a property in Puerto Rico.  Tax Incentives There are several incentives that make investing in Puerto […]