Do you love vacationing in Puerto Rico?
If you go there often, you should consider buying a vacation home on the island. Buying a house in Puerto Rico might seem out of reach for you, but housing prices are reasonable and it’s a great investment.
Properties can be rented out when you’re not there to help you bring in passive income. You’ll also have a beautiful place to retire when you’re ready. If you’d love to call Puerto Rico home, keep reading to learn some helpful home-buying tips.
Tips for Buying a House in Puerto Rico
Puerto Rico has been hit hard recently by some natural disasters such as Hurricane Maria. But the island is starting to bounce back and is a beautiful place to call home part time or full time.
Here are five things you should know before buying a house in Puerto Rico:
1. Buying is Better Than Renting
Rents are comparable to U.S. prices on the island, but it’s a better idea to buy if you can. Monthly mortgage payments will likely be much less than rent prices.
If you’re thinking about buying, you should always use a realtor that knows the island. Strong|Edge Realty is currently working out of Puerto Rico and is a great place to get started with your home search.
2. Utility Costs are Comparable to The U.S. Mainland
You might expect utilities on an Island to be more expensive or have spotty service, but that’s not the case in Puerto Rico. Utility costs on the island run about the same as the U.S.
Also, tap water in Puerto Rico is perfectly safe to use, so you won’t have to spend money on expensive filtration systems.
3. Groceries Can Be More Expensive
Like many islands, prices on groceries and other goods can run a little high. On average, groceries in Puerto Rico will cost you about thirty percent more than the mainland U.S.
But that doesn’t mean you’ll go broke paying for food. There are tons of great local restaurants around Puerto Rico that have inexpensive deals on food.
4. Taxes are Different
Because Puerto Rico thrives on tourism, sales tax is pretty high at 11.5%. But don’t let that scare you too much. You don’t have to pay property tax on your primary residence or pay any tax on passive incomes from sources such as social security. So you easily save some money by moving to the island.
5. Homes Might Need Renovation
Puerto Rico is rich with history, but if you’re used to modern amenities you might have difficulty finding the perfect home. Not every home is going to be up-to-date and have every feature that you’re used to having in a home in the mainland U.S. But don’t be afraid to invest in a property and do some renovating if necessary.
Learn More About Buying Real Estate
If you’ve ever vacationed in Puerto Rico you already know all of the benefits of living there. The people are warm and friendly, the food is amazing and the culture is great.
Buying a house in Puerto Rico is a big investment. If your finances aren’t quite in shape, check out the rest of our blog for some financial advice. This article on avoiding money traps is a great way to help you start saving.