Puerto Rico's Real Estate Market Boom Attracts Global Investors as a Haven and Hedge
- Delanta Frink
- May 21, 2023
- 2 min read
According to the WSJ's article of 5/19/2023, Wanda Ithier of Luxury Realty Groups Puerto Rico sold a property 33% above its original asking price within a few months of being listed on the market. This set a record on the island and one of the growing trends within the real estate sector (luxury properties) within the Caribbean. In addition, there are numerous other areas on the island where properties literally double in value within a year due to increased demand. Developers and flocking in worldwide to get a piece of the action on this island's beautiful year-round weather just 2 hours away from Miam via air. These deal serves a pitch for investors seeking yield in a struggling U.S/EU/U.K housing and commercial markets as markets take unprecedented swings.
So why is Puerto Rico's Real Estate Market So Attractive....
Well according to the island's tax benefits and incentives, Act 60 for Individual Investors makes income tax less taxing for individual residents of Puerto Rico with 0% Tax on Capital Gains, Interest, and Dividends, with NO Federal Income Tax. Aside from the various qualifications, these incentives can be seen as a tax haven for many high-net worth individuals and a hedge for investors.
So how can You get a Piece of the Action...
Most investors have their own team of fund developers/managers for these anomalies. Funds that catered to these types of market events are the best way to get in due to the level of management, accountability, and results. Having family and peers as local residents on the island is also important because it creates accessibility. Being able to navigate the island to find deals can be a headache to outsiders especially dealing with the language barriers. Our fund is currently seeking investors with a net worth of 5+million to develop in key areas on the island. We already have our connection of contractors, realtors, and property finders from previous experience of being on the island as a functionable entity.
Due to the location of this opportunity, we could experience a widespread of other neighboring islands catching a real estate boom as investors seek opportunities outside of the U.S real estate market.
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