Looking for info on helping get a second home in Puerto Rico

Hi Kenny and welcome!

Take the time before you buy and make a couple of trips to the island and check out areas where you may want to buy.

Many US expats can be found in the Rincon area (west coast). The west coast is generally more laid back than other areas although as soon as you're out of the metro area (greater San Juan) live slows down.
Even more laid back are the the small islands off the east coast (Culebra and Vieques). Getting there can be a hassle since the ferry service (like most public services) are not really reliable.

Do you speak any Spanish? If not do you have a good friend or family member who does? Although you can get along with English, especially in tourist-heavy areas when it comes to business some Spanish knowledge/help won't hurt.

If you are planning to rent out the place when you don't use it yourself look for areas where this is done by others so you won't have to re-invent the wheel.

When you know which area would be yours try to rent a condo or house for a couple of weeks and look how the local life would be and if you would enjoy it.

When you're ready to buy get a broker to assist you and maybe it's also a good plan to get a lawyer to look over contracts and for general legal assistance.

Welcome here and Good luck!

Thanks Gary and we are very excited.We have spent time in Rincon and in the mountains by El Yunque rainforest. Both areas are great and the decision is brutally hard to make. If you ever have more to add please do and thank you.

Hi, I have a little experience. I have been coming to Puerto Rico about 15 years or a bit longer. I have owned property for 13 years. A house was purchased first and then i purchased a farm. I have been fortunate to have acquired properties with out the possible complication of not having a clean title, like no back taxes to CRIM or having an heir who did not sign over their portion. Lawyers are affordable here and if you can get a copy of the escritura, I think it is called that, it is like the title and property description. You can go to the office of CRIM, early is best as the lines can get long. With the catastro # on the escrtura you can find out if any taxes are owed. I think it has the names of the heirs on it also. The attorney can do this but I thought you might like to know the procedure. I live in the historic district of Ponce. It is  an old colonial town and very unlike any resort type places. I came from Ft Lauderdale, Fl so I was not anywhere interested in a beachy kind of place to live. I considered around El Yunque but did not want the humidity, possible mold, etc. I ended up in Ponce where it is very hot and dry but the nights can be cool. The mountains are 12 minutes from the Historic Center where our house is so if it gets too hot in a short time we are at the farm at 1200'above sea level. If it is really hot there is Adjuntas one of the coldest cities in Puerto Rico at 1/2 hour from Ponce. I am not promoting Ponce I am just sharing what works for me and some things to look for when you find the area that feels best. welcome and happy house hunting.

Hi,

My husband and I purchased a condo in Aguadilla overlooking Crash Boat Beach about five years ago.  It was a new development back then and the developer was offering many incentives. Our mortgage is thru Scotia Bank.    We didn't have any problems; the whole transaction went smoothly.

The name of the development is Puerta del Mar.  Many owners (myself included) rent out their condos as vacation rentals.  There are also many American in this area.  Not sure if you're interested in the area but if you are, you can go to homeaway.com and enter Aguadilla, PR.  I know you mentioned that were interested in renting for a month. 

Puerta del Mar still has units that have not sold.  They're mostly first floors with no Ocean view but it's a gated community, it's safe and just breathtaking and I believe they are still offering incentives.

As many people have mentioned on this site, I would rent for a while before buying something.  Just my two sense on the subject.

Good Luck!
Liz

We went to Crash Boat this trip, lovely!

Hi All,

I just posted a message in the new member section about Inheritance laws in Puerto Rico that I believe everyone should familiarize themselves with before they purchase a house.

I know this thread is specifically about purchasing a house so thought I would post a message here also.

I just became aware of this today myself as I was searching for things in general about PR and it seems to be quite important to understand if as a couple you are thinking of a buying a house.

Basically, and I know people aren't going to like the way this sounds, but if something happens to the husband, there is a problem with the wife getting full ownership of the house as the husband's half share of the house goes to his blood relatives.

It is my understanding there are ways to work around this, but certain steps need to be taken to do so.

This is how I understand it, but if you search for Puerto Rico Inheritance laws you will get a complete explanation of what they are.

Thank you, Johnny, for posting this information.  Sounds sort of archaic to me.

Hi Schuttzie,

Yeah, from what I understand the PR Inheritance laws are base on older Spainish law, though while the laws of Spain have been modified so that they would not apply to a couple of foreign origin, that modification has not taken place in PR.

This is what I was told by my attorney. How the inheritance works is that if you are married your spouse automatically gets half. Your children are next equally and if you have no children it goes to your surviving parents. You can not write a will and designate an heir for 1/2 half of the estate and I am not sure about the other half. If your spouse signs over their inheritance then you would have options. It is also my understanding that if you own a home in Puerto Rico and you are not a resident the taxes if you are to sell it are 30%. That may change with the new tax laws but this is what I was told exist to this point.

it's probably best if I just talk to a lawyer in Puerto Rico and find out the easiest way to do it under Puerto Rican law. I will need a lawyer anyways as part of the home buying process.

Definitely talk to a property lawyer.

Thanks for the advice

Kennypackers1, we have had a second home in PR for 8 years.  The process of buying was pretty simple and we had no issues but some important things to consider are the maintenance of the house.  Homes in PR need a lot of attention due to the salt air and weather.  Landscaping, painting, cleaning are a constant battle and you really need to find reliable services which is not easy.  Make sure to take this into consideration when deciding on a home vs. condo.  I have been very lucky to have great neighbors who watch the house when it is not rented or I am not there.  Also, I found a good landscaper and house cleaner along with electrician and plumber.  My husband speaks Spanish so this has been the lifesaver.  Good luck in your search. I love my home even though its a lot of work.  We have had great family trips.  We plan to retire there some day but still have another 10 years   

Lisa

Thanks Lisa for the information

As a Mortgage Loan Officer in Puerto Roco what I can tell you about purchasing a second home or vacation home is that you can finance up to 90% from the sales price. Not 100%. Subject to credit approval, income and collateral. If you're going to relocate to live at least half of the year, then you could use another type of financing up to 95% with a conventional fannie mae loan with private mortgage insurance or a VA loan 100% if you qualify for that benefit or FHA 96.5%, etc. If is a multiunit or investment property for rental income you could finance up to 80% from the sales price. You will pay taxes for second homes or investment properties. Taxes are cheap in comparison with the states.

I will tell you cash talks. If you have the money to pay cash you can find a better deal.
I will agree with Lisa 100%, houses in the island require more maintenance due to the weather. If you are not there, find a person you trust to keep up with the property. Not only with the maintenance but also to make sure no one breaks into the property.
We have a great person that's taking care of our property when we are in the mainland. He takes care of the grounds and his wife keeps the inside clean for us. I have internet on the property and installed cameras inside and out to monitor remotely. Between they going to the house at least once a week and the cameras system we are covered.

This is a 2 year old thread, not sure they are still looking for answers.

Hi Rey, just wanted to pop in and say all these threads still help...me anyway.  I have googled or searched this site directly for information and a lot of it is still very relevant and helpful.    So thanks to everyone who offers their advice!

Yes, searching old threads can be very helpful and let you narrow down the questions to your specific situation. Just don't expect that the people that participated in those threads are still around since many are not.