We thought it would be good to make a page for people who are also interested in, or curious about, relocating to Puerto Rico. While we are definitely NOT experts in real estate, or properties, or really, much of anything at all, we are hopeful that at least one web surfing soul might get something from our experience here that will save them some of the headaches we have brought upon ourselves during the process of TRYING to buy a home in paradise.
Everything we read about buying in Puerto Rico said in huge neon sign letters to BE CAUTIOUS. The market is different there. Every real estate agent has their own handful of listings, and they will ONLY show you their listings. Furthermore, as is the standard of island life everywhere, just because you are excited about doing something doesn't mean the locals will be equally as excited. If you email ten realtors about ten different listings, you will be lucky to hear back from, say, three of them. If you phone them, then the odds will probably double. But a little less than half of the agents we have tried to contact never returned our calls at all. And some of them will not speak any English, making things even more interesting.
The language difference (yes, Gertrude, even for you who took three years of Spanish in high school) is enough to warrant the hiring of a local attorney. We read all of this stuff beforehand, but tried to go it on our own anyhow, because we are oh so smart. DO NOT make this mistake. Join FB groups and ask the locals for advice on local bilingual attorneys.
On our first ridiculous attempt at purchasing property on the west side of the island, we comically tried to go it our own at first before realizing that we were in over our heads and could not even appropriately communicate that we wanted the realtor to shut up and take our money. The island standard is 10% earnest money to option a property. People from the states will recognize earnest money as that $400 or $500 you tossed down on the home you bought that you knew you could get back any time you wanted it. In PR, once you option a property, you have essentially bought it.
Our attorney quickly took control of the situation, and despite our desire to basically stuff our life savings into an envelope and mail it to an agent we had never met for a house we had never seen, she informed the agent that we would only put down 5%, and so we did as we were told, even if it did go against our general elated excitement about buying there. And in the end, when everything turned to crap and we thought we were walking away from several thousand dollars, our attorney got it all back for us. As far as we are concerned, the $500 we paid her was the best investment we have ever made, and it saved us thousands AND thousands of dollars.
Next thing we want to make sure everyone is aware of is that this is NOT the states. We know numerous couples in the states who have found properties online and started the process of buying, or sending half of the couple ahead like old timey pioneers homesteading in California, before the rest of the family arrives via wagontrain six months later. And, for the most part, everything turned out fine. The likelihood of that happening in PR is extremely low... like, impossibly low. You probably have better odds of hitting consecutive Powerball jackpots, or seeing the entire US Congress simultaneously agree on something.
There are a number of reasons that long-distance real estate buying does not work in PR. First and foremost is you can't see what you are buying from a handful of internet photos. We have seen land that looks great for building on in seemingly fabulous locations along well travelled roads, that when you see them in person, are nearly vertical plots that would be great for super fast downhill Olympic skiing competitions, but impossible to build on, or park on, or just as often, even stand on without careening 500 feet to your death.
Next, you cannot see the neighborhood or speak to the neighbors. This is HUGE. Not so much about the neighborhoods as the neighbors really. Because by suburban states standards a lot of the island will appear "sketchy" at first, as will a lot of the neighborhoods at first. Because on an island surrounded by salt water that is constantly being bombarded by salty air, new paint jobs last months not years, and concrete erodes rapidly if not constantly cared for, so everything is not always as pristine as stateside Americans might be accustomed to. Don't let that fool you though, because it doesn't necessarily reflect the neighborhood. Some of our favorite places are working class areas where exterior paint isn't priority number one, and the sweetest old couple in the entire barrio are the ones whose chickens run wild in the street. But, do, ALWAYS, talk to as many of them as possible if you are considering buying there. They will know things. Unimaginable, impossible to guess things about flood zoning, permits, former inhabitants, the crazy guy you should never make eye contact with, etc., etc.
Another reason to never judge the neighborhood book by its cover is that some of the visually nicest areas are on the east side of the island. And there are some genuinely enticing, mouth watering, almost irresistible properties on the eastern shore in seemingly incredible neighborhoods, all coated with the freshest paintjobs anywhere on the island. Indeed, there are entire towns along the eastern coast that are seaside bargains of biblical proportions, where homes can be scooped up for dimes on the dollar of pre-Maria prices. If you discover that seaside million dollar mansion for $150k cash, know that the price tag is likely indicative of another stateside dreamer who is looking to get out from under it at ANY cost. Do a TON of research, and find out about flood zoning, insurance costs, energy, water, regulations, codes, permitting, etc., because there is not usually, but ALWAYS a reason someone is willing to take such a hefty loss on real estate, and it is NEVER the reason the real estate agent will provide to you.
Scared yet? You probably should be. And crime is another reason to be wary. Like anywhere, crime is an issue, and choosing areas where crime is lower is a serious consideration, whether moving to an island, or to a different part of the same city. It may be more difficult on an island however, because you can't simply drive and make assumptions based on property values or well manicured the lawns are. Like anywhere else, there are very nice gated communities where you can live like a caged animal at night hoping the locals do not rise up in some Purge-like attack on the well heeled. We don't want to live like that and we believe that having good neighbors, and being good neighbors, is always the best defense, especially since statistically speaking, you're more likely to get robbed by the pimple faced teenaged son of the equities trader next door than by armed bands of masked marauders anyhow. However, there are areas of high crime on the island and they are mostly, just like anywhere else, in the largest cities. So, if you are looking at a Ponce or San Juan, make sure to take that into consideration.
Are you still here? Seriously? Well, if you are, then you must be at least mildly loco, which makes you our kind of people. You can now begin looking at actual PR properties. Here are a couple of the best links for that, but understand that just like everything else, the ads may not be quite as they seem, and many may be outdated, and the realtor may be out surfing for the next 60 days, etc.
Point2Homes PR:
Clasificados Online Puerto Rico
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Thanks for reading our blog! We look forward to hearing from you all. If you would like to reach us directly, please email Buzz at buzzdmalone@gmail.com and he will get back to you as soon as he sobers up!