5 Reasons Why Now The Best Time To Buy A Home in Puerto Rico
The Legislature has voted to extend through the end of the year an
incentives package aimed at jump-starting the island’s real estate
market.
Despite
the fact that homes have lost more than a third of their value over the
past three years, the vast majority of Americans want to be homeowners,
according to the latest Fannie Mae Housing Survey.
Which is really good news for Realtors, mortgage lenders, professional home inspectors, and anyone else associated with the real estate industry.
And yet, I have to agree: This is a great time to buy a home. Why?
While it is harder to get financing than it was several years ago
(when all you needed was a pulse instead of all the paperwork that’s
required today), there are at least 5 reasons why now is the best time
to buy a home:
- Property Taxes. As long as you have your
paperwork done and close by October 31th 2011 and you qualify,
you’ll could eventually pocket up property taxes for the next five years.
- No Rental Income Taxes. If you rent your property on a long or short term rental, you will not be require to pay income taxes on the profits you make.
- Mortgage Interest Rates Are At 40-Year Lows. In Puerto Rico when you purchase in a new development the interest rates are as low as 1.25%. At Palmas del Mar Resort you can find a wide range of opportunities and in some cases up to 100% financing available and amortization over 40 years. Recording fees are also waved. What else are you waiting for!
- Home Prices Are At Generational Lows, Too. Right
now, home prices are in a state of fluctuation. They’re rising
(slightly) in some areas and falling in others. But just because home
prices might fall before they rise again shouldn’t keep you from making
an offer on a home as long as you find the right house at the right
price on the right terms.
- No Capital Gain Tax. The capital gain tax is a great opportunity because you will capitalized all the equity in you pocket. This incentive will never expire if you close before October 31st. 2011. Right now the capital gain tax is at a rate of 10%.
Elder Realty will find the best Investment Opportunity for you in Puerto Rico. Visit us at
www.palmasmls.com 
Housing Incentives
If you're looking for the ideal home-buyer market, look no further
than Puerto Rico. With the current incentives, this type of opportunity
just doesn't happen twice.
"Housing Incentives Act" - (Act No. 132 of 2010)
- Creates an incentive program aimed at facilitating and promoting
the purchase of residential property and other real-estate, on all
levels
-
Eligibility:
-
Individual, estate, corporation, partnership or trust, resident or nonresident buyer in Puerto Rico that:
- Purchases a new residential property between September 1,
2010 and October 31st, 2011, to rent, or rents an existing residential
property located in Puerto Rico
- Purchases any existing residential property located in
Puerto Rico that is suitable for family housing and which is not a new
construction
-
Purchases any existing nonresidential property located in Puerto Rico between September 1, 2010, and October 31st, 2011
- Price of nonresidential property cannot exceed $3 MM
-
Benefits under this law:
-
Tax Concession - Income earned from rental of eligible
residential property will be 100% exempt from Puerto Rico's income tax
- Tax-exemption period - up to 10 taxable years starting January 1, 2011 and ending on October 31st. , 2020
-
New Residential Property
- 100% exemption on capital tax gains at time of resale if seller purchases property during the abovementioned time-frame
- 100% exemption from internal revenue stamps fees,
registration vouchers, and filing fees associated with purchase deed and
the buyer's mortgage deed
- 100% exemption from special state property tax
- 100% property tax exemption for five years
-
Existing residential properties and nonresidential properties (up to $3 MM)
- 50% exemption on capital gains
- 50% exemption on capital tax gains at time of resale if seller purchases property during the abovementioned time-frame
- 50% exemption from internal revenue stamps fees,
registration vouchers, and filing fees associated with purchase deed or
the buyer's mortgage deed, during the abovementioned time-frame
- 100% exemption from internal revenue stamps fees,
registration vouchers, and filing fees associated with the mortgage
cancellation deed if sale occurs during the abovementioned time-frame
- 100% exemption on capital tax gains for the seller of a
qualified existing property if said property is sold during the
abovementioned time-frame