Home Buyers Give Puerto Rico Another Look During Pandemic

The Wall Street Journal ^ | 9/29/2020 | Peter Grant

[cll]

Low taxes lure wealthy buyers to U.S. territory, where luxury developers are reporting brisk business.

At the Dorado Beach resort west of San Juan, the developer has signed 46 contracts for homes in one of the site’s new phases with prices spanning $1.9 million to $4 million.

Developers of luxury projects are reporting increasing sales volume and prices compared with 2019. The uptick comes despite years of natural disasters and financial and political upheavals that made many wary of buying property in Puerto Rico. Residents of the territory—who must live there at least 183 days a year—pay a Puerto Rico income tax of up to 33% but no other federal or local income taxes. Many wealthy individuals also are exempt from taxes on interest, dividends and certain capital gains.

Some U.S. cities or states, where some people already pay over 40% in income taxes, might raise taxes further to cover budget shortfalls. New Jersey Gov. Philip Murphy reached a deal this month with legislative leaders to increase taxes on incomes over $1 million. Opponents of that “millionaires tax” have said it would trigger an exodus of wealthy people from the state.

“As awful as the [pandemic] is, it breathes new life into the Puerto Rican economy,” said Rodrick Miller, chief executive of Invest Puerto Rico, a not-for-profit organization trying to attract business investment.

Demand for residential property is rising in Puerto Rico as the island tries to lure remote workers and businesses.

[tbw2]

I’ll say that giving Puerto Rico statehood after the 2016 referendum that allowed it is far less “problematic” than the argument for turning Washington DC into several congressional districts with extra electoral college representation.

[Eric in the Ozarks]

I think cii could update us...

[jmaroneps37]

This is a wonderful affirmation that people with money see what Trump has started to do to rehabilitate Puerto Rico and believe in it. This brings private money to the island which is the best kind. A win - win for America and Trump!

[setter]

Google Puerto Rican slums.

No thanks. It’s a day away from communist revolution.

[woodbutcher1963]

Harts location is too small.

Try Tuftonboro. IF you are not on the lake, houses are reasonable and taxes are cheap.
Same story with Moultonborough.

Rye, NH taxes are also low, but houses are expensive. It is the most expensive on average in the state, except for New Castle. These are both towns on the Atlantic Ocean. The closer you are to the water, the more expensive they get.

[Greenpees]

Or perhaps a state like Wyoming and Montana split into east and west states - also each getting two Senators

Where does it end?

[cll]

I don’t have to Google that. I live in Puerto Rico.

[catnipman]

https://www.doradobeach.com/real-estate-puerto-rico

“coupled with an established economy, reinforced infrastructure and the finest medical facilities in the Caribbean.”

[avenir]

Thanks.

[Oatka]

New York attracted a lot of Puerto Ricans in the 50s-70s.

I lived in the old Chelsea area back in the mid '50s (22nd St and 8th Ave.). A NYC politician named Vito Marcantonio** loaded DC3s with Puerto Ricans, brought 'em to the City and immediately put them on welfare at $57 a week each. He told 'em to remember who brought them to the States on Election Day.

(This 21-year-old was making $35 a week as a Macy's stock boy while going to a tech school). Landlords in the tenements around us started charging rent per person after they found 8-10 people per two-bedroom apartment.

They'd sit on the steps all day, sucking on cans of beer and harassing the women walking by. Neighborhood went lower class very quickly.

**A real flaming seven-term Lefty Congressman who luckily died in '54 before he could do any more damage.