The destruction of Puerto Rico following Hurricane Maria brought unanticipated hardship to many. But with devastation comes opportunity. Opportunity to gentrify, build stronger structures, and reshape community spaces.
Enter investors.
A savvy entrepreneur has 8 reasons for investing in Puerto Rico. There’s money to be had, here’s why.
Real Estate’s Cheap
The median home value has hit a historical low on the island, making it a great time to invest in real estate. Puerto Rico’s real estate market was already suffering before the hurricane. Following the devastation, countless homes remain empty as families emigrated.
Families foreclosed or didn’t rebuild. They chose to escape hardship.
With no one occupying the housing, the property is vacant. Vacant property, in today’s era, is a goldmine of opportunity.
Take a chance to look at some of these properties. They’re amazingly cheap. Sean Germon Realty offers a lot of detail on how to invest in Puerto Rico’s real estate.
Low Wages, Lower Costs of Investing in Puerto Rico
Labor rates are well below that of the United States. The median household income in Puerto Rico scrapes $20,000 per year. Opposed to the $56,000 US median household income. This makes business attractive in this penurious territory.
If workers are willing to work for less, it will lower the price of costs of business. Investing wisely in cheaper regions is a strategic plan to bolster profits.
But remember, lower wages is only one way to lower your costs.
Cost of Living Expenses
The cost of living is lower in Puerto Rico than the average in the United States. On average, rent pricing is over 115% higher in the states than on the island. A meal at an average restaurant is nearly 27% higher in the U.S. than Puerto Rico. Groceries on the island tend to be about 6% less expensive.
This goes hand-in-hand with lower wages. Whatever your investment plans may be, your employees will require less. If they need less to survive, they need less payment.
When they need less payment, they require those lower wages.
It’s a beautiful cycle to keep your COGS low and in check.
Attractive Taxes
The Puerto Rican Government established a very attractive tax incentive program for investors.
A prospective investor and a wise one will research these programs.
Governments do this to attract business development. It creates an incentive to create new jobs. That type of investment is exactly what the government needs right now.
Their government will do just about anything to drum up investment; they’d even forego some of your precious profit.
Act No. 20 of 2012 was enacted to promote the exportation of business services. Investors can claim credits for research and development activities conducted.
Act No. 22 promotes residency by providing residents of Puerto Rico exemption for passive income.
Act No. 73 is a tax proposal for foreign investment. It champions social betterment in Puerto Rico.
Act No. 273 is a tax exemption for all business activity in the territory.
Improved Infrastructure
Out with the old, in with the new. Right?
It might be morally grey to get excited over this, but it does raise an interesting opportunity. A large portion of Puerto Rico faced destruction during Maria’s rampage.
More than just businesses and homes were swept away. The storm obliterated the infrastructure.
It wiped the slate clean.
Newer infrastructure needed to be built to safeguard from a future incident.
Urban planning efforts are still underway. They are being addressed for the first time in decades. These are to accommodate the island’s full-time population and tourist influx.
There will be a completely redone power grid. Everything a budding business will need to keep the office lights on.
Roads riddled with deprivation are seeing some needed TLC. The government will revamp highways and roadways. If transportation is an element of your costs, it’ll cut them.
Newer roads will lead to lower input costs like gas and even time.
What happened in Puerto Rico was a tragedy. But it raised some interesting prospects for investors.
Smarter Employees
An English-speaking, educated and skilled workforce is plentiful in Puerto Rico. Degree-holding individuals make up a fourth of the population. A college education is available to citizens holding a high school degree.
If your investment endeavors require an adept skill, you’ll need smarts. And these brains are cheap comparatively.
Wanna’ know something pretty clever about producing goods in Puerto Rico? Products exported still bear the “MADE IN THE USA” stamp since it is US territory.
Now that’s smart thinking.
Tourist Trap
The amount of business from tourists is another reason for investing in Puerto Rico. The island has the largest amount of tourist traffic in the Caribbean. It has phenomenal foot-traffic.
If your business or investment is locally based, the added population boosts sales. People on vacation go to spend. Be it in a shop, restaurant, or other commodities and services.
Take advantage of Puerto Rico’s beauty. Or at least the people that are attracted to it.
It’s Beautiful
Surrounded by the most epic tropical places is reason enough to establish a presence in Puerto Rico.
San Juan offers 17th-century military forts. It’s a walk back into history in this well-preserved city.
Playa Flamenco often holds the honor of one of the world’s most pristine beaches.
The island has three bioluminescent lagoons where the plankton in the water creates a light display. Mosquito Bay is the brightest bioluminescent bay in the world. People enjoy the light show from the sand, or venture in the water to swim or kayak.
Rincon is a famous surfing beach on a satellite island that draws visitors from all parts of the world. There are super-sized waves for the seasoned surfer. Calmer waters on the south side of the town attract swimmers and whale watchers alike.
Investing in a place isn’t all about profits. It’s about investing in the experience and enjoying it, too.
Hello, Puerto Rico!
This southern territory is a gold mine for investors. As ruthless as it may be, this beautiful island is like a phoenix. It’ll rise from Hurricane Maria’s ashes, and it’ll be better than ever.
The opportunities for investing in Puerto Rico are limitless.
After the destruction, real estate became over-abundant (meaning, cheap). Inhabitants need jobs, and they’re willing to work for less because of their low living costs.
The government offers two great business deals: tax exemption and newer infrastructure. Both lower your costs. The government also provides free schooling, which led to a boom of educated islanders.
The island is naturally beautiful. It attracts a lot of tourism, and it’d make for a pretty place to invest.
If Puerto Rico doesn’t tickle your profits, other investment opportunities are plentiful!
