General Costs for All Property Types
- Principal and Interest Payments: Monthly payments based on your mortgage loan terms.
- Property Taxes (CRIM): Rates depend on property classification, managed by the Municipal Revenue Collection Center.
- Home Insurance: Coverage for natural disasters and liability.
- Flood Insurance: Required for properties in FEMA-designated flood zones.
- Mortgage Insurance (PMI): Applies if the down payment is less than 20%.
- Closing Costs: Includes legal fees, title insurance, recording fees, and stamp duties.
- Utilities Setup Costs: Deposits or fees for water, electricity, and internet services.
- Maintenance and Repairs: Budget for ongoing upkeep.
- Legal Fees: Notary fees typically range from 0.5% to 1% of the purchase price.
- Transfer Tax: Generally applies to the seller but may be negotiated.
Additional Costs for Specific Property Types
Depending on the type of property, you might encounter these specific expenses:
- Residential Property: Hurricane insurance and HOA fees for gated communities or condominiums.
- Land: Land use permits and surveying costs.
- Commercial Building: Business licensing, zoning fees, and structural assessments.
- Shopping Mall: Infrastructure costs and larger escrow reserves.
- Investment Property: Act 60 compliance fees and rental licensing fees.
- Second Home: Luxury tax and travel costs.
Estimated Costs by Property Type
| Property Type | Typical Costs (USD) |
|---|---|
| Residential | $200,000 - $800,000 (luxury homes can exceed $1M) |
| Land | $5,000 - $250,000 (depending on location and size) |
| Commercial | $500,000 - $10M+ |
| Shopping Mall | $2M - $50M+ |
| Investment Property | $150,000 - $2M+ (varies by purpose and location) |
| Second Home | $150,000 - $1M+ |
Conclusion
Buying property in Puerto Rico offers diverse opportunities, but it requires thorough planning. Work with a knowledgeable real estate broker and legal professionals to ensure compliance and maximize your investment’s potential.
For more details or assistance, contact Real Estate Broker Walter Rivera Santos at +1 (787) 223-2817 or via email at [email protected].