Where else?

So some folks have mentioned that PR has not been the only place to catch their eye.  Same for me.  Figured I'd start a thread on that topic.  Where else have you considered?

Like many, I've considered the DR.  Similar in climate and culture to PR, and the cost of living is comparable as well.  PR gets the nod because of its legal relationship to the U.S.  If I were dependent on the local economy for my income however, that might change.  The DR is doing fairly well, and there is reason to think that the local economy will continue to post solid growth.

I've also looked at Colombia.  This is a Latin country moving in the right direction.  Agreements with FARC and ELN make the country much more stable.  Close relations with the U.S.  Drug problems are still an issue, but the state is much more effective than it was even ten years ago.  Property values and cost of living are low.  Costa Rica and Belize have been popular for too long -- in my case those ships have sailed.  But I think Colombia has the potential to be the next big thing in the Caribbean.

PR has the advantages of climate and culture.  The disadvantages such as economic contraction and a deteriorating infrastructure are manageable in my case, since I plan on relying on investment income and will generate my own power and collect my own water.  Originally I planned on solar and cisterns to shield us from rate hikes as the government tries to raise revenue.  But considering the interruptions in utilities, which will likely only get worse as the budget shrinks, self-reliance strikes me as the only reasonable course.

I've considered the DR as well, very easy to get expedited residency and citizenship, they also have very attractive investment and retirement programs.  PR is within the US legal framework which is a plus, as well as the USPS.

Speaking of Columbia, Cartegena has a really charming and historic Old Town, that is beyond amazing, and very affordable.

I haven't checked on real estate there, but from what I hear, home loans are not easy to get and the interest rates are high.

I looked at Santa Marta, on the northern, Caribbean coast.  Real estate prices were ridiculously low.  As far as loans go, I've had terrible luck trying to get a loan in PR, so I'm doing my best to put together a cash offer.  Colombia would have been the same.  Can't get quite as much, but it will be entirely paid off!

I didn't have any problems getting a loan in PR. I had a loan in place long before I was able to find the right property to go with it.

The thing with a loan if you can get one is that it lets you put your savings elsewhere and ride the first year of two since you have the expense of a home, car, furniture, household goods, etc. If you have the cash you can pay it of in a year or 5 and can end up ahead on taxes since you are making less during retirement. This lets you get 20-40k only a year out and write off most of the interest for the few years you keep the loan. Getting money out of your IRA or 401k tax wise can be expensive so spreading it to years where you have low income will get most of the tax back.

Sorry to continue hijacking this thread but here is a great article on buying and lending:
https://www.linkedin.com/pulse/20141111 … uerto-rico

I had no idea mainland banks didn't lend, and island rates are 1-1.75% higher!!! That is a lot.... The home equity loan on a stateside property at a decent rate might work out best,  I have never taken out a HELOC but according to google rates start at 4%, which is the max I would hope to be paying on a mortgage today.