Puerto Rico Property, 1031 exchange, economy, zika

[Amy Conn]

Hello, we have a rental house in CA that is completely paid off and we are seriously considering selling it to buy a beach house in Puerto Rico. My husband surfs and my family lives in FL.  It seems tricky to time it right when selling under a 1031 exchange to avoid capital gains taxes. I have an itchy trigger finger, so to speak, because we found an amazing beachfront property at a good price, but we haven't seen it in person. 

My husband is more cautious, and worried about Zika. I am more worried about the PR economy, and chikungunya. We are very limited about the area, staying near Rincon and Isabela. Do you think the bottom has hit and all the best properties will be sold soon, or prices will go up? 

[Dennis Rodriguez]

@Amy Conn I honestly think PR hasn't hit the bottom yet but it won't go down too far from where it is now. If I were you, I would wait until after May 1st when the government is supposed to make a $400M payment on a note and the way things are now, it looks like they will default on that one. From that moment on, either congress approves the bankruptcy chapter for Puerto Rico or hell will break loose and we will see even more people migrating to the US and the economy going down to an abysm. I think that is going to be the turning point but that is just my opinion.

About the Zika and Chikungunya, I wouldn't worry too much. As long as you are not pregnant, the Zika isn't that bad (if the microcephaly-Zika connection is even true in unborn children) and the Chikungunya is tuff but it won't kill you as long as you get medical treatment early. I might be wrong and I'm not a doctor but I have family living there and they are not that worried. Its just something to be cautious about but not overly concerned.

By the way Rincon is such a beautiful small town. Good choice.

Dennis