Lin here, Owner/Broker Rainbow Realty, Vieques Island

I am making an attempt here at 3 things:

1. to provide some info about the island, AND in relation to buying real estate here

2. to defray some misconceptions and share some reality about Vieques, the real estate market, and owning/renting here

3. to address just a couple of the "political" issues surrounding real estate and sales/rentals here on island.

REAL ESTATE MARKET/CONCERNS/POLITICS

WE ARE CURRENTLY EXPERIENCING A "MARKET CORRECTION"....PRICES ARE SOFTER THAN 1 YEAR AGO....SO....IT'S S GREAT TIME TO BUY...!!!!

As everyone here is certainly aware, real estate in Vieques has become a hot item since the US Military departed and we've gotten, and are getting, a lot of very positive "publicity".
I think most of us involved in the struggle KNEW that the island would prosper with this event, and it was ONE of the many reasons people wanted this to occur.
But-I am not at all sure that any one knew just how quickly and how much, things would begin to change.
It feels like there is a land rush and prices have shot up very rapidly.
There are positives and negatives to all this. On a positive note, there is more money and more business, but on a negative note, real estate has gotten too expensive, too fast, for people to afford here!
There are Viequenses returning now, and who want to remain here at home; who see the possibilities of being able to make a living here, but cannot afford to rent or buy real estate.
One of the other negatives may be the influx of foreigners who do not embrace Vieques for what she is and has always been and who do not understand, appreciate or even know, or care about the struggle to free her from the hands of the military.
We at Rainbow encourage people to learn about the island, understand some about cultural and language differences and commit to being a part of vs. separate from.

People are flowing in because they love it, BUT then want to change it immediately! 
 
Why?...to make it more like where they are trying to get away from?.........what is up with that?
Yes, there are more speculators and developers........ and less of the dreamers seeking their hideaways....
More people with dollar signs in their eyes instead of stars .......and we are concerned about this...
Hopefully those who live here and the government can work to regulate the growth and development so it is good for the island and HER people!........
We are at a crucial fork in the road........

One thing that needs to be made clear is that its peoples WILLINGNESS to sell....and buy, that DRIVES the market and the prices. The realtors participate in that, but ARE NOT responsible for it...It IS buyers and sellers that are responsible.
Politically, the talk of placing a moratorium on sales here would make some sense in some peoples minds, but the reality is that we live in a free democratic, constitutional controlled society of free choice. People have the right to sell what they own and many sellers are thrilled with selling so they can move on in a different place with their lives.....this is a fact.
Secondly, what a moratorium would do realistically, is drive prices even higher; as prices ARE determined by supply and demand (sellers and buyers) and when the supply is cut, the demand gets higher and property becomes more expensive.
So, that idea might do the opposite of what people would expect.
Thirdly, it would HURT those who WANT to sell and are pleased to be getting the higher prices offered in todays market here. So...what about them?
Traditionally and for the most part, Real Estate professionals service the SELLER, but have a fiduciary responsibility to both sellers and buyers---this is designed by law. The majority of sellers here are local and the only mis-service is not getting them the market value for their properties.
I just cannot accept or understand why someone should be expected to take less for their property than what it is worth!!.....

Now---this IS where there can be some government intervention and assistance. Vieques has 4000 acres on the West end.
Shouldnt much of this be made available to local residents? Developed into housing opportunities for those in need and that deserve this for all the years of being crunched onto 1/3 of the island??....... Makes some sense to me .
The Government can also be effective in helping to maintain the integrity of Vieques and in preserving the beauty of the island and developing more of the ecotourism economy/support now that we have the largest Nature Preserve in the Caribbean!!!.
YES, we can keep MacDonalds and Burger King out......... IF that's what residents want!
We can maintain the 3 story building limitation.........
We can limit density and developments!!!.....
We need better transportation alternatives to the Main Isle........, etc.....
These are the things the local and PR government and the people CAN control...but we need to WORK TOGETHER , and not divisively............
There can also be government incentives to develop ecotourism projects.
Density regulations can be enforced, thereby restricting larger condominium and hotel developments, keeping with smaller guest houses, Inns, and B&Bs. The local community should have a voice in all this!! Do we want Hilton here? Fast food? Traffic Lights??......Casinos ?? Personally, I hope not!.......but I do believe that it is up to Viequenses------NOT up to the potential developers !!!...BUT, people will need to organize and speak up and work together to this end and whatever goals are in the peoples best interest here!!.....
Many of us transplants are happy to be involved if welcomed......
Hopefully our local Business Organization will get more involved in all this.

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TAXES/LICENSES/INSURANCE/UTILITIES

Taxes, one of lifes certainties...........
Property taxes here are LOW....we are still assessed at 1957 values and the rate is less than $10/$1000.
Full time residents also get a Homestead Exemption....
No wonder the government is broke!....but instead of adjusting this, the government has instituted a sales tax now and are after various other means of getting money out of property owners from construction taxes and insurance, to Tourism taxes and imposing business patente's on rental home owners.........Hopefully this will all "shake out" and make some sense...

ALL rental house owners are supposed to register with the Government for the new sales tax
..it WILL NOT (our understanding) apply to you, but you are still supposed to register.

We at Rainbow handle the 7% TOURISM TAX imposed on guests we rent to.
BUT--if you do your own rentals, you must register with the Gvm't and pay this tax on the rentals YOU do.

PATENTES-This is the Municipal License to do business. We are trying to work with the government here to work out a reasonable alternative to each house having to get a patente. We are trying to make sense to the powers that be that you are the people who DO have to pay property taxes (non residents) and you already are required to pay Tourism tax.  
We are trying to offer an alternative to "run this thru" RR.
Also, the rental houses bring in a LOT of business and that should NOT be discouraged! We are part of Vieques' successful and growing Tourism .......
...We'll do our best .....

HOMEOWNER'S INSURANCE can be acquired. We have resources for our home buyers. It's NOT that expensive even with hurricane and earthquake coverage. Contents are high due to the problems with theft here. Wood houses ARE expensive to insure.
IF you mortgage, the bank will provide for a policy to cover the MORTGAGE ONLY...so, if you want full coverage, you must add on!

UTILITIES--Electric and water can be transferred right on island with a copy of your deed and is helpful to have a copy of the utility bill when you go to the offices. Electric is next to Chu Garcia's and Water next to Ambulance Service in town. Deposits of less that $100 are required for each for residential accts./more for commercial.
Phone service is almost impossible to transfer....it is just easier to cut service and order new service.
CELL PHONES....most work now here. Verizon is the largest and best coverage I think.
There is some WiFi available in town.
There is DSL offered on the North side of the island only and of course there's good ole Dial-Up........

CAPITAL GAINS TAX MUST be paid on RE sales....residents pay in April with regular income taxes...BUT Non-residents have a withholding imposed at closing.
We at RR make this VERY easy and non-complex with the 2 accountants we work with assisting you through the process....it is relatively painless with the system we have developed. Residential is 12.5% of the GAIN (difference between what was originally paid, and what it's selling for MINUS improvements). Corporate Taxes vary.

The tax exchange (1031?) IS NOT VALID HERE..........fact! We do not pay Federal Taxes here, so it does not work.

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FINANCING/MORTGAGING

Titled property can be financed with a local institution. Stateside banks DO NOT finance here.
Procedure is pretty consistent with stateside ways.........
If you need to finance here, we suggest ScotiaBank in Fajardo as the 1st choice. Wynne Curry, owner of Banana's, is a mortgage broker here, and 3rd choice would be Banco Popular.
Easiest financing is to take equity out of a stateside property and bring "CASH" for business here.

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TITLED vs NON-TITLED (lack of title)

Title, a piece of paper that can be registered with the Property Registry allowing you(and others) the ability to lien or mortgage the property, IS NOT available on all property in Vieques. About 50% of the property currently available has no title rights.
UNTITLED does have POSSESIONARY RIGHTS...and that is what people sell---their RIGHTS to the land (excluding title)...plus any improvements that are on the land.
You get a DEED/Compraventa or private contract basically....which allows you the ability to claim the property in the eyes of the Municipality, and to apply for utilities and building permits.
IS IT RISKY?....Raw land carries the greatest risk, so it is important to clear the sale with the government, clear/clean the property, fence, and build something ASAP.
Buying an untitled property with a building and with utilities is really not all that risky.
At some point in time, the government will be issuing/selling titles .........and at that time, you may buy your title.
How much?...who knows.....but there is a precedent that was set in 1999/2000 where titles were valued at 10-20% of the appraised land value.
Monte Santo and Isabel and Moropose have "untitled" uso-fructo land parcelas which CAN be titled with a +/-6 months process and a few thousand dollars.
Santa Maria/Bravos de Boston/Villa Borinquen (there ARE a few titled properties purchased from formed Mayor)/and Monte Carmelo MAY have titles available over the next few years.........Until then, cash gets you a great property and prior to the prices taking a huge leap when titles come in.
So yes, some risk...with great reward, but not always without a little "hassle factor"....

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CRIME

Sure, we have some.
Mostly still petty theft, although this past year there have been some "hold ups".
Be smart; Be careful..........no matter where in the world you are these days.
General "rules"/suggestions:
DO NOT leave valuables unattended on the beach, in a car, or near an open window in your rental house/hotel room.
Lock your doors at night..............Don't get too wasted partying...........

WE recommend secure houses......security doors and windows and an alarm system..........
..and if you are renting out, put a "House Book" on the kitchen counter with tenant security measures.

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BROKERS/RE LAWS

Licensed Real Estate people are just that: LICENSED by the PR Government (Law 10) to do RE business in PR.
This is for your protection, the protection of buyers and sellers.
We are held to an ethical standard and we do the very best we can to have EVERY client walk thru, and away from a transaction with RR as totally satisfied and happy clients. This is our Goal.....!!
We at Rainbow go the extra mile in helping with financing resources, property caretakers, construction referrals, tax issues, utilities, registering untitled properties with the local government, etc .....
.....we are available throughout the process and afterwards............
.....and we prefer a continued relationship with our buyers who intend to rent either long term. seasonal or weekly.....
......since we are also a RENTAL Agency.

There are a number of "kitchen table brokers" passing themselves off as Real Estate Agents....watch out!!!!
ASK to see a RE license if you are doubtful.....if there is NO office, advertising, etc.........
We suggest you ask around about whoever you are intending to work with.........you WILL get the scoop...good and bad.

Sheila Levin of Crow's Nest Realty has written more on this:
http://www.enchanted-isle.com/enchanted/letterfromvieques.htm

 www.viequeslaw.com

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CONSTRUCTION/PERMITS/GOVERNMENT AGENCIES
There are a number of contractors on island. We suggest you meet with 2-3 for estimates, service, prices etc...and decide from there. We like EDK a lot, and Claritza (owns Maritza's car Rental), Chevo Bonano (Ferrateria Chu Garcia's owner), and Cheo Molina.
Depends what you want done, what services you want, and the price you are willing to pay............
There are currently a couple ads in the Vieques Events for surveyors/engineers.
ARPE is the government agency regulating permits for use and construction, new utilities, etc ............
CRIM is the acronym for the Tax Man/Hacienda......property taxes division.
Dept of Natural Resources often has to be called in before excavating can be done especially along the waterfront, but theree are also historical burial sites here...
US Fish and Wildlife Service/Dept of the Interior/US Government controls the entire East end as well as the far West end.
Around the old military pier, there's 4000 acres now belonging to the municipality.

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LEGAL STUFF/Closings/Inheritance
In order to be a Notary here, you must be a lawyer.
Lawyers /Notaries handle closings in their office or another office (i.e.: Realtor's) and can charge up to 1% of "the value of the doc"...plus there is about .7% in governmentt fees, also a % of value of doc i.e.: sales price and/or mortgage amount.
Buyers often pay legal costs but always negotiable and by law the split is +/- 70% seller/30% buyer if no agreement differing from that.
We have 2-3 lawyers that we use and recommend depending on the "deal"
Inheritance laws here are important to know..........
We are governed by Spanish Civil Law........
In a nutshell: meaning children inherit....and if you are married, whatever you buy, your spouse owns 1/2.
If a parent dies, the children inherit the deceased portion of any property owned.
A will allows you to will 1/3 of any portion of your belongings to a spouse or a particular child to establish "control" or can be willed to another party........
It is best to consult with a lawyer for any concerns with this. Corporations can be formed affording some protection.
After a death, we highly recommend dealing with an estate ASAP as it can take a year to get probated/in order.

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Lastly, most of the people here on island are very good hearted, and very honest...but "weigh" what you are told and re-check info with professionals.........what you hear in the local watering hole is most likely different than what you will hear from a licensed Broker.
www.viequeslaw.com

Good Luck..........and WELCOME to our island Paradise.
Contact us for assistance and to set up an appointment. We suggest familiarity with the island before looking to buy....

RECOMMENDED READING (should be required) before considering buying property ...on any small island....:

DON'T STOP THE CARNIVAL by Herman Wouk

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Lin Wetherby
rainbowrealty@hotmail.com