John Paulson purchases Harbour Lakes development within Palmas del Mar

[wldeaton]

A few years ago when all the hype about Puerto Rico began, I went and visited. One of the nicer developments was Palmas del Mar in Humacao, a very large mixed-use development containing subdivisions within the development of different levels of homes, from fairly modest to multi-million oceanfront. Harbour Lakes is a development that I believe had sort of sat empty, and it appears hedge fund manager John Paulson has purchased it. More information here and here. What is interesting about this development and other ones within Palmas del Mar is that they have low money down bank financing available for qualified buyers. Specifically, this development claims to have banks offering 95% financing if the home is your primary, and 90% financing if the home is your secondary.

The place is a bit developed and crowded, but undeniably would have a lot of fun things to do for you and/or children if you had some. Tennis, sports, lots of beaches….. a fun place.

[Francisco d’Anconia]

Thanks for the post.

Can you give us an idea of price and what you get for your money – and the safety factor?

Gracias,
FdA

[wldeaton]

Francisco:

First a caveat that I’m not an expert, having just visited one time for a week two or three years ago. The prices on the Harbour Lakes units (3br/2ba) start at $220k. Palmas del Mar is a huge area–if I’d guess I”d say a couple thousand acres perhaps? It’s gated, and contains many subcommunities within the communities. We saw houses and condos that had been there since the 70s, some small houses with asking prices in the low 100s. And we saw oceanfront and oceanview estates with multi-million dollar asking prices. I generally felt safe in Puerto Rico, and more so in this community because it is large and gated. I saw a mix of Puerto Ricans and stateside gringos. When I went I saw not just Harbour Lakes but other subcommunities offering new homes with similar financing offers–not from the developers, but from local banks. Value? Hard for me to tell yet. Definitely worth looking at, at least.

[ML]

Any thoughts on how the recent statehood referendum affects the use of PR as a domestic “offshore” site?

[wldeaton]

ML, no guesses or idea on my end. Unless the “current” U.S. agrees to let P.R. become a state, probably no effect.

[Author]

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