Puerto Rico’s other crisis: Plunging home values

Puerto Rico is turning into Detroit. It currently has the second-highest foreclosure rate in the U.S. and home values are plummeting.
While most of the U.S. freezes in February, Puerto Rico is 80 degrees. The island is home to one of the world’s best beaches, according to TripAdvisor.

And it’s a buyer’s market right now. You can get a 3-bedroom home near the beach for under $100,000.

Hedge fund billionaire John Paulson has been scooping up real estate there. He predicts it will be the “next Miami.”

So what’s the catch? For sale signs are everywhere in Puerto Rico. People are fleeing the island because it’s been in a prolonged economic crisis. The situation is reminiscent of what Detroit was like when it filed for bankruptcy in 2013.

“So many houses are empty here,” says Joaquin Garcia de la Noceda, a locksmith in San Juan, the island’s capital.

Source: www.money.cnn.com

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