Costa Rica real estate offers the investor many good opportunities. You can buy income producing investment property. You may finance Costa Rica real estate at high rates to locals or foreign residents who don't want to disclose financial information to the banks, or jump through all the hoops banks here burden the borrower with. Your Costa Rica real estate investment might be pre-construction property in solid developments in order to cash in on the built-in appreciation of the early stages in the development. Or cash in later as the area continues to grow.
Costa Rica real estate is a real possibility, because although not many people know this, the IRS lets your IRA buy real estate as an investment. This property can be in the United States, but it can also be a Costa Rica real estate investment. The procedure is straightforward, but there are a few necessary ingredients.
You need:
- An IRA custodian that offers self-directed accounts and allows Costa Rica real estate purchases within those accounts.
- Costa Rica real estate that you wish to purchase. The kind of property isn't really important raw land, condos, office buildings, single or multi-family homes, apartment buildings and improved land.
- You have to be aware of the limitations, such as you can't use you Costa Rica real estate as your residence or vacation home, unless you are 59.5 years old.
This is a great way to diversify your IRA investment portfolio and to take advantage of the opportunities in the Costa Rica real estate investment market.
Foreign Investments
If you are looking at real estate overseas or for a way to get better returns in your IRA, here is little secret your stock broker will never tell you about...
The IRS lets you purchase real estate with income that is tax-deferred. That means that many savvy investors are investing their IRA funds in real estate, many in Costa Rica real estate.
This is a great way to beat the ups and downs in the stock market, to diversify your portfolio or to provide a stable income as you transition from riskier investments.
The rules governing the diversification of your portfolio in this way are simple. First, you may purchase any type of Costa Rica real estate you can imagine: raw land, condos, office buildings, single or multi-family homes, apartment buildings and improved land. You can also own a fraction of Costa Rica real estate, with other entities or investors owning other fractions. You can purchase an option on the foreign real estate or you can buy outright using a land trust, L.L.C., or similar entity. Also, you can rollover your IRA, so you are buying you Costa Rica real estate real estate with retirement assets.
