Costa Rica Real Estate Investment - Unique Financing Technique
By Kevin Myers
Costa Rica real estate investment has become a hot topic in the last couple of years, as investors look to diversify their holdings and place money in appreciating markets outside of the U.S. Costa Rica has blossomed as an investment haven due to its minimal taxes, fee simple ownership, stable democratic government, and consistent high appreciation rates.
One of the challenges facing investors in Costa Rica real estate is financing. In general, U.S. banks will not loan money secured by foreign real estate as a matter of banking policy. Banks in Costa Rica have made an attempt in recent years to offer loans to foreign residents, but have failed miserably because their terms and fees make no sense to U.S. borrowers.
Most investors who want to borrow money and thereby take advantage of leverage with their investment, are left with pulling equity out of property they own back home. It s not a bad alternative because this source of funds is still relatively cheap and can typically be quickly arranged.
However, a unique and little known financing technique that is available to U.S. investors wanting to purchase Costa Rica real estate, is tapping into the funds accumulating in an IRA account. Industry studies show that 80%-90% of the U.S. investing public do not know that they can invest in real estate with their IRA accounts, in full compliance with IRS regulations. And even fewer realize that they can use these funds for foreign real estate, like in Costa Rica.
Once people realize that this source of funding is available, it opens up a whole new world of possibilities and alternatives. No longer are you limited to stocks, bonds and mutual funds! Instead, you can consider a beach front condo, an ocean view lot in a gated community or a boutique hotel… use your imagination!
The trick in using this technique is to move some or all of your IRA funds to an administrator company that allows self-directed real estate purchases. Certainly, the big Wall Street oriented companies like Fidelity and Schwab do not allow you to directly purchase real estate, local or foreign. You have to use an IRS approved company that specializes in truly self-directed accounts.
For more information on this exciting source of funding for Costa Rica real estate investment, visit our website =>http://www.ira4costarica.com
Kevin C. Myers is the author of the best-selling real estate investment book, Buy It, Fix It, Sell It: Profit! (Dearborn Publishing, Chicago).
Buying Costa Rica Real Estate
...
Costa Rica: An Exciting Real Estate Investment Prospect
...
Real Estate Property Investment Series: Focus Costa Rica 2007
...
Cheap Second Homes - Have One You Can Enjoy and Build Wealth
...
Costa Rica Property Investment - How to Make Triple Digit Gains In This Market
...
Article Source: http://EzineArticles.com/?expert=Kevin_Myers
http://EzineArticles.com/?Costa-Rica-Real-Estate-Investment—Unique-Financing-Technique&id=257708
.
