If you have a Roth IRA, you should know that it is incredibly easy to use your IRA to purchase prime Costa Rica real estate. Most people dream of owning land in some beautiful, ritzy vacation area, and what better place than the lovely Costa Rica? Using your Roth IRA can make this dream a reality, and you’ll also be surprised at just how affordable that dream can be.
The easiest way to purchase real estate with your IRA is to open a self directed IRA. A self directed IRA is, as the names implies, structured and designed by you. Unlike other IRAs, you will have the power to decide where your investments go. Most IRAs force you to put your cash into the stock market or into a fund that you can’t touch, but not a self directed IRA. You can spend your money on anything you want, and there’s really no better investment than purchasing a piece of real estate.
Opening a self directed IRA and then using the money can sometimes be a tricky process, so you’ll want to find and work with a professional who has experience dealing with these. Make sure you hire someone that you can trust; the individual or company should have a solid reputation and a lot of satisfied customers to back him or her up. Also keep in mind that account facilitators and account custodians are not one and the same. Account custodians will do all the work, but they will charge you heavily for their services. Facilitators, on the other hand, leave a lot of the decision making up to you and are good for those who have some experience with IRAs or general investments.
Once you’ve hired someone to help you with your account, all you have to do is locate the property of your dreams. Look at many different areas of Costa Rica, and find the one that most appeals to you – both personally and financially. Be sure to look at foreclosure, auction, and aged properties as well. While these may not be in the best shape, you can usually buy them at a fraction of the cost and then use the money you saved to fix them up. Also keep in mind that it’s the location, not the property itself, which makes your real estate the most valuable.
When you’ve finally purchased your property, decide what it is you want to do with it. If you’re looking for a great place to retire to, then you’re all done. If, however, you’re looking to make a lot of extra cash and maybe even double the size of your IRA, then you’ll want to look into selling your property. Just as you had to hire the right professionals to open a self directed IRA, you’ll want to exercise the same care and caution in hiring people to help you with your selling needs. Act intelligently, make informed decisions, and you will be more than satisfied with the end results of your labor.