Most people are unaware that they can use their hard earned money that’s been invested in an IRA to purchase assist such as real estate.

This is a great way to purchase an investment property in Costa Rica, while diversifying your investment portfolio with hard assets and helping you to hedge against inflation.

There are rules and regulations when using your IRA to purchase Costa Rican real estate, so consult your financial planner or the custodian you plan to use for the transaction.

Be aware that you may be told that using your IRA is not allowed or even illegal, but this is NOT TRUE! If you have the right professional involved (custodian), using your IRA can be as simple as 1,2 3!

• Step 1: A custodian will convert your traditional IRA to what is called a Self-Directed IRA and set up a LLC as a tool to manage the asset. There are many great custodian available. Do your homework and shop around.
• Step 2: Next you will need to open a business banking account for the LLC where your IRA funds will be directed for access to purchase the asset.



• Step 3: Once all the paper work is complete and funds are available for use, with the assistance of your Costa Rican real estate attorney, you can purchase a property which will be owned by your IRA with you as the beneficiary, which will looks something like this: IRA SERVICES TRUST COMPANY XYZ, JOHN DOE, IRA00000.

This property makes an ideal investment property due to its size, location, and amenities.

Located less than 10 minutes for downtown Atenas, this beautiful, well maintained pool home. Features 200 m2 (2100 s.f.) of construction, perfectly situated on a 2,000 m2 (1/2 acre) lushly landscaped view lot. The home is very well distributed with a spacious guest bedroom and an office or third bedroom that share a common hall bathroom.

The large, open living room features vaulted hardwood ceilings, a custom kitchen with hardwood cabinets, granite counter tops, and stainless steel appliances (gas cooktop). Off the kitchen you will find a spacious utility room with plenty of storage. The home also features an energy saving solar hot water heater.

The master suite is ample and overlooks the swimming pool with fantastic mountain views. A well-organized closet and luxurious master bath with soaking tub and walk-in shower complete this area of the home.

Off the living area, a wall of sliding glass doors open onto the covered terrace overlooking the lushly landscaped back yard, large, salt water lap swimming pool, and beautiful mountains beyond. A one car carport completes this home.

The owners have lovingly planted and maintained the gardens throughout this property. There are many varieties of tropical plants as well as tropical fruit trees that provide an abundance of fruit to enjoy throughout the year. Offered TURN KEY for only $340,000

As a vacation rental, this home would generate $1,000.00 per week during high season, and $800 per week during low season. If you are proactive with your investment property, you can obtain 70%-80% occupancy rate in high season, which runs from mid-December through April, and 40%-50% occupancy rate for the low or green season.

The average high season has 18 weeks and with an 80% occupancy rate, you will generate a gross rental income of $18,000 Likewise, during the low season, taking 50% as our occupancy rate, a gross income of $13,600 would be expected; combined for a gross annual income of $31,600

This equates to 9.3% gross return on your investment. After expenses, you can expect to realize 5.5%-6.5% ROI. If this sound like an interesting investment to you, welcome to paradise!

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.