Investing Your IRA In Mexico Real Estate

People are beginning to catch on. A year or so ago, few people realized that they could manage their IRA investment portfolios themselves, and even fewer knew that they could invest their IRA retirement money in something other than stocks and bonds. As of last year, finance and retirement experts suggest that approximately 2% of the nations $3 trillion in IRA investment is stashed in real estate and other non-traditional investment vehicles. If you're considering using your IRA savings to invest in real estate, there are some excellent reasons that you should choose Mexico real estate to drive your retirement portfolio into high profit margins.
Investing in foreign real estate is neither as risky nor as tricky as a lot of people would have you believe. While land and housing prices in the U.S. have soared astronomically in the past decade, the world real estate market is a far different story. It's still possible to buy a beach house on the Yucatan peninsula in Mexico for less than $50,000, and you'll find similar bargains throughout the land of our Southern neighbor.
At the same time, Mexico is an increasingly popular vacation destination with lots of undeveloped or underdeveloped coastline. Imagine if you had the foresight to buy land in Cocoa Beach in the 1950s, or along California's northern coast in the 1960s. That's the opportunity that many Mexican regions offer today. The stunning coastal reaches, pristine beaches and beautiful mountain villages are on the verge of becoming international tourist destinations. Beyond the lights of Cancun, there's an entire nation of beautiful coastal and mountain towns just emerging into the spotlight as tourist destinations. Your U.S. retirement dollars can translate into owning a Mexican villa, or a series of cottages or condo in Puerto Vallarta. On the beach, for example, you can still buy 1 acre lots of land with beach access for less than $50,000. Imagine buying beachfront property for that price in the United States?
Those land and housing prices are set to start rising as Mexico improves its infrastructure and encourages foreign investors. While Mexico used to severely restrict foreign ownership of land on the coast or in the major cities, the recent governments have realized that this policy is contrary to their development. They've created a system for land ownership that allows for foreign investment in formerly restricted and highly desirable zones. The government is bending over backwards to make owning Mexico real estate an attractive investment for foreigners.
The real beauty of owning land and houses in Mexico, though, is the very low cost of property taxes and maintenance. A beautiful $400,000 hacienda or villa may set you back $200 in property taxes per year, and maintenance costs are similarly low. When you add in the tax-protected status of investments made in your IRA, you have an incredible ROI on a purchase of Mexico real estate.
What's the downside about owning Mexico real estate as an IRA investment? You cannot reside at your investment property as long as the IRA retirement account is titled as the owner of the property. The self directed IRA rules about benefiting personally from your IRA investments are strict - you are not allowed to make use of any property owned by your IRA, or you risk losing its tax-protected status and worse yet you could face penalties from the IRS. You can, however, rent out your IRA investment for steady income - putting the profits and cash flow into your IRA, or sell your Mexican Real Estate Investment for immediate profit, as long as those profits remain inside the IRA.
If you're looking for an unusual and high earning investment for your IRA, then take a serious look at owning Mexico real estate. It can help kick your IRA earnings into high gear.