It has been legal to buy real estate with Self Directed IRA $$ in the U.S. since 1974 , surprise! You must use a trustee for the deal similar to a stock brokerage who holds your IRA, 401K etc. stocks.

There are probably a dozen trustees in the states who do real estate.

One will do acquistions outside of the U.S. as long as the country isn't hostile to America ie. Iran, Cuba (sorry), North Korea, etc.

If I'd known about this outfit, I would be renting a corbetura to all of you.

I'm not an agent for the company,

If you are interested let me know and I'll send you their website etc. They preferred not to be mentioned here. RD

It's not recommended to buy a place in Brasil in general, much less burn your retirement money to do so.

Cat,

Details please? So others will know what you are talking about. If you know what you are talking about.

Try Collumbia, Peru, Argentina, Pocatello?

And yes exchange sucks now, but when Hilary gets in $$$$$ usd.

RD, it's been discussed in detail, there are some threads on "buying apartment in Rio" or something along those lines.

Basically, thieving brasilero sellers, thieving brasilero real estate agents, theiving brasilero lawyers, no concept of title insurance, cronic issues after purchase of lawsuits by workmen and other owners, etc etc. I've known a few success stories, lots of failure stories, but even the successes have had problems.

I purchased a condo in Brazil in April 2003. Although it was an unnerving experience to move that much money to a foreign country, everything went off without a hitch. During closing, it was sort of strange, because the realty company insisted on being paid in cash. So there were these large sacks of cash in the room at closing. It was all in Portuguese and I didn't understand a word. Now it is 4.5 years later, and there really has been no negatives from the transaction itself.

I have had bad experiences with maids, and customs agents trying to squeeze me. But when I balance it against all the good, plus the fact the fact that I bought the apartment at a R$2.9 exchange rate, I am way ahead.

BT, you are sole guy I know who purchased a place without issues. I think you got a great place in a very good, quiet location at a very nice price, at pretty much the perfect time regarding exchange rates, real estate prices in Zona Sul, and you had a good set of people working with you. That said, would you recommend to someone to buy today, particularly using their retirement fund, to do so? Particularly when the amount could be the bulk of someone's liquid wealth?

I would buy an apartment in Rio, but...
1. I would not buy at these exchange rates and 2. I would spend a little extra and get title insurance...which is by and large unheard of by brazilians but is available in some cases to gringos.

I agree with you Cat; I would not buy real estate in Brazil with retirement funds.

"but when Hilary gets in $$$$$ usd" ROFLOL!!!!

I think if you go through a reputable real estate agency, you should be OK. I think the same rules apply in the United States.

All that said, purchasing real estate in a foreign country is a risky thing. But I wanted to do it. I was spending a lot of time in Rio, but each time, I felt that I was slumming a little bit. Plus if I was going to spend even more time in the land that I love, I would need a nice place to work etc. So I just threw caution to the wind and purchased a place that I felt was head and shoulders better than all the other places I looked at.

Of course, I was not using retirement money, and I would not recommend to do that even in the US. If you throw out the sleaze factor, I would say the US real estate market has more downside risk than the Brazilian.

Bluelight--you dont see the currency situation getting any better? Hillary is getting my vote because she wants us out of Iraq. Rudy wont say that so I cant vote for him.

I mean, if we stop spending so damned much money over there by at least cutting back, seems like we should see some improvement. These things are cyclical arent they? (I am legitimately asking because I am not an expert on these things).

The downside to Hillary's statement being that clearly we cant just pull out or we will have a terrorist state which will be gunning for us. However, given her husband's track record economically I think her coming in would add a little confidence to the currency.

Hey Cat,

You wouldn't be a stock broker or finacial advisor would you ? I never knew real estate was a "bad" idea. Trump seems to be doing OK.
Likewise Ted Turner.

Seems you advocate buy at the top, sell at the bottom, sounds like Enron or Do-ronron.

Let see, an apartment bought in 2003 or '02 would have doubled just on currency rates. Never mind rental revenue, duh.

Then of course a guy would have a great place instead of the standard Rio shithole.
Possibly something even you might enjoy renting.

Some folks just need to stick to in/out repeat as needed.

RD

yeah, I know nothing whatsover about Rio and Rio real estate. And real estate is "bad" if your money is stolen or the deed ends up being bogus or a month after you move in you call a plumber who then hits his thumb with a hammer and your choice is to pay tens of thousands of reals in a settlement and/or legal fees.

CH's
Most financial planners or investing Gurus (ha)will advise that we should be diversified whether it's stocks in different sectors, including some real estate that can be counter cyclical to stocks and vice versa, so we don't get our asses kicked for betting on one horse , Warren Buffett, symbol (brkb) is the master of investment diversification and seems to be getting by OK.

I would give you every stock I have ever owned (with 2 exceptions), if you could give me back all the real estate I let go, sonho!

The consideration is
A.)R.E generally takes a bigger $$ comittment, B.)requires management and
C.)it isn't liquid like stock.

C.) Is the only one I would argue. Anyone can make R.E. liquid by lowering the price to the market, but nobody likes that due to pride/ego/arrogance/desperation/ignorance, etc.).
Sort of like HELPIE>
The stock market sets the price whether we like it or not and is definitely liquid at what can be excruciating reality where we can "hang in there" until each copy of the news takes our breath away or we "Get Out".

But, have a stock that rips for the sky and it's like your first dupla with a triple completa!
However, R.E. rarely goes to "Zero" depending on what we paid for it, Even in crunches like now, we can rent or live in it. Or give it back to the bank,Oops.

If stock bottoms or you bought Enron, Worldcom or Fred's Fiberglass Panties it can be wall decorations or TP. Hard to live in or rent!

It's all our choice. If I'd known about IRA-RE I'd be way better off now 'cause I understand RE. I did great in stocks until the tech bubble burst like a lot of us, but then I didn't know I could go to RE and I was terrified to go back to stocks. Duh!

I'd love to have a Terma in Rio, but working where I like to play, really sucks the wrong way!

IRA-RE works anywhere in the U.S. but the fact that a company would do foreign was NEWS to me.

You could in fact invest in a Terma, but technically you'd have to go to the competition to enjoy your "investment" due to U.S. regulations.

By the way. this is not investment advice or a recommendation of any sort regarding finance, stocks, RE or other ridiculous ideas for letharios, pun-dawgs,regular humans or senile DATY gourmets of any nationality or confusion. REALLY!

Plus, I forgot to take my Seroquel,Lamictal and Prozac today!

See U at 4x4,L'uomo.TA,HELPIE and VIP's 11/14 ate, nao se!

Tchau Buceta Busters

P.S. If you think any of this made sense, I, yes I, bought a boat in Rio for a "business", oops, remember (rent, rent, rent) Oi Bebe! Si Sandman ?

But hey, I've never had to marry a Brasileira. And I've had a vasectomy for 18 years, oi bebe!

CH's
Most financial planners or investing Gurus (ha)will advise that we should be diversified whether it's stocks in different sectors, including some real estate that can be counter cyclical to stocks and vice versa, so we don't get our asses kicked for betting on one horse , Warren Buffett, symbol (brkb) is the master of investment diversification and seems to be getting by OK.

I would give you every stock I have ever owned (with 2 exceptions), if you could give me back all the real estate I let go, sonho!

The consideration is
A.)R.E generally takes a bigger $$ comittment, B.)requires management and
C.)it isn't liquid like stock.

C.) Is the only one I would argue. Anyone can make R.E. liquid by lowering the price to the market, but nobody likes that due to pride/ego/arrogance/desperation/ignorance, etc.).
Sort of like HELPIE>
The stock market sets the price whether we like it or not and is definitely liquid at what can be excruciating reality where we can "hang in there" until each copy of the news takes our breath away or we "Get Out".

But, have a stock that rips for the sky and it's like your first dupla with a triple completa!
However, R.E. rarely goes to "Zero" depending on what we paid for it, Even in crunches like now, we can rent or live in it. Or give it back to the bank,Oops.

If stock bottoms or you bought Enron, Worldcom or Fred's Fiberglass Panties it can be wall decorations or TP. Hard to live in or rent!

It's all our choice. If I'd known about IRA-RE I'd be way better off now 'cause I understand RE. I did great in stocks until the tech bubble burst like a lot of us, but then I didn't know I could go to RE and I was terrified to go back to stocks. Duh!

I'd love to have a Terma in Rio, but working where I like to play, really sucks the wrong way!

IRA-RE works anywhere in the U.S. but the fact that a company would do foreign was NEWS to me.

You could in fact invest in a Terma, but technically you'd have to go to the competition to enjoy your "investment" due to U.S. regulations.

By the way. this is not investment advice or a recommendation of any sort regarding finance, stocks, RE or other ridiculous ideas for letharios, pun-dawgs,regular humans or senile DATY gourmets of any nationality or confusion. REALLY!

Plus, I forgot to take my Seroquel,Lamictal and Prozac today!

See U at 4x4,L'uomo.TA,HELPIE and VIP's 11/14 ate, nao se!

Tchau Buceta Busters

P.S. If you think any of this made sense, I, yes I, bought a boat in Rio for a "business", oops, remember (rent, rent, rent) Oi Bebe! Si Sandman ?

But hey, I've never had to marry a Brasileira. And I've had a vasectomy for 18 years, oi bebe!

Why would anyone buy an apartment in a country where you have to put up all the money? It is just a poor investment. Period.

If it is for the purpose of saying that you have an apartment in Rio. OK. But as an investment, there is no way it makes sense.