UNLOCKING SAVINGS FUNDS IN CANADA TO INVEST

IN COSTA RICA

CanadianRRSP

PROGRAMfor 

Naturewalk

What is an RRSP?

1. Introduced by Canadian Government in 1957.1. RRSP stands for Registered Retirement Savings Program. 3. It type of Canadian account for holding savings and investment assets. 4.  RRSP's purpose is to promote savings for retirement by employees and individuals.5. In the United States a similar program is called 401K. 

• Canadians are allowed to fund this account on an annual basis up to a level of contribution set by the government. The contributions are tax free until withdrawn at retirement. 

• Many Canadians have RRSP's and they typically have amased a sizeable savings account over many years. 

• As with the United States, Canadians may also self direct investment by their RRSP into allowable investments.

• International Real Estate is not an allowable investment however mortgages in Canada are.

SOME RULES FOR RRSP'S

• The account holder directs his RRSP to advance funds to the holder secured against a mortgage.

• The mortgage is placed on his property TYPICALLY his home. 

• The mortgage can be a first charge or equity type mortgage.

• The Mortgage must follow commercially acceptable standards in the market regarding Loan to Value (LTV) and interest rate.

• The Mortgage must be insured by the government or by Private Insurance Company.

STRUCTURING THE MORTGAGE  

EXAMPLE 1

Mr. Jones wants to purchase ecological lots in Naturewalk totaling $100,000. He owns his home valued at $400,000 and has a current mortgage of $200,000. He has an RRSP savings account with $200,000 available.

Mr. Jone's RRSP Fund lends him $100,000 and in return secures a second mortgage on his home of $100,000.

Mr. Jones takes the $100,000 and buys his lots at Naturewalk.

Item Amount Loan to Value1. Current PositionHome Value $400,000 100%

Current Mortgage $200,000 50% LTV

Equity Available $200,000 50% LTV

2. New Position with RRSP Mortgage

Home Value $400,000 100%

Current Mortgage $200,000

RRSP second mortgage

$100,000 total of 75% loan to value

Equity Remaining $100,000 25%

Mortgage DetailsAmount Interest Rate Payment (25

year amort)$100,000 8% $771.82/month

$9,261.84 year

HOLDERS RRSP FUND$200,000

BUYS NATUREWALK ASSET(LOTS)

RRSP HOLDER/INVESTOR RECEIVES $100,000

$100,000 MORTGAGEGIVEN TO RRSP

FLOW CHART OF TRANSACTION

RRSP ASSET POSITION

1.Before Transaction

Cash in Fund $200,000

TOTAL $200,000

2. After Transaction

Cash in Fund $100,000

Mortgage Security $100,000

TOTAL $200,000

3.After Year 1

Cash In RRSP Fund Begin yr. $100,000

Add: Mortgage Payments $9,261.84

Cash in RRSP Fund  End of yr. 109,261.84

Mortgage Security End of yr. $99,028.02

TOTAL ASSETS YEAR END $208,289.86

Year One - Asset Growth

Item Asset RRSP Cash

Asset RRSP Mortgage

Asset Naturewalk 10% appreciation

Total Assets

Starting Balance

$200,000 $200,000

After Transaction

$100,000 $100,000 $100,000 $300,000

After 5 years$146,309 $92,738 $161,051 $400.098

Effective Wealth BuildingAsset Position - 5 years

Investment Benefits:• Diversification of Assets into cash, mortgage, direct

asset.• Use pre-tax dollars to purchase asset.• Diversification to another tax and currency jurisdiction.• Asset Protection / Offshore jurisdiction

HUGE BENEFITS OF THIS PROGRAM

• The Holder has unlocked a source of financing for purchasing real estate internationally. This effectively means he doesn't have to put money from "his pocket".

• The Holder is effectively the borrower and the lender controlling both sides of the transaction. No difficult Bank requirements.

• The Holder pays interest effectively to himself and THIS INCREASES his RRSP fund with tax free contributions.

• If for rental property, interest paid should be A DEDUCTION against current income of the Holder.

• Unlike the U.S. the Holder may occupy and use the property as well as use it as a vacation rental

Each RRSP Holder's situation is different. This is a general guideline on how the program works.

If you have interest from an investor then we can get involved with more detailed information and a plan which will maximize returns and success for the individual.

We have fully vetted this Naturewalk RRSP program with banks who would administrate the self-directed portion of the RRSP, mortgage insurance companies, accountants and attorneys.

NEXT STEPS

FOR MORE INFORMATION CONTACT

NATUREWALK ECOLOGICAL INVESTMENTS & NATUREWALK ECO-RESORT COMMUNITYToll Free Canada & U.S.866-940-7774

naturewalkinfo@gmail.comwww.naturewalkcostarica.com