NATUREWALK RRSP PROGRAM FOR CANADIANS

UNLOCKING SAVINGS FUNDS IN CANADA TO INVEST IN COSTA RICA

Canadian RRSP PROGRAM for 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.

SOME RULES FOR RRSP'S • 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 The contributions are tax free until withdrawn at retirement.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.

STRUCTURING THE MORTGAGE • 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.

EXAMPLE 1 Mortgage Details

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.

Amount

Interest Rate

Payment (25 year amort)

$100,000

8%

$771.82/month $9,261.84 year

Item

Amount

Loan to Value

Home Value

$400,000

100%

Current Mortgage

$200,000

50% LTV

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

Equity Available

$200,000

50% LTV

Home Value

$400,000

100%

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

Current Mortgage

$200,000

RRSP second mortgage

$100,000

total of 75% loan to value

Equity Remaining

$100,000

25%

1. Current Position

2. New Position with RRSP Mortgage

FLOW CHART OF TRANSACTION

HOLDERS RRSP FUND $200,000

RRSP HOLDER/INVESTOR RECEIVES $100,000 $100,000 MORTGAGE GIVEN TO RRSP

BUYS NATUREWALK ASSET (LOTS)

Year One - Asset Growth 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

Effective Wealth Building Asset Position - 5 years Item Starting Balance

Asset RRSP Cash

Asset RRSP Mortgage

Asset Naturewalk 10% appreciation

$200,000

Total Assets $200,000

After $100,000 Transaction

$100,000

$100,000

$300,000

After 5 years $146,309

$92,738

$161,051

$400.098

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

NEXT STEPS

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.

FOR MORE INFORMATION CONTACT NATUREWALK ECOLOGICAL INVESTMENTS & NATUREWALK ECO-RESORT COMMUNITY Toll Free Canada & U.S. 866-940-7774 naturewalkinfo@gmail.com www.naturewalkcostarica.com