The US housing market is rebounding and the economic recovery strengthening. Real estate is an increasingly attractive for investors looking to save for retirement. Investing in real estate can provide portfolios with much-needed diversification as well as the potential for capital gains
Personal retirement funds, like those held in self-directed IRAs, may not be at the top of your list as a source of capital. Did you know that is possible to invest IRA funds beyond stocks, bonds and mutual funds? REAL ESTATE. Self-directed IRAs give you the control over choosing your investments. You can use IRA funds to participate in almost any form of real estate investment; from residential properties to commercial properties; including farmland and boat slip.
Using an IRA to invest in real estate provides you with the added benefit of investing with tax-advantaged dollars. When you, the investor uses retirement dollars, in most, if not all cases, capital gains are avoided and taxes on income from return on investment are deferred until it's time to take distributions.
If you invest a Roth IRA, in many cases you can avoid paying taxes on distributions or profit generated by the sale of the property entirely. (In all cases, reviewing the investment with a tax professional is always a good idea.)
There are also certain regulations that you need to be aware of when it comes to investing in real estate with a self-directed IRA. One example is that self-directed IRAs are prohibited from holding any assets that are used for the owner’s personal benefit – so you client cannot buy a home with IRA funds and then live in it.
Build your retirement wealthy now by investing your IRA funds in to REAL ESTATE.