Single family homes are fast becoming an investment of choice. As reported by the National Association of Realtors 2012 Investment and Vacation Home Buyers Survey, sales increased by 64.5% year over year from 749,000 units in 2010 to 1.23 million units in 2011.
Investment sales were 27% of all 2011 sales, up from 17% in 2010. Live-in home buyers fell 15.5% in the same time period.
49% of investment buyers paid all cash for their property. Only about half of the investment purchases were distressed homes.
About half of the investors stated the main reason for buying was to generate income. Another 34% wanted to diversify or saw real estate as a good investment opportunity.
With real estate "On Sale" in most of the USA, there are many excellent opportunities still available. And, for smart, qualified buyers, making these investment in a self directed IRA, 401K, or other tax protected plan can be even smarter.
Most personal retirement investment plans focus on stocks, mutual funds, or bank deposits. This investment class has ROI yields as low as 1% and many experience capital loss as well.
How do you resolve this challenge? There are a few well managed, experienced, firms that provide self directed plans for your IRA, 401K, and similar plans. Using one of these custodial services broadens your investment options to include real estate, mortgage loans, precious metals, and many other asset classes. There are IRS restrictions that must be carefully observed. These are well known to the custodian companies. They handle the direct cash investment on your behalf, following your instructions and applicable laws.
Done well, you can acquire fully managed residential real estate within such plans and all the growth will be tax deferred, or with a Roth account, may even be tax free. Well selected single family real estate properties return 5% to 10% cash on cash ROI. That does not include any appreciation, which may add equity value over time.
With property values down about 40% from peak, now is an excellent opportunity to invest in good positive cash flow single family homes to grow your investment plan on cash flow alone. Appreciation benefits, which are obviously not guaranteed, become icing on the cake.
Millions of families have already lost homes. These families are now in the rental market. Under current lending restrictions, they will be renters for several years. This increased demand makes a strong rental market - especially in Orange County, CA.
Good opportunities are available in many parts of the country. As always with any investment you may consider, discuss it with your investment professionals. Nothing in this article is intended to be tax advice or legal advice. That can only come from properly licensed tax professionals and/or attorneys.
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Investment sales were 27% of all 2011 sales, up from 17% in 2010. Live-in home buyers fell 15.5% in the same time period.
49% of investment buyers paid all cash for their property. Only about half of the investment purchases were distressed homes.
About half of the investors stated the main reason for buying was to generate income. Another 34% wanted to diversify or saw real estate as a good investment opportunity.
With real estate "On Sale" in most of the USA, there are many excellent opportunities still available. And, for smart, qualified buyers, making these investment in a self directed IRA, 401K, or other tax protected plan can be even smarter.
Most personal retirement investment plans focus on stocks, mutual funds, or bank deposits. This investment class has ROI yields as low as 1% and many experience capital loss as well.
How do you resolve this challenge? There are a few well managed, experienced, firms that provide self directed plans for your IRA, 401K, and similar plans. Using one of these custodial services broadens your investment options to include real estate, mortgage loans, precious metals, and many other asset classes. There are IRS restrictions that must be carefully observed. These are well known to the custodian companies. They handle the direct cash investment on your behalf, following your instructions and applicable laws.
Done well, you can acquire fully managed residential real estate within such plans and all the growth will be tax deferred, or with a Roth account, may even be tax free. Well selected single family real estate properties return 5% to 10% cash on cash ROI. That does not include any appreciation, which may add equity value over time.
With property values down about 40% from peak, now is an excellent opportunity to invest in good positive cash flow single family homes to grow your investment plan on cash flow alone. Appreciation benefits, which are obviously not guaranteed, become icing on the cake.
Millions of families have already lost homes. These families are now in the rental market. Under current lending restrictions, they will be renters for several years. This increased demand makes a strong rental market - especially in Orange County, CA.
Good opportunities are available in many parts of the country. As always with any investment you may consider, discuss it with your investment professionals. Nothing in this article is intended to be tax advice or legal advice. That can only come from properly licensed tax professionals and/or attorneys.
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