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Is the stock market making you sick?
With properties selling at 2002 prices and high levels of inventory; residential real estate is a bargain for cash buyers. If you can put 35% down, you will find specialty banks who are eager to lend you the money to purchase investment property inside your IRA. The Nashville housing market has appeared to hit bottom and the winds of change are blowing. Most experts agree that the window to buy properties at rock bottom prices will be closing by 2013. The Time to Act is Now!
Here's Five Amazing Reasons to Invest in Real Estate Inside your IRA!
- Real Estate is a solid alternative to Stocks and Mutual Funds. It is a hard asset whose worth comes from the universally shared value of land ownership. The United States was founded on this principle and we have never had such a fire sale in our history. Real Estate is great for long-term investors. Who knows where the stock market will be in six months…let alone six years? The sooner we clear the massive backlog of inventory in the U.S., the faster we will recover. This is a true WIN-WIN…great for you and good the country too!
- Invest like Warren Buffet. Warren Buffet is considered to be the most successful investor of the 20th century and one of the world's richest men. His success is attributed to the value investing strategy. He invested in companies that were beneficial, high quality and under-priced. With prices at 2002 levels, there are countless examples of bargains on the market with tons of upside potential.
- Real Estate offers a steady income. Is your fixed income stream barely a trickle? Companies have been slashing dividends, Banks are paying a pennies on CDs, and Bond yields are dropping like rocks. Rental income from your Real Estate IRA is likely to be 3X higher than today's fixed income offerings.
- Better diversification of your investment. A Real Estate IRA does not mean that you have to abandon the stock market. Rental income flows back into the IRA and can be used to fund many types of investments: including stocks, bonds, mutual funds and more real estate. Investing the rental income into mutual funds or stocks will provide the "dollar cost averaging" benefit, which may be the icing on your retirement cake.
- Selling your investment without the Tax Hit. Proceeds from the sale of property held in an IRA flow back into the account without paying capital gains taxes or any 1031 Tax Exchange headaches. Try to sell real estate outside of your IRA and you could get a hefty bill from the IRS. The bottom line… You maintain a level of control over a tangible asset that you could never have with stocks or mutual funds.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.