Purchase Real Estate with Your IRA?
November 13, 2008 | Leave a Comment
Yes, it can be done! You can buy real estate for investment purposes in your retirement account. But let’s start with the caveats: first consult your financial advisor, your attorney, and of course, your spouse! We’ll handle helping you locate and purchase the property!
Not every account or account holder is eligible. Those of us with self-directed IRA’s are among those with the option of investing our retirement funds in a variety of products other than stocks, bonds and mutual funds.
For many years, it has been possible to benefit from the real estate market through investment in real estate investment trusts (REIT’s). REITs have been attractive for many reasons, including professional management, high dividend payouts, and appreciation of the underlying assets (the shopping centers, apartment buildings, office complexes, and so on). But now, in addition to REITs, investors can take a more direct route to owning the underlying property.
Of course, there are restrictions and rules. But some of the categories of real property, eligible for these programs, include:
- Single-family and multi-unit homes
- Apartment buildings & co-ops
- Condominiums
- Commercial property
- Improved or unimproved land
This article on real estate investing within retirement accounts from Investopedia is a good starting point for more information about this topic. Contact us or give us a call at (949) 240-5892 to discuss your goals and visions for increasing your real estate portfolio while prices are low.