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Benefits Of Owning Real Estate In Your IRA

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The Benefits of Owning Real Estate in Your IRA

Real estate can be a fantastic investment and when you combine that with the power of either tax-deferred or tax-free growth in a self-directed IRA there are even more benefits. I often hear clients ask the question “why is real estate such a popular investment for self-directed accounts?” and here are some of the reasons:

Security. There are many reasons to buy real estate with your IRA. There is much more security in real estate than there is in the stock market. Unlike a stock, a piece of real estate can never totally lose its value. It won’t simply disappear, and you can drive by and see it every day!

Sure, values rise and fall, but property values rise and fall at a snail’s pace in comparison to the stock market. You’ll have ample time to buy and sell if need be. You can buy your property as values are going up, and sell when they’re near the top. …show more content…

This brings to mind another reason why real estate is a great investment inside and IRA. Whether you buy a rental house, apartment building, parking lot, or mobile home, you can generate a nice stream of income on which to build your IRA wealth and to live on during your retirement years. You’ll have that nest egg stashed away for retirement. Holding real estate can be a very passive investment that provides returns much higher than could be obtained through other passive investments (ie. stock, bonds, mutual funds etc.). With the ability to outsource property management, accounting, etc., investors can still make good returns while playing a very hands-off roll in the

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