Have you considered using your IRA to buy real estate investment properties? For those who like being in the driver’s seat, a significant plus is that self-directed IRAs give you more control than the Traditional or Roth IRA investment options, adding much-desired diversity to your holdings in alternative assets.
If you would like to take advantage of these benefits, read on as we explore how to buy New England real estate investment properties using your IRA. Please note that this article is for informational purposes, not financial or legal advice.
One benefit of utilizing this investment approach is the ability to defer taxes on the income earned from rental properties, which can be held in a tax-deferred account until retirement. This can lead to a lower tax burden since taxes will only be paid when the funds are received during retirement, which is advantageous for most investors. Moreover, purchasing New England real estate investment properties through an IRA may provide investors with access to lower tax brackets when they receive qualified distributions.
However, it is important to note that there are strict regulations surrounding self-dealing and investing in one’s or a close family member’s property, so investors must be careful to comply with these rules. Another consideration is that the property purchase must be fully funded by the IRA, meaning that investors should account for unexpected expenses.
To navigate these complexities, professional buyers such as those at Old Harbor Properties can assist investors in evaluating potential investments and using a trusted formula for real estate investing to achieve optimal returns. These professionals can also help investors make informed decisions about real estate investments that align with their financial goals and working budget.
Investors who prefer a more hands-off approach to purchasing New England real estate investment properties using their IRA may consider utilizing a traditional or Roth IRA to invest in real estate investment trusts (REITs) or real estate mutual funds. These investment vehicles allow investors to benefit from the potential returns of the real estate market without taking on the responsibilities of being a landlord. However, it is important to note that there are limitations to these options, such as limited potential income and less opportunity to build equity. Additionally, the tax benefits may not be as significant with the traditional method.
To navigate these complexities and determine the best option for their investment strategy and personal preferences, investors can work with professional buyers such as those at Old Harbor Properties. These experts can provide guidance on selecting the most suitable option and help investors build a healthy real estate portfolio for a secure retirement. By speaking with one of the professional buyers at Old Harbor Properties, investors can take the first step towards achieving their financial goals with confidence.
Old Harbor Properties offers a reliable solution for investors who want to purchase New England real estate investment properties using their IRA. The professional buyers at Old Harbor Properties are experienced investors who stay up-to-date with the latest trends and developments in the local and national real estate markets. By leveraging their expertise, investors can choose the most suitable investment option that maximizes their return on investment.
Investors can also explore Old Harbor Properties’ current inventory of listings to identify the best investment properties available in New England. Working with these experts provides investors with access to a team that operates with an investor’s mindset, saving them time and money while ensuring wise investment decisions. Additionally, investors can benefit from Old Harbor Properties’ highly-regarded property management team, who can assist with tenant screening, placement, and on-site management, ultimately leading to happy tenants and increased profits.
To learn more about how Old Harbor Properties can assist with your real estate investment needs, contact them at (781) 208-7362.