More Americans purchasing investment properties

Whether dipping their toes in the investment property arena directly by purchasing their first income-generating property, or indirectly by investing in funds that buy foreclosures to rent, more Americans are turning to real estate to build wealth, according the a recent Bloomberg.com story.

Investors accounted for 18 percent of sales nationwide in August, the highest since the beginning of the foreclosure crisis, according to the National Association of Realtors. About 90 percent of those investor purchases went to people owning fewer than 20 properties.

Many neophyte investors are utilizing self-directed Individual Retirement Accounts that allow them to purchase investment properties with retirement savings. See the Bloomberg story here: Foreclosures Drawing Cash as 401K Returns Sag: Mortgages

What’s your opinion? Would you purchase income property through your retirement account?

Avatar

About Guy Johnson

I am a licensed Nevada REALTOR® (lic.# S.0075262.LLC) living and working in fabulous Reno, Nevada. I cover Reno, Sparks, Incline Village, Carson City, and beyond. Give me a call at 775-722-4011 and I will be happy to assist you with your real estate needs. I'm your Guy!
This entry was posted in Investing. Bookmark the permalink.

3 Responses to More Americans purchasing investment properties

  1. Avatar Sully says:

    FWIW – I checked into doing this about 20 years ago. Back when things weren’t as screwed up as they are today. After meeting with my accountant and going over the pros and cons (more cons then pros) I put the idea to rest.

    With the current rate of interest at a smudge over zero it might be an alternative, however I don’t believe the cons have changed much since I looked into it. The primary reason for not doing it was because an IRA account is already tax free and a Roth IRA (not available then) is by far even better. Since I’m trying to cash out my IRA’s it’s obvious I’m not in the market to use one for real estate at this point.

  2. Avatar gerard says:

    It’s certainly not for everyone, although my investment property has returned over 10% in the only 11 months I’ve owned it. It also comps out at about 5% above my purchase price. So far ZERO complaints here

  3. Avatar Matthew says:

    The reality is that when the “average American” tries to “invest” their money they get gored because most people are unprepared, unwilling or unable to make sensible fiscal choices.

Leave a Reply