Buy a House with Your IRA

Buy a House with Your IRA

Self-directed IRA’s — too good to be true?

This is not for everyone, but what it boils down to is that if you have a lot of money in an IRA and want to expand your investments beyond ordinary securities, a self-directed IRA can help you do what you want with your money – including buying real estate.

Difficult times have caused many people to look at alternative ways to save for retirement, and if you like owning real estate and think the long-term returns are likely to beat securities, this could be a good way to invest your IRA.

There are lots of rules, and you should be aware of what you can and can’t do with your IRA’s real estate.  For example, you or any immediate family members can’t live in it or get any rental income from it directly. Additionally, all repairs, management and property tax costs must be paid with the IRA’s funds – you’ll need to use a management company.  You can’t even make repairs by yourself without your own “sweat equity” being considered a contribution to the account.  So get expert tax advice and educate yourself prior to getting started.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.