IRA Real Estate Investing When the Going Gets Tough

IRA real estate investments are booming in 2008 for soon to be retirees who are worried about their future retirement plans. With the economy looking wobbly, the stock market plunging and the big investment banks going under, with us bailing them out, some traditional forms of retirement investing are starting to look a little sick.

For these reasons IRA real estate investments are increasing. Increasing? Surely not. Along with an economic meltdown, a stock market collapse and all sorts of economic turmoil, isn’t the real estate market headed for oblivion as well? Who in their right mind would consider investing their IRA in real estate?

Surely in 2008 real estate is a one way trip to the poorhouse.

No, not quite. Have you ever heard the expression that there is opportunity in adversity? There is plenty of opportunity in real estate right now, if you know where.

But lets look at IRA real estate investing first. How can you invest your IRA in real estate? Is it allowed? Is it legal?

Traditionally the majority of the population invest their IRAs in investments that are promoted to them by their custodian. In fact some custodians limit allowable investments to their own. So, it’s estimated, over 90%, in fact around 96% of IRA funds are invested this way. Mutual funds, CDs and stocks, and so on.

No problem if the markets are pushing ever skyward, but quite a problem right now.

But what about IRA real estate investments? Yes it’s entirely allowed to invest your IRA in real estate through a self directed IRA. Although this is not widely recognised, IRA real estate investing is one of the best forms of wealth accumulation for retirement. Real estate is a traditional long term wealth accumulation model, and as such is in fact ideal for IRA investing.

If you’re not certain about the details of how to set yourself up for IRA real estate investing consult your CPA, that’s outside the scope of this article. However take my word for it, it’s quite legal, and many canny IRA investors are doing it right now, and have been for a long time. You may need to execute an IRA rollover into a self directed IRA, but the trouble is worth it.

And there’s powerful reasons to consider investing your IRA in real estate. Did you know, for example, that it’s estimated that 85% of all wealth in the US was created through real estate?

And that through your IRA you can secure up to 70% bank non-recourse financing to invest your IRA retirement funds in income producing real estate?

Its food for thought isn’t it?

Now back to the real estate market. After all there’s no point in IRA real estate investing if the value of your real estate investment is going down is there?

Although we all hear that the real estate investment market is dreadful this isn’t the whole story. PARTS of the real estate market are dreadful, but not ALL of it. It’s perfectly possible to find excellent opportunities for investing in the lower priced end of the market. Simple comfortable homes for the working class who live in those faceless suburbs in cities right across America. There are some fantastic IRA real estate investments available in the right place RIGHT NOW.

But if you’re looking to get out there and find them yourself then you may be in for a shock. It’s not something that is realistic for the individual IRA real estate investor. You need professional help.

Buy in the wrong place and you’ll probably get burnt, big time.

But right now there are some excellent opportunities available for securing a great real estate investment, no cash down, at under market value, with tenants supplied, rental guarantees and even a guarantee that you will double your current investment return.

All through a major US public corporation with a reputation for solid real estate investment returns, for both IRA real estate investing and ordinary credit investing in real estate.

Yes you can secure your retirement future through a good IRA real estate investment, or more than one. However it’s the time to leave it to those who really know what they’re doing in hard times, and you can relax and leave the hard work to someone else.

Why Invest in Property in South Africa

Trend towards Property Investment
Property investment in South Africa is simple as well as secure and can offer tremendous profits in respect to other forms of investment which often prove to be unstable and unrewarding. One of the many incentives that may sway an individual towards property investment is the well acknowledged fact that typically, every seven years, the value of a property doubles.

A great deal of investors realise that even though the stock market presents opportunities for large proceedings, it does not alleviate the hitches of its erratic and risky traits. Many investors are now becoming more inclined to choose property investment over other forms of investment as it’s proving to be a somewhat more stable option, offering far more rewards.

South African Property Investment

Aside from the extraordinary lifestyle and climate South Africa has to offer, there are an abundance of advantages from which property investors can benefit.

Investors will find opportunities for lucrative investment in numerous areas in South Africa. Commercial projects and present regeneration projects in places such as Muizenberg in the Western Cape are offering exceptional returns; investors from various countries are being drawn towards similar projects due to the tax breaks available.

Experienced investors are reaping the benefits of the real estate market in South Africa at present, with many potential opportunities in buy-to-let, pure investment and land options.

For Foreign Investors

On the African continent, South Africa has one of the strongest economies. Aside from this, today’s overseas investors realise that South Africa is a spectacular country with regard to standard of living and ambience alike.

In the past few years commercial property has enjoyed considerable growth and this seems to be a trend set to carry on with government motivation now in place. Arrays of opportunities present themselves for profitable returns from South African property, especially in particular areas.

The government is dedicated to creating a strong tourism industry in South Africa. This has become an increasingly important revenue sector and also forms a part of the government’s job-creation strategy. The country is popular with foreign visitors because of its favourable climate and amazing natural scenery.

Another perk of property investment in South Africa is that there is a shortage of property due to its political past; ultimately this factor has generated long-term growth prospects in the property market. There is also a relatively stable democracy and all kinds of investment are encouraged, with foreigners being prompted to invest in South African property as there are no restrictions on ownership.

The economy is growing and consequently focus is now on initialising a strong middle class economy, thus increasing demand for homes. Considerable taxation breaks are put forward for real estate developers and with the 2010 World Cup in South Africa, demand for rental properties is also on the rise.

The housing property market is displaying a stable growth and in metropolitan areas and the commercial property market is out shining many markets in Western countries.

Proven Perks of Property Investment

There is no other investment which permits an individual to make a purchase using other people’s money, this being the bank’s, and then pay the money back using the money of other people, this being the rental income from tenants.

When you buy property exclusively for investment purposes, any form of sentiment is eradicated from the purchase and the property can be seen strictly as an investment. If you own property, equity can be released against it as even though there is no guarantee your property’s value will increase annually; it is widely acknowledged that property in a satisfactory area, that is well maintained, will certainly increase in value.

Trend towards Property Investment

Property investment in South Africa is simple as well as secure and can offer tremendous profits in respect to other forms of investment which often prove to be unstable and unrewarding. One of the many incentives that may sway an individual towards property investment is the well acknowledged fact that typically, every seven years, the value of a property doubles.

A great deal of investors realise that even though the stock market presents opportunities for large proceedings, it does not alleviate the hitches of its erratic and risky traits. Many investors are now becoming more inclined to choose property investment over other forms of investment as it’s proving to be a somewhat more stable option, offering far more rewards.

South African Property Investment

Aside from the extraordinary lifestyle and climate South Africa has to offer, there are an abundance of advantages from which property investors can benefit.

Investors will find opportunities for lucrative investment in numerous areas in South Africa. Commercial projects and present regeneration projects in places such as Muizenberg in the Western Cape are offering exceptional returns; investors from various countries are being drawn towards similar projects due to the tax breaks available.

Experienced investors are reaping the benefits of the real estate market in South Africa at present, with many potential opportunities in buy-to-let, pure investment and land options.

For Foreign Investors

On the African continent, South Africa has one of the strongest economies. Aside from this, today’s overseas investors realise that South Africa is a spectacular country with regard to standard of living and ambience alike.

In the past few years commercial property has enjoyed considerable growth and this seems to be a trend set to carry on with government motivation now in place. Arrays of opportunities present themselves for profitable returns from South African property, especially in particular areas.

The government is dedicated to creating a strong tourism industry in South Africa. This has become an increasingly important revenue sector and also forms a part of the government’s job-creation strategy. The country is popular with foreign visitors because of its favourable climate and amazing natural scenery.

Another perk of property investment in South Africa is that there is a shortage of property due to its political past; ultimately this factor has generated long-term growth prospects in the property market. There is also a relatively stable democracy and all kinds of investment are encouraged, with foreigners being prompted to invest in South African property as there are no restrictions on ownership.

The economy is growing and consequently focus is now on initialising a strong middle class economy, thus increasing demand for homes. Considerable taxation breaks are put forward for real estate developers and with the 2010 World Cup in South Africa, demand for rental properties is also on the rise.

The housing property market is displaying a stable growth and in metropolitan areas and the commercial property market is out shining many markets in Western countries.

Proven Perks of Property Investment

There is no other investment which permits an individual to make a purchase using other people’s money, this being the bank’s, and then pay the money back using the money of other people, this being the rental income from tenants.

When you buy property exclusively for investment purposes, any form of sentiment is eradicated from the purchase and the property can be seen strictly as an investment. If you own property, equity can be released against it as even though there is no guarantee your property’s value will increase annually; it is widely acknowledged that property in a satisfactory area, that is well maintained, will certainly increase in value.

What Are Some Good Ways to Invest Money? – Plan Ahead For the Future

Today’s economy has every one of us wondering how we will take care of our families financially in the long term. Should we invest our money? What are some good ways to invest money? Here are some good ways to invest money:

1. Invest in stocks- today’s stock market can be very risky. Recently, the collapse of Wall Street has required a government bailout of $700 billion dollars. However, stocks can be lucrative if you invest in the right company. Stocks can have a very good return and you can invest as little or as much money as you want.

2. Collectibles- collecting trading cards, stamps, coins etc can allow you to build a very valuable collection. Antiques and collectibles can be a great investment if the collection is kept in mint condition.

3. Buy art-art can increase in value and can be a great investment. Always research the artist before making a purchase in order to make the best art investment choices.

4. Investing in real estate- this form of investment can be a great long-term investment. Real estate can increase in value over the years. You can also build equity in your real estate purchase. You can purchase commercial real estate and rent to a company or small business owner. You could also purchase a home, condominium, or apartment building and rent them out to tenants. If you find the right tenants and keep your property occupied with reliable and responsible tenants then you could make a decent profit every month.

5. Savings bonds- savings bonds can be a good investment. They mature over time and if you wait a while to cash them out, they can give you a decent return on your initial investment. Many parents give their children savings bonds in order to help them financially when they get older.

6. Annuities- these are contracts with life insurance companies, you give money to these companies and in return they invest your money and down the road you receive payments for the amount of money that has accrued over time. These can be risky because of the unstable economy but they can be a great long-term investment.

7. 401k plan- this is a good investment for your retirement years. You invest your own money into your 401k and your employer also contributes a percentage of money into your 401 k account. This is a great way to plan for your future. You can borrow from your 401k if necessary but there is a penalty for doing this and it is reported to the IRS.

What are some good ways to invest money? Any of these options would be a good way to invest money. When asking the question what some good ways to invest money are, you should think about what type of time line you are looking at. Do you want a long term or short term investment? How much money can you invest without impacting your finances? You should talk to a financial planner before investing in anything. Hopefully then, you will know the answer to the question, what are some good ways to invest money?

Individual Retirement Accounts Explained – Save and Invest For Your Retirement Tax Free

Individual Retirement Accounts. It’s enough to put you to sleep isn’t it? However there are very sound reasons for you to understand Iras, and to set one up for yourself. If you’re interested in a comfortable retirement you need to understand Individual Retirement Accounts.

What are Individual Retirement Accounts, why would you need one and which is the best one for you?

An Individual Retirement Account, or what is also known as an IRA, is an account that individuals may set up to plan and invest for their retirement. The IRA was enacted into legislation in 1974, however it was only in 1981 when significant changes were made to the tax status of IRAs that they became popular.

It is the tax status of Individual Retirement Accounts that make them extremely attractive to people who are seeking to invest for their retirement to ensure that they have a well funded comfortable retirement when they are no longer able to work and so can no longer earn an income.

In it’s wisdom the government recognized that it was extremely difficult to provide sufficient retirement benefits from the public purse so that all retirees could retire in comfort on a government pension. This was recognition of the fact that over time, as the population ages, the public purse would not be able to afford to pay full retirement pensions to everyone, so the government needed to come up with a plan to make individuals invest for their own retirement.

The way to do this was to offer people incentives to do so by way of tax advantages though their IRAs.

So when money is deposited into an Individual Retirement Account it is tax deductible, and all income made through investing the fund during it’s life is also tax free.

That doesn’t mean though, that money is never taxed on the way in or way out of an IRA. What the government does is to tax the money as it is taken out of the IRA, it is taxed as ordinary income.

One of the great barriers to successful investing is the requirement to pay tax each time income, or a capital gain, is made. Throughout an investors investing life it is necessary to realize funds along the way to pay tax. This seriously reduces the ability to earn high returns on moneys invested because capital is being taken out all the time to pay tax, and so there is less to invest along the way.

However if, though an IRA, it is possible to invest and reinvest all income and capital back without paying any more tax, that increases massively the potential returns that someone can make investing. Hence the reason why an IRA is so attractive to individuals. An IRA can take maximum advantage of the power of compounding.

An Individual Retirement Account is required by law to be held in trust by a “custodian” who is often, or usually a bank, broker or insurance company. There are various regulations governing what your IRA custodian can do with the money, some imposed by tax law and some imposed by the custodians rules as well.

Usually traditional IRA custodians have restrictive rules about what investments the IRA can be invested in, and the funds are usually directed to investments owned by the custodian. This may be good for the custodian, but not necessarily so good for the owner of the IRA, who may not be earning the best returns.

It is also quite possible to have a self directed IRA. This is still held by a trustee, or custodian, however has a much less restrictive range of rules about the types of investments that can be invested in. The owner of the self directed IRA, or what is also known as a self managed IRA, can direct the investments into a wider range of investments that should, over the life of the fund, make much better returns. Add to that the power of compounding and the difference between the returns on a traditional IRA held by a custodian who invests the funds into their own investments, and a self directed IRA invested by the owner, can be massive.

So as you can see there are powerful reasons why you need your own Individual Retirement Account, and there are also powerful reasons why you need it to be a self directed IRA. In particular the best reason is that the best investment for your IRA is in real estate. Over time real estate offers the most stable long term investment, both for an IRA and any other investment. Investing your Individual Retirement Account in real estate offers significant long term benefits, however so many people don’t do so, either because they don’t know that they should, or because the rules of investing their IRA funds don’t allow them to do so.

They need to rollover their funds into a self directed Individual Retirement Account and start making some solid decisions to invest their retirement funds in real estate.

Even in the current market there are some outstanding and extremely solid investments in real estate. One in particular offers no money down investing for both credit investors and IRA investors, with tenants supplied and high quality homes to invest in. Returns are guaranteed and it’s a turnkey investment in real estate from a solid US public company with significant experience in real estate investing.

So, despite the fact that learning about Individual Retirement Accounts might send you to sleep, there are very good reasons to start learning anyway. And if you’re setting one up make sure it’s a self managed IRA, and that you invest it in solid real estate investments amongst others.

Beginning Investments – How Much Money Do I Need?

When you are ready to start investing in the market, you may begin with one simple question: How much money do I need to start investing? The answer varies depending on the market you want to invest in, and how much money you want to earn on your investment. The only rule to investing is that you should never invest more than you feel comfortable losing, since the market does not guarantee a return on any investments.

Stocks, Bonds and Mutual Funds

Stocks, bonds and mutual funds are the three most common types of investments today. To invest in these markets, you will need to have an initial investment of twenty dollars, but one thousand dollars is the usual amount that you will use as an initial investment. Mutual funds are the most flexible concerning the amount you need to begin investing, since there are now companies that allow you to begin with a very small investment.

To invest in bonds, you will typically need about a five thousand dollar initial investment for an individual bond from a company, institution or corporation. These bonds take some time to mature, usually a period of one or more years. Some bonds take up to twenty years to mature, but can be sold before maturity as a loss.

Stocks are perhaps the riskiest type of investment, but are also able to bring in a huge return on your initial investment. While you can invest in stocks for a relatively small sum, it is advisable to begin investing with approximately one thousand dollars. This will allow you to have a sizable investment that can grow over time.

Managing Your Portfolio

Once you have decided which market you want to invest in, you are ready to ask yourself how much money do I need to start investing? The answer will depend on the market you want to invest in. One way to make sure that you see a return on the money you invest is to have a diverse portfolio, with money invested in several different areas. A mutual fund can help you make the most of your investment if you want to invest one thousand dollars or less, but if you want to invest more than that amount, you can consider investing a combination of different mutual funds companies, stocks and bonds.

Many people have investments in several different areas of the market. As long as you fully research your options and read each potential investment company’s prospectus, then you can make smart investments even in risky markets. It is important to remember that the investments you make are designed to earn more over time, usually five years or more.

Considerations

When you are determining how much money you want to invest, take the time to ask yourself whether or not you are comfortable losing the amount you have chosen. While some people are only comfortable investing in a small mutual fund with fifty dollars or less, the amount you choose is entirely up to you.