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Why Vacation Homes Are the Ideal Investment for Your IRA

27 October, 2018

Why Vacation Homes Are the Ideal Investment for Your IRA

Most financial advisors still won’t tell investors how to buy real estate with an IRA account, but that doesn’t mean this isn’t a highly effective alternative investment strategy…. IF you know where and perhaps more importantly what kind of investment properties to buy. Read on to learn why vacation home rentals are the ideal real estate investment for your IRA account and how to spot the best income producing properties on the market right now. 

"Real estate is one of the most popular investments because it offers higher return potential and lower risk due to the investment being secured”, wrote Forbes. “For those wanting to own individual properties in their retirement account, or wanting to invest in residential rental properties, turnkey rentals may be the route for you”. 

Best Real Estate Investments for Your IRA Account

Many types of real estate aren’t really suited for purchase in an IRA account because it’s technically a separate legal entity with strict laws that prohibit “self-dealing”. Turnkey vacation home rentals in one of the world’s top destinations are an ideal alternative investment for your IRA account because they offer a completely hands-off way to buy income producing property. This is important because any assets that are held inside the IRA must be in the IRA’s name and cannot be used or directly managed by you as the account owner, or by your immediate family. 

Best Real Estate Investments for Your IRA Account

In other words, all real estate that is held in your IRA must be treated purely as an investment and as such, a professional property manager should be responsible for all maintenance, upkeep, repairs and vacation rental bookings. Also, the rental property is never to be used by the IRA account owner or their immediate family, and every expense must be paid directly from assets within the IRA. 

Also Read: 

4 Advantages of Buying Real Estate With an IRA Account 

7 Reasons Real Estate Investing is Better Than the Stock Market

How to Buy Real Estate with IRA Accounts to Generate Retirement Income

Where to Find the Best Turnkey Rental Properties

Unfortunately, it’s not likely that you will be able to maximize your return on investment with rental property in your hometown. Also, it’s essential to find a new, impeccably managed investment property when you are buying real estate with an IRA, mainly because of the “self-dealing” prohibition. That’s why vacation home rentals in top international destinations offer such an attractive alternative investment, compared to domestic options.

Where to Find the Best Turnkey Rental Properties

By expanding your search to include the world’s most popular vacation destinations, you will find better value, higher return on investment, a larger pool of more experienced property managers and more new developments to choose from. For example, turnkey vacation home rentals in the exotic beach destinations of Playa del Carmen and Tulum in Mexico’s Riviera Maya are always in demand and still offer incredible value for the money in a growing real estate market that is bolstered by modern infrastructure and the very best quality of life. 

By looking at vacation home rentals located outside of your immediate area, you can make certain to find in the best investment property for purchase in your IRA account and secure a hedge against inflation while you lock in significant long-term gains in the form of tax deferred income. 

Do you have questions about buying real estate with an IRA account? Post them in the comments!

Want to Know How to Invest in Real Estate with your Self-Directed IRA?

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Topics: Real Estate IRA Alternative Investments Investment

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