Sunday, August 22, 2010

Start a Retirement Account by Investing in Land and Real Estate

We all feel and know too well the state of the economy right now. For many of us the money we invested into the stock market for our retirement has seen the stock market sink to historic lows. As many of us have discovered, we may have lost most, if not all our retirement monies and will now have to work a few years longer than planned, just to maintain a minimum standard of living when we do retire.

While the economy is definitely weak including the housing market, there is a part of the real estate market that has actually maintained its value and in some areas of the country, skyrocketed. Vacant land, empty lots, farm and ranch acreage, land of any type has held its value and even increased in some parts of the country. Unfortunately for those with 401k accounts, there aren’t any options to put your money into real estate stocks.

However, since the early 1970’s, Americans have been allowed to use their IRA assets for buying investment property. Even to this day though, this is still the least known and unadvertised investment in the financial market. Part of this is because many people don’t understand what a self-directed IRA actually means. What we’re saying is it is possible to make real estate investments with your retirement plan!

It’s all over the news in print, internet, TV and radio that foreclosed homes are at an all time high and selling for a small fraction of their original prices. Still though, raw and vacant land is a bargain for those investing in real estate. Land will hold its cash value and gain growth again before the housing market. There are specialty lenders that are willing to provide IRA investors the leverage needed with their retirement savings for a real estate mortgage as an investment.

Those of us with retirement accounts are unsure of our nest eggs right now and having all our eggs in one basket makes us nervous. If you are considering real estate investment, remember real estate runs in cycles. So what has hit bottom today will come back up later. A real estate investment can bring rental income for the present and then be the nest egg you cash in after retirement. For hard assets, there is nothing that can be of greater value than land.

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