How to Hold International Real Estate in Your IRA
What is your idea of the perfect second home?
Is it a secluded mountain hideaway? A cabin on a lake? A casita on the beach in a tropical paradise? Now, did you know you can hold this second home or vacation home in your IRA? Yes, it’s true!
While the US tax code certainly restricts certain types of assets which can be held in an IRA, real estate is allowed.
Of course, you'll never hear about this little known loophole from your broker. He only earns a commission if he sells you stocks or bonds.
There are many distinct advantages to holding real estate in your self-directed IRA or 401(k). You'll have the ability to:
- Purchase both traditional investments (stocks, bonds, etc.) and non-traditional assets
- such as real estate and mortgage notes
- taxable distribution or incurring penalties
- Buy and sell commercial, residential, raw land, and rental properties as real estate IRA investments
- Acquire rental properties as an IRA investment and be your own property manager, saving money in upkeep and management expenses
- Save thousands of dollars by avoiding the transaction, holding, or asset-based fees associated with many traditional holdings and generally assessed by an IRA custodian.
Now, here's where it gets very interesting:
The real property you hold in your IRA does not have to be in the United States. You read that correctly, you can hold foreign land in your IRA. Just imagine buying your dream retirement home NOW, at today's prices, and having it waiting for you (and greatly appreciated in value) when you are ready to retire!
You would have access to the resort to vacation whenever and as often as you like, you could rent it out and generate an income.
Unfortunately, if you are like most people, your current IRA has experienced unprecedented volatility this past decade and still has not yet fully recovered from the crash in 2001 and 2008. A self-directed IRA can help you diversify outside of the stock market and into potentially more secure and lucrative investments.
While the value of US real estate has fallen 30%, 50%, or more in most areas, there are many popular foreign destinations where prices have held steady and even increased in value.
Just think of where you'd be if your IRA had steadily increased in value over the past decade.
Real estate IRA may be just what you need to escape the lackluster returns of the US stock market. It gives you complete control over where, when, and how your IRA is invested!
The first step is to check with your trusted financial advisor to see if this may work for you and your unique situation. Then find a trusted custodian who is knowledgeable in holding real estate in your IRA or 401(k).
The Placencia Resort Sales Team can assist you with all steps in the process. The Placencia has numerous owners who have unlocked the benefits of their IRA by purhcasing at our wonderful resort.
We hope you found this little known secret valuable.
We're wishing you success in your efforts to build wealth in your IRA.
This is our third in a series of The Placencia, Belize informational posts. To see the others, please CLICK BELOW:
Placencia Belize, the gentle side of Belize!
Placencia Belize, the next great investment opportunity of this generation!
The Placencia Group
P.S. If you are looking for a way to maximize returns in your IRA, many Americans are maximizing control over their individual retirement accounts through purchasing property in foreign countries.
As always, our team is happy to assist you if you have any questions.
We can help you understand the details on:
- How to use a tax-advantaged, self directed IRA to invest real estate
- The ins and outs of IRA property ownership
- How to generate rental income with your property
- How and when to move property out of your IRA
Your call does not obligate you in any way. You may decide a self-directed real estate IRA is not for you, or you may choose to use the information to invest elsewhere.
Of course we believe Belize is the perfect country and The Placencia is the perfect project to take advantage of the purchasing power of your IRA.
To learn more about the self-directed IRA and for an introduction to our preferred account administration services companies, please contact us at 772-834-0099.
The Placencia Group LTD
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