You could have better piece of mind and higher returns by investing your retirement funds from your IRA’s into Las Vegas real estate
Are you tired of the roller coaster ride in the stock market and looking for a better way to plan for a future nest egg to retire comfortably? The stock market has had 8 straight years of great returns but most investors know that cycles tend to last about 7 years. The stock market tends to come down much faster than it ever went up. Buy, hold, and ignore is not a good investing strategy for your hard earned retirement money.
See the image below that shows how real estate outperformed all stock indexes in 2015. Also majority on analysts are very optimistic that real estate will continue to perform well into the future. Even the biggest real estate naysayers think the real estate market will appreciate 13.5%, on average, by 2020. Most hard working people don’t realize that you can purchase a rental property with your existing retirement funds. Imaging sitting back collecting rent every month indefinitely while the stock market continues to bounce around daily. Rental income is a great way to earn consistent returns annually without all the chaos in the stock market.
Let’s address the elephant in the room now. There are always the skeptics that will bring up the 2008-20012 real estate disaster but in history it is very uncommon for this to happen over the last 100 years. The stock market goes up and down painfully throughout its cycles but real estate tends to appreciate historically on average 3.5% annually. The reason the real estate market crashed a while back was due to the greedy lenders offering fantasy mortgages that would cripple homeowners only 18 months into the loan by readjusting the terms and payment. We’ll duh, I seen this train wreck coming as soon as these loans were introduced and being done on 50% of Las Vegas homes. Those programs are gone as they almost took down the entire U.S. banking system in 2008.
In 2016 we see just over 53% of Las Vegas residential area real estate closing in cash. Majority of these cash buyers are moving to Las Vegas from move expensive areas on the east coast and California. Speculative buying is just not happening in Las Vegas right now as these are serious homebuyers buying their primary residence. Mortgage lending standards have been much more stringent since the mortgage meltdown and buyers that need financing are much more qualified today.
Here is a typical scenario that you could find in Las Vegas real estate investing. Purchase a $200,000 property in your retirement account and all the rent checks on $1,600 month will go into your account. You of course would have to pay taxes, insurance, HOA dues and possibly a home warranty for repairs but this should still net you about $1,300 monthly. The net return on this scenario is about 7.8% annual return. But wait there more… does this now sound like an infomercial? Even if we factor on the historical number of 3.5% in appreciation this house will go up to approximately $385,000 over a 20 year period. Over 20 years this property would be projected to appreciate 92% plus you would collect over $15,600 annually into your retirement account. Total project 20 year return would be $497,000 (250%) from a $200k investment. The question now is how many do you want to buy? Leverage is key in investing and the time value of money is working for you in this scenario. Okay, so you need to call a plumber of roofer occasionally on a Sunday. Really? Even though these figures are based on long term statistical data there will be many skeptics. Let’s just say my figures are off by 30% ($149,100) as you had additional repairs, expenses, maintenance, or damages from tenants over the years . Could you handle only getting $347,000 (174%) as a return? Also, these numbers don’t yet recognize the original $200,000 that you invested that is still there.
Do not continue to leave your nest egg in all stocks as now is a great time to diversify and purchase Las Vegas investment real estate with your IRA accounts. We can walk you through the steps to complete this with you. More people have created wealth through real estate over the years than any other form of investing.
You must take action for this to happen. Sitting around hoping for the next 20 years will not make these returns happen.