IRA Investing in Arizona Real Estate your Individual Retirement Account AZ 401k Investment

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Investing Your IRA in Arizona Real Estate

Memories of the bear market and continued concern over low interest rates have a lot of Arizona IRA Investors looking beyond stocks, bonds and mutual funds for their retirement savings. A growing number of Arizona Investors have discovered they can use the money in their IRAs to buy real estate -- from Arizona raw land to Southern Arizona single-family homes to Arizonan commercial buildings.

However, just because you can doesn't mean you should, warns MyOwnArizona™ network of IRA Specialists. The rules are complex, and the stakes for running in conflict of them are high. A misstep can disqualify your Arizona IRA's tax-deferred status, forcing you to pay tax on its full value plus penalties if you're under age 59½. If you want to invest in Arizona real estate in your IRA, MyOwnArizona™ network of IRA Specialists suggests real estate investment trusts.

MyOwnArizona™ network of IRA Specialists note that owning Arizona investment property inside an IRA forfeits the traditional tax advantages of investing in Arizona real estate. You can't deduct property taxes or mortgage interest, and you can't use depreciation. When you sell the Arizona property, a traditional IRA turns profit into ordinary income rather than capital gains (with a Roth IRA, profit would be tax-free).

Plus, your IRA must have enough spare cash to pay such Arizona property-related expenses as maintenance costs, taxes and management fees because all income must flow into the IRA and all expenses be paid out of it.

Just the same, there are plenty of success stories. If they intrigue you, be prepared for a lot of work. Or contact our MyOwnArizona™ network of IRA Specialists for the necessary experience to do the legwork for you. First, you have to find an Arizona investment property you desire. Then you have to find an MyOwnArizona™ network of Self-Directed Real Estate IRA custodians that allows real estate investments. Don't look to your local bank or mutual fund company for help -- there are only a handful of MyOwnArizona™ network of Self-Directed Real Estate IRA custodians who do this.

Despite the complexities, the availability of lending is likely to increase as more financial institutions and professional advisers learn about this investment niche, predicts MyOwnArizona™ network of Self-Directed Real Estate IRA Custodians and Real Estate Agent. Of the nearly $3 trillion invested in IRAs, experts estimates that less than 1% is allocated to direct real estate investments. But know that that is changing. The only reason is a lack of knowledge and education.

Our MyOwnArizona™ network of Self-Directed Real Estate IRA message is: This is a relatively unknown avenue to build wealth in your retirement account. The fact is that real estate investing inside IRA's is one of the most excellent kept financial secrets around. Please contact us for further information.

The MyOwnArizona™ Team Does More Than Help People Buy and Sell Tucson Real Estate

We spend a lot of time out in the local investment properties market getting to know every in and out of each area and the Arizona investing income real estate market in general.

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The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.