especially if they intend to generate income through renting the property. It is usually much easier to manage a property close to home than one far away. Property managers can take PERSPECTIVE: IRA INVESTING
pace for investments out of state; more than one-third of their purchases were out of state, most often in Arizona (9%), Texas (7%), and Nevada (5%).
Direct Your Future™
Percentage of Purchases In-State
Real Estate Investor Market ReseaRch RepoRt
TX 86% 94% 2014 2015
CA 60% 64% 2014 2015
AZ 96% 100% 2014 2015
TX
CA
AZ
CO 74% 72% 2014 2015
FL 94% 100% 2014 2015
CO
FL
diversify their portfolio. Here are the characteristics of the typical buyer: • 44 years old • $86,100 median household income • 83 percent bought a detached, sin- gle-family house • 32 percent were first-time buyers • 67 percent were married Here are the characteristics of the typical seller: • 54 years old • $104,000 median house- hold income • Sold for a median $40,000 over the origi- nal purchase price • 89 percent worked with a real estate agent Why Investors Are Buying Nearly half (42 percent) of real estate investors bought property for the purpose of generating a rental income stream. The opportunity for value appreciation (14 percent) and finding a deal that was too good to pass up (16 percent) were the next most common reasons. These
reasons mesh perfectly with the purpose of—and the laws governing—holding real estate in an IRA: as an investment and/or to generate income. The Rental Market Boom According to Zillow, there are 43 million renter households in the United States. In 2015, they paid $535 billion in rent. That’s a nearly 4 percent in- crease over rents paid in 2014. well aware of the surging rental market and are cap- italizing on it. In 2015, real estate investments for rental purposes increased by 5 percent. Savvy investors are aware of this trend. It’s part of the reason real estate transactions are the No. 1 asset of choice among Entrust clients. Three Reasons to Invest in Real Estate with an IRA • Invest in what you know. You can That increase has two causes: higher rents being charged and nearly 2 million more people looking to rent. Real estate investors are
leverage your familiarity with real estate by investing in real property. • Diversify your portfolio to protect against market volatility and inflation. • Generate revenue and watch the value of your investments grow on a tax-de- ferred or tax-free basis. Retirement saving and real estate purchases have something important in common: both involve decisions that blend personal and business considerations. For many people, owning real estate in a self-directed IRA is one more step toward a comfortable retirement. • Entrust strives to provide personal, profes- sional services and education that empower clients to control their investment choices. You can rely on The Entrust Group for up-to-date education about self-directed alternative investments with IRAs. Entrust’s reports, we- binars and live events can help you keep up with the increasing demand to diversify your portfolio. For more information, call 800-392- 9653 or email teg@theentrustgroup.com. www.theentrustgroup.com
Discover The Top Real Estate IRA Investment Trends at TheEntrustGroup.com/real-estate-report
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JULY/AUGUST 2016 | 19 1.800.392.9653 | TEG@TheEntrustGroup.com | www.TheEntrustGroup.com Entrust does not promote any investments. Rather, Entrust provides the administration, information, and tools to help make self-direction straight-forward and compliant. We help you get started quickly and stay with you every step of the way.
18 | INVESTOR REVIEW
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