Imagine owning a vacation home that could also serve as an investment property in an up and coming city in the United States.
Let's say for example investing in beautiful, Boise, ID. Boise is the capital of the state of Idaho and is often lovingly referred to as the "City of Trees" and "Bronco Nation" as it is home to Boise State University. With it's ever changing skyline, strong job growth, new business opportunities, art, entertainment, and culture for days, plus the 190 miles of mountain trail in it’s backyard, it's no wonder why Boise is making a name for itself. Not to mention, Boise is located 20 minutes from Lucky Peak Reservoir, 2 hours from the wondrous lake and ski hill of McCall, ID, and 2.5 hours from the world famous ski resort of Sun Valley, ID.
Wouldn't it be great to spend a couple weeks out of the summer with your family exploring the mountain trails, fishing, floating the Boise River, riding your bike on 25 miles of Greenbelt, and heading downtown for a night out with live music on almost every corner?
What about spending your Christmas in a winter wonderland, taking advantage of the ski hills in Boise and close by? Teaching your children invaluable lessons such as how to “pizza” with their skis?
How about enjoying the changing leaves on a beautiful fall day and truly understanding why it is called “The City of Trees” while rooting for the Boise State Bronco’s on the, “Blue Turf?”
When all is said and done and down the road, maybe it would be the perfect place for you and your spouse to retire?
Lastly and to top everything off, wouldn't it be even more amazing to make money when you're not occupying the real estate? That side hustle, if you will.
With platforms like Airbnb, VRBO and Tripping.com the opportunities to create rental income are easier than ever!
Here’s the kicker-what if you could purchase the real estate with the help of your IRA or other qualified retirement plans?
With our SAFE HARBOR®-Directed IRA™ (SHIRA™)…YOU CAN! The SHIRA™ has no prohibited transactions because the title of the real estate is in your name, not in the name of the IRA. That means, immediate occupancy and enjoyment for you and your family.
It makes total sense that a place like Boise would be smart to invest in, but it isn't the only city with investment opportunities. Click the link below for a list of up and coming places with low income taxes, which makes the perks of investing there that much better.
Before you decide on where to invest, an article entitled, "4 Tips for Investing in Property in Another Area" from U.S. News by Debbie Carlson, outlines a few things to look into first:
Study New Region: It is definitely worth it to look into the area's statistic's such as crime, schools, population growth, and median income.
Strong Job Growth: According to Eduardo Gruener, co-founder and chief executive office of Momentum Real Estate partners, "Rising income per capita means an investor's net operating income will likely rise as resident's income increases."
Low-Income Taxes: Even though there may be population and job growth, the income taxes may be too high, making the city unaffordable.
New Businesses Opening: New business=new opportunity! Gruener states, "Look for a diverse employment base, and watch for new businesses opening. Good signs include news stories about office complexes breaking ground or companies moving headquarters to an area. Look for things that are going to happen." Areas that are experiencing revitalization can also be good places to invest!
Get Professional Help: If this is a vacation home and/or an investment property, odds are you won't be living there 365 days out of the year, therefore, you may hire a property manager to help manage and rent out the real estate. The property manager could be your biggest asset as they know which areas of the city get a lot of action and are easy to rent out, but make sure they are clear that this is an investment property and not a primary residence.
In today's financial world, it's smart to get creative and look to alternative investments. At Lasaii Benefits, we do just that. With the potential interest earnings from the SAFE-HARBOR®-Directed IRA™, possible appreciation of the real estate over time, rental income, and the intrinsic value of occupancy, if you wish, together with the tax write-offs (if you qualify), the actual total value and benefits of both the SHIRA™ and the real estate could be a double digit return for you! In other words, the perfect alternative investment.
Carlson, Debbie. “4 Tips for Investing in Property in Another Area.” Usnews.com. U.S. News & World Report L.P. 16 Aug 2018