Why should you buy & remodel a house & consider using your IRA to do it?
Updated: Sep 6
Right now, the market is changing and it's more of a buyers’ market than it was a few months ago. Not everyone can afford the new cost of borrowing, but many older people are sitting on nest eggs from IRA’s.
A few months ago, it was so difficult to even get anyone to pay attention to you, if you were a buyer and didn’t offer cash. But now some sellers are begging for offers and reducing their prices. As mortgage costs have gone up, sellers are reducing their demands.
Many times, there are bargains out there, if you are willing to put in some work on the house. Maybe the kitchen is old, maybe the bathrooms are old, maybe the distribution is not what you really want. Maybe the house would need more space for you to buy it, but you can often add an addition. Houses that are already remodeled and move-in ready come at a premium. And just think, instead of having a house that was built to someone else’s taste, you can customize it yourself.
But did you know you can use your IRA for purchasing real estate? Yes, you can. You must set it up and go through a 3rd party, but it’s not that hard. You can even use your IRA to remodel the house.
And why should you do this? While interest rates are higher, maybe it’s a good time to invest your IRA in real estate. Real estate in Miami has consistently been in high demand as we have seen with double digit increases in value over the last couple of years. You can use the house as your home, or you can remodel it and then rent it out. Just like values have gone up, rents in Miami have too. Maybe you are thinking ahead, and in the future, you can leave the house to your children. There are so many reasons to buy real estate now.
As Miami architects, we have done many renovations. Maria Luisa Castellanos, R.A., is also a Realtor. She can help you purchase as well as remodel any property you would like to buy. Call mail her at MLC@UnitedArchs.com