How To Use Your IRA To Buy A Beachfront Property

An IRA, or independent retirement account, is now being used for more than just covering the expenses of retiring.

There’s a new trend in which people are leveraging their IRA to allow them to buy real estate.

If you have been dreaming of moving to the beach or buying a second home on the water, your IRA might be the key to getting you that dream home much sooner than you think!

Here’s what you need to know about buying a beachfront property with your IRA.

What You Need To Know About Using Your IRA

Obviously, the primary intent and purpose of your IRA is to support you during your golden years of retirement and you should be conservative with how you manage those funds to protect yourself. You should make sure that you are making a wise investment when withdrawing funds for other purposes like buying a beachfront property because if you withdraw funds before the age of 59 ½ you will pay a penalty. As new construction beachfront properties usually only increase in value, you can feel safe about using your IRA fund to invest in a new waterfront condo.

Using Your Self-Directed IRA To Buy Real Estate

Unfortunately, you can’t use your IRA to purchase a new home and move into it. In fact, you can directly benefit from the transaction at all. Instead, you will need to set up a trust or business (a very simple process) to be named as the owner and beneficiary of the home. This is still a great opportunity because you can use the IRA to purchase the property, rent it out for profit, and watch as your investment grows your retirement account. As an added benefit, you will be using the SDIRA to pay for any expenses that arise with the property, which can then be written off as business expenses.

Using Your 401K Instead

If you don’t have an IRA or don’t want to touch it, you also have the option of leveraging your 401K to buy that waterfront condo you’ve got your eye on.You can borrow as much as 50% of your 401K, up to $50,000 to use towards the purchase of your dream home. You will be required to pay the money back, but often you can take up to 15 years to do so.

Interested In Buying A New Construction Condo In Paradise?

You don’t have to be retired to put your IRA to work for you! You can use it to buy a condo in that will be profitable in the meantime, and completely paid off when the time comes for you to enjoy the best years of your life.

Where is the best place to invest in a retirement property now?

Port Charlotte, Florida!

Currently, Port Charlotte is home to Harborside, one of Florida’s most desirable new luxury communities which is situated on its own private beach.

Not only is Harborside a stunning waterfront community, but it features a long list of modern amenities including a pool, spa, fitness facility, private beach, and dock so you can bring your boat. Plus, each of the condos and villas that are still available are competitively priced, making them attainable for millennials, snowbirds, and families!

Click here for more information about the new construction condos and villas still available in Harborside, or to schedule your private tour.