Los Angeles, CA (PRWEB) June 05, 2014
The past few years may not be the best time to purchase vacation properties or even invest in one using Solo 401k for self employed retirement accounts due to the effect of the great recession. However, these days, as real estate industry straightens its path to a remarkable growth, even vacation properties are becoming a hot commodity for those who can purchase upfront. According to this year’s survey of National Association of Realtors, sales on vacation homes have increased to 29.7% along with an average price surge by 13% at $168,700.
Though the prices significantly increased the demand for vacation homes are still growing. According to NAR’s chief economist, Lawrence Yun, “It’s still a good opportunity for those who feel comfortable in their finances and want to diversify out of the stock market.” For account owners of self employment 401k with self directed features, this could be the perfect time to add this kind of investment to their Solo 401k for self employed retirement portfolio alongside with their existing investments on rental properties. Buyers are typically those who would want to use this purchase for family vacations and those older people who plan to spend retirement in a recreational property. Buyers for this kind of market are normally upfront cash payers.
Eight out of ten said yes when they were asked if this is a good time to buy second homes— whether vacation homes or investment homes. However, investment home purchase had a slight drop to 20% last year from 24% in 2012 and according to Mr. Yun, “Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year.” Though typically, it is common to use funds from self employed 401 k plans to more ideal investment properties which yields rental income for the retirement account.
The most popular places to invest on vacation homes using Solo 401k for self employed retirement accounts are in the South area whereas 41% of vacation homes were purchased in 2013. West region of the US got 28% of sales wherein Arizona and California are included in the top destinations of vacation home buyers.
Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.
To learn more information about Solo 401(k) for self-employed real estate agents, please visit http://www.sensefinancial.com.