Why Today is the Best Time to Invest Small Business 401k Funds in Real Estate

Sense Financial explains why investing in the rebounding real estate market using small business 401k will offer safe and stable returns. Experts and seasoned investors foresee real estate economy to rise in the next couple of years.

Los Angeles, CA (PRWEB) April 01, 2014

Experts strongly believe that the housing market will continue to grow and stabilize this year. The upswings in home prices, decreasing number of foreclosures, and vast activities in store for underwater homeowners are some of the current trends in real estate. As for Sense Financial, this is the best time for retirement account holders to invest their small business 401k in real estate. Among other industries affected by the recent recession, real estate was one of those that struggled to get back on track. Real estate economy has bounced back and will continue rising for the next couple of years.

Investing funds from 401 k plans for self employed individuals will likely to give retirement account holders more stabilized gains on their retirement money. Real estate experts and economists foresee a predictable increase that will hit up to 5% in mortgage rates before 2014 ends. Erin Lantz, director of mortgages for Zillow, an online real estate database says, “While this will make homes more expensive to finance – the monthly payment on a $200,000 loan will rise by roughly $160 – it’s important to remember that mortgage rates in the 5 percent range are still very low.”

Although inventory remains tight and both developers and buyers face tough lending standards from last year and the early part of this year, these trends will eventually loosen up before the end of this year. Ms. Lantz added, “The silver lining to rising interest rates is that getting a loan will be easier. Rising rates means lenders’ refinance business will dwindle, forcing them to compete for buyers by potentially loosening their lending standards.”

Among the promising markets for real estate where small business 401k funds could be invested are in smaller secondary markets such as Austin, Houston, San Jose, and Dallas/Fort Worth. For those in larger cities are Atlanta, Chicago, and Washington, D.C.

For seasoned investors, they see stocks getting more expensive as well as the interest rates to remain just stable or might even decline over the next couple of years. Real estate remains to be the investment choice that could offer 401 k plans for small business owners a safer retirement and more stable higher yield returns compared to the volatile and out of control paper investments.

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 about the solutions they provide, please contact: (949) 228-9393