Adding real estate to your retirement portfolio can improve the diversity and quality of your retirement portfolio. Through a real estate IRA investing in real estate with your IRA is possible. Those of you who already own property with a with a Make sure you position your real estate IRA investments for the future. One such aspect that you will want to be aware of is the fact that there is a growing trend in the housing market to have roommates.
What exactly constitutes a roommate? An adult living with someone other that a spouse or a spouse or partner. How big is the trend? Well bigger than you might have thought. In 2012 the percentage of adults who live with a roommate is at 32% nationwide.
While this is a fairly decent number it doesn’t appear to be slowing down. There are plenty of other things that are happening that would suggest that this will continue to be a trend. For instance, the fact that wages haven’t been able to keep pace with the steady rise of rental costs over the past year. The more expensive the city typically the more likely there are adults are to have roommates. In Riverside, California, New York, Honolulu, Los Angeles and Miami have roughly 42% of households that include a roommate.
What does this mean for you? It means a lot of different things but the most important thing that you need to do is to look at your own real estate property. How is it situated? Is your property currently rented out? If so, what type of renters do you have? Have they been a long-term renter? Do they plan on renting for a long time? And probably the most important question to answer is, “if/when your renter stops renting from you how are going to position your property to be competitive when there are plenty of other places to be rented out there. Now that you know that a growing trend is to have a roommates one thing you could do to make your place stay competitive would be to get your rental property roommate ready. There are plenty of opinions as to what makes a space more roommate ready but nobody knows your space like you do. You may already know right off the top of your head of some things you can do to get your space more roommate ready. If not look at your space and get creative. There are some other ways you can stay compeitive when trying to find a renter for your rental property. Check out: Position Your Rental In Your Real Estate IRA To Stay Competitive
We want you to have the best experience with a real estate IRA. We are here to help make sure you are set up for success. If you need help setting up a real estate IRA or any other help in regards to self-directed investing then contact us today.
Author: Nick Barker