Accuplan Benefits Services hopes that everyone's day is wonderful and that the end of 2014 is a great one for you. A lot has happened this past year at Accuplan and we feel blessed to be in the situation we are in. We wish you all a Merry Christmas and Happy New Year.
For those of you who want a little more content to read over your holiday break I thought it would be great to explain why investing in real estate looks very attractive for 2015. Also, remember that you can invest in real estate with a self-directed IRA which is commonly refereed to as a real estate IRA. Investing with a real estate IRA changes some of the rules to investing in real estate but below are the general rules for anyone looking to invest in real estate and why 2015 looks to be an attractive year for real estate investing.
For many of the past years there has been very cautions lending due to the financial crises in 2008. Now lenders are starting to relax the credit and underwriting requirements. A bigpush in this direction camer earlier this month from Fannie Mae and Freddie Mac new guidelines took affect. Now more lenders are starting to lift many of these credit and underwriting requirements. Because of this there will be more buyers that are able to purchase and if you have every had an issue with credit it may be possible for you to now qualify.
Rates Still In A Great Range
We thought 2014 was going to bring 5% mortgage rates but the average rate for a 30-year fixed mortgage didn't even top 4%.
This stayed low because of a slew of economic factors. With that said, there is a is a bigger chance that they could rise in 2015 but there is never a guarantee. That being said, investing while the rates are still great can really make a difference to what you your total contributions for purchasing that investment property.
Lower Down Payments
Fannie and Freddie just recently agreed to get behind loans with just 3% down! You take the lower down payment plus the lower credit standards and more than likely more first time buyers will be entering the market. Not everything comes perfect though and you'll need make sure there are no other costs associated to the 3% down that will make your monthly payments
As of late home prices are cooling off and as housing price growth has slowed. There are some areas that still haven't slowed completely but overall there has been a slow down. 2014 saw a 5% increase but the outlook for 2015 is just 3%.
All things considered the timing is looking right for a real estate investment in 2015. If are wanting to invest in real estate with your IRA then 2015 just might be the perfect time for you. Regardless, getting the tax benefits that come with retirement accounts is a great way to invest.
For more information about real estate IRA investing or other retirement account investments please contact us.
Author: Nick Barker