There are many benefits to using a self-directed IRA to invest in real estate. The opportunity to diversify your retirement account beyond conventional equities and bonds is one of the key benefits. You have the freedom to invest in a range of real estate assets with a self-directed IRA, including rental homes, office space, and even undeveloped land. This could potentially boost returns while lowering total portfolio risk.
The potential for tax advantages is another benefit. Depending on the type of account, real estate investments maintained within a self-directed IRA may grow tax-free or tax-deferred. Also, self-directed IRA real estate assets are often exempt from current taxation on their rental income and capital gains.
The potential for tax advantages is another benefit. Depending on the type of account, real estate investments maintained within a self-directed IRA may grow tax-free or tax-deferred. Also, self-directed IRA real estate assets are often exempt from current taxation on their rental income and capital gains.
