Moving money from stocks to real estate!

[(former)FormerSanDiegan]

Why vacation rentals ?

Why not bread-and-butter rental properties close to job centers ?

Currently, the coast is still highly priced. I believe that at some point during this recession vacation rentals will get cheap for two reasons :
1. Less demand caused by fewer vacationers (probably already happening)
2. Coastal property markets feeling progressively more of the impact.

In fact, one might expect vacation properties (especially condos) may be the last thing to turn up in the next potential upturn. People need to cover the basics of shelter and comfort first before considering luxury items.

[barnaby33]

Why vacation rentals, this is why. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental

The original poster mentioned it. I’m not a believer that the coast is immune or even more immune. I think ultimately prices in higher end areas will come down more. Housing is a necessity, nice housing is a luxury.

The original posters comment had an undertone that I spot all the time. One that diversifying into or out of something is going to be what saves them. These are dangerous investing times. No asset is safe. There are real scenarios where almost any asset can lose lots of value, not just stocks or RE.

[barnaby33]

Why vacation rentals, this is why. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental

The original poster mentioned it. I’m not a believer that the coast is immune or even more immune. I think ultimately prices in higher end areas will come down more. Housing is a necessity, nice housing is a luxury.

The original posters comment had an undertone that I spot all the time. One that diversifying into or out of something is going to be what saves them. These are dangerous investing times. No asset is safe. There are real scenarios where almost any asset can lose lots of value, not just stocks or RE.

[barnaby33]

Why vacation rentals, this is why. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental

The original poster mentioned it. I’m not a believer that the coast is immune or even more immune. I think ultimately prices in higher end areas will come down more. Housing is a necessity, nice housing is a luxury.

The original posters comment had an undertone that I spot all the time. One that diversifying into or out of something is going to be what saves them. These are dangerous investing times. No asset is safe. There are real scenarios where almost any asset can lose lots of value, not just stocks or RE.

[barnaby33]

Why vacation rentals, this is why. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental

The original poster mentioned it. I’m not a believer that the coast is immune or even more immune. I think ultimately prices in higher end areas will come down more. Housing is a necessity, nice housing is a luxury.

The original posters comment had an undertone that I spot all the time. One that diversifying into or out of something is going to be what saves them. These are dangerous investing times. No asset is safe. There are real scenarios where almost any asset can lose lots of value, not just stocks or RE.

[barnaby33]

Why vacation rentals, this is why. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental

The original poster mentioned it. I’m not a believer that the coast is immune or even more immune. I think ultimately prices in higher end areas will come down more. Housing is a necessity, nice housing is a luxury.

The original posters comment had an undertone that I spot all the time. One that diversifying into or out of something is going to be what saves them. These are dangerous investing times. No asset is safe. There are real scenarios where almost any asset can lose lots of value, not just stocks or RE.

[nostradamus]

Why limit to the beaches? People rent at ski resorts and other such vacation places. Colorado’s real estate was slammed, might get some deals there out towards Vail, Frisco, Breckenridge, Copper Mountain, etc. Just an idea.

[nostradamus]

Why limit to the beaches? People rent at ski resorts and other such vacation places. Colorado’s real estate was slammed, might get some deals there out towards Vail, Frisco, Breckenridge, Copper Mountain, etc. Just an idea.

[nostradamus]

Why limit to the beaches? People rent at ski resorts and other such vacation places. Colorado’s real estate was slammed, might get some deals there out towards Vail, Frisco, Breckenridge, Copper Mountain, etc. Just an idea.

[nostradamus]

Why limit to the beaches? People rent at ski resorts and other such vacation places. Colorado’s real estate was slammed, might get some deals there out towards Vail, Frisco, Breckenridge, Copper Mountain, etc. Just an idea.

[nostradamus]

Why limit to the beaches? People rent at ski resorts and other such vacation places. Colorado’s real estate was slammed, might get some deals there out towards Vail, Frisco, Breckenridge, Copper Mountain, etc. Just an idea.

[luchabee]

For many reasons, including converting potential earnings from capital gains to ordinary income, the potential that your IRA will not be able to benefit from depreciation or interest deductions, improper asset diversification, and high custodian costs, speak with a tax attorney of CPA/CFP before you do this.

From neutral parties, I have heard it is far better to use cash from an existing property than to use your IRA if you are going to invest in real estate right now (which is a whole different question entirely).

Be careful . . . they are not the deal that many think they are. Talk to an attorney or CPA.

[luchabee]

For many reasons, including converting potential earnings from capital gains to ordinary income, the potential that your IRA will not be able to benefit from depreciation or interest deductions, improper asset diversification, and high custodian costs, speak with a tax attorney of CPA/CFP before you do this.

From neutral parties, I have heard it is far better to use cash from an existing property than to use your IRA if you are going to invest in real estate right now (which is a whole different question entirely).

Be careful . . . they are not the deal that many think they are. Talk to an attorney or CPA.

[luchabee]

For many reasons, including converting potential earnings from capital gains to ordinary income, the potential that your IRA will not be able to benefit from depreciation or interest deductions, improper asset diversification, and high custodian costs, speak with a tax attorney of CPA/CFP before you do this.

From neutral parties, I have heard it is far better to use cash from an existing property than to use your IRA if you are going to invest in real estate right now (which is a whole different question entirely).

Be careful . . . they are not the deal that many think they are. Talk to an attorney or CPA.

[luchabee]

For many reasons, including converting potential earnings from capital gains to ordinary income, the potential that your IRA will not be able to benefit from depreciation or interest deductions, improper asset diversification, and high custodian costs, speak with a tax attorney of CPA/CFP before you do this.

From neutral parties, I have heard it is far better to use cash from an existing property than to use your IRA if you are going to invest in real estate right now (which is a whole different question entirely).

Be careful . . . they are not the deal that many think they are. Talk to an attorney or CPA.

[Author]

Posts