Apartment Rentals, One of the Top Real Estate Investment for Solo 401k for Self Employed

Solo 401k for self employed individuals should take advantage of the rising demands for apartment rents

401k for self employed
401k for self employed

 After the great recession, improvement in the real estate industry is quite apparent. A lot of investors as well as participants of Solo 401k for self employed are regaining their trust in the real estate market, making it the top investment choice among other retirement investment options. Among the different types of Solo 401k real estate investments, apartment rentals are quite popular these days, primarily because of the rising rental demand.

As the U.S. market rises from the last economic crisis, people are beginning to get access to more stable jobs and income opportunities, allowing them to afford rental homes. However, because of a proportionate increase in property prices, being able to purchase a home is still beyond the financial capability of several people. The last recession flooded the market with foreclosures and that coupled with higher mortgage rates has created a high demand for rentals.

 The current apartment rental trend makes real estate investment a good choice for your Solo 401k for self employed plan

In the past 12 years, apartment rentals increased to 6%. From year 2009 to 2013, the national vacancy rate dropped from 8% to 4.1%. Comparing with 2012, the average increase in rents has reached 3.2% nationwide. Seattle and San Francisco are the two cities where rents have increased the most, with Seattle standing at 7.1% and San Francisco at 5.6%. With this kind of growth in apartment rentals, investing funds from 401k for small business is very attractive.

 As a holder of a self-directed retirement plan or 401k for self employed, you will be happy to benefit from the increasing apartment rental demand. Whether you become the landlord of an apartment unit using your retirement money or invest your funds in a real estate group financing apartment units, you will still reap the benefits from a higher demand and your retirement savings will enjoy a higher growth rate.