Today is the best time for 401k for small business account holders to make Solo 401k real estate investment using their retirement funds. This is the time when the real estate market is recovering from the after effects of the 2008 recession and economy experts foresee bigger opportunities in the upcoming years.
Short inventory supply and high lending standards for home buyers and builders are just few of the issues from 2013 that somehow hold back the real estate industry, but even experienced investors and real estate experts could see that these issues will loosen on the later part of this year. An increase in the interest rate on mortgage is said to reach up to 5% in which a $200,000 loan could earn about $160 in monthly payments. Experts believe that the rise in mortgage rates would allow creditors to give easier access to loans by loosening their standards.
The rebounding real estate market shows signs of greater opportunities in investments for retirement account owners of 401k for small business plans
Home price will increase by at least 3% to 5% which could open doors for underwater homeowners to consider selling their property which then leads to increase inventory in the real estate market. This increase may not sound good for buyers, especially for the first timers, but this increase will take place at a slower and steadier pace which buyers will need not to endure instantaneously.
Promising real estate markets are in the secondary smaller areas such as Dallas/Fort Worth, San Jose, Houston, and Austin. For markets in bigger cities, Chicago, Washington D.C, and Atlanta are the ones with the potential and offer investment circumstances for real estate investment. As for the experienced investors, real estate is a safer investment choice, especially for Solo 401 k holders compared with the stock market or mutual funds. It offers a higher yield and more stable returns in your 401k for small business retirement money.