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Single Family
Homes: Single family homes can be
a great IRA investment, especially when
investing in a fast growing area of
California. With the right due diligence,
a second home, or n a vacation spot
it may also be a strong strategic consideration
for retirement investing.
The following is
a single family investment approach
in the Central California that should
deliver an estimated 12.5% return over
a 5 year period. .The plan will be to
hold the property for a rental income,
and perhaps resell at some point in
the future as needs change or your capital
recovery becomes a higher requirement
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than
income. The single family real estate
investment assumptions used are as follows:
Assumed expenses increase at 3%, and
rent increases 3%, vacancy allowance
goes to 1 full month per year after
first year, and Property Management
expense is calculated at 6% per year
of rental income, The single family
home price is $165,000 with 50% down
payment (because of desired lower risk
IRA approach). The single family property
is only projected to appreciate at 6%
per year in value (2003 was +34%).
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For Single Family Home Economic
Graph, click here.
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Also
in this issue:
Federal Pension Law (1)
Personal Finance Planning
(2)
Investment Feature of the
month (3)
Future Topics (4)
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