Over the last two years economists and prognasticators have proclaimed our current state of affairs as ‘The Great Recession”.   According to the department of labor at the start of the recession in December of 2007 we had an unemployment rate of 5% and approximately 7.7 million Americans out of work.  In December of 2009 the unemployment rate was 10% and the number of unemployed Americans was 15.3 million   Flash back to October of 2007.  Real Estate was booming as owners borrowed from their homes with HELOCs and the DOW closed at its all time high at over 14,000 points.  Then the trouble started with the failure of Bear Stearn’s and Lehman Brothers bankruptcy.  Between the stock market peak in October and it’s low in March of 2009 the stock market dropped over 50%.  Over 3 trillion dollars in net worth was lost my Americans.

Americans now more than ever are taking charge of their own future and managing their own retirement accounts.  With the challenging times we face investing in solid inflation fighting real estate investments are a good alternative to traditional investing.  With the value of future retirement accounts greatly diminished it is time to grow the ‘nest egg’ by utilizing all the potential tax strategies and tactics available to us.

As an investor it is important to realize that you can make decisions in your IRA or 401 K plan yourself.  While the stock market is confusing for many the idea of purchasing a rental property in your retirement account makes great sense.  Cash flow in addition to  property appreciation can make for a very good avenue of diversification to the tumultuous stock market.   A purchase and sell in your IRA or 401 k is tax deferred allowing you to increase the value of your portfolio without triggering tax consequences.  You can also get a real estate investment loan in your IRA or 401 k giving you the ability to leverage more real estate. 

As always before making a move to manage your own IRA you should consult your professional accountant, tax attorney, and realtor.  If you are interested in more information on purchasing real estate in your retirement account please contact RE/MAX Elite Properties at (208) 377-2999 or visit us at www.homeinidaho.com

 “It was the best of time, it was the worst of times, it was the age of wisdom, it was the age of foolishness” a quote from Charles Dickens novel a ‘Tale of two cities’ seems appropriate for the Boise, Idaho real estate market.  The anxiety and suffering in what is being called the ‘Great Recession’ is all to real and painful to the tens of thousands of Boise, Idaho residents whose lives have forever changed with job losses, housing foreclosures, reduced wages, and minimized benefits. Many real estate agents were caught up in the ‘tidal wave’ of the rising market as real estate schools popped up on every corner to graduate real estate agents faster than they could say “flip that house”. But as the ‘wave’ receded it turned into a ‘rip tide’ and many real estate agents have fallen victim to the economic ills that plague America.  Those remaining Treasure Valley agents including those practicing real estate in not only Boise but Meridian, Nampa, Caldwell, Star, and Eagle are constantly barraged with negativity from their client’s disappointment over negative equity in their homes or the lengthy time to close escrow.  The real estate agents who are able to withstand these tumultuous times are growing fewer by the month.  With over 6,000 agents at the peak in the Fall of  2006 that number has dropped almost in half to 3,000 agents by December 2009.

      As Boise, Idaho real estate hovers at what many experts predict as the bottom of the market the time is perfect to become a real estate agent and/or increase your real estate investment portfolio.  Boise short sales and Boise foreclosures blanket the market of properties for sale.  Estimated yearly single family residential sales of approximately 8,000 units are far from anemic.  First time home buyers, investors and upper end buyers are scavenging Boise, Meridian, Nampa, Caldwell and surrounding areas for unbelievable prices on homes.  Throw in tax incentives and low interest rates and it is obvious that it is a great time to invest in or have a career in real estate.  As difficult as it seems from many perspectives it really is the ‘best of times’ for real estate investors.