Invest In Real Estate With Your 401K or Roth IRA? Wisconsin And Michigan Recreational Properties, Waterfront Or Acreage Can Qualify
It is entirely possible to finance real estate purchases with your 401K or IRA retirement funds; while many factors need to be considered, for the investor who wants to investigate non-traditional options, real estate is an interesting direction to look
Wisconsin Rapids, WI (PRWEB) Feb. 3, 2006 -- A new trend to consider for investors thinking about their retirement funds involves the same idea that many people are utilizing for today’s wealth-building mechanisms; real estate.
Most banks and brokerage companies limit your choices for retirement investment to certificates of deposit, stocks, mutual funds, annuities, and similar financial instruments. But Section 408 of the Internal Revenue Code permits individuals to purchase land and other real estate with funds held in many common forms of IRAs, including a traditional IRA, a Roth IRA, and a Simplified Employee Pension plan, or SEP-IRA.
While some restrictions apply to properties and their uses, a person who intends to utilize the property primarily as an investment tool for retirement can derive the benefits of appreciative land values to enhance their nest eggs. Also, the ability to locate and lock into a property that one may decide to build a retirement home on may be just what some investors are looking for with their individual plan.
“This form of investment tool may be intriguing for some,” said Ken Gronski, Recreational Land Specialist for Wisconsin Waterfront Properties. “A person may be considering a waterfront land purchase now but will not build until retirement. Laws maintain that the individual can take the land out of the plan as a disbursement after age 59 ½ just as if you were to begin drawing money out of a traditional plan.”
There are restrictions of qualifying property types and their uses; the best way for someone interested in exploring the feasibility of this investment option is to talk with a qualified retirement fund planner as well as a real estate professional. As some investors today stay away from the stock market for their ongoing ventures, they can also consider the same options that provide a more stable growth in their individual retirement plans as well.
“A plan of this nature could allow someone in the right situation to find an alternative financing option with definite tax advantages to locating the land for their retirement home,” Gronski added. “The lake property you envision now may not be as readily available at the time you are ending your working career, but if you find it now at today’s prices and allow it to grow in value tucked safely in your plan it will be there when you are ready to retire.”
For additional information on properties and potential retirement options with real estate, contact Ken Gronski or visit
www.wiswaters.com
New Pier Regulations Proposed In Wisconsin Likely Will Have Minimum Impact On Recreational Waterfront Landowners
New administrative rules regarding pier specifications proposed by the Wisconsin Department of Natural Resources has created interest and some controversy. Rep. John Gard (R-Peshtigo) and Rep. Scott Gunderson (R-Waterford) have introduced legislation to grandfather existing docks. Regardless of outcome, only a fraction of current piers and docks will be affected by the new DNR rules.
Wisconsin Rapids, WI (PRWEB) January 6, 2006 -- Changes to regulations regarding the specifications of piers in Wisconsin have been proposed by the Department of Natural Resources, but legislation has been introduced by a pair of lawmakers interested in keeping current recreational landowners with waterfront docks clear of scrutiny.
Rep. John Gard (R-Peshtigo) and Rep. Scott Gunderson (R-Waterford) have introduced legislation to grandfather existing docks in order to limit liability and compliance to newly constructed docks and piers. Regardless of outcome, only a fraction of current piers and docks will be affected by the new DNR rules. In fact, the DNR initially estimated that 20 percent of 500,000 piers would not be in compliance with the new rules. A more recent study of 35 state lakes reduced the expected number of non-compliant piers just over 16 percent.
The new standards being proposed require piers to be no wider than six feet; extend no further than 3 feet of water depth or beyond a point deep enough to moor a boat, have no more than two boat slips for the first 50 feet of water frontage plus another slip for each additional 50 feet, and that the pier be located outside of “sensitive areas” as specified by the DNR.
According to the proposed DNR rules, owners of new or existing non-compliant piers would be required to pay between $50 and $300 and obtain a special permit, modify the pier to meet the standards, or remove the pier.
According to Ken Gronski, Land Specialist for Wisconsin Waterfront Properties, changes to existing laws regarding pier specifications should not have a major impact on waterfront investment or valuation.
“From what I understand, the DNR is interested in limiting the more spacious deck-type platforms that allow for more occupancy than just accessing the water for swimming or fishing, or boat activity.” Gronski added, “Current dock standards are very similar to the proposed rules. Realistically, individuals investing in or owning waterfront properties shouldn’t have too much concern regarding the proposed new rules.”
Interest in owning waterfront throughout the Midwest has grown over the past 5-10 years, so changes in waterfront regulations is of concern to a rising number of landowners. Much of the interest in waterfront properties on Wisconsin’s lakes and rivers has been due to steadily rising appreciative value in recreational land, which has attracted the attention of investors and families looking for a getaway place.
“As more people find waterfront properties a part of their investment portfolios, they are naturally concerned about rules or proposed rule changes. In this case, the changes and the impact on their investment is likely minimal or non-existent,” according to Gronski.
For additional information on the proposed rule changes from the DNR, contact Ken Gronski or visit
www.wiswaters.com
About Wisconsin Waterfront Properties:
Ken Gronski of Wisconsin Waterfront Properties is a Recreational Land Specialist for Wisconsin Lakes Realty, Inc. Wisconsin Waterfront Properties specializes in guaranteed buildable recreational land and acreage throughout Wisconsin and Michigan’s Upper Peninsula.
Contact:
Ken Gronski
Wisconsin Waterfront Properties
715-421-9133
http://www.wiswaters.com 