Recent posts on Sweet Digs Seattle:
- Barking Dogs, “Illegal” Business, and More! Do You Know Your Neighbors?
- “It’s Like Déjà Vu All over Again”
- High Prices, High-ER Inventories in Bellevue
In case you missed all the recent news and Ruby’s post , September MLS numbers showed the first drop in the average home price in the Seattle area since the real estate bubble first started to deflate nationwide. Granted it was a tiny slip, just fifty measly dollars. What’s more telling is the trend line and a sobering reminder that we’re not immune, just a little late to the party. Not a big surprise since we’ve reported before that the analysts say Seattle follows the national trend but lags behind by a couple years .
Remember when people were so excited about Las Vegas real estate? I had friends considering purchasing a condo there as an investment, but fortunately they never got around to it because Vegas sales are down 43% in September and 8% YOY.
Despite all the doom and gloom, real estate investment is still hot. According to a recent study by Seattle-based Guidant Financial Group real estate is at the top of the list for self-directed investment trends.
The survey was completed by nearly 1000 self-directed IRA holders and individuals actively seeking self-directed IRAs across the country. Respondents were asked, among other things, what types of investments they were considering with a self-directed IRA. Despite the housing market experiencing its first downturn in several years, Guidant’s survey results reveal that investors still consider real estate as their top investment option.
Almost 65 percent of respondents cited investment property as an investment option they are considering for their retirement savings, while close to 60 percent selected rental properties. Foreclosures and preforeclosures rounded out the top three with more than 36 percent of respondents considering these investments.
“These numbers provide valuable insight into the minds of investors,” says David Nilssen, president and CEO of Guidant Financial Group. “It demonstrates that, although the real estate market is experiencing a downturn, many still continue to view real estate as a secure and viable means to growing their nest egg.”
Below are the top-10 self-directed IRA investments of choice:
1. Investment property (64.3%)
2. Rental property (59.4%)
3. Foreclosures and pre-foreclosures (36.2%)
4. Tax liens and deeds (29.0%)
5. Raw land (28.2%)
6. Business/franchise (22.8%)
7. Hard money lending (22%)
8. Notes (19.3%)
9. Vacation property (19%)
10. Foreign investments (10.4%)