Raw Land

These types of investments include:

Long-Term Holdings

Your IRA purchases the land, knowing you’ll wait a long period of time for re-sale, when property values increase and you can make a good return. What are you waiting for? Possible economic growth and developments to move towards your parcel or for large corporations to swoop in and build a casino or corporate headquarters—or whatever the location might be good for.

Speculative Holdings

Here your IRA hopes to receive the same gains as with long-term holdings, but within a much shorter amount of time. As with long-term options, these holdings require minimal, if any, effort or cost for maintenance or upkeep.

Development and Subdivision Potential

These investments can be tricky but lucrative if the timing of purchase and potential returns align with the stars. As this category indicates, land can be sold in parcels instead of one giant tract. Savvy investors familiar with the risks and benefits often garner significant returns in their IRAs in this manner.

Farmland

Farmland is generally considered a viable investment vehicle. After all, everyone has to eat and the population is continually growing across the world. Farmland is potentially a fixed resource that provides the means to grow and harvest crops, raise cattle, chickens, and other critical food sources. The risk in these investments can be minimal and the returns solid, offering a hedge against inflation and stock market assets.

Interested in learning more about how these assets work in a real estate IRA? Contact us today.