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student housingOnce you have established your self-directed IRA, you may be amazed at the multitude of possibilities for assets in which you can invest. By far, real estate leads the pack. But even that is a broad category. Within real estate, you could invest in single-family rentals, multifamily, vacation homes, larger apartment buildings, self-storage facilities, and on and on.

Student Housing Investment Makes the Grade

One of the more popular assets for private investors – especially high-net-worth investors – in recent years has been student housing.

A recent article from National Real Estate Investor cites statistics from commercial real estate services company CBRE showing a sizable percentage climb in transaction value from 2014 to 2016. CBRE tracking data showed that over that time period, the dollar volume of transactions went from $3 billion to $9.8 billion, with private investors, high-net-worth individuals and family offices leading the way. Now, more institutional and international investors are hopping onto the bandwagon. That is slowing the sector’s growth somewhat, but industry observers and analysts expect it to remain fertile ground for good ROI for some time to come.

The reasons behind student housing’s attractiveness to investors include:

  • Rising college enrollment rates.
  • Healthy yields.
  • The sector’s ability to withstand the effects of the recession.

Those same attributes make sense for the individual investor eyeing a smaller piece of the student housing pie: with some well-chosen single-family properties, condos, a duplex or quadplex, up to a smaller complex.

As with any asset you consider for your investment dollars, make sure to do your due diligence. Take into account the overall economic health of the area, past performance of similar investments and other considerations.

Having control over your investment portfolio can be liberating experience – just make sure you play it smart and safe. Let your own tax, legal and financial advisers help determine the best fit for your own situation, circumstances and wealth-building goals.

 

Once you determine that rolling over your retirement account is in your best interests, we can help. Investment Resource of AZ, LLC is your Arizona rollover specialist. Our team has successfully rolled over more than $40 million in IRA funds for clients, educating them, streamlining the process and supervising each step of the way for them. Call us at 602-885-6122 or email evelyn@azirarealestate.com.

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