Hello~
We have a dilemma and would appreciate anyone's input. We are both in our early 40's..no retirement at our place of employment where we both have been for over 20 years. Our jobs are very secure and we plan on working for probably about 25 more years. We built our own home about 6 years ago and have 24 years left on the mortgage. We have been investing in our own IRA's for about 6 years and have approx. $30K saved up that is in long term CD's. We have the opportunity to purchase a home that is for sale in our neighborhood..before the housing crash this house was valued at over 300K..only built 5 years ago. We can now purchase it for in the $80,000.00 range. The rental value would be approx. $1,200.00 per month. We have been pre-approved for an investment loan through our bank..but need 20% down. Would this be a wise investment to use our IRA funds for a down payment? We do not have the cash to do it otherwise. Would we be really killed in taxes at the end of the year? Any advice would be GREATLY appreciated!
We have a dilemma and would appreciate anyone's input. We are both in our early 40's..no retirement at our place of employment where we both have been for over 20 years. Our jobs are very secure and we plan on working for probably about 25 more years. We built our own home about 6 years ago and have 24 years left on the mortgage. We have been investing in our own IRA's for about 6 years and have approx. $30K saved up that is in long term CD's. We have the opportunity to purchase a home that is for sale in our neighborhood..before the housing crash this house was valued at over 300K..only built 5 years ago. We can now purchase it for in the $80,000.00 range. The rental value would be approx. $1,200.00 per month. We have been pre-approved for an investment loan through our bank..but need 20% down. Would this be a wise investment to use our IRA funds for a down payment? We do not have the cash to do it otherwise. Would we be really killed in taxes at the end of the year? Any advice would be GREATLY appreciated!