Lakefront property generally enjoys high desirability and therefore a stronger value in relatively soft real estate markets. This means that you will probably pay a little more for it but it also means it will probably hold its value extremely well. Every investment has risks but in the real estate market lake front, oceanfront and riverside property generally are considered safer investments. Many people simply like being near the water, and desirability is gold in the world of real estate.

Often lakefront properties were among the first properties developed in their respective areas, so they may be in need of repairs or remodeling. This means that you may be able to purchase them below market value, renovate them, and sell them at considerable profit. Lakefront properties are also often used as vacation homes and may be pieces of larger estates. Such properties can sometimes be picked up during probate at reduced prices as well.

If you are planning on purchasing a piece of lakefront property with funds from your IRA, it is important to remember that all expenses for that property must also come out of the IRA's funds. This includes repairs, remodeling, maintenance, appraisals, and any other expenses that can be tied to that property, so your IRA must have enough liquid assets to cover them. Real estate investments within IRAs are more complex than traditional investments.

Restrictions on Property in an IRA

Neither you nor any member of your immediate family can live on property owned by your IRA until it has been legally distributed to you. You also cannot sell property to your IRA that you, or a member of your immediate family, already owns. Assets in an IRA are not supposed to benefit the IRA owner until such time as that person retires and begins taking distributions from the IRA. IRAs are retirement accounts first and foremost.