| | | Property Investment With Sipps Pensions
( Posted 27th July 2006 ) According to a recent article in The Times by Christine Seib savers in the UK are set to pour up to £8.5 billion into the UK housing market. From next April sweeping changes in pensions mean that many people will be able to invest all or part of their pension funds into Residential property. Whichever way you view it there will be significant changes in the amount of money that is to be invested in the UK property market. One of the largest tax breaks that investors could take advantage of is the tax relief that the Government gives for pension investment. This effectively means that you could end up personally putting as little as £120,000 towards a £200,000 house if you are a higher rate tax payer. One UK Financial Advisor, Hargreaves Lansdown also predicts that a further £1.5 billion ill be poured into overseas property. Especially in the holiday home hot spots of Spain and France. The rules change on April 6th 2005 and investors will be allowed to invest up to £215,000 a year into the Sipp Pension in order to fund these purchases. The average property purchased with a SIPP Pension is expected to be worth around £195,000 which means investors are likely to spend around £10 billion on new properties. Nearly 80% of all investors said that they wanted to include buy to let property within their Sipp and 42% said that they would like to purchase a holiday home. The main holiday home favorites are Spain, France, Cyprus, Portugal and the USA. Other Articles |
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