| | | Sipps fears
There is only six months to go before the great A Day and everyone is shouting from the rooftops about how the residential property market is going to benefit from the changes. Some people however are a little more reserved in their judgment, Lee Grandin, Managing Director of Landlord Mortgages; one of the biggest buy-to-let mortgage brokers in the UK recently said, "The advantages of investing in residential property through a SIPP will only be of interest to a relatively small proportion of the population." "It is simply too costly for most consumers. Therefore, I don't believe that they will have the monumental effect on the residential property market some people are predicting. "You would need a pension fund of at least £80,000, and to borrow an additional £40,000 to purchase the average UK buy-to-let property. I really don't think most UK consumers have this sort of money." Lee also commented that even if many of us had access to this kind of capital we would only be able to contribute a proportion of our wages to the plan each year. His point is that if you don't have the money or Pension fund of any size in the first place it is going to take the average pension plan holder a long time to accumulate enough funds to be able to make the investment in the first place. Original Article Chesire Online |
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