Property As A Pension!
Currently, investors in Self-Invested Personal Pensions ( SIPP s) can invest in land, property funds, property-company shares or a single commercial property. However from 6 April next year, investors will be allowed to buy domestic property within a SIPP. A whole heap of SIPP providers and property firms are excitedly talking up this opportunity, but there are risks involved in going down this route. Indeed, leading insurer Norwich Union yesterday warned that investors could use their pension fund to buy into property without considering the downside. After pensions A-Day, SIPP holders have several options, such as using their pension fund to buy their family home, a second home, buy-to-let property or even a holiday home abroad . More than half a million Brits own second homes, roughly two-thirds of which are in the UK , and many of these wealthy investors are expected to transfer their property into SIPPs. There are huge tax advantages in going down the property-SIPP route, becaus...