What is a SIPP?
Using SIPPS to Purchase
The vast majority of the overseas properties we are currently featuring can be purchased using your Self Invested Personal Pension fund (SIPP).
If you have a pension then you can use any of the money you have available to purchase one of these investment properties. All future capital growth and rental income can contribute towards growing your pension, bringing with it outstanding tax advantages. You can also transfer your existing pensions (frozen or personal) into a SIPP giving you a greater investment fund
What is a SIPP?
A SIPP puts you in charge of where your pension is invested. It provides you with far greater flexibility and investment choice than a traditional pension whilst still earning the same tax relief as a normal fund.
SIPPs allow you to invest in a far wider range of assets than a standard pension allowing a more diverse portfolio. Investment areas include:
- Overseas property including hotel room style investments
- Bank deposits
- Commercial property
- Unit & investment trusts
- Hedge funds
- Open ended investment companies
- Exchange traded funds
- Foreign currency
Contributions into a SIPP also attract tax relief up to 50% based upon an individual’s circumstances so this can increase the amount of funds available to invest in a prime resort property.
It is also possible to borrow additional funds against the value of the SIPP. Up to 50% of the net value of a SIPP can be borrowed to increase the overall fund for property investment. So, as an example, a fund that has a net value of £150,000 can be increased by 50%, or £75,000 to make a total fund of £225,000 available to invest in property.
The good news doesn’t end there as the property purchased through a SIPP should also benefit from future capital growth and rental income.
Alongside the flexibility and investment choice a SIPPs can provide compared to standard pensions there has been huge press coverage highlighting the current downward trend of the performance of the standard pension
For a free SIPP review, please contact:
|Office Tel:||0844 800 6661|
Please do note SIPPs are only suitable for individuals that take an active interest in their investments and have the time available to do this on a regular basis.
The value of any investments can go down as well as up and you might not get back what you put in.
You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.
International Property Success Ltd. are not authorised or regulated by the financial services authority. International Property Success Ltd. does not provide any financial or investment advice. We strongly recommend that you seek appropriate professional advice before entering into any contract.
Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the FSA or covered by the Financial Services Compensation Scheme, you will not have access to the financial ombudsman service.