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If you're interested in the new pension rules ( allowing inclusion of residential properties within a SIPP ) then have a listen to this Radio 4 broadcast. It was sent to me by a friend who has been seriously considering taking advantage of these new rules -

http://news.bbc.co.uk/1/hi/programmes/insi...ney/4708593.stm

Actually I did have a SIPP when I started contracting in IT, so I know a little about them – and one thing I can tell you is that most people will be very upset by the charges!!! This is the only reason that I scrapped my SIPP. However, it is still something that would interest me if I had enough money.

I am a property market bear and I'm actually an STR - or rather an STT ( Sold To Travel ) – so you may think my views are biased. But, for what it's worth, here are the views of somebody who has been previously burnt by property booms and also by SIPPS – although I do still appreciate the potential tax advantages of a SIPP. I reckon that the idea of putting a property into a SIPP could be VERY beneficial to you, IF ( and only if ) the following conditions are satisfied:

1)You have at least £100,000 in your pension scheme now.

2)You have at least 15 years to retirement – and preferably 20.

3)You are sure it's a good time to buy. Prices are high at the moment, but it could still be worth investing in a SIPP based property, even if there is a small correction afterwards. It just depends on your view of how big this correction will be and how long the market will take to recover after. My own, personal opinion is that the correction will be at least 30% and will take at least 15 years to recover.

On the first point, remember that you must already have this money in pension schemes; you can't just go and add £100,000 to your pension scheme as far as I know. Although they didn't mention this on the radio programme, I'm sure there are limits on the annual contribution into a SIPP – just as with personal pensions ( although the limits are higher I believe ).

Remember, in theory, you may be able to purchase a property through a SIPP even if you only have £50,000 in pensions ( i.e. take out a mortgage and buy a cheap BTL up north ) but there's at least 2 reasons why this would be a bad idea:

1)Even if you don't believe that there's going to be a property price crash, it is still dangerous to put all your eggs in one basket ( as discussed in the Radio interview ).

2)The high charges on SIPPS make it uneconomical unless you have very large funds – I found this our the hard way!!

For me, this isn't something I can even think about doing right now – and I'm not sure I'd want to anyway, even if I could afford to. It may be worth thinking about in 3 years, if a miracle happens and I have enough money in my pension!

On a positive note, if you're still interested, you may be aware that it is already possible to invest in commercial property ( either within a SIPP or via the funds offered in some personal pension schemes ). Following April next year, even if you don't have enough money for the full blown SIPP option, it might still be possible to invest a much smaller amount in a residential property fund within your personal pension. I currently use a Friends Provident Stakeholder – and they do offer a commercial property fund.

One final thought... I'm not even in the UK right now but I understand this legislation is getting a lot of media hype and, therefore, an unhealthy level of interest. Sounds to me like a lot of people may be persuaded to partake in this even though it isn't really appropriate for their circumstances. What's the betting that, in 10 years time, we'll have loads of compensation claims for pensions mis-advice!!

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Ha your here too, have a look back through the forum you will see ALOT talked about on SIPPS and thier total impracticality for normal people.

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If you're interested in the new pension rules ( allowing inclusion of residential properties within a SIPP ) then have a listen to this Radio 4 broadcast.  It was sent to me by a friend who has been seriously considering taking advantage of these new rules -

http://news.bbc.co.uk/1/hi/programmes/insi...ney/4708593.stm

Actually I did have a SIPP when I started contracting in IT, so I know a little about them – and one thing I can tell you is that most people will be very upset by the charges!!!  This is the only reason that I scrapped my SIPP.  However, it is still something that would interest me if I had enough money.

I am a property market bear and I'm actually an STR - or rather an STT ( Sold To Travel ) – so you may think my views are biased.  But, for what it's worth, here are the views of somebody who has been previously burnt by property booms and also by SIPPS – although I do still appreciate the potential tax advantages of a SIPP.  I reckon that the idea of putting a property into a SIPP could be VERY beneficial to you, IF ( and only if ) the following conditions are satisfied:

1)You have at least £100,000 in your pension scheme now. 

2)You have at least 15 years to retirement – and preferably 20.

3)You are sure it's a good time to buy.  Prices are high at the moment, but it could still be worth investing in a SIPP based property, even if there is a small correction afterwards.  It just depends on your view of how big this correction will be and how long the market will take to recover after.  My own, personal opinion is that the correction will be at least 30% and will take at least 15 years to recover.

On the first point, remember that you must already have this money in pension schemes;  you can't just go and add £100,000 to your pension scheme as far as I know.  Although they didn't mention this on the radio programme, I'm sure there are limits on the annual contribution into a SIPP – just as with personal pensions ( although the limits are higher I believe ).

Remember, in theory, you may be able to purchase a property through a SIPP even if you only have £50,000 in pensions ( i.e. take out a mortgage and buy a cheap BTL up north ) but there's at least 2 reasons why this would be a bad idea:

1)Even if you don't believe that there's going to be a property price crash, it is still dangerous to put all your eggs in one basket ( as discussed in the Radio interview ).

2)The high charges on SIPPS make it uneconomical unless you have very large funds – I found this our the hard way!!

For me, this isn't something I can even think about doing right now – and I'm not sure I'd want to anyway, even if I could afford to.  It may be worth thinking about in 3 years, if a miracle happens and I have enough money in my pension!

On a positive note, if you're still interested, you may be aware that it is already possible to invest in commercial property ( either within a SIPP or via the funds offered in some personal pension schemes ).  Following April next year, even if you don't have enough money for the full blown SIPP option, it might still be possible to invest a much smaller amount in a residential property fund within your personal pension.  I currently use a Friends Provident Stakeholder – and they do offer a commercial property fund.

One final thought... I'm not even in the UK right now but I understand this legislation is getting a lot of media hype and, therefore, an unhealthy level of interest.  Sounds to me like a lot of people may be persuaded to partake in this even though it isn't really appropriate for their circumstances.  What's the betting that, in 10 years time, we'll have loads of compensation claims for pensions mis-advice!!

In answer to your question, you're limited to an annual SIPP investment of 1 years income (capped at about £210k pa, I think).

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Erm if I had a SIPP and was the kind of scum who speculated in property, I think I might buy abroad and not in the UK.

But for god's sake, don't invest in Italy. Pleaaasssse. We might end up with the kind of English restaurants the Spanish have. URGHHHHHHHHHH

Viv

Edited by Vivaldo

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Erm if I had a SIPP and was the kind of scum who speculated in property, I think I might buy abroad and not in the UK.

How's about Spain:

On the coast: overvalued, full of chavs and sand without the oil

Inland : no chavs, no oil but loads more sand in years to come:

http://www.alertnet.org/thenews/newsdesk/L18223142.htm

How's about Russia where if your house is burnt down (accidentally of course) you no longer own the land.

Or Turkey. It's gonna be Europe, as long as Al Qaeda thinkers don't mind even more of the globe going West.

etc

Edited by Sledgehead

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I think the N / NW coast, especially Galicia, is great and v different from the Costas that you're describing above. Plenty of rain to keep everything green! Good food, not too many tourists, etc.

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If you're interested in the new pension rules ( allowing inclusion of residential properties within a SIPP ) then have a listen to this Radio 4 broadcast.

http://news.bbc.co.uk/1/hi/programmes/insi...ney/4708593.stm

this was posted by Charlie teh Tramp . Please try not to repeat threads.

Although they didn't mention this on the radio programme, I'm sure there are limits on the annual contribution into a SIPP –

Annual limit is £215k, that equates to an £86k tax giveaway to those rich enough.

Remember, in theory, you may be able to purchase a property through a SIPP even if you only have £50,000 in pensions

Average pension pot in UK is £30k @ retirement.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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