Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted October 1, 2005 Share Posted October 1, 2005 I'm still deeply concerned about SIPPS! Let say there's 6-10 billion in Sipps waiting to go in to property next Spring. Just 6 billion will be enough cash to buy say 30-80,000 BTL/second homes - mostly FTB type homes. That's a hell of a number of transactions suddenly coming through! House prices will surely inflate and the City boys (/gels), etc., will surely be pouring their bonuses in year after year after year. According to my Bank Director Uncle, Sipps are hot dinner-party conversation at the moment with City types. We shouldn't be complacent about it! G Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted October 1, 2005 Share Posted October 1, 2005 I'm still deeply concerned about SIPPS! Let say there's 6-10 billion in Sipps waiting to go in to property next Spring.Just 6 billion will be enough cash to buy say 30-80,000 BTL/second homes - mostly FTB type homes. That's a hell of a number of transactions suddenly coming through! House prices will surely inflate and the City boys (/gels), etc., will surely be pouring their bonuses in year after year after year. According to my Bank Director Uncle, Sipps are hot dinner-party conversation at the moment with City types. We shouldn't be complacent about it! G But they get their 40% rebate before they buy any property, just by contributing to the SIPP. So the decision to invest it in property is no different to buying it outside SIPPS. Your post insinuates that they only get tax relief if they buy a property - that's wrong!! Quote Link to comment Share on other sites More sharing options...
theChuz Posted October 1, 2005 Share Posted October 1, 2005 (edited) OK, but thats a hell of alot of worrying your going to have to do until april, hope youve got plenty of hair. Is there something you can do about it? can you stop SIPPS from happening? Can you afford a house now? Will your worrying help the situation in any way? If the answer is no to all of the above then umm what can i say ... tough sh*t now get on with your life. I'm just trying a different approach to SIPPS. Edited October 1, 2005 by theChuz Quote Link to comment Share on other sites More sharing options...
BandWagon Posted October 1, 2005 Share Posted October 1, 2005 There was a similar "Wall of Money" theory during the dot-com boom. Hence prices wouldn't fall, because there was too much pension fund money looking for a home. I'm not worried about SIPPS. Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted October 1, 2005 Share Posted October 1, 2005 If you look back at the archive section there was a similar amount of hype about the Poll Tax causing a surge in house prices, think it was 89 and we were just into the crash. Needless to say prices kept on falling. I did some very rough calcs on this on this and came to the conclusion that it could add 2 to 2 and half per cent to to the number of transactions, which I doubt would push prices up, and prob wont even compensate for the fall off in buyer interest when it is realised that prices are heading south. What it might do is soak up some of the glut of 1 and 2 bed apartments, there are masses around us and they are mostly unsold. Remember a lot of that money will be heading into overseas property and who in their right mind would want to invest in the UK property market at this moment ie just after we have come off the peak ?! There is also the point that the Treasury havent finalised the detail yet and are getting pressured about the whole thing. Stay cool ! The CML aren't expecting any rise in prices atleast until December 2007, they must have factored the SIPP thing into their calculations. As for your infamous Uncle ... well we shall see how accurate his predictions are when the MPC meet this week. Quote Link to comment Share on other sites More sharing options...
Warwickshire Lad Posted October 1, 2005 Share Posted October 1, 2005 I was in the car today listening to the latest edition of Money Box on Radio 4 ... more discussion of SIPPs today but more from the mis-selling angle. Worth a listen - http://news.bbc.co.uk/1/hi/programmes/moneybox/default.stm Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted October 1, 2005 Author Share Posted October 1, 2005 I'm not sure about famous - more like a complete t**t - I suspect he'll be proved wrong on his IR prediction. Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted October 1, 2005 Share Posted October 1, 2005 That's a hell of a number of transactions suddenly coming through! And an awful lot of new BTL properties entering a saturated market. Buying at today's prices, charging today's rents. Am I right in thinking that the figures just won't add up? Quote Link to comment Share on other sites More sharing options...
theChuz Posted October 2, 2005 Share Posted October 2, 2005 (edited) And an awful lot of new BTL properties entering a saturated market. Buying at today's prices, charging today's rents. Am I right in thinking that the figures just won't add up? For those who do go for it the numbers WILL add up, all they will do is knock 40% off the value of what they pay for it and there do the calculations on it. EDITED: Edited October 2, 2005 by theChuz Quote Link to comment Share on other sites More sharing options...
Bubble Pricker Posted October 2, 2005 Share Posted October 2, 2005 For those who do go for it the numbers WILL add up, all they will do is knock 40% off the value of what they pay for it and there do the calculations on it. You clearly have not read Casual Observer's post. The money, in order to hit the BRL market, already has to be in the pensions now. The tax relief on this money has already been received, sometimes a long time ago. This is completely unrelated into what assets the SIPP fund can buy into. That will be based on what is the best investment. Quote Link to comment Share on other sites More sharing options...
theChuz Posted October 2, 2005 Share Posted October 2, 2005 You clearly have not read Casual Observer's post. The money, in order to hit the BRL market, already has to be in the pensions now. The tax relief on this money has already been received, sometimes a long time ago. This is completely unrelated into what assets the SIPP fund can buy into. That will be based on what is the best investment. I know BP, i've talked about SIPPS until i've nearly thrown up, we had a SIPPS epidemic when it was first talked about a few months back and now were going through it again. My post above is taking the p*ss out of the BTL mentality on yield calculations. I should of put a smilie or summin at the end of it Quote Link to comment Share on other sites More sharing options...
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