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Buy To Let Properties To Be Allowable In Personal Pensions

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Couldn't you always hold shares in property companies in your pension pot?

The telegraph article you linked to contains a link to an article where Fungus Wilson says it's time to sell!

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10953082/Britains-200m-buy-to-let-king-Time-to-sell.html

Personally, I wouldn't touch buy to let with a bargepole, whether through a company or not, and certainly not in my pension fund.

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Couldn't you always hold shares in property companies in your pension pot?

The telegraph article you linked to contains a link to an article where Fungus Wilson says it's time to sell!

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10953082/Britains-200m-buy-to-let-king-Time-to-sell.html

Personally, I wouldn't touch buy to let with a bargepole, whether through a company or not, and certainly not in my pension fund.

thats exactly what this is...a property fund buying property.

With yields as low as they are, why add another tranch of charges in?

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REITs can operate like ponzi schemes can they not? By diluting the shares of existing owners they can have higher dividend yields, thereby attracting more investors?

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I recommended a HOUSA fund to my mother in law the other day as she want to sell her house and move into another one with her partner, but the other house will be solely in her partners name.

She was talking about buying a property to rent out like it was putting her money in the bank. Frankly she is not capable of runnign a BTL business of one property.

The reason she want to rent out a house rather than money in the bank is that she is fearful of her money devaluing against the price of a house. and if she ever split up with her partner would need to buy another house to live in.

So what to do? My suggestion of a HOUSA was that it would track the price of property, so that her fund would always be worth one house which is exactly what she wants. the only problem with this is that the returns would be far less than obtaining yield on a BTL property.

I think in her case a better arrangement would be if she could lease it out on a self repairing lease for X number of years.

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Buy To Let Properties To Be Allowable In Personal Pensions

Wasn't that a NuLabour idea that got a lot of publicity and discussion before the 2005 general election and immediately after NuLabour won that election the idea was dropped.

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Your lack of money is irrelevant; most new-builds in London are already being sold to Chinese investors.

Empty London properties won't wipe your **** or bring you meals on wheels.

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Just what you need in old age, dealing with problem tenants and dodgy agents when you are 95.

you’re not, you swap your BTL in specie for shares in a REIT, as you can hold shares in your pension.

and then you enjoy your 2% yield, and a share price that oscillates around the NAV of the REIT

I expect the promoters will be dead keen to get as much in as possible, so there is a chance the valuations will be quite generous

PONZI!

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REITs can operate like ponzi schemes can they not? By diluting the shares of existing owners they can have higher dividend yields, thereby attracting more investors?

yup, the largest residential landlord on LSE is grainger who has not converted to a REIT. Reason is REITs can not have the intention of making trading profits so theoretically you are stuck with the triple net income yield (and any growth in it)

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Empty London properties won't wipe your **** or bring you meals on wheels.

That's true; but all the new foreigners buying new-builds are helping to keep the ponzi going, and as long as Mr and Mrs Average see their house valued at a zillion trillion macaronis, and as long as banks are happy to lend against these fantasy valuations, then they'll carry on employing Poles to tart their houses up, go out to restaurants staffed by Latvian waitresses, and park their elderly parents in care homes with Romanians to do the **** wiping.

If you're going to say that in the long run, it's not a good business plan for UK Plc, then I would totally agree with you. However, the UK housing ponzi can continue for quite a long time even with the under 40s completely shut out of it. This latest measure (BTL in pensions) is just one in a long line of measures destined to suck more and more wealth into housing.

Additional info: I'm just above 40, but we never bought a house, focussing instead on careers. We've missed the boat, I'm still waiting for the crash that should have happened in 2008, and next year we will be leaving this country.

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If you earn £40,000 a year the maximum you can put into your pension is £40,000.

If you earn £160,000 a year and haven't paid into your pension for the previous 3 years you can put the full £160,000 into your pension.

I think there is a maximum pension pot of 1.25 million.

Cant see it working for most people.

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That's today's pensions, which will not be paying out for a good few years - bar the odd high income doing a tax shuffle before retiring.

Unless you get a lot of DB pension liquidating their pensions, the only people this will apply to will be people who've put 50/moneth into some with-profit scamming pension since the 80s.

You might get someone insane enough to liquidate a DB pension, offering inflation proofing and spouse benefits. But if the pensioner is mad enough to do that I doubt you'll find a FA mad enough to sign off on that.

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