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delite1

Sipps Again

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"At least 10 Sipps investors would have to join forces to form a syndicate"

So now to get the tax break you have to BTL with 9 other equally interested parties!

"Investors looking to gain valuable tax breaks on their own homes or holiday homes will be disappointed as the rules prohibit any member of the syndicate from having personal use of the properties."

Bang goes the second reason to set up a Sipp for residential property.

:lol::lol::lol:

http://news.ft.com/cms/s/7100c1ee-c0fa-11d...00779e2340.html

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"At least 10 Sipps investors would have to join forces to form a syndicate"

So now to get the tax break you have to BTL with 9 other equally interested parties!

"Investors looking to gain valuable tax breaks on their own homes or holiday homes will be disappointed as the rules prohibit any member of the syndicate from having personal use of the properties."

Bang goes the second reason to set up a Sipp for residential property.

:lol::lol::lol:

http://news.ft.com/cms/s/7100c1ee-c0fa-11d...00779e2340.html

Of course the fact remains that many people can buy property for 40% off. 10 ordinary GP's who now earn £100,000 per year can form a syndicate with others and purchase large swathes of nearby housing stock for thier £1 million SIPPS syndicate.

So that is the new buyer you are up against.

However, it strikes me that the ordinary man in the streets pension funds now force-funding Gordan Browns government spending investment (I know a foriegn GP who only does out-of-hours for a £250,000 salary) by 'being forced to' buy GB's bonds at fake CPI + 0%.

They are simply transferring ordinary peoples hard earned wealth accured from buying and selling, to the above, while the GPs scoff at the idea of paying 40% tax and use a SIPP pension - to immediately buy real assets - property.

To get this crystal clear, if you or I decided to put wages and savings into a ordinary pension, the chances of seeing large real losses in purchasing power are about 100%. The money you or I place in will then goto Gordan Browns spending on huge GP salaries, who then salt it away inside a SIPP - outbidding a ordinary you or I with 40% tax relief on our own savings.

Edited by brainclamp

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Of course the fact remains that many people can buy property for 40% off. 10 ordinary GP's who now earn £100,000 per year can form a syndicate with others and purchase large swathes of nearby housing stock for thier £1 million SIPPS syndicate.

So that is the new buyer you are up against.

If the GPs had any sense at all, they'd just open a pharmacy in their own practice - GPs with pharmacies earn closer to 200k per annum (or more if they are sole owner) - huge mark ups, and no competition.

Given that (the fairly small number of) SIPPS investors are likely to be relatively both relatively sophisticated and property exposed, will they want to increase their risk at what may be the top of the market? These are relatively old, rich people's pensions - surely they're going to be fairly risk adverse?

The truely astonishing thing is 2 Policy U-Turns within weeks. IMO, this micromanagement flailing back and forth is an acknowledgement from Gordon that the housing market is on a precipice - He is terrified of pushing the market too much either way, causing the crash and loosing out on the only house he want to live in. The only question Gordon cares about is whether or not he can hold the whole house of cards up until he becomes prime minister.

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If the GPs had any sense at all, they'd just open a pharmacy in their own practice - GPs with pharmacies earn closer to 200k per annum (or more if they are sole owner) - huge mark ups, and no competition.

Given that (the fairly small number of) SIPPS investors are likely to be relatively both relatively sophisticated and property exposed, will they want to increase their risk at what may be the top of the market? These are relatively old, rich people's pensions - surely they're going to be fairly risk adverse?

The truely astonishing thing is 2 Policy U-Turns within weeks. IMO, this micromanagement flailing back and forth is an acknowledgement from Gordon that the housing market is on a precipice - He is terrified of pushing the market too much either way, causing the crash and loosing out on the only house he want to live in. The only question Gordon cares about is whether or not he can hold the whole house of cards up until he becomes prime minister.

Yes - its truely shocking that we have the highest paid GPs in the world, but not surprising given the amount of spending. However, the GP cannot really lose out - they have argueably a real return above 1% with a SIPP.

The pension fund however, - i.e. you or I does lose out - twice. Once when our fund buys a UK government gilt at fake CPI+0.4%, giving a negative real return in the real world, and then again when the value of houseprices - and other real assets rises thanks to buyers buying with our savings at 40% off.

The horror is that the centrally imposed micromanagement is likely to get worse. Fittingly he has left a sort of strait-jacket of plans for his sucessor/clone to be chancellor, so now he can really get started as PM.

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Yes - its truely shocking that we have the highest paid GPs in the world, but not surprising given the amount of spending.

Going slightly off topic, this is where much of the extra spending on the NHS has gone - In inflating the NHS high earner's salaries from 100k to 200k. An acquaintance of mine is a top manager of a large NHS hospital. He is disguted (to the extent of thinking about leaving) by the doctors' obsession with money (especially consultants) given what a high percentage of spending goes as salaries for those who don't really need increases. Another case of Labour pumping money in before getting proper reform.

Heard a great analogy on the raido - It's like pouring money in a leaky bucket. And under a Labour government. Who'd have thought it?

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"At least 10 Sipps investors would have to join forces to form a syndicate"

So now to get the tax break you have to BTL with 9 other equally interested parties!

"Investors looking to gain valuable tax breaks on their own homes or holiday homes will be disappointed as the rules prohibit any member of the syndicate from having personal use of the properties."

Bang goes the second reason to set up a Sipp for residential property.

:lol::lol::lol:

http://news.ft.com/cms/s/7100c1ee-c0fa-11d...00779e2340.html

This will surely keep the boom going for a while longer - but will it mean more people getting stung in the end?

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It's a disgrace that GPS earn so much - and hospital Drs so little in comparison. It's obscene Yes, I want a better health service but no, I don't want the extra cash to go on inflating GPs salaries to such ludicrous levels. Talk about taking the p***.

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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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