A new trend that is fast becoming popular

by

White Scott

A new trend that is fast becoming popular is to purchase property using a SIPP personal pension fund. SIPP investments are a great way to create long term fixed assets as well as ensure a regular income over a long period of time. More people are realising the benefits and potential of SIPP investments by being smart and choosing to own their dream property with their SIPP pension fund. The biggest benefit is that after a period of time the property is theirs and they don\’t have to worry about burning a hole in their savings to pay the mortgage.

How do SIPP investments work

SIPPs were launched in 1989 with the sole purpose of providing greater control to people over how their pension funds are invested as well as their SIPP income. A SIPP investment works in the following way. If you have a personal pension fund then you can borrow up to half the expected amount from your pension to purchase a SIPP property. Your SIPP investments are purchased with that money and then the rental from that property will repay the interest on the loan and capital sum amount from the rent received each month. This is known as your SIPP income.

SIPP investments offer the following investments

Tax relief – You don\’t pay any tax on your SIPP income Assets At the end of the pre determined period you own the property and have no debt.

Full control: SIPP investments give you full control on how you take your personal pension.

Before deciding to go ahead and invest in a property using SIPP it is important to know how much money you have in hand to invest in the property. If you are buying the overseas property for rental purposes, then make sure you choose a SIPP investment that will give you good and continuous returns.

Charterage Limited is an investor relations and management company that promotes and manages niche property development companies that are well placed for investment from both pensions and direct investment.

www.charterage.co.uk

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ArticleRich.com