Archive for May, 2011

Why SIPP property is an appealing investment

May 25th, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, Property Investment, Property Seminar, SIPP Investments, SIPP Pension, SIPP Property | Tags: , , , , , , ,

Low property prices coupled with low borrowing rates has seen a surge in private investors using their self invested personal pension fund (SIPP) to purchase property overseas in locations including Brazil, Barbados and St.Lucia. Due to the economic climate property prices have fallen making it a more affordable investment.

Just what is a SIPP?

A SIPP is probably the most flexible form of pension plan that is available today. Working in the same way as a standard pension plan fund, the only difference is a SIPP requires a trustee to manage the fund not an insurance company. What the role of the trustee involves is that they must report to the HM Revenue and Customs Office to claim the necessary tax reliefs and to also work closely with HM Revenue and customs to ensure no Inland Revenue requirements and not been breached.  To set up a SIPP, a bank account will need to be opened where the pension fund will be held. From this account the fund will be invested according to the wishes of the investor.

SIPP properties

Currently many locations abroad are offering SIPP properties. One popular resort is the Garapua Beach Resort in Brazil. Currently scheduled for completion at the end of 2014, the resort is a 5 star luxury spa resort. Created on 1,700 acres of land this resort is being built to the highest specification and incorporates all of the luxury facilities you would expect of a 5 star resort. These facilities include a Pat Cash tennis academy, a football academy, Gary Player signature golf course and Mai Tai lounge. As well as these facilities it is hopeful an Equestrian centre and Polo club will also be included. This Garapua Beach resort will be maintained to the highest standard by one of the world’s leading resort management companies who have an excellent portfolio and reputation of managing luxury 5 star resorts like the Garapua Beach.

Who is eligible to use a SIPP for property investment?

If you have existing funds available or are able to transfer funds into a SIPP from existing frozen pensions or current pension fund then you are eligible to use the fund to purchase a property overseas. However, financial advice should always be taken first.

I have the funds, how do I purchase a property overseas?

To purchase a property overseas, there are a few options available to you. These include:

  • Using existing funds which may be tied up until you actually retire.
  • Taking a mortgage out for up to 50% of your actual pension fund.
  • Making individual pension contributions to the fund.

When making contributions these can be 100% of your earnings or up to £225,000 tax free if you are self employed. For example a couple who are joint directors of their own limited company can each contribute £225,000 tax free to the SIPP.

What are the SIPP benefits to me?

Purchasing a property overseas offers many benefits including the following:

  • If your property is for rental purposes then all income is exempt from income tax and paid gross.
  • Once the property is disposed no UK capital gains tax will be applied
  • Free of inheritance tax
  • If you contribute up to 40% into the plan, this will qualify for corporation tax relief.

I am interested in a SIPP property, what is the next step?

Using a SIPP to fund an overseas property investment is complicated and requires financial advice. A team of experienced team of financial consultants can provide you with all the guidance and advice you will need when considering using your SIPP investment for an overseas property purchase.

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Secure your retirement with a SIPP Property Investment

May 25th, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, Property Investment, SIPP Investments, SIPP Pension, SIPP Property | Tags: , , , , , ,

If you are looking at ways of securing your retirement then one popular trend that keeps on growing is investing in property overseas using your personal pension fund, also known as a SIPP property investment.

Pension regulations differ for different pension funds and some pension funds can be used to purchase property. Typically a property overseas is bought and sold using a SIPP pension fund and any profits and gains are then taxable as a pensionable income. A SIPP (Self Invested Pension Plan) is the most tax efficient way of using your pension fund to build up a portfolio of property investments.

When looking to invest in overseas property using a SIPP it has to be commercial property and cannot be property that is buy to let property. Certain FSA requirements must be met when using your pension fund to purchase SIPP properties. This is because different SIPP pensions will require different amounts of information with regards to different developments in different countries. This is also the safeguard before your money is invested in a SIPP property. By having to comply with all these FSA guidelines, you have that extra peace of mind that any SIPP property you are using your pension to fund will be a safe investment.

Currently countries including Brazil and Barbados are popular destinations for purchasing a SIPP property.  A number of newly developed resorts are being constructed each with luxury 5 star properties. These resorts are located in exquisite locations offering breath taking and spectacular scenery, fantastic all year round weather and facilities including:

  • Luxury spas
  • Sports academies
  • High tech fitness centres
  • Beautiful beaches
  • Renowned restaurants.

The Caribbean is one of the most popular destinations for purchasing overseas property as all properties are SIPP compliant and SIPP approved making them safe investments. These entire Caribbean SIPP properties offer guaranteed 10% rental income for two years with 30 days free usage per year. Investing in a SIPP property also provides a tax benefit as no capital tax gains apply to a SIPP investment

Overseas property investment using a SIPP is an area that is complex and one which requires professional advice. Experienced wealth management consultants can provide you with all the advice and guidance that you need when looking at SIPP property investment as well as provide an assessment of your current pension fund to see if it can be transferred to a SIPP.

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Overseas property investment considerations

May 25th, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, Property Investment, SIPP Investments, SIPP Pension, SIPP Property | Tags: , , , , , ,

When people look abroad for property investment this is usually because they are looking for a home for retirement, a property to rent out or a holiday home. When looking at investment in property overseas one of the main factors is the amount of return you can expect to get. This is usually high returns with the added benefit of owning a beautiful holiday home. Buying overseas can be very lucrative as many benefits are offered. Buying abroad involves many considerations before you actually take the plunge, some of which are explained below.

The main factor to consider when doing your research is to look at the country where you are looking to invest. This requires time and effort on your part. Thoroughly research the country, its laws and be familiar with the country. Try and visit two or three times the area where you are looking to invest overseas, make sure you visit at different times of the year so you know exactly what to expect in different seasons.

If your overseas property investment is for investment purposes then you need to consider the type of property you want to buy. If you are looking for a property which you will be renting out throughout the year then a suitable choice of property would be a family home or apartment. If the property you are looking to buy is to be used as a holiday home then the most suitable choice of property would be a villa or a condo within a resort.

Another important consideration you need to look at is if the property you are buying is for rental purposes who will most likely rent the property and will it be suitable for their requirements. For example if you are renting to people who have retired then a property in a quite location with perhaps a golf course and local amenities such as grocery shops would be ideal. For families a property in a busy resort with facilities including sporting, family friendly and entertainment would be ideal.

Another consideration is when choosing a country you should look at the culture and way of living in that country. This is important as different cultures have different customs and practices. Not only that but the culture and customs will determine how your purchase is handled and looked after.

Whatever your reasons for buying a property overseas, you will need to hire the services of an experienced overseas property investment company. These experienced professionals will be able to help and guide you on every aspect of your property purchase. They will be able to guide and provide you with all the advice you need on the country, area and purchasing requirements. They even have experienced consultants who can advise you on SIPP investment – using a personal pension fund to purchase your overseas property.

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Crazy to buy off plan property or smart?

May 25th, 2011 Posted by admin | Posted in Investment Abroad, Property Investment, SIPP Investments, SIPP Pension, SIPP Property | Tags: , , , , ,

If you are looking into buying an overseas property it is worth considering buying an off plan property. You may think this sounds crazy but more and more private investors are choosing off plan property as they are looking to maximise their investment with good returns.

Buying off plan reaps rewards for anyone that invests as trends over the last few years have shown huge profits for investors.

How does off plan work?

Buying off plan property means exactly that. You are buying something that is not yet constructed. At this stage of development you can choose and reserve the property of your choice on a new development before any construction takes place. Some may see this as madness – buying a property without seeing it. However, some great benefits can be had from buying off plan.

So, what are the benefits?

The main benefit is you can purchase the property at a considerably less purchase price then a constructed property. The reason you pay less money is because you are buying from an architect’s drawings on an empty plot of land, which means the prices are set accordingly. Your deposit is much less than it would be on a constructed property which means long term your rewards will be greater if you have purchased the property as an investor. As well as paying less you also get to choose exactly which property you can buy on the development. Off plan means first come first served. So, rather than miss out on the corner plot or ground floor apartment – properties that usually sell first on developments, you are getting the opportunity to buy what you want.

Another benefit is as soon as the development starts taking shape and a show property is constructed and open for viewing the property purchase price increases substantially. Buyers who don’t like to take risks will pay more on a completed property as they will see the completed property with private pool, private gardens and interiors as opposed to paying less for an empty plot.

Another added benefit which is more of a bonus is if you sell your investment before or on completion you don’t have to pay any Capital Gains Tax to Mr Taxman, this is regardless of the amount of profit you have made.

So buying off plan is profitable?

When you buy off plan you can see a considerable profit returned on your overseas property investment in a short period of time. Off plan doesn’t just mean buying a property on a development pre-construction, it means as an investor you become the actual owner of the property by just investing around 30% of the property value at the time of buying. This means a considerable profit can be made on the investment.

When choosing to buy an overseas property investment, many private investors choose a SIPP property investment.  This is when a personal pension fund is used to finance the property.

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Use a SIPP investment to purchase fantastic Caribbean properties

May 3rd, 2011 Posted by admin | Posted in Investment Abroad, Property Investment, SIPP Investments, SIPP Pension, SIPP Property | Tags: , , , , , , , , ,

Today as we are living in an economy that is battling recession, it is very hard not to read or hear about the gloom regarding people’s personal pension funds. However, it doesn’t have to all be doom and gloom as it is never too late to switch your pension. Many alternatives are available but being savvy and knowing where to look for alternative options can help you make the right choice. If a pension change is something you are looking at then consider a SIPP investment, specifically overseas property investment. Using a SIPP investment to purchase a stunning Caribbean property will yield you higher returns than a normal pension fund.

If you are in a dilemma because your pension fund is giving you cause for concern because you have left it assuming it was performing well you need to take some professional advice to see what you can do next.  Many people who have Self Invested Personal Pensions are facing a harsh reality that the funds they invested in are not performing as expected but are uncertain or don’t know how to go about rectifying this. Many people make the mistake of leaving the fund in the hope it will get better.

If you are looking to change your pension so that you can make a difference to your final pension fund then a SIPP investment in overseas property is a great way of doing this. As a private investor you invest what you can afford into a luxury five star resort property in the Caribbean. Most properties in the portfolio are part of the Harlequin hotels and Resort Group. This group specialise in the development and creation of luxury spa resorts build to the highest standard and quality.  Most of these properties are available as off plan properties and usually priced well below market value as freehold properties. What you get in return is a fantastic monthly income.

By switching your pension to a SIPP property investment in the Caribbean you can sit back and enjoy your retirement.  A SIPP investment in overseas property offers the following benefits:

  • Investing in a SIPP property provides a personal investor with the opportunity to buy a hotel resort property using their pension.
  • No Capital gains Tax on SIPP property investments
  • Most pensions are accepted as a SIPP
  • A tax efficient way to invest for your retirement
  • Low deposit to secure your SIPP property

What is the risk involved?

A SIPP investment in property has limited risk associated with it. The Harlequin resort in the Caribbean is self financed with no creditors.  A group that is renowned across the world you can be assured your investment will be 100% safe. The group also invests time and money into the Caribbean islands by creating jobs for locals and using localised produce.

Property for investment provides the professional advice that you need before deciding upon this type of investment. We work in collaboration with a leading independent wealth management company specialising in financial planning. Our experts can arrange for a no-obligation assessment of your existing pensions and retirement provision, free of charge for potential investors to assess whether their existing pension plans may be transferred into a SIPP property investment.

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SIPP investments – The New way to plan retirement

May 3rd, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, SIPP Investments, SIPP Pension | Tags: , , , , , ,

A new trend that is fast becoming popular is to purchase overseas 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 overseas 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.

Many people are looking overseas, particularly countries like Barbados. One of the most luxurious resorts where people are investing is The Merricks.  A beautiful cliff top location,

The Merricks has everything and more you would expect from a luxurious resort including:

  • Fully furnished freehold hotel suites, apartments, houses and villas
  • Secluded white sandy beaches
  • 10% guaranteed rental for 2 years followed by 50% net share
  • 5 star facilities include Espa Spa, Infinity Pools, Designer boutiques, internationally renowned Restaurants such as Trader Vics & Senor Picos, Casino, Fitness Centre, Sports Academies including Pat Cash Tennis Academy, Liverpool FC football academy

Overseas property using SIPP investments are in high demand and usually within a few days rented by holiday makers. When people go on holiday they love a private and secluded place on a beautiful resort. A place where they can go to relax, enjoy and have a fantastic time away from the hustle and bustle of the tourist areas. Areas like these that offer luxurious rental properties make fantastic investments overseas.

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 overseas 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.

Overseas property investment has a portfolio of SIPP investments built to the highest standard on 5 star developments. The resorts themselves are managed by some of the worlds most respected and trusted hotel brands including West Paces and Sol Melia.

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Use your pension fund to buy property in Barbados

May 3rd, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, Property Investment, SIPP Pension | Tags: , , , , ,

When it comes to investment, property always features as a choice. Although property prices fluctuate, investing in property is still a solid investment and many people still choose this option. A recent trend that has become popular over the last few years is overseas property investment. Spain, Turkey and other European countries are now becoming a second choice in overseas property investment. Countries like Barbados, Jamaica and Brazil are all seeing vast investment from overseas investors.

One such resort that is popular for property investment overseas is the Merricks in Barbados.  This is a very attractive investment for property investors looking to invest overseas.  A country that has weathered the economic downturn well, it is a popular choice for wealthy clientele. With a well developed economy that continues to grow Barbados is on target to becoming a fully developed country.

As more people are beginning to realise the potential of overseas property, the trend continues to grow as investing in property overseas is definitely value for money. One of the islands in the Caribbean chain, Barbados has the Atlantic Ocean on one side and the Caribbean Sea on the other side. Not a hugely large island – 21 miles long and 14 miles wide you will find Barbados very laid back and rich in culture and history. Barbados comes with beautiful weather all year round, some of the world’s most beautiful white sand beaches, has tax-free shopping as well as great night life and restaurants.

Not only does Barbados attract tourists, many people looking to invest in property abroad choose Barbados for the luxurious resorts, villas and houses that are available. But it doesn’t end there, Barbados is an offshore banking haven for British people as it has British common law, tax privacy and freedom.  However, before purchasing a property in Barbados you need to appoint a legal representative.

More people are purchasing property overseas using a self invested personal pension otherwise known as SIPP. A SIPP is where pension holders can chose how they wish to invest their pension. Using a SIPP means you have greater control and flexibility where you invest your fund. Investing your pension fund in an overseas property investment offers you many benefits:

  • Tax relief on eligible contributions at your highest rate, a maximum of 40%
  • No income tax on property investments within a SIPP
  • Unique opportunities to use a personal pension to self invest in a resort hotel using your existing pension fund via a SIPP.

If you are considering investing in an overseas property then it is imperative you thoroughly research the investment before going ahead. Ensure the location is right as this will be a major factor in the amount of return you get using a self invested pension. Rest assured all property for investment fully complies with Inland Revenue and FSS regulations.

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Choose Brazil for overseas property investment

May 3rd, 2011 Posted by admin | Posted in Investment Abroad, Pension Investment, Property Investment, SIPP Investments, SIPP Pension | Tags: , , , , , , , ,

Brazil is the largest Latin American Country and is the fifth largest country in the world. A beautiful country, Brazil has many things to offer which is why thousands of tourists visit the country each year. Recently Brazil has become a popular choice of destination for overseas property investment. Not only do you get a lot for your money but you also get fabulous surroundings, breathtaking scenery, dazzling tropical beaches, excellent weather all year round and excellent prices on the real estate market.

Brazilian property has seen a surge over recent years mainly due to a boom in tourists to the country. Easily accessible over 804 regular international flights go into Brazil flying from 30 different countries and operated by 38 airlines. Investment in property is growing because of its fabulous climate all year round and already well established infrastructure in the country. With prices starting from £55,000, property in Brazil is seen as a bargain. One such resort offering luxury properties for investment is Garapua Beach. This resort is being created on 1.700 acres of land in Bahia.

Bahia will be built to the highest specifications and will include plenty of activities to keep all the family busy and happy. These activities include everything you would expect from a five star resort. Currently, contracts are being negotiated to include a Gary Player signature Golf Course, Pat Cash Tennis Academy and Football Academy. This resort will also include a Polo club and Equestrian Centre.

Garapua Beach is everything you would expect from a five star resort which is why it will be managed and maintained to the highest standard by a well known world leader in resort management with an outstanding reputation for managing 5 star luxury resorts across the world.

Bahia has an excellent all year round climate making it suitable to visit any time of the year. Set in beautiful surroundings, the locals make you feel extremely welcome making Bahia an excellent destination for overseas property investment. Bahia offers a diversity of property for investment so anyone who is looking for investment either as a holiday home or for overseas property investment to accommodate the growing tourist trade will most definitely find something they like.

Garapua Beach is picture perfect for overseas property investment. There are different ways to purchase an overseas property in Brazil. One popular choice is to purchase a property using a self invested pension. Purchasing a SIPP property is great to ensure a happy and prosperous future.

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