Bulgarian Property Investments - A Suitable Pension Investment?
Bulgarian Property Investments - A Pension Option?
The pension investors can expect a renewed rush into buy-to-let
property next year when the new pension rules come into effect.
As of April 2006 they will allow pension investors to gain a 40%
tax relief when they invest in property through self-invested
personal pensions. What this means is that properties that are
worth 200,000 can actually be bought for 120,000 by higher-rate
taxpayers who are using funds in their pensions.
Many of the investors are known to be re-mortgaging their main
homes so that they can release the cash value and use it to
purchase even more property. However, there are some others out
there who will question why buy-to-let investors should get this
new tax relief at all, when first-time buyers can't even afford
to get on the first rung of the property ladder.
Right now property companies are affiliating themselves up with
financial advisers to sell off-plan apartments to investors when
the new rules are in place. However not everyone is on board
with this new plan. The tax breaks that are gained from
investing through a Sipp are supposed to provide a huge boost
for residential property investors, but buying new-build might
not really be a good way of securing your future retirement
money. There are an estimated 120,000 Sipp plans, most of them
are held by Britain's richer investors.
Most of the pension experts right now believe they are only good
for higher rate taxpayers who enjoy a 40% tax break on their
pension contributions. Every slogans such as