SIPPS - Need to know more?
What is SIPPS? What is A-Day? How could it affect you? Do you
have investment property or want to invest in property? These
are all questions, that you will want to find answers to.
Referred to as A-Day, April 6th 2006 will be an historical date
for pensions in the UK and will mark the beginning of one of the
most radical changes in pension legislation for decades. It is
because of this, that estate agents, developers, and any
landlords looking to sell any suitable investment properties are
encouraged to advertise their properties for sale now in the run
up to this exciting day.
It will be the first time that a pension saver will be given
ability to purchase residential buy to let property inside a
SIPP (self-invested personal pension) and many industry
experts are predicting a massive amount of interest from private
individuals and pension fund managers that will want to be part
of this potentially huge market. For those looking to be kept up
to date on SIPPS, investment property for sale and other issues
relating to buy to let, they can find out more by clicking here.
For those looking to take their first step on to the buy to let
ladder but not sure about all the technicalties surrounding
SIPPS, it may be worth spending the next few months doing a bit
of homework and looking at your current pension provisions. It
may also be worth getting a simple buy to let guide
to get a basic understanding and also looking at some of the
different buy to let mortgage products available. As investors
get more experienced and learn more about SIPPS and how they can
benefit from it as a landlord, they can then decide at which
point to take things further. Once A-Day arrives in the UK, and
the activity starts for newcomers to the buy to let market, it
is anticipated that this may generate another boom for UK
investment property. Most importantly landlords will see this as
another ideal opportunity to snap up good quality one and two
bedroom first time buyer property especially if it falls below
the stamp duty threshold price bracket.
For those not yet committed to the buy to let market, this will
be an ideal opportunity to purchase a 'ready made' buy to let
with the advantage of earning income from day one if they
purchase a property with tenants already in situ. For any
landlords looking to sell their investment property, this media
coverage surrounding SIPPS and A-Day, could create an ideal
window of opportunity to sell their buy to lets as the demand is
likely to increase for suitable investment property for sale. It
may also be worth considering trying to sell investment
properties with tenants in situ as investors will be keen to see
properties knowing how they are already performing.
As a property investor concerned about cashflow and profit, the
opportunity of selling an investment property with tenants in
situ is that it can result in considerable savings during the
sale process, not to mention that the landlord would retain the
rental income whilst the property is being marketed. Plus, if
the buy to let is sold to another property investor, they are
less likely to be involved in a property chain and many
experienced landlords have good relationships with buy to let
mortgage lenders resulting in fast turnaround times for mortgage
offers. The other benefits of selling your investment property
with tenants in situ, is that it gives the newcomers to buy to
let, the chance to purchase a 'ready made' investment property
without the normal set up costs associated with sourcing
tenants, tenancy agreements, credit checks etc. If the property
is managed through a letting agent, and the landlord sold the
property to another landlord, the letting agent will be grateful
to maintain the property under their management. Therefore, the
new owner hasn't had the expense of souring new tenants, and
paying the usual set up fees associated with letting a property.
The letting agents retains responsibility for the property, the
seller hasn't lost any income and finally, the tenants haven't
had to find alternative accommodation whilst the property is for
sale. It's a win win situation. . If the new buyer decides to
transfer the property into a SIPP at a later stage, then it is
likely that there will be costs involved but a good SIPPS
provider will assist in securing the right product for the
investor.