Buy To Let Old News!
Landladies not Landlords :-
Marketers of buy-to-let products and services should note that a quarter (24%) of UK buy-to-let property bought since the start of this year was acquired by women, according to provider Landlord Mortgages.
This was up from 20% for all of 2005, 22% in 2004 and 21% in 2003. Women were different from men in other ways too: last year the average deposit was 24% of a property's value against 20% for men, but the average price was higher at £142,000 against just under £121,000 for men. Landlord Mortgages said the differences were probably down to women preferring to acquire properties in rentable condition
To SIPP or not to SIPP :-
Looking at this from the perspective of a professional landlord only, I don't believe it would be a good idea for your client to include all or a significant part of his portfolio in a SIPP wrapper. In order to place his properties into this type of retirement savings vehicle he would need to sell the property to the managing trustee. If as I suspect he has built his portfolio up over a number of years, this is likely to land him with a significant Capital Gains Tax bill.
He will need to have sufficient existing funds within the SIPP to buy the property. You can't simply sell your property and quickly pop the proceeds into your SIPP to repurchase it. If your client has the majority of his assets in his property portfolio, he may need to sell some of his other properties -and face CGT liability - in order to do this.
But a SIPP can use gearing to buy a property and so your client may not need to heavily deplete his portfolio. The fund can borrow 50% of its value in order to buy a property, so to buy a £225,000 flat you will need to have £150,000 in your fund.
Another point that should be considered is that after A-Day on April 6 2006, when residential property can be included in a SIPP, consumers will only be allowed to have a total retirement pot of £1.5m before they become liable for tax. If your client includes lots of his properties in a SIPP, this will mean his portfolio is heavily reliant on fluctuations in the property market. This is potentially a dangerous decision to make.
Your client needs to realise that while including property within a SIPP has several useful tax advantages, trying to do this with existing property investments may bring a huge CGT bill, overexposure to one asset class and huge financial hassles.
If your client is set on including residential property in a SIPP he should do this with the next property he buys after A-Day. He will still need to have sufficient funds in his SIPP, which may require a property sale, but this is likely to be the simplest option.
But prior to any of these changes, your client needs to thoroughly review all of his finances. This is not simply a retirement issue but encompasses Inheritance Tax issues too, especially if he has children or relations he would like to provide for in future.
Buy To Let Mortgages 1
Buy To Let Mortgages 2
Buy To Let Mortgages 3
Buy To Let Mortgages 4
Buy To Let Mortgages 5
Buy To Let Mortgages 6
Buy To Let Mortgages 7
Buy To Let Mortgages 8
Buy To Let Mortgages 9
Buy To Let Mortgages 10
Buy To Let Mortgages 11
Buy To Let Mortgages 12
Buy To Let Mortgages 13
Buy To Let Mortgages 14
Buy To Let Mortgages 15
Buy To Let Mortgages 16
Buy To Let Mortgages 17
Buy To Let Mortgages 18
Buy To Let Mortgages 19
Buy To Let Mortgages 20
Buy To Let Mortgages 21
Buy To Let Mortgages 22
Buy To Let Mortgages 23
Buy To Let Mortgages 24
Buy To Let Mortgages 26
Buy To Let Mortgages 27
Buy To Let Mortgages 28
Buy To Let Mortgages 29
Buy To Let Mortgages 30
Buy To Let Mortgages 31
Buy To Let Mortgages 32
Buy To Let Mortgages 33
Buy To Let Mortgages 34
Buy To Let Mortgages 35
Buy To Let Mortgages 36
Buy To Let Mortgages 37
Buy To Let Mortgages 38
Buy To Let Mortgages 39
Buy To Let Mortgages 40
Buy To Let Mortgages 41
Buy To Let Mortgages 42
Buy To Let Mortgages 43
Buy To Let Mortgages 44
Buy To Let Mortgages 45
Buy To Let Mortgages 46
Buy To Let Mortgages 47
Buy To Let Mortgages 48
Buy To Let Mortgages 49
Buy To Let Mortgages 50
Buy To Let Mortgages 51
Buy To Let Mortgages 52
Buy To Let Mortgages 53
| 
