The Pension of choice for Landlord’s, more commonly known as a Self Invested Personal Pension (SIPP), is becoming cheaper and easier to access. This pension will allow us to access property and a whole host of other investments before you reach 55.
Combine this with its capacity as a “tax advantaged” savings vehicle and flexible drawdown and you really begin to understand the power of a pension. A SIPP or SSAS allows you to:
- Invest into property with just £35,000
- Reduce your annual Pension Fee’s
- Pool Pension’s with family or friend’s
- Unlock your old Frozen Pension’s
More control, more opportunity
A SIPP provides you with a much broader set of investments than your Pension. It’s a DIY approach to pensions and investors have authority over every aspect of their pension.
3 Routes to tax-free property investing
Typically SIPP holders that own property within their pension benefit because it grows in value 2 ways – capital value and monthly rent. All tax free.
If the time consuming management of property puts you off, then why not just invest in property using what’s known as fractional ownership. A managing agent does the hard work for a small fee, and you get the returns.
A further alternative is to invest in property in a completely hands off manner. A recent article on property investor Frank Joyce explains how he achieved 12% in just 1 year. You can read his story by clicking here
Property in your pension will accrue free from capital gains and income tax. This means that if you receive income from property then there is no tax to pay and if you sell property, there is no capital gains tax due.
Furthermore by using the Landlord’s Pension you could negate costly IFA charges.
- A tax efficient way to save for your retirement
- No minimum level of regular or single contribution
- No minimum transfer value if you wish to transfer monies from all different arrangements
The Landlord’s Pension regularly provide comment on the property and pension market. We are experts in this field and have helped many clients’ access property investments with their pension here in the UK