|Does the thought of investing in a home overseas while boosting your pension fund seem like an appealing idea? It's set to become a very viable option...|
As from "A-day", 6 April 2006, there will be a change in the rules regarding Self-Invested Personal Pensions, commonly known as SIPPs. Currently available only for investing in commercial property, next year's new regulations will make it possible to invest pension funds in residential, buy-to-let and overseas property.
With overseas property prices still languishing behind sky-high prices in the UK, it is likely that many people will take advantage of this and choose to invest in a holiday home that they will be able to enjoy themselves, while also having the option of renting it out.
Property Investment specialist, Assetz, believes that Spain would be an ideal country for UK investors, with capital growth still high and forecast to grow at ten per cent a year for the next five years at least.
Bychoice estate agents will be exhibiting Spanish propertties over the bank holiday weekend at there offices in Long melford and Sudbury Suffolk between 11am and 4pm
Year-round sunshine, beautiful surroundings and high numbers of world-class golf-courses would make a 30 weeks or more annual rent a feasible target, with, according to Assetz, potential gross yields of ten per cent plus. This rental income would be immediately reinvested back into the SIPP and used to pay off the mortgage.