Using a SIPP to buy land
One of the attractions of Self Invested Personal Pensions, known as SIPPs, is the freedom of choice they provide when it comes to investing for retirement. Guided by an Independent Financial Adviser (IFA), holders of SIPPs are free to choose the investment vehicle they feel is right for their pension, rather than being led by the whims of a fund manager. History has shown that tangible, touchable real estate products such as land have always been a firm favourite with investors. Experts in land investments Crown World looks at how a SIPP, the pension fund that you control, can be used to buy land.
The flexibility of SIPPs means that the investor can choose where to invest their pension fund. Within the realms of real estate investment, they are free to use their SIPP to buy land in the UK or overseas (both development land and agricultural land), commercial property and residential property.
This opens up a whole new arena for SIPPs investors compared to the holders of standard pensions – because they are a real and tangible asset, SIPP investors can now harness the benefits of property and land investments within their pension. The importance of this can’t be underestimated given the mismanagement of so many private and corporate pensions in recent years. Pension holders have had enough of the scant information available on where and how their money is being invested. The right SIPP land investments are solid, safe investments, about which the investor is fully informed before purchase and for the life cycle of the investment.
Another significant benefit of buying land with a SIPP is the fact that any increase in the value of the land will not be subject to Capital Gains Tax. This tax advantage makes a SIPP land purchase hugely attractive to a pension holder as it increases the value of their retirement fund.
Finally, there is the choice that SIPPs offer investors. Rather than being limited by the directions of a fund manager, investors can now work with their IFA to choose the right product for their pension fund. For instance, they now have the opportunity to select the security and lucrative potential of land investments in the Cayman Islands – to own a piece of paradise while building a better retirement.
Find out more about how to buy land in the Cayman Islands with a SIPP at http://www.crownworld.com/.
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