Assetz^® News » HOME | FEED | LIST ALL ARTICLES | ASSETZ HOMEPAGE

Assetz^® Property News Service

Chancellor Confirms Residential Property Allowed in SIPPs

---

BUDGET RESPONSE from Stuart Law, Managing Director of Assetz

“As expected, the Chancellor has confirmed that residential property will still be permitted within pensions through indirect means such as property funds and REITs, although direct property purchases are forbidden.

“This is great news for investors, who are now free to go ahead and feather their retirement nests with residential property, taking advantage of rising house prices and a generally healthy housing market.

“Managed funds are accessible to the masses with lower entry levels than direct property investment, as well as better lending and gearing, allowing stronger performance in the long term.

“REITs will provide one option to investors but the low borrowing levels will limit potential returns and make them less attractive to professional investors who understand the benefits of gearing.

“More specialist Exempt Property Unit Trusts (EPUTs) simulate the considerably greater potential returns and risks associated with the higher gearing of direct property investment. Lower entry levels mean investors can share in the profits of property investment whilst keeping their portfolios diversified.”

-ENDS-

---

Accessing the news service

You can view all of the Assetz® UK, International and UK Property Investment Articles and News here.

We also provide an Feed of the news service, or you can view all articles. Click here to view more information on RSS readers and how they make reading online news more convenient.

Terms of content usage:
XML and other types of publication of this article title and the URL of this page are permitted using the RSS feed or other methods.
Article content strictly prohibited from duplication on any other site directly other than first paragraph included in the XML feed.

Copyright © 2001-2009 Assetz® News Limited. All Rights Reserved | Company Information | Assetz® Homepage
Assetz House, Newby Road, Hazel Grove, Stockport, Cheshire, SK7 5DA
TEL (UK): 0161 456 4000 FAX: 0161 482 7588
TEL (International): +44 161 456 4000 FAX: +44 161 482 7588