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Property Investment
Sourcing / Finding Investment Property
Basic Elegance has been obtaining properties for clients for a number of years. Property investment is an attractive option for people looking for greater return on capital investments; greater freedom from 9 to 5 jobs enabling them to enjoy more of their leisure time; others invest for the future seeing that it may be an alternative to a fixed pension with access to their original capital if required. Here, a SIPP may be beneficial, see below.
Finding Investment property for our clients is a key part of our business. If you want to buy Investment Property, Basic Elegance gives you access to Off Plan Property Investments, Distress Sale Properties including re-possessions and special offers made directly from builders and developers.
Basic Elegance Property Service
For a fixed finder’s fee based on the price band of the property, we provide advice on what to buy and where, find properties to match your investment requirements, assist you with evaluation and analysis of your potential returns.
Remember a key aspect when buying property; location, location, location! We have use our experience to advise our clients where to buy to meet their objectives, be it executive/corporate rentals, buy-to-let for steady returns, student housing or more for life style 2nd homes with potential for letting out.
Through our well established contacts with developers and agents, we are offered directly many properties heavily discounted to the original builders selling price.
Thus we can help you buy property below the market value making your buy-to-let investment more attractive.
Retirement Planning: SIPP Property Investment
Recent changes to UK legislation mean that property that is deemed as commercial within the UK, and in some cases overseas, can be placed within a pension plan via a Self Invested Personal Pension (SIPP). It is up to the SIPP pension provider to be satisfied that the property being purchased can be classified as part of a hotel or is deemed as a commercial property. Placing a property within a SIPP also benefits from generous tax relief:
SIPP tax relief benefits are:-
- 22 pence in every £1 contributed into a pension scheme for basic rate taxpayers and 40 pence in every £1 for higher rate taxpayers
- Capital growth is tax-free within the SIPP
A SIPP is more flexible form of Pension Plan in a few other ways.
- The SIPP is also allowed to borrow up to 50% of additional money to the value of its fund e.g. If a pension pot is worth £150,000, it can borrow up to another £75,000 so that a total of £225,000 can be used to buy a property.
- The SIPP can be used to fund a ‘joint’ purchase between you and your SIPP. So for example, if you have £100,000 in the SIPP to fund a property investment and you wanted to buy a property for £300,000 you can buy the property jointly with the fund and yourself. So in this second example, with the property being bought for £300,000, £100,000 (33.3%) of the property is to be purchased, and therefore owned by the fund, and £200,000 (66.6%) by you (being financed perhaps by a mortgage), then 33.3% of the rental income derived must be put back into the SIPP and 66.6% can be retained by yourself.
Although these are very tax efficient models, they are not suitable for everyone.
NOTE:- Basic Elegance Limited is not an authorised independent financial advisor and any information detailed here cannot be taken as advice. We recommend that you contact independent Tax and/or Independent Financial Advisors (IFAs) who can help you to ascertain whether these types of investments are suitable for you.
- Basic Elegance can help you get the right property at the right price to assist you in achieving your investments objectives and long term financial planning goals!