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Contact us | www.future-financial.co.uk | E-mail your comments | Archive | |
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Property as an investment With house prices having plummeted recently - and commercial property being no better - what are the options for property investment? As with equity markets, low prices could well be creating buying opportunities for those who are able to arrange suitable finance. Within the housing market there could be opportunities for those wishing to move into the buy-to-let market, but mortgages are difficult to come by at the moment and professional advice is essential. However, that said, it is possible that as more and more people find it difficult to meet their mortgages, increasing numbers of properties could come on the market, further depressing prices, but also increasing the potential rental market.
With commercial property, which is particularly attractive for self invested pensions, the issues are slightly different, in that lower prices could make it increasingly attractive for firms to consider purchasing their business premises. Although some finance may be required to achieve this, it is also generally possible to use existing pension funds to provide much of the purchase price. Even if such funds are not currently held within a self invested personal pension or small self administered scheme, but rather within an insurance company plan, it should be possible to arrange a transfer of funds to facilitate the purchase. It is important, however, to consider the impact of any penalties that might apply. |
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©futurefinancial This publication represents our understanding of law and Inland Revenue practice as at the date of publication. It does not provide individual tailored investment advice and is for guidance only. Rules may vary for Scotland and Northern Ireland. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. The value of land and buildings is generally a matter of a valuer’s opinion rather than fact. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status and written details are available on request. Always seek independent advice from a qualified financial adviser. Think carefully before securing other debts against your home. Fees for mortgage advice maybe charged and for details of these please contact us. The Financial Services Authority does not regulate all the activities undertaken by the company, including taxation advice and overseas mortgages. |
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