General (main property discussion here) - BTLs into Pensions - What affect will it have?

Thought I would start a new thread for this.

I found the previous thread about the laws and regulations about putting your BTL into a pension very interesting but what do people really think will happen:

1. Will it make a difference to property prices? 2. Few people used them for commercial property - so why should it be different? 3. How much does it cost? (I have heard around £600 to set up and them an annual management fee)?

Interested to know others thoughts.

FS

Could someone explain what this is, what the benefits are etc? In layman terms please.

Hi Frank, in laymans terms means the rents collected are all TAX FREE!.

Regards the commercial aspect, this never really took of as investments were good, now people dont trust investments but seem to trust buy to let investments so it may just make a difference. Don't forget buy to letting is very popular and people are buying for pension reasons.

Not all as simple as that.

Alex M @oakhillmortgages.co.uk

Hi Frank,

See my answer in this thread http://www.landlordtrader.co.uk/forums.php?thread_id=166 for a description.

Laymans terms - it's all tax free (what you put in and what you take out) as Alex said but your money is tied in until age 50 and then you can only take out 25% as cash - the rest has to be as a pension.

I think this may be a terrific answer to IHT. From what I understand the govt are hoping to legislate that you dont have to draw your pension by age 75 so therefore it could become part of your estate but avoiding IHT.

Russell

We should be careful not to speculate to much on this. I guess we could talk about what changes could happen in principle. I believe (but I could be wrong) that in principle many middle class folks will be alerted by their financial adviser. This will have the effect of pouring some fresh money and government subsidies into these pension plans i.e. SIPPs... So more money will start chasing up (quality) properties. Therefore artificially, (quality) property prices will start to increase again which is what some of us want?

You can read more about A-DAY and how the governement is preparing a £4 billion property investment tax giveaway! That's why some expert believe that now is the time to buy!!!

http://www.bfr-invest.com/p&s/sipp001.htm

Francis