Beware SIPP Property Hype
October 25th, 2005
I posted about the new SIPP rules a couple of weeks ago, and at the time mentioned that it was largely property that people are concentrating on when it comes to adding investments to their pension when the rules are changed next April.
Since then I seem to have noticed more articles raising concerns that SIPPs could be the cause of the next big mis-selling scandal.
The FT.com reports that there has been a marked increase in property companies getting in on the act:
With less than six months before A-Day, there has been an explosion in the number of websites marketing property investment opportunities and Sipps, particularly in countries popular with British investors, such as Spain and Florida. Now SIPP providers say they are being inundated with unsolicited approaches from many property companies and investors keen to get on the Sipps bandwagon.
It looks like the hype might not be confined to property, as a recent rise in the sales of wine as investments might be fueled by people looking to put it into their pensions.
I think that one of the problems is that the rules for A-Day have yet to be fully finalised, and whilst there is such misunderstanding about what will or will not be allowed, unscrupulous companies are claiming to have found loopholes or promising returns that simply do not stand up. From what I have read, the rule changes are likely to be more attractive to those already with large pension pots, and those who are willing to pay for advice to help navigate the SIPP minefield.
Categories: Featured, Pensions, Property
