Keep Your Eye On The Ball... or how to live on the golf course

Once, non-golfers viewed the glorious game as a challenge to the strongest marriage and a drain on financial resources. Today it is much more likely to be regarded as a potential source of additional income. How so? Because, with effect from April 2006 (A Day), the Chancellor's relaxation of the pension rules comes into effect and this enables Self Invested Personal Pensions (SIPP) portfolio funds to be invested in residential as well as commercial properties* - so a golfer's dream of living next to the fairway can come true.

One recent and exclusive opportunity acquired by property investment company Buyproperty4less, is offplan properties on a purpose designed and built golf complex - the first of its kind in Bulgaria. As completion falls after 'A Day' (and therefore the properties cannot be lived in before April 2006) they can be bought through a SIPP and attract up to 40% tax relief so higher rate tax payers would only fund 60% of the purchase price - and the government would make up the difference. Add the fact that buying off-plan can attract discounts of 5%, 10% or more on release-price and the prospects for growth are even greater. Golf and property investment have the potential to make good money sense.

Why Now, Why Overseas?

Damian Qualter, MD of Buyproperty4less, says "Having successfully invested in our property opportunities in the UK, Members of our Property Investment Club were keen to source similar prospects overseas. A number of them needed dual-purpose property, both for their own use and with the additional benefit of a rental return, whilst others saw it as a simple investment - short term with a view to selling on completion, or longer term to accrue further growth. So, at home and abroad, we work hard to obtain outstanding property opportunities to match our clients' high specifications. The Chancellor's decision to include residential property within the SIPPs arena is yet another good reason, in the long list of benefits, to be part of the new generation of investors."

Whether investors choose to include property in their pension plans or not, there are still compelling reasons to consider bricks and mortar as part of an investment portfolio.

If not philanthropic, the motivation of investment is to make money. Managed correctly, property investment can and will offer exceptional returns.

Damian continues "BuyProperty4Less are professional property investors who understand the whole investment process and we believe property continues to represent a safe investment providing that risks are minimised."

An example would be the purchase of a £200,000 off-plan property where the investor would typically deposit 5% of the purchase price on exchange - that is, £10,000. If the build time to completion is 24 months, and property is rising at 10% per annum, the property could be worth approximately £240,000 upon completion. If the investor has only paid £170,000 (taking into account a possible 15% discount Buyproperty4less negotiate on behalf of its members), the paper profit upon completion is £70,000. This is all achieved from the deposit - refundable upon completion - of £10,000.

BuyProperty4Less specialises primarily in discounted off-plan property and have recently sourced UK properties - all with a minimum of 15% discount - for investors. They provide an outstanding diversity of property investment opportunity across the UK and Europe giving investors the chance to develop their portfolio or make profit through reselling.

* Regulations apply in relation to the owner-use of SIPP investments. Please consult your fund manager or an experienced IFA.


<< Return To Articles Page