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SIPP`s |
SIPP's - A Boost to the
Local Property Market
On the 6th April 2006, The British Government will allow changes
into the way SIPP's (Self Invested Personal Pension) are administered,
in that British Pension Plan holders who will be allowed to
invest in property. It is predicted that 4 billion Sterling
will pour into the UK and overseas property market.
Trafford Busuttil, Managing Director at Propertyline Real
Estate Agency, who recently attended a training seminar held
in London on SIPP's, is of the opinion that "if Malta
gears up for the launch of SIPP's in April next year it would
be very fruitful to the local property market and all trades
and professions ancillary or associated to this market."
Mr. Busuttil, who is also the Secretary of the Federation
of Estate Agents (Malta), refers in particular to the fact
that Maltese legislation allows for property investors to
purchase through a trust only in special designated areas
and hopes that this will also be extended to all properties
on the local. This is because property purchase through a
SIPP may only be made through a trustee. Trafford Busuttil
adds that "Malta is perfectly position to benefit from
liberalization of SIPP conditions and not miss out on this
golden opportunity especially since other competing countries
within the EU, prospective EU members and the Mediterranean
have made the necessary allocations for this potential investment."
Statistics show that Malta has always been very attractive
to the British market, which over the years averages at about
70% of the foreigners who purchase in Malta. In fact, 2 million
Britons have second homes overseas.
The seminar brought to light the fact that the main attractions
in SIPP amendments all relate to tax advantages.
SIPP's is most beneficial in that a number of pension holders
may create a syndicate, by pooling into a common fund on an
annual basis, with the added benefit that the trustee can
then borrow up to 50% of the funds value. Experts predict
that billions are going to be spent on the international property
market. Bearing this in mind, Mr. Busuttil comments that "the
Maltese Government should put this matter on its priority
agenda in order not to miss the boat. Besides altering the
legislation on trust it is also important to clarify the regulations
of renting out property owned by foreigners in Malta. There
are many investors out there with one consideration in mind
namely buy-to-let property."
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