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Assetz plan for the properties of a Sipp

Assetz For Investors

Assetz Property Sipp

Type: Full Sipp

Minimum investment: No minimum

Investment choice: All Inland Revenue permitted investments including commercial property plus ability to hold UK and overseas residential property post A-Day

Options: Income drawdown, phased drawdown

Charges: Initial £350, annual £400, additional fees for property purchase, transfers in, income drawdown and annuity purchase

Commission: None

Tel: 0161 456 4000

Property investment company Assetz For Investors has established a self-invested personal pension plan that will provide access to residential property post A-Day.

Informed Choice director Martin Bamford regards the main feature of this Sipp as the fact it is the first from a property investment company. He says: “There is a great deal of argument at the moment about the proposed regulation of Sipps in the future. This Sipp is likely to appeal to consumers who are taken in by the hype of being able to purchase residential property in the UK and overseas within a Sipp post A-Day and fail to seek professional independent financial advice on the subject.”

Considering the charges Bamford says: “The initial and annual fee is broadly competitive in comparison to other full Sipp products available in the market. There is no fee for investment transactions other than property transactions and you don’t need to use the services of Assetz in order to invest in property with this Sipp.”

Identifying the potential drawbacks of this Sipp Bamford says: “I think that Assetz fail to point out in its marketing material the various disadvantages of using a Sipp to purchase residential or commercial property and this will lead to many investors getting involved in an unsuitable pension scheme.”

Scanning the market for rival products Bamford feels all Sipps that are available from trustees, such as Wolanski & Co, will provide competition. “The trustees for this Sipp are Wolanski & Co Trustees. This is a highly respected firm. I am sure that more Sipps will become available from property investment firms in the run-up to A-Day as they see the opportunity to access pension cash to create more property sales. The quicker that regulation of the Sipp market is introduced, the better it will be for consumers.”

He concludes: “The ability to join a syndicated property purchase using this Sipp will appeal to those who probably have an insufficient pension fund size to seriously consider direct property investment in the first place. It could also prove to be useful for investors to collaborate on larger property investments.”

BROKER RATINGS

Suitability to market: Poor
Flexibility: Average
Charges: Average

Overall 4/10

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