I was interested to read the recent article in Money Marketing on Sipps being able to invest in for student halls of residence.The Revenue has said that the property must be identified by an educational establishment as one of its halls of residence. It must also be demonstrated that the educational establishment in question must be involved in placing students in the building and that students must be limited to one residence. The first consideration must be given to whether it really is a suitable investment for the portfolio as this type of investment is not without its downsides. In particular, there can be high maintenance costs, potential rental voids outside term time and even higher insurance costs. There are also likely to be increased management costs to deal with deposits and “emergency” situations often associated with letting to students. From a Sipp provider’s perspective, I would expect there to be a “master lease” in place, with the “tenant” then effectively sub-leasing to the students. If the investor is still keen to buy into this style of investment, one final area is worth watching out for – the costs of refurbishment. It is well known that student residences take a bit more of a “hammering” than normal properties. All these things aside, the right investment could well be considered as part of a balanced retirement portfolio. Mike Morrison, Winterthur Life
The Committee of the Association of Member-Directed Pension Schemes says it is gravely concerned at the FSA’s new requirement for IFAs to carry out research into a client’s religious background when advising clients on ASPs.
The Chartered Insurance Institute has unveiled its Advanced Diploma in Financial Planning which forms the final part of its new financial planning exam framework.The CII says the diploma is designed to develop specialist financial planning capabilities and provide the gateway to Chartered Financial Planner status.It is made up of five units – personal tax and […]
You will have read about the treating customers fairly initiative, the regulator’s big theme of 2006. In September, the FSA published a discussion paper called, The Responsibilities of Providers and Distributors for the Fair Treatment of Customers.
GE Money Home Lending is considering dumping a portfolio of loans it services after Which? found discrepancies that could cost customers hundreds of thousands of pounds each. Which? found that a £269 legal fee on one mortgage sold in 1991 by Redfern Financial Services could turn into a £162,672 debt on top of the homeloan […]
Steve Webb – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]
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