Though many mainstream pension offerings do not allow alternative assets such as property bonds, it is often possible to invest into the asset with a Self-Invested Personal Pension (SIPP) and Small Self Administered Scheme (SSAS).
As a result, experienced investors holding a SIPP or SSAS are able to benefit from both property bonds’ attractive potential returns and the traditional tax reliefs afforded by a pension.
Experienced investors may find property bonds an important consideration for their retirement plan for a multitude of reasons. To start, property is a popular, much-favoured asset among investors that has consistently shown potential for capital growth and resilience to extenuating market conditions.
Furthermore, some property bonds boast the potential to provide a regular source of income throughout retirement, with options to realise returns on a quarterly basis – as well as upon maturity – often available.
Whilst not all SIPP and SSAS providers allow assets such as property bonds, there are a wide selection of those who do. And remember, it is possible to hold more than one SIPP and SSAS. Therefore, if your provider does not allow the asset, you could seek out one who does and open a SIPP or SSAS exclusively for the purpose of investing into property bonds.
CARLTON Bonds are an IFISA provider specialising in fixed-term property bonds.
Against a backdrop of low interest rates and a volatile stock market, the IFISA can provide an attractive investment opportunity for experienced investors.
The property-backed IFISA has the potential to generate higher rates of return than more traditional investment routes for investors with a greater appetite for risk.
To find out more about property bonds, .