Prices boost for SIPPs property in Spain

Article Date : 16 November 2005

The Spanish Government is planning to make it easier for UK pension property buyers to buy for less and pave the way the way for increased investment in Brits’ favourite sunbelt destination.

Officials and ministers, aware of the changes occurring in the UK next year, when self-invested personal pensions (Sipps) will encourage British people to use pension savings to invest abroad in land and property, are anxious to keep prices down and competitive with those in less developed, emerging markets..

A new law that could be introduced in the near future aims to boost increased investment in second homes in the Spain, where 300,000 British families and investors own properties and have registered to vote and a further 700,000 are believed to have holiday homes.

The Spanish government has pinpointed speculation as the major factor behind the country's rising property prices, with officials claiming that those who buy land cheaply, but hold onto it so that it grows in value as interest in building on it intensifies, are holding the property market at artificially high levels.

However, the International Herald Tribune (IHT) reports that developers have warned that the new measures, which are being put before the Spanish parliament, will only serve to increase property prices in the region, which could spark a cooling of interest from foreign investors. As prices rise, there is a fear that property investors may decide to look to other countries, where prices are still relatively low, especially if the new laws will make it difficult to make significant gains from their investments.

Despite these concerns, the Spanish government argues that the rules are necessary to prevent investors turning their back on the Spanish property market because of artificially high prices.

News provided by http://www.propertyinspain.net

Prices boost for SIPPs property in Spain

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