Personal Pension Funds were typically administered by a third party, such as an insurance company, until the arrival of Self Invested Personal Pension (SIPP) scheme. Under SIPP, the subscribers can manage the investment of the pension funds on their own subject to approval of an FSA regulated Independent Financial Advisor. They can invest the funds in assets so approved, and switch the investment to another asset if they so desire.

SIPP falls under the category of Registered Pension Schemes under Section 150 of the Finance Act 2004 and is regulated by the Financial Services Authority (FSA). Investments should be in assets approved by HM Revenue & Customs (HMRC). Certain types of real estate, including Crown’s land products in the Cayman Islands, fall under this category of approved investments.

What this means is that real estate investors investing in Crown’s projects such as those listed below can use their SIPP funds to buy the land. This eliminates the necessity of using one’s free savings to invest in the property. It also eliminates the need to avail of the finance offered by the developers.

Investors who pay the full price using SIPP funds can get an assured 6 percent return on their investment for a period of five years in return for giving the developers an option to buy back the property during the five years. The buyback option involves the developers paying a price that is 20 percent above the price the investor paid.

The investment needs to be approved by a regulated Independent Financial Advisor. Developers of Crown’s lands in the Cayman can help you by arranging a consultation with a regulated advisor.

The projects under which properties can be bought thus include:

• The Dubli Golf & Beach Resort in Grand Cayman,
• The Little Dolphin Estate in Cayman Brac, and

• The Lakeside Estate and the Little Cayman Estate in the Little Cayman.

You can use the funds in your Self Invested Persona Pension scheme to by developed plots in the above projects.

Comments are closed.