It seems absurd to buy an Fly to Let overseas home that you never see or enjoy, but put it in the context of securing your future financial stability it’s not so daft to ‘buy-to-forget’.

Property which is classified as ‘commercial’, that is to say no personal use allowed, can be purchased as part of a Self-Invested Personal Pension (SIPP) and the tax benefits are considerable.

Emerging market specialists GEM Estates has several SIPP-able products in its portfolio. The company’s MD, Andy Welland, said: “If you’ve got several thousand pounds sat in a UK pension not doing much right now in the current financial climate, it could be worth considering switching a lump sum to a SIPP, or indeed setting one up from scratch.

Depending on what personal tax band you’re in, any contributions you make will attract tax relief of between 20 percent and 40 percent, so £50,000 will become either £60,000 or £70,000.

“And what’s more any rental income will accumulate in the SIPP tax-free and there is no liability to capital gains tax upon sale of the property. With the right independent financial advice a SIPP property purchase could prove to be very prudent.”

GEM Estates is promoting SIPP-compatible Caracola Beach and Spa Resort on the Venezuela island of Isla Margarita.

Geneva Hospitality is maintaining the furnished properties and managing rentals with a 7 percent net rental guarantee in place for 10 years, rising to 8.25 percent for the latter five years if 75 percent occupancy is achieved in year five.

€79,000 will secure a one bedroom apartment based on 30-70 payment terms with the final 70 percent payable on completion at the end of 2010.

Other SIPP-compatible products are on offer across the Caribbean islands of St Vincent & The Grenadines, Barbados and the Dominican Republic. All in the hands of Oasis Hotels & Resorts (part of giant Globalia Corporation) these properties are to be run as a hotel meaning that all units come fully furnished to a five star standard.

There is also a 10 percent rental guarantee in place for the first two years after completion to reinvest back in your SIPP. Below market value prices start from £75,000 for a studio at Las Canas Boutique Beach Resort on the Dominican Republic.

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