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Property fund in pension - now a good time to increase contributions?
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mr_fishbulb
Posts: 5,224 Forumite

I've got a property fund in my stakeholder pension which I currently pay 5% of my total pension contributions into each month.
Although the property fund is the worst performing, I've only had the pension for 2 years have have bought units every month so haven't lost much overall.
I'm thinking now would be a good time to increase my contributions into this fund from 5% to say 10%. I don't believe property will recover for a while (both private and commercial), but that means I could potentially be buying bargain units. Is this a sensible way to look at it?
Although the property fund is the worst performing, I've only had the pension for 2 years have have bought units every month so haven't lost much overall.
I'm thinking now would be a good time to increase my contributions into this fund from 5% to say 10%. I don't believe property will recover for a while (both private and commercial), but that means I could potentially be buying bargain units. Is this a sensible way to look at it?
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In the end it depends on your view of future property prices and whether the eventual upturn will compensate for a flat period or even further drops. Some commentators have been suggesting it is time to get into commercial property. It's a higher risk area though. I haven't seen enough evidence yet to take a view either way.0
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In the end it depends on your view of future property prices and whether the eventual upturn will compensate for a flat period or even further drops. Some commentators have been suggesting it is time to get into commercial property. It's a higher risk area though. I haven't seen enough evidence yet to take a view either way.
I think the UK by nature love to own their property and in time this will happen again. For this to happen overall prosperity will have needed to return and on the assumption this happens it is also likely that retail proprty will also benefit (if not lead the way).Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Thanks both. I'm going to have a bit more of a think about it.0
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what does your other 95% go into ?0
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is the property fund UK only ? TBH, the difference between whether its 5% or 10% is only paying at the margin, and unlikely to make much of a difference.
Where would you take the 5% from ?0 -
Assuming you mean UK property - I wouldnt until the results from the June quarter have been reported and fund values adjusted accordingly.
Don't forget the commercial property funds are rather detatched from the residential reports you read about/hear on the news.
Commercial property has been hugely hit over the past 12 months and the medium term future is uncertain, although it does seem like their *might* be some light at the end of the tunnel*
*may be oncoming train0 -
is the property fund UK only ? TBH, the difference between whether its 5% or 10% is only paying at the margin, and unlikely to make much of a difference.
Where would you take the 5% from ?it does seem like their *might* be some light at the end of the tunnel*
*may be oncoming train0 -
bear in mind - you are in your third year - by increasing it to 10% for the 3rd year contribs, you will only raise your total property exposure to, what 7%. If you are that keen on property v another asset class, why not put 20% of this years contribs into it, so atleast you raise your overall exposure to about 10%
basically, if you have a view, do something meaningly full with it. If you don't, why change your split ?0
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