We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Property fund in pension - now a good time to increase contributions?

Options
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?

Comments

  • Reaper
    Reaper Posts: 7,354 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    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.
  • cloud_dog
    cloud_dog Posts: 6,323 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Reaper wrote: »
    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.
    mr_fishbuld, I cannot really offer any insight other than to say mid/late last year I started monthly investing into a property fund. And one of the very few in which I am happy for it to yo-yo in the near term.

    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 :D

    Sometimes.... I am like a dog with a bone
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    Part of the Furniture Combo Breaker
    Thanks both. I'm going to have a bit more of a think about it.
  • gozomark
    gozomark Posts: 2,069 Forumite
    what does your other 95% go into ?
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    Part of the Furniture Combo Breaker
    gozomark wrote: »
    what does your other 95% go into ?
    Scratch cards :)

    10% UK Equities
    10% Global Emerging Markets Equities
    10% North America Equities
    10% European Equities
    10% International Equities
    10% FTSE tracker
    10% Pacific rim (ex Japan) Equities
    5% Japan Equities

    15% UK Corp Bonds
    5% UK Gilts
  • gozomark
    gozomark Posts: 2,069 Forumite
    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 ?
  • 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 train ;)
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    Part of the Furniture Combo Breaker
    gozomark wrote: »
    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 ?
    Yeah UK only. Was thinking I may take it from the Pacific Rim fund (mostly Australian companies in here so 10% could be a little high) AND / OR the International equities fund (lots of crossover with the UK, North America and European funds).
    hugoagogo wrote: »
    it does seem like their *might* be some light at the end of the tunnel*

    *may be oncoming train ;)
    :D
  • gozomark
    gozomark Posts: 2,069 Forumite
    edited 27 April 2009 at 1:04PM
    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 ?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.