property investment SIPPs advice on providers

johnnyredgate

I am considering investing some capital into commercial property and have noticed that some of if would be eligible for SIPP so have now started to look into setting up a SIPP, due to the potential tax advantages of doing so and that I am not too far off 55 when I could start to access the funds.
Can anyone advise on appropriate SIPP providers for this purpose, importantly with reasonable charges.
Also wondering who would be best placed to give advice on some of the investments that I am considering, as appreciate there are risks involved and I would ideally be looking to minimise these. Have had advice from a financial adviser but advice given was only based on more on stocks and shares etc, so not much help.

xylophone

http://library.adviserzone.com/slsip82.pdf might be worth a browse.
http://www.pruadviser.co.uk/new_pdf_folder/FRPB10006.PDF

Aegis

johnnyredgate wrote: »

I am considering investing some capital into commercial property and have noticed that some of if would be eligible for SIPP so have now started to look into setting up a SIPP, due to the potential tax advantages of doing so and that I am not too far off 55 when I could start to access the funds.
Can anyone advise on appropriate SIPP providers for this purpose, importantly with reasonable charges.
Also wondering who would be best placed to give advice on some of the investments that I am considering, as appreciate there are risks involved and I would ideally be looking to minimise these. Have had advice from a financial adviser but advice given was only based on more on stocks and shares etc, so not much help.

There are a huge number of SIPP providers out there which will accept commercial property investments, some of which are fairly modestly priced, others of which are far too expensive. I recently ran a cost analysis for a client looking into this for his own pension, and the costs for five decent providers (i.e. not the most expensive ones who never made it into consideration) ranged from an initial fee of about £850 (for the SIPP set-up, only, there are a number of other costs associated which will add a fair few fees) through to over £3,000 as a predicted initial cost. Annual charges ranged from about £500 to £2,000, so again, a huge variation there.

An IFA is still your best bet, but one comfortable dealing with commercial property investments - all you're effectively after is the product recommendation and not the investment management.

johnnyredgate

Thanks for the replies both. A shame that you have to operate this type of sipp through a provider, as looks like it will really add to the costs. I will need to work out the benefits of doing this.
Will take a look at the links xylophone.
Aegis, will look into finding an IFA who can provide this information, any tips on finding one that I could feel confident in their advice please?
cheers

Aegis

johnnyredgate wrote: »

Thanks for the replies both. A shame that you have to operate this type of sipp through a provider, as looks like it will really add to the costs. I will need to work out the benefits of doing this.
Will take a look at the links xylophone.
Aegis, will look into finding an IFA who can provide this information, any tips on finding one that I could feel confident in their advice please?
cheers

Best bet is always a personal referral if you can find someone else who has done something similar. As this is fairly advanced as pensions go, it might be worth asking for someone with an advanced pension qualification of some sort, but to be honest that's more relevant when dealing with pension transfers than anything else.

I'd call or email a few IFAs and outline that you want to buy a commercial property within a SIPP and you're looking for advice on that specifically. Suitable IFAs will tell you roughly how much they would charge for it, others might say they don't transact that sort of business.