Sipp

Alan_Woolley

Hello -my wife and I have several old pensions which we don't contribute to. I wondered if it was possible to transfer these into a SIPP and buy a commercial property so the rent can effectively start to build the fund again.- Any guidance much appreciated.

greenglide

Does this mean that you wish to buy a commercial property anyway and you think this is a good way or that you wish to do "something" with you pensions and somebody has suggested this?

This seems to be a strange way of using it to "so the rent can effectively start to build the fund again.". Is this all of your retirement funds you would put into this risky venture?

atush

Basically, there are some sipps you can use to buy proerpty (but not 100% of the cost). More like 50%. And not a good idea to put all of your fund into any one asset. This method can be very effective if you own the business in the building concerned.

Whether this is the right thing to do for you will depend on the answers to the above questions and others.

David.s_2

This came up on a previous thread. Apparently it is common for companies to buy commercial property and put it into their pension funds along with rental. They would have good control of the property doing it that way. So it can be done.
Having rented out residential property in the past I know that renting any property to a 3rd party is risky however. Research it well and be realistic about where it might lead you. The property will not be in perfect shining condition when you get it back and the refurbishment needs to be included in the assessment. You can make it a condition of the lease that an industrial clean up is done at the end of the lease.

kidmugsy

Read today's business pages about the leases that BHS is being allowed to renege on. Don't assume that letting property is a sure thing.

AnotherJoe

Why don't you simply invest in one or more commercial property funds ?

Then your risk is spread across multiple properties, and you don't have to manage a property either.

Alan_Woolley

Yes I have a couple of commercial property rentals through a limited company so am happy with the issues that brings. We're not contributing into the various pensions and I want to build a small industrial unit to rent. It struck me there's enough cash to build and not have to borrow from the bank. Thanks for your reply.