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!

HELP new SIPP to buy a new business property

Options
HELP!!
hubby and I need to buy a business property and have decided to use our pensions to fund it.
Any ideas on who to use etc who dont charge massive amounts !
the company moving in would pay rent per month

Comments

  • dunstonh
    dunstonh Posts: 119,627 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Any ideas on who to use etc who dont charge massive amounts !
    You will pay a lot in fees regardless of where you go. It is an expensive transaction due to the massive amount of work and awkwardness of doing this.

    You better have a good rental yield (higher than 7%) if you want to make money from it otherwise it is a complete waste of time.

    Property purchase is best when its your own business and having access to the funds in your pension helps your cashflow. If you are using it for investment purposes then using commercial property funds is a far better way. Although now isnt the time to be going into commercial property as that is trending down in value quicker than residential at the present. Although it should recover before residential if history is anything to go by.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    AJ Bell
    Suffolk Life
    Hornbuckle Mitchell
    are all established SIPP providers who do property.

    It's not cheap though.
    Trying to keep it simple...;)
  • rainee
    rainee Posts: 454 Forumite
    yes its for us (the building that is!)
  • dunstonh
    dunstonh Posts: 119,627 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I would suggest you go to an IFA that is experienced in commercial property purchase in a SIPP. This may take some calling round as it is not an everyday transaction. Many IFAs dont or wont do it. I did one once before and it was far too time consuming and I made the decision not to do one again personally. Apparantly, that one went smoothly as well but it didnt feel like it. By the time the accountant, trustees and initially the different providers (as different trustees from the SIPP providers have different views and rules) all got involved, I felt like piggy in the middle. Which of course, is the role of the IFA in this transaction. But it wasnt fun. If you are going to do it without an IFA then prepare yourself for that.

    There are some negatives to purchasing the property within the SIPP. An IFA will let you know these once they ascertain your position and information. If you dont use one, then the SIPP providers have no responsibility to make you aware of these risks if you go direct to them. So if you go direct, make sure you do your research.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    dunstonh wrote: »
    There are some negatives to purchasing the property within the SIPP.


    It's certainly nothing like as attractive as it was before they changed the borrowing limits.
    Trying to keep it simple...;)
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
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.1K 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.