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SIPP Property
Individuals and syndicates are currently able to purchase
commercial property through a SIPP. Since April 2006 a SIPP
holder can borrow up to 50 per cent of the value of
the commercial property for the acquisition of the property into
the SIPP.
For example, if a suitable commercial property was valued at
£300,000, there would have to be at least £200,000 in the
pension fund to make the SIPP Property purchase possible.
Many types of commercial property are suitable for SIPP investment.
Suitable commercial property types include shops, industrial units,
warehouses, offices and even car parking spaces.
A Syndicated SIPP can be a attractive solution where SIPP
holders wish to club together to buy commercial property which
would normally be outside their individual purchasing power.
Before investing in SIPP property it is important that
individuals make themselves aware of the risks involved and
consider investment diversification - as with many things in
life, it is not a good idea to have all your eggs in one basket.
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