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Where Taxpayers and Advisers Meet

Rental property in pension

EddieSig
Posts:2
Joined:Fri Sep 29, 2023 4:00 pm
Rental property in pension

Postby EddieSig » Fri Sep 29, 2023 4:09 pm

Got a question I hope somebody can answer for me as my financial advisor was a bit wooly when I asked!

I've got a SIPP that was originally a final salary job with my employer at the time. It is invested in a number of funds and my adviser looks after all that.

What I want to do is invest some of it in property as I think there will be a few bargains around soon. When I asked my guy he said it wasn't possible but when I asked why not he didn't really give me an answer!

Can anybody shed some light on this?

Thanks in advance

Eddie

ben_power
Posts:81
Joined:Tue Feb 27, 2018 8:34 pm

Re: Rental property in pension

Postby ben_power » Thu Oct 12, 2023 12:29 am

You can invest into property but there are limitations.

A SIPP can invest (and borrow up to 50% of its value too) in commercial property, but nit residential.

You can also invest into property collective investments (funds for example) but you're essentially pooling your funds with other investors and paying a fund manager to invest into property for you.

You can't for example, look to purchase a buy-to-let and rent it out.

EddieSig
Posts:2
Joined:Fri Sep 29, 2023 4:00 pm

Re: Rental property in pension

Postby EddieSig » Wed Oct 18, 2023 11:24 am

Hi Ben,

But why commercial and not residential - it makes no sense??

Where does it say I can't invest in buy 2 let?

ben_power
Posts:81
Joined:Tue Feb 27, 2018 8:34 pm

Re: Rental property in pension

Postby ben_power » Mon Oct 23, 2023 11:15 pm

Hi Eddie.

Sorry, but the 'why' is not important, it doesn't have to make sense, it's as simple as 'them's the rules' I'm afraid. I appreciate that's not what you want to hear but it's like asking why the ISA allowance is £20,000..... it is what it is.

This is basic knowledge for an adviser though, the fact they don't know the absolute basics about SIPPs raises many concerns. I would strongly advise you speak to another adviser (IFA), even if it's just for a second opinion.

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Rental property in pension

Postby bd6759 » Wed Oct 25, 2023 8:36 am


This is basic knowledge for an adviser though, the fact they don't know the absolute basics about SIPPs raises many concerns. I would strongly advise you speak to another adviser (IFA), even if it's just for a second opinion.
To be fair, his advisor said that he couldn’t.


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