SIPP • Self-Invested Personal Pension
Why Invest Your SIPP In Commercial Property?
Investment within the commercial property sector was traditionally the domain of high net worth individuals where large amounts were expected to be involved for the bigger profits. In 2005 rules came into effect that made it simpler and cheaper for individuals to get the same sorts of returns the institutional investors had been used to.
When purchasing any property commercial or residential, the same principals of due diligence need to apply. Property needs to be in excellent locations of great demand and without the need for high levels of maintenance or repairs that could eat into your returns.
With average returns of between 8% and 20% when compared to Equities, Bonds or Building Societies at around 3% it can be an obvious choice. Investment in the right commercial property can bring high income and capital growth rarely seen in other markets at the moment.
Palatine Property Solutions Limited has teamed up with commercial property developers who can offer investments for your failing SIPP. With low entry investment levels, a guaranteed exit route option and a decent yield you could do well by using your pension fund wisely.
What is a SIPP?
A Self-Invested Personal Pension (SIPP) is the name given to the type of UK government-approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of investments approved by HM Revenue and Customs (HMRC).
SIPPs are a type of Personal Pension Plan. Another subset of this type of pension is the Stakeholder Pension Plan. SIPPs, in common with personal pension schemes, are tax “wrappers”, allowing tax rebates on contributions in exchange for limits on accessibility. The HMRC rules allow for a greater range of investments to be held than Personal Pension Plans, notably equities and property. Rules for contributions, benefit withdrawal etc. are the same as for other personal pension schemes.