Keeping investments safe as houses

Sipps investors taking the plunge into the commercial property market need to tread carefully

Since 'A-Day' in April 2006, the maximum loan amount a self-invested personal pension (Sipp) investor can take out for commercial property investment purposes has been restricted to 50% (formerly 75%) of the value of the property concerned. So, for example, if you find a suitable property and it is valued at £300,000, you would have to have at least £200,000 in your Sipp to make any purchase possible. Commercial property for purposes here includes shops, offices, warehouses, industrial units and so on. The idea behind a commercial property purchase within a Sipp is a simple enough one, ...