Pensions are highly tax efficient and you can purchase Commercial Property, the main examples of types of property your pension could buy are
- Industrial units
- Offices and shops
- Farmland and forestry
- Public houses
- Nursing homes
- Marine berth
The things you can’t buy are residential property, holiday property, caravans, beach huts, basically, if you can live in it then it will probably be difficult to put it your pension.
Buying a commercial property can be a great investment opportunity, I have been investing in property since 2002 as part of a small pension syndicate of friends and family we are currently invested in an Office Block and 6 Retail Units, we also bought some properties into separate companies and did originally have HMO’s too.
The yield on commercial property is often around 8% to 10% and you can borrow into your pension to help fund the purchase.
Your business can rent a commercial property from you and many owner managed businesses have transferred company owned premises to a SIPP or SSAS.
There have been some very interesting deals done for example
From a music studio in Costa Rica to a yacht berth in the south of France, Sipp (self-invested personal pension) providers report an ever-growing list of exotic assets being bought with pension money to fund investors’ dream business ventures.
For aviation-mad Tony Fowler, a property developer from West Sussex, the acquisition of a 50pc stake in the Isle of Wight airport through his Sipp means he can fulfil his passion for flight while at the same time investing for his retirement.
“A friend and I have paid half each of the total purchase cost of £635,000,” he said. “I was delighted when I found I could use money in my pension to buy the airport. It had been taken over by the receivers and was going to be closed down, but now it is being renovated and improved. We like to think it will bring something to the local economy as well.”