How to hold commercial property in your Sipp

How to hold commercial property in your Sipp

Published on December 5, 2019

Commercial property is a popular alternative asset for investors seeking long-term returns in a self-invested personal pension (Sipp). The commercial property market offers compelling yields, often in the region of 6 per cent to 10 per cent, and plenty of tax advantages for investors. “It’s always been the cornerstone of the bespoke Sipp market,” says Gareth James, head of technical at broker AJ Bell. “Investors like the tangible nature of bricks and mortar as an asset, and benefit from rental payments boosting their retirement pot.”

However, the golden rule, as with any investment, is to do your research before investing and, given the complex nature of this form of investment, seek professional advice. As with all other investments, there is no guarantee of returns, and there are particular pitfalls to beware of when investing in commercial property.

The appeal of commercial property