Daft SIPP question.

[heisthegaffer]

Hi all

I have an old pension worth about 19k plus the one with my employer I'm currently paying into.

Am I able to remove from pension and use to start a SIPP to buy a commercial rental property or am I living in a dream world as too small an amount as a deposit etc?

If this is not feasible, what are my options?

Like to retire in 15 to 20 years time.

Thanks

[Macneil]

I don't know about the second stage of buyuing a commercial property but you can transfer your old pension into a new sipp.

eta How old are you? You can't withdraw money till you're 55 I think but you can transfer. taking cash out will be tax suicide.

Edited by Macneil on Wednesday 10th November 21:04

[heisthegaffer]

Macneil said:

I don't know about the second stage of buyuing a commercial property but you can transfer your old pension into a new sipp.

eta How old are you? You can't withdraw money till you're 55 I think but you can transfer. taking cash out will be tax suicide.

Edited by Macneil on Wednesday 10th November 21:04

Thanks. I'm mid forties.

To be clear, I'm not looking to take cash out, I'd want to put it into another vehicle and was pondering about a commercial property.

[ellroy]

Yes you could transfer to a SIPP, you could potentially also borrow a further 50% of the SIPP value, although finding a lender may be problematic in the current climate.

However, I struggle to imagine what commercial property you’ll find at that value, remember that all the costs also have to come out of the cash as well, legals etc.

On top of that the costs, for a proper SIPP which allows commercial property purchase, are likely to be prohibitive.

Edited by ellroy on Thursday 11th November 08:28

[Amateurish]

It's probably easier to put the money into a fund which invests in commercial property

[heisthegaffer]

Thanks all. That's answered my questions perfectly, I'll transfer to a fund instead I think.