Advisers failing to see potential of joint commercial property in Sipps

Sole commercial property purchases in Sipps are a popular choice for advisers but the majority are failing to offer joint commercial property purchases, according to Suffolk Life. Almost three-quarters of the 250 advisers questioned by the specialist Sipp firm had recommended a sole commercial property purchase with 33 per cent saying the recommendation was driven by the clients rather than the advisers.Some 95 per cent of advisers said they had clients who owned commercial property personally or through their Sipp.Despite the fact property was popular, only 13 per cent of advisers said they felt they had excellent knowledge of commercial property and Sipps.However, just 38 per cent of advisers had recommended a joint commercial property purchase to clients. Suffolk Life said the figure was 'remarkable' but that it highlighted a potential opportunity for advisers.Claire Trott, pensions technical manager at Suffolk Life, said: "We have over 2,500 properties involving over 4,250 investors, which clearly shows it is a useful way for investors to pool their assets to purchase commercial property."It is remarkable that 70 per cent of advisers have advised on a sole commercial property purchase but just 38 per cent of them on a joint or pooled basis."This could provide advisers with a business opportunity to help local businesses or individuals that previously may have thought they were not in a position to purchase their premises.Stewart Dick, head of sales at Hornbuckle Mitchell, said: "The low number is surprising as joint commercial property provides much greater buying power which in turn can lead to more profit for individual pensions pots. I suspect it stems partly from a lack of knowledge that joint purchase is possible as some providers don't allow it and partly from the misconception that it is particularly complex." • Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.

Advisers failing to see potential of joint commercial property in Sipps

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