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Post by roxanamohammadian on Jun 8, 2021 14:34:46 GMT
Good Afternoon everyone, I hope you are all well. Over the past few months, we’ve seen an increase in the number of lenders wanting to invest their pension (SIPP & SSAS) in P2P property lending. We recently wrote a column about this in What Investment magazine: P2P property lending attracts pension investors ( link). What does the Forum think about investing SIPP & SSAS in P2P property lending? Capital at risk. Read the full warning on our website. Have a great day, Roxana |
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Post by Ace on Jun 8, 2021 15:14:31 GMT
Last time I looked it was too niche, complicated and opaque. Each platform offering pension investments only seem to do so through a few specialist managers that didn't publish clear fee structures.
If one of the big boys (like HL) offered it with their standard inexpensive fee structures I would probably have done so. Especially if I could have chosen to spread the funds over a few of my preferred platforms via the same manager.
Beats me why a platform would offer SIPPs but not IFISAs. I would have thought it was much easier to attract funds via ISAs as most P2P investors will already be familiar with them and it doesn't require us to go through a third party (technically it does if the platform isn't directly authorised, but it's usually unobtrusive to the investor).
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Post by overthehill on Jun 8, 2021 16:01:38 GMT
Everything that Ace said.
+
Potential inflows from pensions is much bigger than ISAs hence the interest I guess. Also a lot of money is currently 'trapped' in pensions like HL or defined benefits schemes with no viable diversification on offer away from shares+bonds. Things could change. Diversifying your ISAs is already simple and free.
My SIPP provider allows me to invest money into almost every investment type except P2P which is a shame because they have normal fees unlike the SIPP providers used by P2P companies which have extortionate fees. They allow me to invest in commercial property but I can't invest in commercial property via a P2P company. When you are getting fleeced it's not worth the hassle or risk for an extra few percent return. HL don't even allow SIPP money to be invested in their own savings product despite big talk when the product launched so don't expect them to offer a full sipp service.
The P2P + SIPP situation might be similar to pensions 10 years ago before all the reforms, little choice for consumers and what choice there is comes with opportunistic fees due to the absence of legislation and competition.
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Post by roxanamohammadian on Jun 15, 2021 9:27:11 GMT
Hi Ace and overthehill, Thank you both for your comments. Agreed that not many SIPP/SSAS providers yet offer the possibility to invest in P2P. It is classed as a non-standard asset and we understand the capital requirements for the SIPP/SSAS providers are high, which reduces their incentive to offer P2P. But we hope this will change in the future as the market matures and both investors and SIPP/SSAS providers become more aware of P2P. In terms of offering IFISAs, this is something we are still looking into at Blend network. We may introduce this in the future, but not imminently. However, we always take into account all the feedback we get and seems the appetite for it is out there! 😊 Let me know if you have any questions. Capital at risk. Read the full warning on our website. Have a great day  Roxana |
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