Buy out bonds as property deposit?

Stewart

Registered User
Messages
4
I currently have a pension invested in a former employees company pension scheme to the value of 27k.
I have spoke to Irish Life and they have said I can transfer it to a Buy out Bond, PRSA or other employers scheme ( the last option is not possible as I currently reside in Australia).
What I would like to do is if possible transfer the fund to a buy out bond then use the bond as a deposit for an investment property e.g. A buy to let property.
I would really appreciate any advice that you could offer.

Thanks in Advance

Stewart Kealy
 
(a) The assignment or charging by you or another Beneficiary of any benefit under the Bond is prohibited.
(b) If you or another Beneficiary attempt to assign or charge any present or future benefit, whereby the benefits would be payable to or charged in favour of any other individual, firm or company, the Beneficiary shall forfeit all rights to such benefit.
 
Marc I'm not to sure what you mean with your comment. I know Synergy allow buy out bonds to be used to obtain an investment property but with the amount I have 27k, I am looking to see if i can use this (after I transfer to buy out bonds) as a deposit for a buy to let property mortgage
 
You cannot use it to buy a house outside of a pension structure.

You can use it to purchase a property within a pension structure but you probably don't have enough money. The mortgage has to be paid off in 15 years and you will have to make up any shortfall in repayments through pension contributions. As you live in Australia, I presume you don't have any pensionable income in Ireland, so it wouldn't make sense to send money home to pay into a pension and not get tax relief.


And you probably can transfer the benefits to Oz.

Steven
www.bluewaterfp.ie
 
Back
Top