In brief, 40 year old full time private sector PAYE worker (gross pay €50k), will only have State Contrib Pension at retirement. Will be getting 100-130k from house sale in the coming months. Want to invest the full amount for future pension income. Risk averse and this is a one-time opportunity. Would be able to make small ongoing payments to pension fund if needed.
A self-directed pension, purchasing a rental property seems like a reasonable option. Ideally get a mortgage of c.150k and purchase where rental return is optimal. Depending on circumstances, the intention would be to use the rental income as a "top up" in retirement rather than rely on capital gains on the property. I'm aware that mortgage term is max 15 years and property needs to be managed by agent so will be factoring these in when working out likely top up.
Q1: Is this an option for a PAYE worker? Some websites seem to propose it only for directors / self-employed?
Q2: Are the banks offering mortgages for this type of purchase? Currently no mortgage or debts in his name, no childcare.
Q3: Can a spouse be included in the pension? Would be useful from tax perspective if ongoing top ups are required while the mortgage is being paid and might be useful on retirement also. Spouse is post-95 public sector and will have full service.
Q4: Aside from rental uncertainty, is there any significant risk? Is this type of investment appropriate in these circumstances?
Will have to get expert advice at some stage but want to be as informed as possible on the options before we do so if this is a non-runner it would be helpful to know now. Any assistance much appreciated.
Regards
Kieran
A self-directed pension, purchasing a rental property seems like a reasonable option. Ideally get a mortgage of c.150k and purchase where rental return is optimal. Depending on circumstances, the intention would be to use the rental income as a "top up" in retirement rather than rely on capital gains on the property. I'm aware that mortgage term is max 15 years and property needs to be managed by agent so will be factoring these in when working out likely top up.
Q1: Is this an option for a PAYE worker? Some websites seem to propose it only for directors / self-employed?
Q2: Are the banks offering mortgages for this type of purchase? Currently no mortgage or debts in his name, no childcare.
Q3: Can a spouse be included in the pension? Would be useful from tax perspective if ongoing top ups are required while the mortgage is being paid and might be useful on retirement also. Spouse is post-95 public sector and will have full service.
Q4: Aside from rental uncertainty, is there any significant risk? Is this type of investment appropriate in these circumstances?
Will have to get expert advice at some stage but want to be as informed as possible on the options before we do so if this is a non-runner it would be helpful to know now. Any assistance much appreciated.
Regards
Kieran