Pension or invest?

[JONNY27]

I'm looking for advice on whether to invest in something like Quinn Life or put money into a pension or both. I'm self employed and in my 30's but have no pension, and have been told not to start a pension until I've bought my own house, which I've been unsure of because of recent rumours regarding a slow down in the market.
Should I invest in something like Quinn Life Celtic Freeway, or put money in a pension to take advantage of tax benefits at the higher rate?

 

[ClubMan]

have been told not to start a pension until I've bought my own house

Told by whom?

which I've been unsure of because of recent rumours regarding a slow down in the market.

What do you mean?

Should I invest in something like Quinn Life Celtic Freeway, or put money in a pension to take advantage of tax benefits at the higher rate?

If you plan to buy a house imminently then you should concentrate on this. In that case you should probably just be putting your money on deposit at the best rate available (see the Financial Best Buys lists) rather than investing it in something longer term and more volatile. If/when you decide that you should start saving for retirement then a pension and the tax/PRSI relief available is the obvious option.

 

[JONNY27]

askaboutmoney Guide Quote-As has been mentioned above, contributing to a pension when you don't own your own home is not good financial planning.

I have no imminent plans to buy property and my 'worry' regarding buying is based on possible interest rate hikes and possible negative equity. I have a high interest deposit account to save for a deposit for a house in the future.

Being self emplolyed I'm anxious to take advantage of tax/PRSI relief, but would also like to invest in something for the more immediate future and Quinn Life investment has been recommeded elsewhere on this site.

 

[setemupjoe]

I think you should invest in your own home .I think now is the time to get mortgage approval and when the future government becomes more clear and their intentions toward stamp duty for first time buyers becomes clearer you will be in a position to buy.AFAIK the loan offer is open for 6 months.I personally don't like pensions and don't have one bar my own investments but after you buy your house you could look at pensions next year and decide then.you can do both !

 

[ClubMan]

askaboutmoney Guide Quote-As has been mentioned above, contributing to a pension when you don't own your own home is not good financial planning.

That is just a general rule of thumb and Brendan's opinion. As ever rules of thumb don't cover absolutely every individual situation.

I have no imminent plans to buy property and my 'worry' regarding buying is based on possible interest rate hikes and possible negative equity.

In my opinion negative equity should not be a major concern for somebody who plans to buy a home in which they will reside for the forseeable future. Being able to afford the mortgage repayments is more of an issue.

I have a high interest deposit account to save for a deposit for a house in the future.

What rate?

Being self emplolyed I'm anxious to take advantage of tax/PRSI relief, but would also like to invest in something for the more immediate future and Quinn Life investment has been recommeded elsewhere on this site.

You should be asking your accountant for advice or recommendations on somebody who can give you an individualised financial review/health check.