Property Pension

[lonelyplanet]

Hi,
Just wondering if it is still viable to purchase property through a pension. I know there has been some changes in the treatment of small self administered pensions but wondering if anyone knows the current status and if it is still an option to pursue.
Thanks

 

[Marc]

Not viable to purchase a new property through an executive/occupational pension

However, it is still possible through lots of other pension structures so there are plenty of brokers willing to facilitate it.

We would take a view its not a good idea which is why there is legislation designed to not allow it.

Pensions & Rental Property - Everlake

At odds with much online financial advice, here are our reasons why we don’t recommend holding residential property in your pension.

globalwealth.ie

 

[Steven Barrett]

It is still available through a self directed PRSA, ARF and Buy Out Bond. The new legislation only applies to company paid pensions.


Steven
www.bluewaterfp.ie

 

[Dave Vanian]

Not through an executive/occupational pension

We would take a view its not a good idea which is why there is legislation designed to not allow it.

This is not true at all and is potentially quite misleading. As has been said, nothing has changed regarding buying property via a self-directed PRSA, ARF, AMRF or Buy-Out Bond.

The recent legislation only applies to one product - the Occupational Pension Scheme, a.k.a. Executive Pensions or Small Self-Administered Scheme. And even with that, property purchase IS still allowed. The change means that only a minority of the scheme assets may be invested in assets such as direct property. A scheme that meets this criterion can go ahead and purchase property.

The only recent change has been that an Occupational Pension Scheme cannot buy a property if the property would represent a majority of the scheme value. In those circumstances, the client would need to use one of the alternative products.