Tax Efficient Mortgages

[WGT]

Hi,
I'm an IT Contractor and have heard from some colleagues that it is possible to purchase an investment property through my limited company pension. From what I've heard the way it works is that say for example the price of the house is 250K, then the pension contributions have to be such that after 25 years the value of the pension must be 4 times the price of the property i.e. 1Million euro.
My question is. Is this true and also is this a good investment? I know that the pension contributions are tax deductible.

My financial situation is ....
Age:33
Children: 0
House: Myself and my girlfriend have just bought a house for 365,000 (mortgage of 190,000 for 25 years).
Other Assets: 20K Prize Bonds. 10K Savings approx.
Pension: Estimated to be 450K on retirement.

 

[ClubMan]

This thread on buying property through a company might be of interest to you. I think that, in general, the cons outweigh the pros. Buying an investment property with an interest only or pension mortgage (i.e. an interest only mortgage linked to a pension policy) does not have to be done through a company. Your accountant or tax advisor should be able to better advise you on this stuff taking into account your specific personal situation.