Transfer from old company pension

Just reading a key post before asking my question and I see buying property with a pension is an option.

I never got this advice when I was told my old company scheme was being wound up. It's in a defined contribution pension scheme that hasn't been contributed to in 10 years.

I'm nearly 44 and would like to use this to purchase a property and possibly add to it to get the right property.

Is this still possible? That's definitely the way I'd like to go.

What are the mechanics of it? Does the income received from the property go into a reserve account?

Thanks in advance.

You can't really borrow to buy a property through a pension. BoI will do it but it has to be a commercial property with really strong tenants. Otherwise, you have to buy it with cash.

You need to have the self directed pension structure put in place and all payments come out of that account. Rental income will be paid into the bank account that the pension scheme has. You can then re-invest this money.

Before going off to buy a property, make sure the property is actually offering a good yield. You also need to look at diversification. Investors should always have a diversified investment portfolio. What does the purchasing of one, illiquid asset do your your diversification? Will you end up owning one apartment/house and that's it? That is a lot of additional risk to take on...



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Thanks Steven,

In a way, by buying a property with this mortgage it is diversifying. I retain a defined contribution with my present employer.

Self directed pension structure, eh? To google... Thanks again