Pension & rental property

[ImARebel]

Hi there!

We have a rental property that's holding it's own at the moment ie the rent is just about covering the mortgage (interest + capital) & expenses/tax.

I met someone at the weekend and we got talking and they said "you should put your apartment into a pension"

I've been reading all morning and I'm no closer to understanding what they meant.

Can anyone translate in layman's terms for me?

(If you understand what they meant, that is)

I don't currently have a pension, but I was thinking of taking up the option of joining one when it's offered through my job. So it has been on my mind to do it (I'm 36 this year)

But I'm not sure where my rental property would come into it?

Can anyone explain it to me and sorry if I've repeated a previous post. A link would do fine if I have

Thanks!

 

[Conan]

If you have a certain type of Pension Plan it could buy a property as an asset. However:
- you need a certain level of existing cash to buy a property, even taking gearing into account
- your pension fund cannot buy an asset from you. It cannot buy an asset you already own. Investments must be arms length
- if you have the option of joining an occupational pension, it is highly unlikely that this will facilitate you buying a specific property (particularly not a property you already own)
- as for "putting your apartment into a pension" I think your friend is misguided as to what is possible.