# Self Directed Pension Trusts



## Mumha (25 Jul 2005)

Has anyone invested in property (and got a mortgage) based on the money put into a Self Directed Pension Trust ? If so, any pitfalls to watch out for ?


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## GreatDane (3 Aug 2005)

Hi

I've sat on the opposite side of the table, to a number of people who have if thats any help 

Off the top of my head, I'd make the following points:

- Revenue Comm. seem to be uncomfortable with borrowing within self admin funds, having previously proven reluctant to issue guidelines (to be fair to them, I think the offering was first sprung on them without much notice in a previous budget & has not been dealt wit properly, ever since)

- You'll need a good, Revenue approved, Pension Trustee  (check out people like: Customs House Capital in conjunction with M&F Finance, Independent Trust Company (ITC), Inverdee in Wicklow, Harvest Financial Services, Paul Ryan etc)

- Borrowing must be on an amortising basis (ie no interest only loans), although some of the more daring trustees are supporting the theory of a residual balance on a loan (ie borrow €1m, repay €700k over 15-years and the final €300k capital upon maturity ... most likely from the sale proceeds of the property. Interest is serviced on an on-going basis btw)

- General guidelines & good practice suggest a conservative lending policy, with debt levels up to circa 75% being obtained (70% is more regular, although I have seen 80LTV on rare occassion).

- The lending is on a non-recourse basis & is solely secured on the asset being acquired, hence the LTVs are not as high & also, you'll pay a bit extra on the lending rate or fees

- Commercial properties with sitting tenants are favoured by Banks, over residential properties, with terms of up to 15 years being offered ... although 8-12 years are the more common.

Hopet this helps a little 

Regards

G>
http://www.rpoints.com/newbie


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## svuhmed (7 Nov 2011)

*Hmmmmmmm!*

"You'll need a good, Revenue approved, Pension Trustee  (check out people like: Customs House Capital............"

Hmmmmmmm!

Any other sound, honest financial firms you would like to recommend so I can run screaming from them in the other direction.



GreatDane said:


> Hi
> 
> I've sat on the opposite side of the table, to a number of people who have if thats any help
> 
> ...


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