Pension to purchase property

G

Gerard123

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I am in an employers occupational pension scheme.
Separately I have a rental property. Can I set up a separate personal pension and use it buy and hold the property. Advantage would be that the payments I am contributing to pay the property mortgage would be tax deductible. Any downsides? Thanks.
 
Don't wish to hijack this thread but...

My wife has a private PRSA to make up short service in her public sector pension/lump sum. Her pension will exceed €12,700 on retirement. Aside from boosting her lump sum, can she then or now purchase a property with her PRSA? How is the PRSA taxed if she were to do that?
 
Gerard123 said:
I am in an employers occupational pension scheme.
Separately I have a rental property. Can I set up a separate personal pension and use it buy and hold the property. Advantage would be that the payments I am contributing to pay the property mortgage would be tax deductible. Any downsides? Thanks.
Click to expand...

On another point, if you are a member of an occupational pension scheme, you cannot contribute to a personal pension and claim tax relief on these premiums...unless you have another source of income and have exhausted the tax relief available under the occupational pension scheme.

And banks will only lend for commercial properties with strong tenants.


Slim, technically she can if she has enough money to pay the deposit and costs but see above.

Banks aren't lending to pension funds to purchase buy to lets. As it is the pension fund that owns the property, the loan is in effect non-recourse. You can walk away from it and the bank can do nothing.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
SBarrett said:
On another point, if you are a member of an occupational pension scheme, you cannot contribute to a personal pension and claim tax relief on these premiums...unless you have another source of income and have exhausted the tax relief available under the occupational pension scheme.
Click to expand...

Steven - wife is part of an Occupational Pension Scheme (Public Service Superannuation) and has PRSA to which she contributes each year and gets tax relief. Is that different?
 
She is probably in a PRSA AVC plan, which is different to a PRSA (knowing that there is a difference keeps me in a job ;)). The PRSA AVC is connected to her employment in the Public Service and there is no problem with that at all.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
So, can she buy an apartment in Spain with her prsa? If so, can she buy it before she retires?
 
I'm not sure. Any pensioneer trustee would ask why you'd want to buy an apartment in Spain, it has "personal use" written all over it. Then there is the different tax laws. Do they recognise the tax free nature on rental income into a pension scheme or will they charge tax on any rental income. It would be incredibly difficult to manage, so would a pensioneer trustee even take it on?

She can buy a property before she retires but she can't carry debt from a pre retirement product into a post retirement product.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
SBarrett said:
I'm not sure. Any pensioneer trustee would ask why you'd want to buy an apartment in Spain, it has "personal use" written all over it. Then there is the different tax laws. Do they recognise the tax free nature on rental income into a pension scheme or will they charge tax on any rental income. It would be incredibly difficult to manage, so would a pensioneer trustee even take it on?

She can buy a property before she retires but she can't carry debt from a pre retirement product into a post retirement product.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
Click to expand...
Thanks for the response. Need to do more research.
 
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