Turning your Property into your pension fund?

J

JQ2002

Registered User
Messages
135
I am in the process of buying a house as an investment with my brother. Some people have mentioned to me that the repayments on the property can incorporated into a pension type fund and if I ever sold the property my portion would have to go into the pension fund. If not, all the tax relief I would have got would be clawed back.

Can someone explain this proposal and maybe detail its advantages and disadvantages. Is it common?

Cheers.
 
Look for information on Small Self Administered (Pension) Funds (SSAFs) or (maybe?) Self Directed Pension Funds. They may be relevant.
 
Stgandard Life do that sort of investment but I think they need to buy the house/property for you and you make the payments and claim tax relief on the payments as you would do a pension.

They also find people to rent the property from you and when you reach pension age, they sell the house and add the money to your pension fund.

Very plain and simple english explanation. As with all life assurance and pension contracts, it needs looking into in more detail.

No vested interest, just read about it recently in the newspapers now that it is pension time of year again.
 
You must log in or register to reply here.
Back
Top