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Published on January 9th, 2018 | by Martin Clancy

Buying an investment property with your pension fund

Buying an Investment Property with your Pension Fund is a great way to marry the attractions of investing in property (Rental Income, potential Capital Appreciation) with the tax advantages of pensions.

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Guest Blog by Joe O’Regan, Director – Pension Property & Retirement Planning – Blackthorn Capital www.blackthorncapital.ie

Regardless of your age, if you have sufficient funds built up in your Pension, it’s certainly an option worth considering. We have recently produced a short video explaining how it works which you can watch by clicking the above image. In it we outline the many advantages that buying property with your pension fund offers –No Tax on Rental Income, Tax Relief on Pension Contributions, No Capital Gains Tax when you sell.

That said, why would you sell given the fact the property can be transferred ‘in-specie’ from your pre-Retirement pension to your post-Retirement Pension Fund (‘ARF’). With the exception of Defined Benefit Pensions, as long as you can control what your Pension invests in most other pension types can go this route. So, whether you have an Executive (Company) pension, a Retirement Bond (relating to previous employment), a Personal Pension, a PRSA or even an Approved Retirement Fund, all of these can potentially be used to buy a Property. These days, it is common to have a number of Pensions relating to different employments and these various pensions can be combined with each policy owning a pro-rata % in the property related to its equity input.

Equally, more than one person can combine their pensions to buy a Property again with the various pensions owning a pro-rata %. Ideally, if your pension has sufficient funds you’d avoid using a mortgage as that way you’re benefitting immediately from any rental income. Anyway, take a look at the video and if you’d like further information or to discuss your situation in more detail email us at property@blackthorncapital.ie or call Joe O’Regan on (01) 293 7200.www.blackthorncapital.ie.


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