Buying property use Pension fund?

xingxing1118

Anyone have any experience buying property with own pension? Will the management costs be very high? Is it worth it?  

JPup

If you are looking to do it, I would strongly advise doing so through a fund. Better diversification and easier to manage.

There are listed options (e.g. IRES) and unlisted (e.g. IPUT). Obviously you are not restricted to Ireland only funds!

The J Stands for Jay

https://www.boards.ie/discussion/2058371512/buying-property-use-pension-fund

Not worth it at all. It's a massive concentration of risk, and the complete opposite of diversification.

Henry Ford III

I've been involved in a few pension arrangements holding direct property over the years.

Small self administered occupational schemes are quite expensive to set up and run. They require 3rd party trustee services, an annual audit, and regular actuarial valuations. They aren't suited to most due to scale, cost, and lack of diversification.

There's an insured version available which is much more user friendly.

There's also some bespoke PRSA stuff available.

They really are niche products and investing in 1 or 2 properties is enormously risky.

Professional advice is absolutely required.

xingxing1118

https://www.boards.ie/discussion/comment/122677876#Comment_122677876

Thansk you so much for your information. Currently I am under the Self-Administered Pension and being charged 1.8% a year. Could you tell me more about two below?

1)There's an insured version available which is much more user friendly.

2) There's also some bespoke PRSA stuff available.

Henry Ford III

https://www.boards.ie/discussion/comment/122681074#Comment_122681074

You're getting into the realms of professional advice there, which is beyond the scope of this forum.

Consult a good QFA and expect to pay a fee if you wish to explore these options.

The J Stands for Jay

https://www.boards.ie/discussion/comment/122681074#Comment_122681074

1. You can buy units in a property fund
2. You can invest in REITs and other property investments through a self directed PRSA
3. You need a financial advisor who isn't an internet rando

3DataModem

And don't forget, if it's in your pension, you cannot use it for yourself.

Henry Ford III

https://www.boards.ie/discussion/comment/122692944#Comment_122692944

What exactly do you mean in point 3. above?

The J Stands for Jay

https://www.boards.ie/discussion/comment/122703407#Comment_122703407

I mean that when considering such a large investment, one should rely on the advice of an appropriately qualified and insured advisor, rather than advice from a smiley face in sunglasses or a star wars guy on the internet.

Henry Ford III

https://www.boards.ie/discussion/comment/122703435#Comment_122703435

I'm not touting for business here. Quite the opposite infact.

The J Stands for Jay

https://www.boards.ie/discussion/comment/122703445#Comment_122703445

I never said you were. I don't know what your business is, and I was echoing the same point you made.

OP needs proper financial advice to avoid falling into an easily avoidable mistake. Direct property investment can work, but there are akt of considerations to take into account.