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Buying a house through pension

  • 24-11-2020 7:14pm
    #1
    voodoo
    Registered Users Posts: 785 ✭✭✭


    Looking to see if anyone has any advice on whether it's a good idea to buy property through your pension... I have a couple of hundred K in my pension that I am thinking of putting towards buying a property.

    Keen to see other's experience before moving forward


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,619 Mod ✭✭✭✭Henry Ford III


    It's possible to buy property by going down the self invested route but few actually do so.

    You can't buy a house for your own use for example, nor a holiday home.

    So you're looking at a buy to let, or a commercial property.

    If your pension pot isn't huge you'll totally unbalance it, and crucially when you want to take benefits the property has to be sold.


  • #3
    voodoo
    Registered Users Posts: 785 ✭✭✭voodoo


    Henry Ford III wrote: »
    It's possible to buy property by going down the self invested route but few actually do so.

    You can't buy a house for your own use for example, nor a holiday home.

    So you're looking at a buy to let, or a commercial property.

    If your pension pot isn't huge you'll totally unbalance it, and crucially when you want to take benefits the property has to be sold.

    Thanks Henry.

    So I know I have to be at arms length, no family ties, holiday home etc. which I am fine with.

    I am also aware of the risk of putting everything into one basket in property, but I am 20 years away from retirement, with another PRSA that is building nicely and with a strategy to heavily invest in the pension for the next 5-10 years to try and maximise my pot, which by the time I retire, will mean I am not solely dependent on the property in the pension.

    Just wondering if anyone has done it say 2-3 years ago and what their perceptions/experience has been


  • #4
    The J Stands for Jay
    Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    Henry Ford III wrote: »
    and crucially when you want to take benefits the property has to be sold.

    Assuming there's enough cash in the pension to take the lump sum, the property can be transferred to an ARF. Although, you'd want to be able to survive on the rental income of it's not going to be sold.


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