Property through a PensionThere are a number of ways to buy Property using a Pension fund. The most common of these are :
Pension backed :
This is the easiest way to buy Property using the benefits of a Pension plan as there are less restrictions attached - unlike the other products referred to below.
In addition you own the Property and can use it for your own purposes.
We say : suitable for all levels of purchaser - subject to having the Income and being able to afford a Mortgage in the first instance.
Self Directed/Admin option :
Under this type of arrangement, your Pension scheme actually buys and owns the Property - so it is not in your name.
This is the most tax efficient way because not only do you obtain a tax deduction for the cost of funding the deposit and all costs associated with buying the property, but all Income and Expense is within a tax shelter and there are no Capital Gains tax implications on selling the Property.
However restrictions include :
We say : only suited to higher income earners >€100k p.a. who can afford €20,000 + p.a. in to a Pension and whose Pension fund is valued above €100,000 - this value can also be achieved by a Pension transfer from an existing scheme.
Banks have become more reluctant lending - and in to Pension schemes to buy Property - your case would need to stand up strongly on it's own merits
Which countries can you buy Property in ?
At present this is confined to Ireland (North & South) and UK.