Buying a house through a pension

relaxed

As things stand I am a director of my own company, no pension at the moment.

I also have some pension funds built up through various paye jobs in the past.

They are invested in various funds through different pension companies.

There is enough in these various funds to buy a house.

Is it possible to setup a pension through my new company and amalgamate these previous funds into one new fund?

Finally is it possible to invest these combined funds through a pension vehicle into a rental property of my choosing.

Obviously I would be the trustee of the new pension fund so presumably have discretion as to where the funds are invested.

relaxed

The link below seems to indicate that a director can purchase an investment property through a pension fund, but can I use the funds from various previous paye jobs to pay for it?

http://www.simplepensions.ie/self-administered/

CHorn

Rather than start a new thread, this seemed an old thread with exactly the right title, though the Q has a slightly different (individual not company) spin.

We currently own 2 properties, one of which we live in, the other we rent. We wish to upgrade/'age-proof' the property we live in and would like to raise capital to do so. We're a few years short of retirement age so a mortgage is unlikely/impractical on both age and cost grounds.

We're very reluctant to- though could of course- sell the property we rent to cover the costs of upgrade to the property we live in, since the rental income is significant on a mortgage-free house. 

It would be difficult to find (we think) a better investment than what we already own (and rent) for a pension (income-wise). Is there a way to sell the house we rent to a pension entity we own to raise the funds we need to upgrade the house we live in, rather than selling to the market? This way we raise the funds we need to upgrade, while keeping an attractive asset for our pension years.

It looks as though the major stumbling block is 'arms length'. But it seems illogical to sell something unnecessarily when it's going towards your later years which is precisely what a pension is supposed to do anyway.

Any pointers appreciated.

Henry Ford III

CHorn wrote: »

Rather than start a new thread, this seemed an old thread with exactly the right title, though the Q has a slightly different (individual not company) spin.

We currently own 2 properties, one of which we live in, the other we rent. We wish to upgrade/'age-proof' the property we live in and would like to raise capital to do so. We're a few years short of retirement age so a mortgage is unlikely/impractical on both age and cost grounds.

We're very reluctant to- though could of course- sell the property we rent to cover the costs of upgrade to the property we live in, since the rental income is significant on a mortgage-free house. 

It would be difficult to find (we think) a better investment than what we already own (and rent) for a pension (income-wise). Is there a way to sell the house we rent to a pension entity we own to raise the funds we need to upgrade the house we live in, rather than selling to the market? This way we raise the funds we need to upgrade, while keeping an attractive asset for our pension years.

It looks as though the major stumbling block is 'arms length'. But it seems illogical to sell something unnecessarily when it's going towards your later years which is precisely what a pension is supposed to do anyway.

Any pointers appreciated.

Can't see that's possible even using a self administered scheme. Arms length rule would indeed be broken, and borrowing would most likely be impossible too in that sort of structure.

What age and employment status are you?

CHorn

55, currently unemployed. No need to borrow, the idea is the pension entity would buy the rental property to release the funds to refurbish the property we live in. We'd get the cash, the pension the property asset (and associated rental income).

Henry Ford III

Assuming your existing pension benefits come from employments you can take retirement benefits now. 25% of the kitty in tax free cash (potentially more if the salary and service option works).