It is possible to use your pension to buy a property through your pension. Property, as with all unregulated investments in pension arrangements, has set guidelines and restrictions issued by the Revenue governing what is permitted. This document briefly outlines those guidelines and restrictions together with the approach banks are currently taking with respect to gearing.
HFS will have to interact with both solicitors on all documentation including purchase contracts, which must be correctly registered in the name of the pension arrangement. All documentation would be remitted through our office for vetting to ensure the provisions contained therein are compliant with the Revenue guidelines and restrictions.
The Revenue have set out a number of rules outlining what is permitted in respect of borrowing. Any lending bank will also have their own lending criteria which they will apply on a case by case basis. Gearing is not permitted for Approved (Minimum) Retirement Funds.
Assuming there is no gearing, our fees for the initial purchase of the property would be between €750- €2,000 depending on complexity, including vetting.
Ongoing property administration will attract an annual fee of €500, which will cover the Revenue reporting and administration of property expenses.
Regular valuations are required by the Revenue at a cost of between €100-€150 annually for the unit trust structure, every 3 years for the Liberator.
An enhanced Public Liability policy is effected by HFS to cover any potential injury claims from tenants at an annual cost of €160.
This marketing information has been provided for discussion purposes only. It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc. It should therefore not be relied upon to make investment decisions. Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.
The particular tax treatment contained herein is based on Harvest Financial Services Limited’s understanding of current Revenue practice as at November 2017. Please note that the tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should take such independent tax advice as you deem appropriate.
Please note that the provision of this product or service does not require licensing, authorisation, or registration with the Central Bank of Ireland and, as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.
Please note that the provision of this product or service does not require licensing, authorisation or registration with the Central Bank and, as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.