We recently ran a radio ad campaign on NewsTalk 106-108fm. The aims of the campaign are to promote our Propertyline procedures with a view to making property purchases, through a pension, simple and straightforward. Many pension investors have large cash funds available either in their pension or in their company that could be contributed to their pension scheme. With interest rates being so low, the returns that these funds are generating are minimal. In contrast, according to property website Daft.ie, the average rental rates in Ireland have increased by 9 per cent in the last year alone [Source: Daft Report, May 2014].
The flexibility of a self-administered pension arrangement means that, provided pension rules are satisfied, the pension investor can choose the property they wish to purchase. Both residential and commercial property can be acquired.
Where a property is acquired through a pension vehicle, the rental income is not subject to income tax nor will Capital Gains Tax be payable on the sale of the property.
Borrowing can be utilised if available and the property fund can even be registered for VAT if required.
On retirement, the property can be transferred in specie to an Approved Retirement Fund (ARF) and can continue to generate a post retirement income. Indeed, it can ultimately form part of the ARF holder’s estate on death which means it can be passed on to the ARF holder’s family.
For more information on any of the above points please contact ITC on 01 661 1022.
Independent Trustee Company Limited, as part of the ITC Group, is regulated by the Central Bank of Ireland.
*Please note this content is the view of the author and not of Independent Trustee Company