With a realistic outlook and the right attitude, property can be a very rewarding long-term investment; through your pension is a great way to do this.

Unlike managed funds, where highly paid fund managers make investment decisions, a self-administered PRSA allows you to make decisions according to your financial goals and risk tolerance.

This control allows you to invest directly in specific properties rather than through financial instruments such as Real Estate Investment Trusts (REITs) where the returns are often much lower.

Below are some benefits of investing in property through your pension:

• You are not liable to pay income tax on the rental income, usually charged at the higher rate of 40%
• You can make contributions to your PRSA which are tax-deductible, reducing your taxable income
• Profits on the liquidation of a property within a pension scheme are exempt from Capital Gains Tax, currently taxed at a rate of 33%
• On retirement, you can withdraw a portion of your PRSA as a tax-free lump sum up to a certain limit
• Yields of between 6 and 10% can be achieved, which ranks favourably against bond yields and share dividends
• Property is an easily understood investment, and local knowledge can be applied to select a suitable property
• Borrowing is available through the pension and the liability is confined to the asset on a non-recourse basis.
• Existing pension funds can be reallocated for property investment
• A fund can be set up with a number of members to purchase a property making investment more accessible
• The costs when buying a property within your pension are clear and transparent
• Property held in a pension is an excellent vehicle to generate an income stream to supplement your retirement.

In order to purchase a property for your pension, a self-administered pension scheme (SAPS) needs to be set up.  Brock Delappe work closely with Paul Ryan Financial Advisors in the set-up and administration of SSAPS (Small Self-Administered Pensions).  Together we combine to arrange and advise at each juncture below:

• Acquisition; sourcing an attractive high-yielding property
• Legal; specialist legal advice saves time and cost
• Lending; access to specialist lenders
• Administration; Paul Ryan Pensions will ensure you are fully compliant
• Management; avail of Brock Delappe’s efficient and cost-effective letting and management service