Pensions and Property

Robson1978

Hi,

I am currently assessing many options for increasing my pension fund given that, even with a reasonable current income, a money purchase scheme on its own is not looking like providing anywhere near what I would ideally like to retire on.

I am considering buying a buy to let property (and hopefully further properties depending on the experience of the first one). I may decide on a capital and repayment mortgage in which case net profit in month would be minimal, or possible an interest only mortgage where I would see some profit each month.

I am wondering of there is anything that I can do to tie this in to my pension provision to benefit from the tax relief available (I'm a higher rate payer)?

Any advice appreciated.

Regards
Robson

atush

there is a thread going about this on the savings forum.

Most BTL landlords use interest only as the interest reduces their tax on the income, and leverages their 25% deposit which will show a larger capital gain.

You cannot put residential property in a pension. Some Sipps will allow you to buy commercial property though.

mania112

Non-starter. You can't buy residential property in a pension, only commercial.

Even if you start a 'business' to buy the property through, it won't work.

The closest you can get to residential is a pub. I believe you're allowed to allocate a certain size of the square-footage to living quarters for employees of the pub.

But, as you describe your situation, it isn't possible i'm afraid.

kidmugsy

Do you have some advantage in the BTL market? I mean, some trade skills, some legal skills, something else to give you reason to suppose that you're well cut out for it?