Pension Property Investment or Pension Mortgages - Which One Is a Better Investment

Written by Posted On Sunday, 19 January 2020 22:34

One of the greatest pleasures of life is to complete a working tenure with dignity and a lot of enthusiasm. And when you retire, the very first thing that probably comes to your mind is whether or not you will be able to sustain in such a chaotic lifestyle.

But how do you plan to lead a financially stable life after retirement?

Most job holders get a pension after retirement. While some tend to receive a monthly pension from the employers, some others get a one-time payment for the same. For those who get a one-time payment as a pension, it becomes important for them to invest in something to get recurring payments for the rest of their lives.

And that is when pension property investment comes to your rescue.

What Is Pension Property Investment?

After retirement, the pension rules allow the pensioners to invest in properties, and real estate assets. One can invest in the property alone, with someone or with the help of various syndicated funds. These properties come under various categories such as industrial, residential commercial or in terms of a combination of all these when kept within different syndicate funds.

Why You Should Invest Your Pension?

There are numerous benefits of investing in a property once you are retired. They are –

  1. You get to choose your type of property. You can invest in residential, industrial and commercial properties based on your requirement and the pension fund will cover it all.
  2. Once you invest, there are different ways you can get a return. For example, you can rent your property. The best part is, you do not have to pay any income tax on your rental income.
  3. You can find out unique investment opportunities choosing your contacts and channels. There is no need for any third party involvement.
  4. At least about €200,000 of your pension is tax-free. 
  5. You get to control every penny of your pension.
  6. You can easily register your fund for VAT when you are investing in a commercial property.
  7. You can get a huge amount of tax relief when you invest in properties.
  8. The pensioner can easily meet with the purchase cost of the pension.
  9. You do not have to pay any CGT (Capital Gains Tax) on your property sale.

How to Invest In Property with the Help of Your Pension?

There are different ways you can invest your pension into the property. They are –

  1. Find a reliable pension property investment service provider.
  2. Choose your property you want to invest in.
  3. In place of your pension, the service provider will help you get funds.

How Can You Fund Your Investment?

Here is what you need to do –

  1. Transfer your pension into any kind of self-administered pension schemes.
  2. You can make a personal contribution of up to €115K.
  3. Others can also contribute to the same. It may be your company, relatives or employers.

What Are The Restrictions For The Same?

There are a few minor restrictions that you may have to follow. For example –

  1. Your vendor may not be related to you in any way. They may not be related to your family members, relatives, your company or employer.
  2. You cannot use the property personally.
  3. The property cannot be sold to or given out in rent to relatives, family members, office staff, employers or anyone remotely related to you.
  4. The development of the property is prohibited.

Things to Consider While Choosing Pension Property Investment

There are a few things you need to consider while opting for pension property investment. They are –

  1. Be sure about your investment. Remember that the pension will always be easy money. On the other hand, buying a property, investing in it and let it grow can take a lot of time.
  2. You must understand that property value can be volatile. It might go up today, and they may go down any moment tomorrow. You must have good market knowledge to be successful.
  3. If you are looking for a good property to invest in, be sure to have the patience to look around.
  4. Always have a backup financial plan.
  5. You must remember that owning a property can be a hassle and you must have the ability and willingness to handle every shortcoming the right way.
  6. Remember that you will not get a modest amount of money each month coming your way if you invest in property.
  7. You may not get the desired market price for your property.
  8. Pension is more tax-savvy than a property.
  9. Always invest in a property after counseling with someone who has a piece of proper knowledge on the market.

Types of Property Investments through Pension

There are two types of property investments for a pension. One is a pension property investment and the other one is pension mortgages. So, which one to choose from – Pension property investment or pension mortgages?

Pension Property Investment or Pension Mortgages – Which one to choose?

Both Pension property investment and pension mortgages offer the same kind of benefits. The only difference here is, with pension property investments, you can buy or invest in the property right away. And with pension mortgages, you can put your pension to get a mortgage which will be paid through your pension fund every month.

So, when you think about whether Pension property investment or pension mortgages, think about what you are looking for. Whether you want to directly invest in a property or you wish to opt for a mortgage to get more money and invest in a better property. The choice is entirely yours.


Investment is an easy way to secure your life these days. With a lump sum amount of monthly flow of money isn't enough to lead a healthy, wealthy life. If you are willing to live a life without any financial crisis, choose wise investment plans. There are plenty of those in the market. All you have to do is be very cautious. 

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