Company to Invest?

[BlackenedBiker]

Hi I am keep to know your thoughts on the following.

I am going to start investing in property, as part of my pension.

I am keen to know whether it is better to invest via the company or to take the money out and invest as an individual.

Also I would like to know what the pros and cons of each approach are.

Many thanks

[ASB]

Might be worthwhile doing a search. In general for property it is probably not a good idea to invest via the company (though it can).

For othe savings vehicles it depends very much on your attitudes to providers, again it has been covered in quite some detail.

[nomadd]

Hi I am keep to know your thoughts on the following.

I am going to start investing in property, as part of my pension.

Many thanks

My opinion is - at this point in the housing cycle (and at the end of the largest property boom in history) - is that you'd be insane to make property part of a pension. Five or ten years from now, maybe, but not now.

Try posting your question on www.housepricecrash.co.uk, for one side of the story - i.e. not the Government, BOE, EA's, CML, a.n.Other property ramper side. And don't forget to don your flameproof underwear first!

Nomadd

[BlackenedBiker]

My opinion is - at this point in the housing cycle (and at the end of the largest property boom in history) - is that you'd be insane to make property part of a pension. Five or ten years from now, maybe, but not now.

Try posting your question on www.housepricecrash.co.uk, for one side of the story - i.e. not the Government, BOE, EA's, CML, a.n.Other property ramper side. And don't forget to don your flameproof underwear first!

Nomadd

I am not intending to make a large amount of money from the value of the property. My intention is simply to keep the property occupied and hence the mortgage paid.

20 years from now it would be paid off. Okay is there is a drop in house prices then fair enough. The property would still have been paid off by rent.

Is this lunacy??? Should I just stick it into premium bonds????

[BrilloPad]

I am not intending to make a large amount of money from the value of the property. My intention is simply to keep the property occupied and hence the mortgage paid.

20 years from now it would be paid off. Okay is there is a drop in house prices then fair enough. The property would still have been paid off by rent.

Is this lunacy??? Should I just stick it into premium bonds????

Lets say you get enough rent to cover the mortgage : what about periods with no tenant? What about maintenance?

[Toffnana]

Lets say you get enough rent to cover the mortgage : what about periods with no tenant? What about maintenance?

But he said in 20 years that mortgage is paid off, so periods with no tenants should be covered by money you're making with tenants in. Also tbh everyone goes on about periods with no tenants but with a 1/2 decent property with rental set realistically (not manchester city flat for £2k/month then) the property would be unlikely to be empty for more than a month or two every fews years.

Toff

[BrilloPad]

But he said in 20 years that mortgage is paid off, so periods with no tenants should be covered by money you're making with tenants in. Also tbh everyone goes on about periods with no tenants but with a 1/2 decent property with rental set realistically (not manchester city flat for £2k/month then) the property would be unlikely to be empty for more than a month or two every fews years.

Toff

If it was that easy everyone would be doing it.

Generally you only make money from capital appreciation : or where you buy the property with cash.

[Sailaway]

I bought a propery instead of paying into a pension fund. The house I bought needed a lot of renovating, so I got a second mortgage from the bank to purchase the property and for the remedial work I changed my existing mortage to an offset mortgage against my main home.

The plan: to rent out the second house with the rental income paying the mortgage etc.
At retirement time I then have the option to -

1. Carry on renting the property out and receive an income from it to supplement any state/private pension ( That's if there is any money left in the state/private pensions after everyones had their fingers in it ).

2. Sell it ,and the proceeds from it will become part of my retirement pot.

3. I could add my childs name onto it as well so that when I eventually go to that far off place in the sky inheritance tax should not be a problem.

Worst case scenario I see so far is that I sell it now and pay off my current mortgage leaving me more or less mortgage free.

PS.I may make some mistakes along the way but at least they will be my mistakes and not the mistakes of these clowns in power at the moment.

[BlackenedBiker]

I bought a propery instead of paying into a pension fund. The house I bought needed a lot of renovating, so I got a second mortgage from the bank to purchase the property and for the remedial work I changed my existing mortage to an offset mortgage against my main home.

The plan: to rent out the second house with the rental income paying the mortgage etc.
At retirement time I then have the option to -

1. Carry on renting the property out and receive an income from it to supplement any state/private pension ( That's if there is any money left in the state/private pensions after everyones had their fingers in it ).

2. Sell it ,and the proceeds from it will become part of my retirement pot.

3. I could add my childs name onto it as well so that when I eventually go to that far off place in the sky inheritance tax should not be a problem.

Worst case scenario I see so far is that I sell it now and pay off my current mortgage leaving me more or less mortgage free.

PS.I may make some mistakes along the way but at least they will be my mistakes and not the mistakes of these clowns in power at the moment.

Here here, and good on you for having a go. I think that this is pretty much my plan.

With regards to renting and no occupancy one of my best friends owns the largest property agency in town so hopefully our property will always be top of the list.

Someone else paying your investment seems like a good investment to me. Am I missing something here????

[ASB]

3. I could add my childs name onto it as well so that when I eventually go to that far off place in the sky inheritance tax should not be a problem.

You might want to do a bit of research on this. Being joint tenants (or tenants in common for that matter) isn't going to magically take the asset out of your estate on your death. If it did IHT revenues would fall to pretty much nil.