Time and time again I see people asking about Self Administered pension schemes, and can’t quite put my finger on why that is.
Is it do with the Irish obsession with property? Is it because Self-Administered Pension fund providers excel in marketing to their target market? Is it because property prices and rents have been increasing over the past few years?
I don’t know the answer but I think it is appropriate to double down on our view here in Metis Ireland around buying property through your pension fund. I believe I am well placed to offer a balanced view as I still hold the property through my pension fund that I referenced back in 2015. For the record, I still wish I didn’t have it!
I read an interesting article by Ben Carlson on “Real Estate” investing for US investors. It’s a short and worthwhile read, and I was particularly taken by this line:
“If you do it as a hobby you will most likely fail because there are professionals who know far more than you do.”
Here’s some of the reasons we are sticking with our view that most people should not set up a Self-Administered Pension Scheme for the purposes of buying a property:
Our existing clients know that we have three key pillars that we always look to when creating an investment portfolio (either inside or outside a pension fund):
In most cases we have examined, property investment through Self-Administered Pension Funds cannot tick all of these boxes.
There’s a much bigger picture here though. Does your Financial Plan indicate that property investment is a good idea for you and your family in the long term? This has to be the first step! You need a long-term financial plan. In the absence of a long-term financial plan, you are punting in the dark. You are (like me in 2007) hoping that your investment strategy works out.
Don’t be me in 2007 – engage an expert financial planning firm and get yourself a financial plan that then guides your investment decisions. We call it the Metis LifePlan.
There are only a few firms in Ireland doing this level of planning properly. Find one of them, engage with them and I am pretty sure you will never “punt in the dark” again.
Co-Founder & Director
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