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Should you be allowed to buy your home within your pension fund?

R

realdeals

Active Member
For many years now there have been restrictions on how you can use pension funds, one of which bars the use of pension funds to acquire residential property. Do you think it is time the government relaxed this restriction?
 
L

Longterminvestor

Administrator
Yes but it will never happen. There is limited housing stock for current demand so a flood of billions of pounds of pension fund money would be a disaster.
 
D

diyhelp

Active Member
The massive flow of investment funds into the residential property market would push prices to levels never seen before. As much as it makes sense to be able to buy your own home in your pension fund it will never happen.
 
L

lookinginvest

Member
Was the original question about buying your own property to live in or investing in arms length residential property.
 
L

Longterminvestor

Administrator
I think it was about buying your own property to live in. The problem is that the pension fund is classed as a legal identity in its own right and not an extension of the underlying investor. If you bought your own house in your pension fund and fell behind on the rent then you would effectively end up suing yourself. All very complicated.
 
P

PostBrexitInvestor

Member
This is not even worth discussing - never going to happen. We have a shortage of stock today, what would it be like if the government opened the door to potentially billions of pounds of pension fund money!
 
D

diyhelp

Active Member
I never thought about the fact you would be fighting yourself if there were any disputes when living in property owned by your pension fund. Net gain would be zero but there could be significant costs to pay out!
 
L

Lory1pips

New Member
For big financial decisions like this I would obviously encourage you to consult an impartial financial adviser.
 
L

Longterminvestor

Administrator
There are always ways and means around the ban on residential property but a quick glimpse at the "Paradise Papers" shows that these schemes are at risk if the government decides to act.
 
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