| Property Advice Needed [message #373738] |
Sa, 18 März 2006 23:00 |
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I have a few thousand that i want to invest in property within my
pension fund.
My mother and father in law have the chance to buy there council house
at the maximum discount. The best solution would be for the fund to
purchase the house and for them to stay rent free however this would
require them to buy the house first and then sell to to the fund i
guess.
Are there any laws against them selling a house cheaply ,i.e. if they
bought for 44K against a market worth of 80K (due to discount) and then
sold to the fund at 44K would that be a problem ?
Also what are the implications of them staying rent free as far as
pension fund rules, the investment for the fund would be the 50% return
in value when they pass on.
Any advice would be more than welcome
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| Re: Property Advice Needed [message #373740 ] |
So, 19 März 2006 00:04 |
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<markiehill [at] gmail.com> wrote in message
news:1142719208.774920.295750 [at] i40g2000cwc.googlegroups.com...
>I have a few thousand that i want to invest in property within my
> pension fund.
Since GB's change of mind at the last budget (or was it the pre-budget
report) you can't do this (you never could, but it was due to be allowed
from April 2006, but is no more).
The only property that you can put into a pension is commercial
property and property under development that is unfit to be lived in.
Note that commercial property doesn't include individual holiday
homes.
tim
> My mother and father in law have the chance to buy there council house
> at the maximum discount. The best solution would be for the fund to
> purchase the house and for them to stay rent free however this would
> require them to buy the house first and then sell to to the fund i
> guess.
>
> Are there any laws against them selling a house cheaply ,i.e. if they
> bought for 44K against a market worth of 80K (due to discount) and then
> sold to the fund at 44K would that be a problem ?
>
> Also what are the implications of them staying rent free as far as
> pension fund rules, the investment for the fund would be the 50% return
> in value when they pass on.
>
> Any advice would be more than welcome
>
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| Re: Property Advice Needed [message #373755 ] |
So, 19 März 2006 21:23 |
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On 18 Mar 2006 14:00:08 -0800, markiehill [at] gmail.com wrote:
>I have a few thousand that i want to invest in property within my
>pension fund.
>
>My mother and father in law have the chance to buy there council house
>at the maximum discount. The best solution would be for the fund to
>purchase the house and for them to stay rent free however this would
>require them to buy the house first and then sell to to the fund i
>guess.
>
>Are there any laws against them selling a house cheaply ,i.e. if they
>bought for 44K against a market worth of 80K (due to discount) and then
>sold to the fund at 44K would that be a problem ?
>
They'd have to repay the discount if it was resold within 2 years. (or
it might be 5 now? Not sure if thats just the mini time to live in it
before you can buy.)
>Also what are the implications of them staying rent free as far as
>pension fund rules, the investment for the fund would be the 50% return
>in value when they pass on.
>
>Any advice would be more than welcome
A home is for living in.
--
Get money off vouchers for everything
http://www.moneyoffvouchers.co.uk
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| Re: Property Advice Needed [message #373760 ] |
So, 19 März 2006 23:17 |
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In message <483i0kFhopn0U1 [at] individual.net>, "tim (in sweden)"
<tim_in_sweden2005 [at] yahoo.co.uk> writes
>
><markiehill [at] gmail.com> wrote in message
>news:1142719208.774920.295750 [at] i40g2000cwc.googlegroups.com...
>>I have a few thousand that i want to invest in property within my
>> pension fund.
>
>Since GB's change of mind at the last budget (or was it the pre-budget
>report) you can't do this (you never could, but it was due to be allowed
>from April 2006, but is no more).
You can put it in, but you dont get any tax beaks on it. But it was a
silly idea anyway.
>
>The only property that you can put into a pension is commercial
>property and property under development that is unfit to be lived in.
>
>Note that commercial property doesn't include individual holiday
>homes.
>
>tim
>
>
>
>> My mother and father in law have the chance to buy there council house
>> at the maximum discount. The best solution would be for the fund to
>> purchase the house and for them to stay rent free however this would
>> require them to buy the house first and then sell to to the fund i
>> guess.
>>
>> Are there any laws against them selling a house cheaply ,i.e. if they
>> bought for 44K against a market worth of 80K (due to discount) and then
>> sold to the fund at 44K would that be a problem ?
>>
>> Also what are the implications of them staying rent free as far as
>> pension fund rules, the investment for the fund would be the 50% return
>> in value when they pass on.
>>
>> Any advice would be more than welcome
>>
>
>
--
John Boyle
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| Re: Property Advice Needed [message #373770 ] |
Mo, 20 März 2006 11:42 |
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You can purchase the house jointly with you arranging the mortgage or
financing it yourself, however they are restricted in selling in the
pre-emption period.
Safaraz
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