Pension-linked property investment

CORK has been linked to a major new pension-linked property investment launched in the city with the aid of All-Ireland hurling captain Ben O’Connor.

Other cities will follow, said a spokeswoman for the company responsible for the project, Finance Life. Set up in 1999, the Dublin-based group has been quietly building a presence in this market, kick-started last year by a change in pension regulations by Finance Minister Charlie McCreevy to allow those building-up retirement assets to divert some money into property. Finance Life has been involved in a number of such projects with more to follow.

Chief executive Eamonn McGrath and his company have worked with the legislative changes under the 2004 Finance Act.

They have provided a new investment opportunity for those wanting a broader investment base, with the aim of boosting their retirement income.

Starting with Harty’s Quay, Rochestown, Cork, Finance Life will offer investors the opportunity to buy apartments in new developments, financed by loans within pension funds. The loans will be repayable from rental income and any surplus from these repayments will be paid into the pension fund - which will be free of tax (subject to restrictions of personal/company Revenue limits). In addition, rental of the apartments will be the responsibility of Finance Life.

Income from rentals will be pooled, limiting loss exposure on any individual property and future disposal of property is also protected against capital gains tax.

“This is a truly unique offering for the Irish market, combining all the advantages of a sound property investment with long-term benefits of tax-efficient pension provision.”

Interested investors will be invited to attend an Open Day on October 5 at Harty’s Quay to view the developments.

Further developments will be available for sale in Cork, Dublin, Waterford and Wexford.