Pen­sion prod­uct launched

Irish Independent - Business Week - - FRONT PAGE -

NON-BANK lender Cap­i­talflow has launched a new pen­sion prod­uct, al­low­ing peo­ple to buy prop­er­ties with their pen­sion fund.

The com­pany is look­ing to source prop­er­ties via the BidX1 on­line auc­tion plat­form, and is tar­get­ing peo­ple with self-ad­min­is­tered pen­sion schemes.

Cap­i­talflow man­ag­ing di­rec­tor Colum Bres­lin said the typ­i­cal cus­tomer could be a sole trader, a pro­fes­sional or a busi­ness owner.

“In a lot of in­stances it would be peo­ple who have built up a cer­tain pot within their pen­sion fund. Maybe they’re look­ing at eq­ui­ties at the mo­ment and they’re see­ing eq­ui­ties are a lit­tle over­priced – there’s a cer­tain el­e­ment of uncer­tainty in the mar­ket­place,” Mr Bres­lin said.

The prod­uct sees Cap­i­talflow lend money to help ac­quire the prop­erty, with the bal­ance com­ing from the pen­sion fund. “For a lot of peo­ple the de­sire is very clear that they want to pay down the prop­erty as quick as pos­si­ble, so the prop­erty is un­en­cum­bered,” he said.

He cau­tioned that prop­erty is riskier than some other in­vest­ments and also less liq­uid than, for ex­am­ple, shares. “You cer­tainly wouldn’t be rec­om­mend­ing that some­body put all their pen­sion fund pot on to a prop­erty... but for a good prod­uct mix it’s a re­ally good as­set class to be in­volved in.”

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