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Welcome to another episode of The Serviced Accommodation Property Podcast! Today’s going to be interesting for a lot of people who do not realize that they could access their pension and put it into a self-invested personal pension (SIPP) and invest it in a property. Learn from Andrew John Ferguson, Managing Director of Penstar Developments Ltd., how accessing pension helped him accelerate his business and how is it different from what bridging loan companies offer. If it’s your first time to hear about this, then better tune in!

KEY TAKEAWAYS

• Utilize your pension to invest in properties. The usual refurnishing and refurbishing route is a long one so Andrew wanted to speed that up by finding another way – looking into pensions. He saw it sitting there underused so why not take advantage of it.
• A small self-administered scheme (SSAS) was created under his limited company which was used for property purchases. You can also be creative of how you structure the deal. Agree on a certain percentage that will go back to pension pot to grow it.
  • 50% loan to limited company – 2 residential properties
  • 50% commercial property
• Find someone who’s experienced and has done it before. A financial advisor who knows about these stuff. He’ll put you in contact with a pension administration company. Navigating though HMRC is laborious so getting advice is critical.
• Accessing pension was a gamechanger with its impact financially. Andrew didn’t want to deal with bridging loan cost and extortion fees. If you compare of what his company was able to do with purchasing property and financing it themselves, it’s extraordinary.
• Andrew has spent 20 years of his life in the corporate life and doesn’t miss a single thing about it. It has been a fantastic journey. They get to do what they want to do. It gave them the freedom to build a legacy for the family through property portfolio.
• Building a circle with a 25-mile radius for serviced accommodation properties from where the company is situated. This is to utilize their team of cleaners, gardeners, and other contractors. They want to focus on the area near them.

BEST MOMENTS

• “I thought I was gonna wait ‘til I was 55 before I could get my hands on it [pension]. But actually, discovering I could get to it now by a different route - by using it for SSAS - allowed us to bring those plans forward.”
• "The beauty of it is - the interest that we agree of the money we borrow from the pension fund is actually being paid back to ourselves. It's not being paid back to bridging loan companies."
• "We always expected that our career would come to a point that we don't wanna take it further and we saw property as being the next step."

VALUABLE RESOURCES

• HM Revenue & Customs

ABOUT THE HOST

Kevin Poneskis, also known as the Property Soldier, has been a full-time property investor and mentor since 2011. This happened after he served the army for 24 years. He spent the majority of these years in the 29 Commando Regiment RA and finished his time in the army as a Regimental Sergeant Major. Even during his time in the army, Kevin was already building his property portfolio and educating himself everything about real estate investments.

Right now, he is writing his book Property Soldier, in which 100% of the profit from the book will go to homeless veterans, and hosting The Serviced Accommodation Podcast which educates people who want to explore and earn from serviced accommodation property investing.

ABOUT THE GUEST

Andrew John Ferguson is the Managing Director of Penstar Developments Ltd., a company that focuses on buying and selling real estate. Penstar also has rental properties in their property portfolio which are located around the East Midland/East Anglia region. The are also looking into building their Service Accommodation business in South Africa.

Before starting his own real estate company, he worked for corporate companies for more than 20 years. He worked as a BPO Global Capability Lead (F&A and Procurement) in Accenture Services Pvt. Ltd and as London Region Shared Service Centre Manager in Exel.

CONTACT METHOD

Andrew John Ferguson

• Andrew’s LinkedIn
• E-mail Andrew at [email protected]

Kevin Poneskis

• Kevin’s Facebook
• Kevin’s LinkedIn