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is renting out my house a good idea?

I own a house outright and may move for a new job. Is is worth renting it out and renting myself for a year? Will the rental income be taxed at 40% - job at £30k

Comments

  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    if you own it outright you might as well, but of course you wil have all the regs & legal issues to navigate
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • It wont be taxed at 40% unless the rental income is quite large (I think that the cut off is £38kpa now or thereabouts). Of course, you could mortgage it to offset any tax, repay just the interest every month and keep the capital elsewhere - just an idea for a bit of gearing...
  • itsakidsworld
    itsakidsworld Posts: 556 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Unless the income from rental is alot greater than what you would pay out in rent then why bother? If work takes you along way from your current house then of course it is a different matter.

    But renting can cause alot of hassle for you as a landlord. You have no mortgage so enjoy your life now!!!!!!

    My wealth is created by my happiness.
  • Perhaps you need to be giving this advice a lot more often!!!
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