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to buy or sell?
tryfan
Posts: 58 Forumite
hi all
some advice would be appreciated. I own a large 4 bedroom etc house which was the maritial house before we got divorced. I've rented it out for about 7 years now. I now live 6 hours away from it and am currently sharing a house and have a single room. The house is worth 200k maybe more and i have a £60k btl. i rent it for £660pcm and the agent taker 15% this pays my mortgage and a few other bills until last month when my btl mortgage low rate finished, the mortgage jumped up by £100 (or a third) a month. i also got stung by the tax man for £1200 this year too. its now costing me more to rent than what comes in. if i sell what taxes will i have to pay? i'm tempted to sell it and buy an smaller place outright and rent that out using the rent to pay for a better place to live. I don't want to return to the area as it has little in the way of work there and am not convinced i should stay where i am now so dont want to buy here and live in it. ideas? basically i have this asset which is now costing me money and I dont know how to maximise its return.
thanks for reading
tryfan
some advice would be appreciated. I own a large 4 bedroom etc house which was the maritial house before we got divorced. I've rented it out for about 7 years now. I now live 6 hours away from it and am currently sharing a house and have a single room. The house is worth 200k maybe more and i have a £60k btl. i rent it for £660pcm and the agent taker 15% this pays my mortgage and a few other bills until last month when my btl mortgage low rate finished, the mortgage jumped up by £100 (or a third) a month. i also got stung by the tax man for £1200 this year too. its now costing me more to rent than what comes in. if i sell what taxes will i have to pay? i'm tempted to sell it and buy an smaller place outright and rent that out using the rent to pay for a better place to live. I don't want to return to the area as it has little in the way of work there and am not convinced i should stay where i am now so dont want to buy here and live in it. ideas? basically i have this asset which is now costing me money and I dont know how to maximise its return.
thanks for reading
tryfan
0
Comments
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It's still your main residence and the only house you own. Zero tax.0
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thanks JA1000, thats good news. It certainly makes it more likely that I will sell and buy elsewhere.
Thanks
Tryfan0 -
Hi,
We had a property in an area that we moved away from - did rent it for a while but as we're not professional LL we did sell. My view would be sell it, it keeps you with the area - despite wanting to move on from it.0 -
Hi
sorry to barge in here. So, is that the case then, if you have a BTL but rent somewhere yourself, you don't pay any tax on the rental coming in? I rented a flat out a few years ago but had to pay tax on the income even though I was abroad travelling. It was my only property at the time. So if you have a job and have used up your tax allowance you can still get the rent tax free? Sorry if I have misunderstood, sounds too good to be true! But will defer to higher knowledge!0 -
Hi
I certainly do pay tax on the income, sorry, thats one reason why I'm tempted to sell.
Thanks all, you've been very helpful
Tryfan0
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