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Smart move?

Given that interest rates are sure to rise and a possible house price crash is it on it's way is it a good idea to sell a house, put the equity in a builiding society high rate savings account a rent for a couple of years?
In theory you could buy back the same house later much cheaper and benefit from interest on the equity.
Any thoughts?

Comments

  • Woby_Tide
    Woby_Tide Posts: 5,346 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    what if the new owners don't want to sell you your house back?

    plus they might have decorated it badly in the meantime, can you afford the risk, they might have annoyed teh neighbours too
  • You're not the first, its commonly called STR or Selling To Rent.

    I thought about doing it 2 years ago, I'm glad I didn't! My house is my home first, and an investment second.

    Remember you've got moving fees and stamp duty to recover too.

    But who knows, it may work and you may be quids in :confused:, you could also loose out, like I would have done if I'd chosen to STR a couple of years ago but it is high stakes gambling at the end of the day.
    Mike

    Expat in Australia, but heading back to the UK when the dust settles.
  • Buying the same house back was only theoretical.

    Is the equity subject to capital gains tax?. If so it's !!!!!!ed the plan.
  • No CGT is payable on your primary residence, you could be liable to income tax on the interest though (if held outside an ISA).
    Mike

    Expat in Australia, but heading back to the UK when the dust settles.
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