rent or sell ??

andyssuffolk

Hi new to forum .

would like some help or thoughts .

We have a house worth ...£180,000
mortgage free

We would like another house around £200,000 ish ?

can get 75,000 ish deposit ok .

question is we would like to keep the original house and rent it .

Should we use the rent to pay mortgage on remainder of new one or ,
equity release ?

pro's and con's in having two houses and renting one . Extra costs I haven't thought of ie extra council tax etc.

Or should we sell it and have money sitting around earning no interest ............ thoughts

Thanks all

Andy

Edit ... our property would prb rent for £650 mth

Werdnal

First you need to understand all the rules, regs, costs, hazards, perils and pitfalls of letting. Read this, and all the links it contains:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

Letting is by no means guaranteed "income" so cannot be relied upon to cover the cost of the mortgage.

You will also be liable for CGT if/when you ever sell the rented property as it is no longer your primary residence.

You will also need to declare the rental income for tax, and it may also affect any benefits, ie tax credits etc, that you/your family claim.

andyssuffolk

Some good points there thankyou .