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Lifetime ISA, or purchase a home to rent?
GutoG
Posts: 4 Newbie
Good evening all! Have an odd question and looking for some advice if possible.
Basically due to my late grandfather’s astute investments, I’ve recently received a surprise amount that would enable me to put a deposit on a home in tandem with my current savings. I currently still live at home with my parents, but am planning on moving to live and work abroad for a year (at least) next January.
In the meantime, I opened a Cash LISA with Skipton in order to take advantage of the 25% bonus from the Government to purchase my first home.
However, before the end of February I’m still able to take the deposit out without a penalty. Instead I was wondering whether it would make more financial sense to use that money to purchase a house in Cardiff (where I believe I’ll eventually settle) with a buy-to-let mortgage.
My question therefore is this, would it be better if I bought a house to rent, and have an agency maintaining and sorting the house for me (too far away to do it myself), or stick with this LISA to purchase a home when I’m back in the UK?
Conscious I’m in a very lucky position... wanted to make some smart investments!
Thanks in advance
Basically due to my late grandfather’s astute investments, I’ve recently received a surprise amount that would enable me to put a deposit on a home in tandem with my current savings. I currently still live at home with my parents, but am planning on moving to live and work abroad for a year (at least) next January.
In the meantime, I opened a Cash LISA with Skipton in order to take advantage of the 25% bonus from the Government to purchase my first home.
However, before the end of February I’m still able to take the deposit out without a penalty. Instead I was wondering whether it would make more financial sense to use that money to purchase a house in Cardiff (where I believe I’ll eventually settle) with a buy-to-let mortgage.
My question therefore is this, would it be better if I bought a house to rent, and have an agency maintaining and sorting the house for me (too far away to do it myself), or stick with this LISA to purchase a home when I’m back in the UK?
Conscious I’m in a very lucky position... wanted to make some smart investments!
Thanks in advance
0
Comments
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You usually have to own a house that you live in before you can get a buy to let mortgage. Also being in another country causes tax problems with the rent.0
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Would the tax problems not apply if the rent is paid into a UK account though?
Wasn’t aware I would need to own my own home before being able to purchase a property to let!0 -
Would the tax problems not apply if the rent is paid into a UK account though?
Wasn’t aware I would need to own my own home before being able to purchase a property to let!
The usual buy to let mortgage conditions mean that you have to own a house you live in before you will be offered a mortgage.
What are you going to do if you get a bad tenant who wrecks your property and you are living abroad?
The sensible thing to do would be to buy a property when you come back and when you know where you will be living.0
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