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Does anyone let to rent?

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Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    The additional one would be to live in while keeping the first one as a pension?


    Why not just invest in a pension? What you're attempting to do is far more risky.
  • saajan_12
    saajan_12 Posts: 5,685 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Pixie5740 wrote: »
    How would that be anymore tax efficient? Is there a particular reason why you would rather let properties to other people whilst renting yourself instead of buying your own home?
    The additional one would be to live in while keeping the first one as a pension?

    Your original plan = own one house + rent elsewhere so very simplistically:
    Initially: rent income covers mortgage, your salary pays your rent
    Later: mortgage paid off & you retire, so rent income pays your rent, NO PENSION for other living costs
    Benefit (/lose) from any house value increase on ONE property if you sell

    If instead you sell this one and own and live in one property:
    Initially: your salary covers mortgage
    Later: No salary, no mortgage (paid off), NO PENSION for other living costs
    Benefit (/lose) from any house value increase on ONE property if you sell

    So in both cases, you need an outside pension for other costs, the property will cover your accommodation only.
  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 17 April 2018 at 6:13PM
    Jack

    What other replies other than those in your other thread are you after ?
  • Thanks so I need to either keep the first flat for a pension or get a pension to pay into. Only other potential income later is inheritance but that potentially could be lost to care homes!
  • Annie35 wrote: »
    I think the point of let to rent is to own & rent out a more expensive property & live in a cheaper place thus give you a return, that's how I read it anyway. But saying that if you can't or don't want to sell the house & don't want to live in it there's nothing stopping you renting elsewhere.

    Just do your sums, Inc voids & hassle fund and see if it's worth the hoped for end goal

    Not necassariky. I do the opposite. Own in an area that’s cheap but I don’t want to live in. I rent a flat I cab’t Afford to buy in an expensive atea
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