Moving to Canada - my mortgage

BoGoF

I think you are way underestimating the costs of being a landlord. You haven't mentioned landlords insurance, costs of gas safety certificates etc, ad hoc expenses soon mount up. You also seem to be assuming any tenant will look after the property as well as you do.

Out of curiosity, why take a 5 year fix when you must have known you had plans to go to Canada?

Ryano2801

Edi81 wrote: »

What about the income tax due?
Only part of the interest component is tax deductible.

I assume I won't pay any as the rental price across the year won't meet the basic tax threshold of income above £12,500?
But again, you may tell me different, it's all very new to me so I appreciate all help!

Ryano2801

BoGoF wrote: »

I think you are way underestimating the costs of being a landlord. You haven't mentioned landlords insurance, costs of gas safety certificates etc, ad hoc expenses soon mount up. You also seem to be assuming any tenant will look after the property as well as you do.

Out of curiosity, why take a 5 year fix when you must have known you had plans to go to Canada?

I had absolutely no plans to go to Canada whatsoever. it's come about in the last 3 months, before that, it hadn't even crossed my mind in the slightest.

sal_III

Ryano2801 wrote: »

I assume I won't pay any as the rental price across the year won't meet the basic tax threshold of income above £12,500?
But again, you may tell me different, it's all very new to me so I appreciate all help!

Aren't you going to have income in Canada? Not sure how it will impact income thresholds but something to consider.

Do you have job/job security over there? If not, leaving yourself exposed to huge debt as mortgage in the UK is risky. 1 bad tenant and you will start treading water fast.

Once you get back in the UK you can rent for a while, before buying.... You don't have to own right off the bat.

Ryano2801

sal_III wrote: »

Aren't you going to have income in Canada? Not sure how it will impact income thresholds but something to consider.

Do you have job/job security over there? If not, leaving yourself exposed to huge debt as mortgage in the UK is risky. 1 bad tenant and you will start treading water fast.

Once you get back in the UK you can rent for a while, before buying.... You don't have to own right off the bat.

I will have an income in Canada yes which will be above the threshold but surely I don't have to pay UK income tax if my Canadian wage is above threshold??


Fair comment about renting though! If I was to come back to the UK after say 1or 2 years, am I right in saying it does become harder to get a mortgage and may require a 25% deposit or is that a bit of a myth?
A lot of where I've had a quick google suggest 3 years is the point when it becomes tougher to get a mortgage after being an Expat but as advised previously, this is a whole new world to me in every way, shape and form!

foxy-stoat

If you dont spend the £30,000 then you will have a good deposit - rather sell it and keep the cash that than rent it out, which will be very difficult maybe impossible to do it correctly but definitely expensive.