Advice on Selling you house & renting back

Jazsnap

Hello,

My Mother recently showed me an article from a newpaper about selling your house to a landlord & then renting it back. Does anyone have any advice or experience of this kind of scheme?

Thanks, Jason.

margaretclare

Jazsnap wrote:

My Mother recently showed me an article from a newpaper about selling your house to a landlord & then renting it back.

Why would anyone want to do this?

Aunty Margaret

michaels

well in my road houses sell for 250k and rent for 800pm (3.8%). So ignoring capital gains (or losses) and depending on the tax rate payable I might be better off renting - especially as then repair costs wouldn't be my responsibility.

Jazsnap

From figures quoted in the article it seems cost effective for some people, but I am obviously wary of such a scheme. I think it's a fairly new idea & I can't find much impartial advice.

Fairdo_2

michaels wrote:

well in my road houses sell for 250k and rent for 800pm (3.8%). So ignoring capital gains (or losses) and depending on the tax rate payable I might be better off renting - especially as then repair costs wouldn't be my responsibility.

That's all well and good, but you never get to own your home, you can be subject to rent increases and you could also be chucked out.

Surely, if someone wants to get off the housing ladder, they sell and rent anyway. The only benefit seems to be staying put for the forseeable?!

Unless the article is stating some other beneficial loophole, I feel I am missing a trick here.