I’m no expert, but there are a lot of things to consider

Tax is a big one. You’ll need to work out if you’ll end up paying income tax on the rental income (after expenses).

Also you’ll need to consider tax consequences if you sell one of these two houses you would then own later. Capital Gain Tax may be due if you sold a house that is not your main residence.

You’ll also have the headache of a second house with the need to keep it rented out to ensure you have income to cover mortgage and other costs, plus the risk you get some bad tenants that give you trouble.

Not trying to put you off, but there’s a lot to think about here, where you need to think about your life over the years ahead. Why would you do this? Is this your pension plan? Can you handle the extra tax complexity? Do you want the hassle of renting a second house. How secure is your job? Can you cover repairs on two houses?

Have a good think and discuss it carefully with your nearest and dearest. Consider getting professional advice if you’re not sure of any aspects.

Posted By: Under soil heating on June 27th 2021 at 18:30:35

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