Apartment Rent ?

D

deco87

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My ex wife will just about have enough after divorce to buy an apartment ,though not in an area she likes.

I just wondered is there many downsides to being a landlord , solely for the purpose of " having a mortgage free place" ..and perhaps renting it out, to facilitate living in an area she liked and to have the rent from the apartment to supplement the rent in a place she liked ?
What are the downsides? Its just to try and have a place ...of her own , after divorce.

110 k will be cash available so small apartment maybe Mullingar or similar she will be looking at ...thks
 
Does she work? If so, she will have to pay tax on the rental income from the mortgage free apartment, this could be around 40% of the rent, and as it is mortgage free, there is no mortgage interest relief available. The obvious thing to do would be to supplement the 110k to buy in her desired area with a small mortgage surely?
 
It's not clear what the OP is on about. Is the ex going to live in the apartment and rent out a room or what?
 
Gravity girl.
Yes your right but she will be earning 1500 into her hand a month job wise.
Though she will have excess 100 k from house share after divorce ....she would have little credit history as it was I that had house /mortgage. So that prompted my query.
If half is to go in tax from rent it is not a viable prospect then really. But thanks for informative and interesting reply
 
Apologies, I missed the fact she would be renting elsewhere.

Maybe a bank would accept the fact that she jointly paid your mortgage I'm assuming based on the sale proceeds. But as it's not straightforward a broker might be the best bet.

She might be better off buying as an owner with a property that is suitable under the rent a room scheme, a house with a granny flat attached, with separate door etc, (not detached) that would allow the rent to be tax free under rent a room, and never having to see the tenant.
 
Ya thanks she just wants a small place that's her own really, it is hard ask really based on the funds available , more aspirational I suppose, but the advice is noted and appreciated though ,thanks.
 
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