I have a €75k mortgage on a house valued at €200k. My parents are giving me a site to build on. I would like to rent out my existing property and move into the new house when built.
To reduce the amount of tax I'll have to pay on the rental property I'd like to make that the largest mortgage, i.e. I'll only have to pay tax on RENT COLLECTED - MORTGAGE INTEREST REPAYMENT. Is this possible... e.g. can I get the €75k mortgage increased to €150k for the rental property and just take out a €50k mortgage for the new house build?
If I have a fixed rate on my €75 mortgage will thhis have any implication, i.e. will it stop me from increasing it to €150? Thanks for any suggestions.
To reduce the amount of tax I'll have to pay on the rental property I'd like to make that the largest mortgage, i.e. I'll only have to pay tax on RENT COLLECTED - MORTGAGE INTEREST REPAYMENT. Is this possible... e.g. can I get the €75k mortgage increased to €150k for the rental property and just take out a €50k mortgage for the new house build?
If I have a fixed rate on my €75 mortgage will thhis have any implication, i.e. will it stop me from increasing it to €150? Thanks for any suggestions.