buying a house to let

C

cathy06

Registered User
Messages
22
We have a home with a tiny mortage.We are thinking of remortageing and buying a smaller house to let out?If the repayments are E1200 and we let for E1250 , can we claim back the interest we are paying from the tax we would owe?
Is it a good idea to buy to rent out?
thanks,
Cathy
 
Yes you can claim the interest but there is more to it than that. On the face of it you look like you're making a profit but there are other outlays to take into account, such as insurance, management fees etc. Only you can decide what is the best option for you.
 
Cathy come lately. Enjoy your mortgage free lifestyle, theres no guarantees in this market going forward. There are lots of costs other than the mortgage repayments when you become a landlord. How would you feel/cope if the house dropped in value and/or you had trouble renting for a long time? Have you and partner an adequete pension fund? Maybe when your finished with your mortgage use the extra cashflow to invest in a pension in a tax effective manner, a pension would diversify your investments and can achieve better returns over the long term.
 
Good advice from bearishbull.
The property market is too mature to enter at this stage.
 
Have to agree with bearishbull and purple but if you do decide to go down the rental route. See [broken link removed] See what expenses can be claimed

You have to be registered with the Prtb in order to claim interest relief. Cost about 70 euro a year. This cost can be deducted from Rental income.

Remember it is the interest element of the repayments only that can be claimed not the full repayment
 
You must log in or register to reply here.
Back
Top