moving into rented house while renting out my own

[mulgus]

Hi all,

looking for any advice out there. i have a 3 bed semi in blacharstown. I'm moving down the country for work. I don't want to sell. I was thinking about renting out my house while renting a house to live in. Does anyone know about any of the following

1. If I don't live in my house any more is it now an investment property and will the bank take me off my tracker morgage?
2. when renting out my house do i need to change my house insurance?
3. Has anyone ever done this and do they know about any of the pit falls?

Thanks mulgus

 

[Dreamerb]

1. If I don't live in my house any more is it now an investment property and will the bank take me off my tracker morgage?

Yes, it becomes an investment property. You'll need to check the terms and conditions of your mortgage letter of offer - some require you to notify any change in status, others don't. If you don't still have that, call your lender to check - and get the answer in writing.

2. when renting out my house do i need to change my house insurance?

Yes. You won't be covered by owner-occupier insurance.

3. Has anyone ever done this and do they know about any of the pit falls?

Haven't done it, but off the top of my head -
Remember you cannot claim mortgage interest relief when you're no longer an owner occupier.
You will be liable for tax on any profit rent. Previously, that's been rent minus the interest portion of the mortgage (and only the interest portion), insurance, depreciation on furniture and fittings, and other associated expenses (repairs, management fees and the like).
You may have to pay stamp duty if you received a stamp duty exemption and you rent out the house within two years.

There's also the general hassle of being a landlord, getting tenants, ensuring the house is maintained and all of that. It's taking longer to let places and rents are falling - do factor that in when working out if you can afford this.

 

[Pope John 11]

I am interested to know about this too.

A friend of my is moving from Dublin soon & moving down the country to do a course for a year.

He would be looking to rent out his own place in Dublin & offset the rental income against the interest he is paying on his mortgage.

If he rents down the country while on social welfare, is he entitled to rent relief.

 

[Square Mile]

Hi

Apart from the other considerations mentioned earlier, the most important issue is that if you rent out your home for more than thirteen months, it then ceases to be your PPR. As such, when you go to sell it, you will be charged the same rate of CGT as if it were an investment property.

Look it up.

SM