Moving to new house renting out current house

[annR]

We are planning to buy a bigger house (mortgage approval allowing) and rent out our current house. I think there will be increasing numbers of people doing the same who would have otherwise just sold.

Is there a calculator somewhere I can put in my mortgage and rent and see if it would be a good idea? I've been on that site mortgage-calculators.org but it always assumes you are buying the investment property rather than already own it, at any rate, I couldn't find what I was looking for.

 

[shesells]

The answer is no there isn't because tax deductible expenses vary from property to property and so taxable liabilities vary hugely. Even year on year we've paid between €2,700 and -€500 and that's the same property (repairs, replacement appliances and tuition fees accounting for part of the variation)

If you rent out your current home you must pay the NPPR charge of €200, the Household Levy of €100 and register the tenancy with the PRTB currently €90. You lose your TRS on the mortgage but can currently claim 75% of the interest as a deductible expense.

You will pay tax on all the income, regardless of any difference between rent and mortgage, less permittable deductions - tax credits, depreciation on fixtures and fittings, letting expenses (but not pre-letting improvements), buildings insurance etc. as well as other personal deductibles (such as a portion of tuition fees)

www.irishlandlord.com is a very useful resource.