N
newinvestor
Guest
Hey folks, long time reader, first time poster, as they say.
I have a question about the stamp duty incurred if you buy a second property and rent out your previous PPR. I'm aware that if this is done within 5 years of purchase you must pay the stamp duty, but does anyone know what the strict definition of purchase is in this case? i.e from date of completion or date of deposit.
My situation is as follows:
I'm recently married and in our family home 4 years. We are looking to invest, and have been toying with the idea of buying and second property with a view to renting it out. It's just dawned on me that if we waited a little while, we could possibly but a new home for ourselves (which is something that was on the 5 year plan anyway) and rent out our own home without penalty. The family home (large 3 Bed Semi) has quite a small mortgage (lesss than 1/3 of the value) and would have a very healthy rental value (~1200 PM which would cover the mortgage twice). Would it be of any banefit to buy and let our PPR out (after the 5 year lapse) or would we be in the same situation if we bought an investment property and stayed put. Excuse my ignorance, i'm just getting my head around all of this stuff.
regards.
J
I have a question about the stamp duty incurred if you buy a second property and rent out your previous PPR. I'm aware that if this is done within 5 years of purchase you must pay the stamp duty, but does anyone know what the strict definition of purchase is in this case? i.e from date of completion or date of deposit.
My situation is as follows:
I'm recently married and in our family home 4 years. We are looking to invest, and have been toying with the idea of buying and second property with a view to renting it out. It's just dawned on me that if we waited a little while, we could possibly but a new home for ourselves (which is something that was on the 5 year plan anyway) and rent out our own home without penalty. The family home (large 3 Bed Semi) has quite a small mortgage (lesss than 1/3 of the value) and would have a very healthy rental value (~1200 PM which would cover the mortgage twice). Would it be of any banefit to buy and let our PPR out (after the 5 year lapse) or would we be in the same situation if we bought an investment property and stayed put. Excuse my ignorance, i'm just getting my head around all of this stuff.
regards.
J