renting out my place and move to a bigger house

F

falabo

Registered User
Messages
37
Hi all

I was wondering if anyone could give me some advise, I'd need to do the maths but basically I am looking at renting out my propert and moving to a bigger house
what would be the situation with taxes ? I understand I would loose my tax relief but would I have to pay tax on what I get for the income ? I was told if the house is in negative equatu income is not taxable

also if I move will I be able to claim some tax relief on rent ?


here are some figures you might need to know

- mortgage balance €247k tracker ECB +1.1% repayments €825 after Interest Relief
- 30 years left on mortgage

- I could get €600 if I decided to put this house up for rent

- the house I'm interested in is €750 per month

I THINK I might not have to come up with too much money but I'd like to have some advise

I just wanted to add that I am under no financial pressure but being the sensible person that I am, I just really want to know what I'm setting foot into.

Net monthly income between us €4,800 no credit card no loans

Thanks for all your help
 
The new factor will be the water/household charges. In a year or two from now - what will these be in total? And you will have to do this with 2 x properties. Just something that needs to be factored in.
 
falabo said:
? I was told if the house is in negative equatu income is not taxable
Click to expand...


Who told you this? It is false in any case. People really ought to know better. Was this someone professional?

Do not become a landlord unless you are really prepared to understand the hard work involved. You must approach it professionally. You can deduct 75% of the mortgage interest you pay from the rental income. Have a look at other threads on here and elsewhere including revenue for the other deductions. Why don't you make up a list of all the deductions and your understanding of what's involved and the rest of us will then see if you've forgotton anything. Good exercise for a would be landlord.

Why do you want to rent the property, what is your logic in doing so? Is it in negative equity by much?
 
I'd say it's in negative equity by 120k

I want to move to a bigger house but not willing to buy another property.

out of €820 I'd say there is about €500 interest does this mean I would get tax relief on 75% of €500 ??
 
75 % of the 500 if PRTB registered -- & check your mortage agreement to see if you can keep the tracker rate if renting out the property
 
You must log in or register to reply here.
Menu
Log in
Register