C
Confused!
Guest
Hi,
We bought a house 2 years ago which has increased in value of about €140,000. We are starting building this year on a family site and trying to decide whether to sell the house we have or rent it out. The advanages of selling are we pay no capital gains tax as its currently our primary residence. If we do this we will only end up with a mortgage of €110,000 on the house we build. If we don't we will have a mortgage of €250,000 on the house we build, and a mortgage of €190,000 on the other house. We would cover the mortgage by renting the other house alright. If we do keep it though we will have to pay 20% capital gains tax when we sell in a few years, plus we are paying the interest on a mortgage of €250,000 on the other house.
Any ideas please?
We bought a house 2 years ago which has increased in value of about €140,000. We are starting building this year on a family site and trying to decide whether to sell the house we have or rent it out. The advanages of selling are we pay no capital gains tax as its currently our primary residence. If we do this we will only end up with a mortgage of €110,000 on the house we build. If we don't we will have a mortgage of €250,000 on the house we build, and a mortgage of €190,000 on the other house. We would cover the mortgage by renting the other house alright. If we do keep it though we will have to pay 20% capital gains tax when we sell in a few years, plus we are paying the interest on a mortgage of €250,000 on the other house.
Any ideas please?