sell or rent

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dilemna

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Bought house in 2003 for 231k
Current mortgage 108k
Put house up for sale & accepted an offer of 176k.
We went ahead and purchased another house.
However house sale fell through. We currently have an offer of 162k, making a huge loss on the house.
Thinking about renting, what are the taxes involved in renting apart from property tax?
Or should I go ahead and accept offer and just be grateful we are not in negative equity?
 
dilemna said:
Bought house in 2003 for 231k
Current mortgage 108k
Put house up for sale & accepted an offer of 176k.
We went ahead and purchased another house.
However house sale fell through. We currently have an offer of 162k, making a huge loss on the house.
Thinking about renting, what are the taxes involved in renting apart from property tax?
Or should I go ahead and accept offer and just be grateful we are not in negative equity?
Click to expand...

As well as the tax implications you MUST consider the implications of being a landlord. It is not as easy as many people seem to think - imagining a landlord just sits back and receives his rent on a monthly basis.

Landlord tenant law is very exacting and requires due process in case of a breach of obligations - failure to follow the process could entail damages being awarded to the tenant in at least the 4 figure sum, if not a 5 figure sum.

Furthermore, do not expect to have your house, furniture and fixtures and fittings returned to you in the condition that they are now. A tenants idea of "normal wear and tear" is not the same as that of a house owner.

I would recommend that you first download a copy of the Residential Tenancies Act 2004 and read it.
 
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