1. Who's going to lend the money to you?Should I remortgage the rental property I own outright (worth about €250k) and either purchase another property or invest the proceeds elsewhere for a better return?
If you do, you won't qualify for a tax deduction on the interest in any event, as you won't be spending the proceeds of the mortgage on buying the rental property.I am a landlord, 1.5 properties owned outright (one shared with sibling). Happy with rent, tenants and all the ups and downs involved with being a landlord so don’t want to sell.
Someone mentioned that I was missing out on interest tax relief by not having a mortgage on at least one of these properties. I’ve paid off the mortgage on my own home. Should I remortgage the rental property I own outright (worth about €250k) and either purchase another property or invest the proceeds elsewhere for a better return? Or stick as I am?
There is no tax relief.I might think it totally wrong and I understand that it reduces your tax bill as it reduces your income
You are totally wrong and if you know nothing about the subject you shouldn't be risking misleading people.I might think it totally wrong and I understand that it reduces your tax bill as it reduces your income.
No. Tax 101.What do you mean, is the interest not deducted from your gross income?
You should amend it yourself.Thank you. My mistake. Delete my post to make sure I don't mislead anyone
I was going to get a BTL mortgage and then claim the mortgage interest relief in my tax return but I’m guessing that’s not an option and I’ve been misinformed?1. Who's going to lend the money to you?
2. Even if you could borrow, it wouldn't qualify for tax relief.
Correct. I'm guessing it wasn't a tax advisor you were talking to.I was going to get a BTL mortgage and then claim the mortgage interest relief in my tax return but I’m guessing that’s not an option and I’ve been misinformed?
Ha you’re right, more pub talk and the way it was told to me was that I was a fool to be missing out!Correct. I'm guessing it wasn't a tax advisor you were talking to.
No harm in asking here. That's what's the site is here for.Ha you’re right, more pub talk and the way it was told to me was that I was a fool to be missing out!
Very true! Thanks a million!No harm in asking here. That's what's the site is here for.
If it sounds too good to be true, it usually is.
Would you be able to clarify for me how mortgage relief than work? I always thought you deducted the interest paid as an expense from your rental income? (I understand it needs to be a BTL mortgage for actually purchasing a property)No harm in asking here. That's what's the site is here for.
If it sounds too good to be true, it usually is.
It's the reason why I said that the mortgage still had a cost.Would you be able to clarify for me how mortgage relief than work? I always thought you deducted the interest paid as an expense from your rental income? (I understand it needs to be a BTL mortgage for actually purchasing a property)
Then reread the question.I understand it needs to be a BTL mortgage for actually purchasing a property
Ok, thanks for the clarification. I just wanted to point out that the mortgage on a rental property was not a free thing as sometimes people seem to think, it has a reduced cost but still a cost.Then reread the question.
Correct. But still.... there is no tax relief in this case, so the cost is not reduced.Ok, thanks for the clarification. I just wanted to point out that the mortgage on a rental property was not a free thing as sometimes people seem to think, it has a reduced cost but still a cost.
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