F
firsttimmme
Guest
I’m a first time buyer, and due to my own circumstances at the moment I don’t know if I should live in this property or rent it out.
This is further complicated by the fact that my basic income is modest enough and I earn roughly a good chunk of that extra more…
I make a separate tax declaration and pay that myself, once a year.
Now back to the title of my post, I’m/was currently renting and have bought a property.
I’m trying to figure out what I should do with the property, live in it or stay renting and rent it out.
If I live in it and rent out a room I’ll get well under the 10,000 threshold...
However, given my income situation as explained a good bit above, would I just be better off living there?
Here’s a pro and cons list..just wondering have I missed anything?
Reading through some threads here it seems like I need to figure out my mortgage interest relief.
Occupying and renting out a room
Pro: No hassle, no red tape, no tax implications.
Con: I don’t actually ‘need’ to live in such a nice property, and it’s something I purchased with a view to moving on up in a few years. Also I might not find it that easy to rent a room as opposed to renting the whole lot
Renting it out and living elsewhere
Pro: Rental income, and freedom to head off elsewhere perhaps traveling with mortgage being taken care of. Can offset some charges. Is it true my management fees will be a tax writeoff.
Con: Tax implications, hassle of potentially dodgy tenants etc.
When I crunched the numbers….
Live in versus live out, including mortgage repayments, management fees, rent I’d continue to pay out elsewhere…my figures surprised me.
Is it possible, having calculated my tax liability, that I’d lose more money by renting the property out than living in it, with a tenant under the rent a room scheme?!
Is this common?
This is further complicated by the fact that my basic income is modest enough and I earn roughly a good chunk of that extra more…
I make a separate tax declaration and pay that myself, once a year.
Now back to the title of my post, I’m/was currently renting and have bought a property.
I’m trying to figure out what I should do with the property, live in it or stay renting and rent it out.
If I live in it and rent out a room I’ll get well under the 10,000 threshold...
However, given my income situation as explained a good bit above, would I just be better off living there?
Here’s a pro and cons list..just wondering have I missed anything?
Reading through some threads here it seems like I need to figure out my mortgage interest relief.
Occupying and renting out a room
Pro: No hassle, no red tape, no tax implications.
Con: I don’t actually ‘need’ to live in such a nice property, and it’s something I purchased with a view to moving on up in a few years. Also I might not find it that easy to rent a room as opposed to renting the whole lot
Renting it out and living elsewhere
Pro: Rental income, and freedom to head off elsewhere perhaps traveling with mortgage being taken care of. Can offset some charges. Is it true my management fees will be a tax writeoff.
Con: Tax implications, hassle of potentially dodgy tenants etc.
When I crunched the numbers….
Live in versus live out, including mortgage repayments, management fees, rent I’d continue to pay out elsewhere…my figures surprised me.
Is it possible, having calculated my tax liability, that I’d lose more money by renting the property out than living in it, with a tenant under the rent a room scheme?!
Is this common?