Renting my house

cruais

Hoping someone can give some advice.

We need to upgrade our house as with the kids it is proving very cramped.

As selling is not an option due to new career change in the next few months, we have found a property that we are interested in renting ourselves, with the view of renting out our own property.

A few houses on our road have been rented out over the last few weeks and months and all in and around the same figure.

The property we have found is much bigger than our own and also has the same rental price that the houses have gone for on our road

I'm aware that we would have to register with the prtb and change our house insurance etc.

Has anyone any experience with this situation.

Thanks a mill

endacl

If it all goes tits up, can you afford your mortgage plus rent?

wmpdd3

Plus you will have to pay tax on your rental income, even thought you are using this to pay your rent.

Toastytoes

cruais wrote: »

Hoping someone can give some advice.

We need to upgrade our house as with the kids it is proving very cramped.

As selling is not an option due to new career change in the next few months, we have found a property that we are interested in renting ourselves, with the view of renting out our own property.

A few houses on our road have been rented out over the last few weeks and months and all in and around the same figure.

The property we have found is much bigger than our own and also has the same rental price that the houses have gone for on our road

I'm aware that we would have to register with the prtb and change our house insurance etc.

Has anyone any experience with this situation.

Thanks a mill

Don’t forget to factor in that rent you receive won’t equal the rent you are paying once the revenue take their share.

Wesser

Why would people want to rent a house that s being renovated while they live in it?

Graham

Wesser wrote: »

Why would people want to rent a house that s being renovated while they live in it?

By 'upgrade' I assume the OP means they need to move to a larger house, not that they need to renovate.

DivingDuck

Considering it's a house and not an apartment, my advice would be to save like hell for a while and/or get a loan to extend, then sell in a couple of years when your situation is more stable.

You will lose a huge chunk of your rent in income tax, as mentioned, plus you will have the hassle of being a landlord as well as the concerns of being a tenant. These days, neither one is particularly pleasant, so you'd be putting yourself in a really difficult position, one which I would avoid at almost all costs.

IMO, if it's remotely possible, you'd be far better off to try to do an attic conversion or double-floor extension out the back to increase the value and living space of your current home. It wouldn't be as quick a solution, but long-term it will pay off, both financially and in terms of stress and risk.

pilly

I have experience of it because I've moved counties and I do this presently. Only one word for it-nightmare. Getting reliable tenants, keeping reliable tenants, maintaining 2 properties and paying huge taxes.

The sooner the better I can sell. It's a noose around my neck at the moment and I just want rid.

The_Conductor

Honestly- as you're already working- you're probably in the higher tax band already- so any rental income is taxed at your marginal rate- complete with USC etc- on the gross rather than the net rental income- and if you have to pay rent somewhere else- this comes out of your after tax income- aka you cannot offset rental income against rental outgoings............

The sums do not stack up- and when you factor the absolute mayhem that both renting and letting a property at the same time entails- you need a hell of a lot of luck- as well as a shedload of hard-work- to make it work.

It is not a straightforward transaction- and once the tenant gets into your property- if they decide to stop paying rent- you may get a hearing within 12 weeks- however, after all the options are exercised by a tenant- it could well be 2 years plus- before you get your property back- all the while you'll be obliged to maintain the property, and pay your own rent elsewhere.

You're saying you can't afford to sell the property- well, the flipside of the coin is- you also cannot afford to move elsewhere while letting your sole property- the regulatory and tax regimes are setup in such a way that you are damned no matter what you do. Don't do it.

My advice- renovate- in whatever way you possibly can- but do not try to let out your sole property- under any circumstance- if you have no other option- sell it- if it means you crystalise negative equity- so be it, its only money- you'll still have your sanity.

Askthe EA

Why not rent a place in the new year, move out and sell your own then. You will be a cash buyer (ALTHOUGH WILL REQUIRE 20% DEPOSIT) and so will be very attractive to vendors.

You say there is a new job, congrats, is the money way less? Have you spoken to your bank? If not, approval lasts 6 months so could apply now and it is still valid in May 2018?

I think you have options but renting out your home is likely to be the worst option.