Hiya, ahaaaaa..so you pay tax on any income..so my £350 a month clear will be taxed...sigh..you just can't win eh..lol.
Originally Posted by the4hopes
I thought about repayment but it bumps the rental payments up at least £200 making it not as nice an option. I figure if someone could pay £850 a month rent then they'd be as well buying..but £650 or even less sounds better..otherwise I'd prefer the repayment option too. But guess my house isn't worth that much really :-( I should keep the mortgage term down though.,you're right about that..just got carried away with the thought of the extra dosh coming in. Was thinking by the time 25 years has passed on and your sitting with your 100k interest only mortgage..surely when you sold the house you'd pay back the 100K easy...and the rest is yours..but you still had some earning from the rent in the first place.
I daresay I'm grossly simplyfing all this :0)
Hi Carol Ann
Have you had an estate agent (rental) to tell you how much you can rent the house for? We could rent ours for £750, per month. People will pay the rental, if they havent got money for a deposit for a mortgage they will need to rent. So dont give up, find out some more.
Sorry for posting this comments on another thread as well, but I felt is sufficiently important to make sure it's covered here:
I would like to draw the attention of anyone reading this thread to the following forum/website;
It's a bit dated, but does talk about the issue of remortgaging a UK home when it is to be rented out, and using that money to buy another home to live in, as well as some of the tax implications. I doubt that anything has changed tax wise since this debate occurred.
My point is, beware of the risks and tax implications before embarking on this route:-
As I understand it, the rent you receive is fully taxable income. It is only the interest on your mortgage which is deductable. i.e.
- principal repayments are not deductable
- interest on an equity release loan designed to raise cash for a deposit on a home either in UK or OZ, may not be deductable.
- there are of course other tax benefits/deductions for maintenance and other expenses, but:
The UK rules appear to be similar to OZ in relation to this issue.
I recommend you speak to a professional tax adviser if you are in any doubt and be certain of the true "cashflow" implications. I'd hate to hear of anyone getting hit with a massive tax bill they were not expecting.
In particular, do the numbers to check and see if you may be better to sell, and bring your equity tax free (even if less than you might have hoped) to end up with a smaller home loan in OZ as compared to having a small? original loan on your UK property that is tax deductable + an equity release loan that is not + the loan on the new OZ property.
Note: I do not offer UK tax advice (or OZ tax advice for that matter!)
If you do the numbers and you can still afford to keep the UK property - great. Best wishes all.
Good Afternoon Carol,
Originally Posted by rockpool crab
My name is Josh Blyth and I work for a company called Urbantech Finance here in Adelaide. In answer to your question, when you move to Australia you can take out a mortgage over a 15-year period.
It is not the norm to do this as most people can't afford the repayments with a 15-year loan term. What's more common is to take the mortgage over a 25 or 30-year term and be put in a facility where you do get penalised for making extra repayments. If you have any other mortgage related questions, I'm more than happy to answer them for you. My email is email@example.com