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Ok, so I own house X (that's not it's name, but I wish it was...) and have a standard mortgage on it as we live in it.
Recently have found out that we'll prob have to move county for work, and have the opportunity to rent house Y in new county (ignoring the complication of the fact that I still have a job here!)
Potentially have someone interested in renting our house, 'house X'!
In terms of 'things', would I:
a-need to change the mortgage to a rental one, bearing in mind I already have a mortgage running, and it's the only house I own.
b-have to pay tax on ALL the rental income, or is it just 'profit'.
c-do you deduct the mortgage/insurance costs from the rental income to show profit (or is mortgage not deductible)
d-shall I quit my job and become a professional 'fixie seafront rider' (this relies on someone wanting to pay me huge sums of cash to ride my bike up and down the prom - any takers?)
Cheers peeps!
DrP
a - talk to your lender, a few will be fine as is, some will not entertain it, most will say fine, but we'll add 1% to your rate. In breach of your terms if you don't tell them.
b - profit
c - can deduct interest part of mortgage repayments, not capital, also other costs of renting. Lender can usually do a split statement for you.
d - we'll need to see pics of your sister's jeans, and possibly your sister.