Anyone own a house and rent elsewhere?

[Shimano105]

Already own the current house outright - bought at sensible price and paid it off asap.

We'd like to move somewhere else in a few years so that kids can get the benefit - but don't want a huge mortgage or to save up hard forever (probably just for a deposit) - you get the idea.

Would the esteemed financial experts on here think it prudent to just rent somewhere nice and rent out the current property, thereby retaining a place in the housing market and getting cash in to cover a big chunk of our rent?

[rootsnall]

Already own the current house outright - bought at sensible price and paid it off asap.

We'd like to move somewhere else in a few years so that kids can get the benefit - but don't want a huge mortgage or to save up hard forever (probably just for a deposit) - you get the idea.

Would the esteemed financial experts on here think it prudent to just rent somewhere nice and rent out the current property, thereby retaining a place in the housing market and getting cash in to cover a big chunk of our rent?

It's a bad idea because you will pay tax on the rental income from your no mortage property ( ie. a normal BTL setup deducts the interest charges on the mortage from the rent ). And also after 3 years your no mortage property would start to become liable for atleast some Capital Gains Tax if and when you sold it as it would not be your Principle Private Residence.

[DimPrawn]

How many years are you planning to live in the other house? If it is more than 3 years, sell up and buy elsewhere.

[n5gooner]

How many years are you planning to live in the other house? If it is more than 3 years, sell up and buy elsewhere.

or 6 months before selling the first house, 'move' back with your name on some bills so it becomes you primiary residence... and exempt from CGT

[DimPrawn]

You then have the house sitting empty for at least 6 months as you pretend you live there. Can't have you pretending you live there if there are tenants there.

Also, a mate of mine rented his home whilst he and his family worked in the USA. Cam back and the place was ruined. And that was a "professional" renting there.

[n5gooner]

You then have the house sitting empty for at least 6 months as you pretend you live there. Can't have you pretending you live there if there are tenants there.

Also, a mate of mine rented his home whilst he and his family worked in the USA. Cam back and the place was ruined. And that was a "professional" renting there.

Yes I've had students trash a place, so don't have them any more, but if the 6 months sitting empty is costs you less than your CGT liabilty then its worth doing, you can also do it with tennants there give them an incentice to have you name on the water bill......

[rootsnall]

or 6 months before selling the first house, 'move' back with your name on some bills so it becomes you primiary residence... and exempt from CGT

Currently doing something similar at the moment, if you want to play it safe you need to be paying council tax there and also on the electoral register.

[scooterscot]

Already own the current house outright - bought at sensible price and paid it off asap.

We'd like to move somewhere else in a few years so that kids can get the benefit - but don't want a huge mortgage or to save up hard forever (probably just for a deposit) - you get the idea.

Would the esteemed financial experts on here think it prudent to just rent somewhere nice and rent out the current property, thereby retaining a place in the housing market and getting cash in to cover a big chunk of our rent?

I own my home and let it, while renting where I’m contracted to. Yes I pay tax but less expenses. Not my prime res now obviously will occupy at some point when nearing selling. I've no idea of the future may just keep it as an income to supplement my pension.