Renting out my house so I can rent

[Freebirdy]

Hello,

So new and DP have broken up. Our house was for sale but hasn't actually sold (thankfully) . I'm just in the process of trying to get out of my contract with the agent because they're dreadful but also because I don't think now is a good time to be selling up (big decisions when my life is confused).

What do people think about me renting out my house (I'd get at least £800 pcm). And renting in another area (looking at a max of £700 pcm). My reasons for wanting to move before we split up are the same, I want better schools for DC, I hate my neighbours and the area I live in (main, through Road from town centre/football ground so occasionally ok but very often horribly busy with shouty people).

Would it be a stupid idea?

[GalaxyInMyPants]

Would you need to pay tax on the $800 , you normally do. Building insurance. Landlord insurance. Repairs. Agency fee and cut.

You'd not have much if anything left.

[soapboxqueen]

You have to pay tax on the income. Also you need insurance, potentially letting agent fees, repairs etc

Do you own the house outright? If not you'll need to think about mortgage repayments too.

[MagnificentMaleficent]

You would be paying income tax but there are a lot of deductions you can have, including agents fees, interest on mortgage etc.

As a means to an end it may well be worth it, but it won't be an income for you on those figures if you are paying a substantial mortgage.

[Mintyy]

I think you will also need to be careful re. the school catchment thing. Many schools are clamping down on renting to be near a good school.

[Freebirdy]

Thanks guys! Dur! I do have a mortgage, I'm so dumb. It's not huge but definitely changes the figures. I just hate living in this area, I want to live somewhere quiet. Maybe I'll just sell up in a year's time or so.

[PestoSurfissimos]

You can do this. The rental income will pay the mortgage on your house plus other costs. You rent another property as a separate thing.

As others have said, you do have to declare the income on your tax return but you can offset certain costs against your expenses. Look into it a bit more carefully, but you should be able to do it.

[soapboxqueen]

You also need to keep in mind interest rates going up, tenants trashing the place and the property not renting even for only a short time if you need the income to pay for your own home.

We have rented out our property but don't rely on the income as it fluctuates to wildly.

[Freebirdy]

So my mortgage is £600 ish (just under) a month. Which means (very very basic) is... £1200 ish spending on houses £800 ish (probably more now I've looked closer). Hmm.

Pesto, thanks for being positive. It's not something I'll do straight away because I'm still freaking out about the break up.