Keeping our house and renting it out

[ZenNudist]

Would you do this if it were financially feasible if a bit of a stretch? I live in a good area and prices are likely to go beyond what our dc could ever afford so we want to invest for the future.

It seems to me that it would be essier to just buy a slightly more modest house (5 bed detached, not huge but still bigger) and then keep and rent out our 4 bed semi.

I appreciate we will pay higher stamp duty, high rate tax on the rent, have maintenance costs on both, void periods on the property we rent out as well as hassle finding tenants (but central to a city so not too worried). Not relying on the rent but looks like holidays, saving for university and other luxuries would be harder. I'd have to actually budget rather than being a bit silly with money.

My salary is set to increase and anyway I could go full time in 3 years when both kids are in university but the extra earnings get taxed at such a high rate I'd probably just put it in pension.

Would be interested to know if others started to prioritise investing over lifestyle. I'm 43 so got a 25 year mortgage in me just.

But that is not what the OP has said?

If OP is mortgage free from on the existing property then I missed where she said they were.

Her post of 16.11 says exactly that

Well I don’t understand the sums because the OP said in her first post that they will no longer be able to afford holidays, etc. presumably the rental income should help with the new mortgage?

Check out the rental returns on houses of this type in your area. Generally speaking family houses don't make the highest returns. There might be better investments available. I invested inherited money in a second house which I rent out Airbnb as well as use a little myself. Part of the reason for doing this rather than other types of investmetns was as a hedge against higher house prices in the future. If we want to use the money to help our kids buy homes, then it makes some sense to put the money in an asset which goes up at the same rate. But the house I invested in is a small house near the centre of a busy tourist/uni city with high returns.