Help needed!

[Baaaddaaaaaad]

I have two properties: 50% of a flat inherited from my late mother (my brother owns the other half) that we let out as we couldn’t sell it. I also have a joint mortgage with my partner on a family home with 100k equity in it. We bought the family home when we were on significantly reduced earnings, and would now like to buy a bigger property. I would quite like to keep our current house as an asset and let it out - from what I can see the rent would more than cover our mortgage and leave some to deal with any maintenance issues that arose. Would it be crazy to do this (for instance, I guess we’d have to pay 5% stamp duty on our new house in this instance, and a lot of my tax free allowance is already taken up by rental from my late mother’s property) in the current climate? Is it better not to hold another property? Any advice/experiences gladly received

How much will you be able to put down as a in a new place? Where’s the money coming from?

10% deposit available. Money is inherited plus our salaries now are double what they were when we bought our house five years ago.

You will be paying CGT on profits if you sell a second or third property you own that’s not your main home. Unless you both have decent pensions and other savings, I would just have one main family home. Why not get a better one and enjoy it without owing money on a second home? You would need to sort out the mortgages too as one would be buy to
let. I would not want the maintenance costs and hassle of renting out either as tenants have lots of rights and can be difficult to evict should you need the property. I’d leave this to professional landlords now. Just buy a better house to live in.

What does your broker think? 10% deposit would mean you have a pretty hefty interest rate I’d imagine? Could you afford it all if tenants didn’t pay for 6 months?

Much better to avoid renting out your property if you can. You'll be investing either way if you sell your house and put the equity in a new house. I wouldn't over complicate things if I were you.

Thanks for the advice. I hadn’t factored in CGT upon sale. I agree it is better to just sell our main house. Thanks again