-
It's talk like this that makes me think I should probably just sell the place and bury the money in the ground. I'm not ready to be this grown-up yet.
tax on rent is the main reason why renting one place while renting out your own is likely to be less cost efficient than just owner-occupying, but YMMV
but this is likely to be offset by the strong rising house prices in Bristol right, so it still makes sense to keep hold of it?
Polygon-
It's definitely more complicated renting than just owning / buying!
As to whether it is likely to be offset by rising prices in Bristol - no idea. I have some doubt about continued house price growth in the UK generally, given brexit.
-
but this is likely to be offset by the strong rising house prices in Bristol right, so it still makes sense to keep hold of it?
That assumes that house prices in Bristol do continue to rise. Maybe they will, maybe they won't. It's tough to tell at the moment.
Depending on what you are earning elsewhere you could be paying a fair bit of tax on that rental income
http://www.which.co.uk/money/tax/income-tax/guides/tax-on-property-and-rental-income/how-rental-income-is-taxed
andyfallsoff
aggi
My understanding is that interest only mostly made sense because you would subtract the interest costs from the tax you pay on the rent you receive, so you get to keep more of it - there are risks as you still need to be saving the capital repayments too. However, tax treatment of residential rental properties is changing (you get a limited deduction and may still pay tax even where you don't make an economic profit) so that is called into question.
I think you need to run the sums and see what is more profitable. IMO, tax on rent is the main reason why renting one place while renting out your own is likely to be less cost efficient than just owner-occupying, but YMMV