M
MissRibena
Guest
Hi everyone
I wasn't thinking of renting out this house until someone suggested I'd be mad not to try. Any advice on whether the following is legitimate would be gratefully received.
House I own is valued at €230,000 with mortgage of €59,000. House I want to buy to live in is €150,000 - Vendor has another buyer with cash and I'm under pressure to say whether or not I can get the money. Have been talking to the banks to top up the mortgage on existing house to cover purchase of new one. Was checking out repayments on €210,000 over 30 years at 3% and it works out around €850 a month. Definitely do-able for me.
Potential rental income from existing house is approx €750 a month. I understand that I only pay tax on this after interest for mortgage (and other expenses) is deducted; interest would be about €500 a month. Is this ok to do? And is the tax 20% CGT or 42% PAYE?
Thanks a million
Rebecca
I wasn't thinking of renting out this house until someone suggested I'd be mad not to try. Any advice on whether the following is legitimate would be gratefully received.
House I own is valued at €230,000 with mortgage of €59,000. House I want to buy to live in is €150,000 - Vendor has another buyer with cash and I'm under pressure to say whether or not I can get the money. Have been talking to the banks to top up the mortgage on existing house to cover purchase of new one. Was checking out repayments on €210,000 over 30 years at 3% and it works out around €850 a month. Definitely do-able for me.
Potential rental income from existing house is approx €750 a month. I understand that I only pay tax on this after interest for mortgage (and other expenses) is deducted; interest would be about €500 a month. Is this ok to do? And is the tax 20% CGT or 42% PAYE?
Thanks a million
Rebecca