What to do with 2nd property in negative equity

I am considering a self build and currently live in a 3 bed semi. I can afford the deposit and motgage on this second house. What should i do with my 3 bed semi? Bought for 170k current value 70k (on a good day). So no point selling in my opinion. Private rental sounds like a real hassle and what are the tax implications, can i off set against either of the mortgages? Should i consider leasing it to the town council? I know first world problems.

Are you sure that a lender would give you a mortgage for a new house knowing that you have €100k of negative equity.

Which lender is your current mortgage with?

All of the active lenders allow borrowers to transfer their mortgage shortfall to a new property.

If you have a cheap tracker, you should probably consider staying where you are as long as possible as the interest rate is so low, you are paying off the capital very quickly. This would allow you to build up your savings even further.

That would not stop you from buying a site, but don't buy a site unless you know that you can get the money to build the house.

Brendan

Brendan Burgess said:

Are you sure that a lender would give you a mortgage for a new house knowing that you have €100k of negative equity.

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poster doesn't say that he has a mortgage on this property. probably not if he's in the position where he does not need to rent it!
Assuming no mortgage you probably should consider renting the property if you don't need the 70k to input to your new purchase. make a decision on whether it is best to lease to a private tenant or to the Council based on RI comparison from both and measure this against the benefits of greater sustainability & simplicity of having the CC as a tenant.
If you have no mortgage on the existing property there are no tax offsets available to you. You have the potential to borrow against this property to improve it for letting but if borrowings are used to purchase a 2nd property the interest cannot be offset against RI.

If you are going to rent it to the council you might want to wait until after the budget, they are apparently going to incentivise landlords.

Will have 2 mortgages but married now so second mortgage is joint. Banks more than happy to lend. More than we need. Sound familiar? Bank is factoring for me to receive half the market rent on first property. To allow for vacant periods. Lets say my mortgage on the house in question is 600 and i get 500 in rent. At what rate will that income be taxed and what will my shortfall be?