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The majority of people sell property quickly with a company like, then acquire their new abode. Generally, needing the proceeds from the sale of the old property, to fund a new one. Occasions, do arise however, when it can be more practical and financially viable to hang on to the old house. Renting the old house out, can provide an asset and a regular income, can be accrued.

Read up on, selling your home, on various internet websites. This will give you a step by step guide to selling. Most importantly, choose a reputable estate agent who charges reasonable fees for their services.

Renting out your old home, does it make sense?

* Perhaps, you need to move temporarily, because of work commitments, and you need to keep the door open, so to speak, of your old property.

* Making an extra monetary gain from rental property is justifiable, if you have a strong indication that property prices may rise. Also, if you don't need funds, have enough money to buy your new home, without needing resources you may acquire from selling your past residence.

Property prices, what's the future?

This is a difficult question to answer. There is an indication, that property prices could be on the up and up. If this happens, it will provide an incentive, and financial advantage. When creating a portfolio - you will get the capital gains, based on having more than one property. However, if property prices are falling, your old home will go down in value, and selling it would prove more financially beneficial in the short term. Property prices, generally rise again, so if your plans, include keeping your old home for several years, don't worry. A dip in prices in the short term, can be disregarded, and is not a threat. House prices trends, can be researched via the internet.

Your mortgage company- will they allow it?

The small print of your mortgage, needs to be analysed, and checked thoroughly. In most mortgages, a clause is included, that allows you to rent out the property, if you are moving temporarily, but intend to return. You may have to change to a buy-to-let mortgage, with early repayment fees, survey fees and new mortgage arrangement fees. Expert advice must be taken, if you are thinking about re-mortgaging.

Finance two properties - can it be done?

Financial security, is paramount. Stretching your finances, beyond your limitation, is not a sound idea, and may be regrettable. If you are serious about buying a new property, while keeping your old one, you need equity in the existing property and a steady income to finance the mortgage on your new property. Increasing, the mortgage on your existing home, will provide money for the deposit for your new property, covered by the rental income.A second mortgage, need to be taken out for your new home. This should be afforded by your work income. You now have two mortgages, one covered by your rental income and one covered by normal income.

Will the mortgage get paid?

You will need to do your sums. Work out if it is feasible, to still have a mortgage on your old property, and in addition the mortgage of your new property.You need to make sure the rental income, is enough to cover the interest on the mortgage payments. There are more factors that need to be considered and acted on.

* Can you manage to pay for the mortgage, if you are not able to find a tenant for your property, or any other reason. A confident approach is required, so that a forced sale or repossession, can be averted, if difficulties are incurred.

* Practical matters, of the property's maintenance, should be accounted for. In case, a new boiler is needed, or the property needs a new roof for instance.

Funds should not be in short supply, to deal with possible breakdowns, or repairs that may arise.

* How will the property be managed? Will you do this yourself? Or appoint an agency on your behalf, to process this for you? How much cost will this entail?

* Will you interview, and decide on your tenant? Or rent the property through an agency? Think about the commission this involves.

* Have you included, the insurance factor, into your monthly expenditure and overall costs.

* How long will your tenancy be, how many months of the year in total? Generally, one month in the year it should be unrented, to allow for when you are maybe, looking for a new tenant, if necessary.

What are the cost implications to live in the new property?

The affordability factor is a concern. To afford to keep both premises, will greatly depend on the rent coming in, to cover your old home, an how much it costs to run and live in your new property.
Consider the following:

* What money is needed for your new rent or mortgage.

* Moving cost, can be considerable. Are they accounted for, plus stamp duty and estate agent fees, if you go down that route.

Income tax - The facts

If you make any profit, from renting out your property, for instance. If the annual rental income is bigger, than the costs allowed, including mortgage interest payments, then tax is due on this. The bill might not be as high as you may think. There is a generous allowance for wear and tear and maintenance. However, you are not allowed to counterbalance, mortgage capital repayments against income tax.

Capital gains tax, is this applicable, if you sell?

Capital gains tax, on your profit you may make, hence 'gain'. Calculations are complicated. However, you will only be charged tax on a second home, not on your primary residence, is you make a profit. The government, change the goal posts often. It is best to speak to a specialist in tax, on the phone, or communicate in some way with H.M.R.C. and their advice is up to date and free.

* If you are not selling the second house, at more than you bought it for, or if you don't sell at all, you are not at threat from capital gains tax.

* Capital gains tax, decreases, depending on how long you have owned a property. Annual allowances are given, so the tax bill, might not break the bank, so to speak.

* capital gains tax, will only be sort, in three years after you move out. This means, if you sell your home within three years of moving out, you will be exempt from any capital gains tax.


Should You Invest In UK Property?

Many have been successful at investing in real estate. Thoroughly researching the field ahead of time is the main reason for their success. If you want to be in this boat, this article is for you. You can get started by reading this piece.

You should choose the type of investments you will make before purchasing your first property. Perhaps you are best suited to buying and flipping properties. You may even prefer to start rehab projects when choosing real estate. Each project is different, so be sure you are ready for what you choose.

Reputation is important when you are stepping into this arena. Always keep your word, and be honest with clients. Once people know you're trustworthy, they'll be more willing to work with you in the future.


Many people look for a variety of ways to secure their financial future. When this is the case, learning about investing is a wise decision. Just by reading all you can, you can start investing wisely. This article is a great place to start.

Don't invest in real estate until you have talked to an appraiser or realtor. Sellers may even cover the inspection costs, but always choose an independent inspector. The inspector should be a completely neutral party.

When looking at your business strategy, understand your sunk costs that go beyond the general price of the home. You need to pay staging costs, closing costs, legal fees, and quite a few other things that can make your bottom line more. As you work on your numbers make sure that every expense is accounted for on your margin sheet.

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