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Arriba

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« Reply #225 on: Monday, April 5, 2021, 12:35:47 »

I have an idea and hopefully someone will have a clue whether this could be an option or not. Basically I'm thinking of buying a second home which will be the house I eventually move to. It will be used as our holiday home in the meantime. My idea is to keep my current home for a few years before selling it to then pay off the second home mortgage balance and hopefully have some money over from the mortgage payments already made. I plan to do this next year when my mortgage on my home here will be paid off. Is this something that is possible?
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Jimmy Quinn

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« Reply #226 on: Monday, April 5, 2021, 12:37:49 »

I have an idea and hopefully someone will have a clue whether this could be an option or not. Basically I'm thinking of buying a second home which will be the house I eventually move to. It will be used as our holiday home in the meantime. My idea is to keep my current home for a few years before selling it to then pay off the second home mortgage balance and hopefully have some money over from the mortgage payments already made. I plan to do this next year when my mortgage on my home here will be paid off. Is this something that is possible?

I may be wrong but if you purchase a second home in your name you will be liable for 40% tax if you rent out or sell within two years in capital gains tax.
« Last Edit: Monday, April 5, 2021, 12:41:50 by Jimmy Quinn » Logged
Arriba

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« Reply #227 on: Monday, April 5, 2021, 12:49:57 »

It will not be let out. Will be used frequently by ourselves and maybe immediate family only before we move down.
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Jimmy Quinn

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« Reply #228 on: Monday, April 5, 2021, 12:56:01 »

It will not be let out. Will be used frequently by ourselves and maybe immediate family only before we move down.

You may be ok then but do check first
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RobertT

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« Reply #229 on: Monday, April 5, 2021, 13:28:21 »

I think you are OK so long as you don't profit from the second home.  You'll be remaining in the first home and treating it as a Residential property and occupying it, so that should avoid the need to pay Capital Gains Tax.
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Arriba

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« Reply #230 on: Tuesday, April 6, 2021, 10:05:47 »

I think you are OK so long as you don't profit from the second home.  You'll be remaining in the first home and treating it as a Residential property and occupying it, so that should avoid the need to pay Capital Gains Tax.

Thought so, cheers for that.
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4D
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« Reply #231 on: Tuesday, April 6, 2021, 10:13:19 »

Check out insurances too Arriba, especially if it's going to be unoccupied for stretches of time.
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Arriba

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« Reply #232 on: Tuesday, April 6, 2021, 10:47:38 »

Check out insurances too Arriba, especially if it's going to be unoccupied for stretches of time.

Will do, Cheers.
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Samdy Gray
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« Reply #233 on: Tuesday, April 6, 2021, 12:58:46 »

All completely feasible.

Borrow against your main home to buy the second one, then pay off the mortgage when you eventually sell up and move to the second home permanently.

There'll be no CGT on your main home when you sell it because it's been (and will remain) your principle residence.

The only thing to concern yourself with is you'll have to pay additional 3% stamp duty on the second home, so that's something to budget for.
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Arriba

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« Reply #234 on: Tuesday, April 6, 2021, 15:18:24 »

All completely feasible.

Borrow against your main home to buy the second one, then pay off the mortgage when you eventually sell up and move to the second home permanently.

There'll be no CGT on your main home when you sell it because it's been (and will remain) your principle residence.

The only thing to concern yourself with is you'll have to pay additional 3% stamp duty on the second home, so that's something to budget for.

Thanks for that info. Appreciate it.
All looking positive at the moment. Will get financial advice once my mortgage is paid and I can then pursue this idea.
 
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