Keeping existing property as an investment

Victor

Myself and my wife are thinking of moving but trying to keep the house we have now.My wife says that if we remortage on the house and use it as collateral to buy another house,then rent our old house...

Do you know is it as straight forward as this,my wife reckons if we move the consolidated bulk of the loan onto the rented house,it wouldnt be considered an income?? Because the rent wouldnt cover the mortage repayments.

Its a bit more complicated than that. You need to factor in both of your tax credits (you can each earn a fair amount before paying tax), mortgage interest relief and so on. In cases like this, there may be capital allowance, but I'm not sure if individuals can claim them on residential property.

More importantly only the interest part of the mortgage is written off against tax, not the capital repayments, so it is likely there will be taxable income, even if it doesn't exceed your tax credits.

There is no substitute for professional advice from your accountant, solicitor or perhaps broker, specific to your circumstances.

Do you have any reccomendations for any brokers in dublin area.....

Not particularly. One idea is to pay the broker yourself and get indepoendent advice and not have broker dependent on a commission for the lender.

Victor

Also be aware of stamp duty clawbacks if you are a recent first time buyer.