Moving house - Sell NOW vs LET OUT for now and Sell Later; Capital gains Implications

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    Moving house - Sell NOW vs LET OUT for now and Sell Later; Capital gains Implications

    Hi all

    We have been living in our current house for 4 years. We plan to move to slightly bigger house. Last 4 years, our house price has increased up to 51% (from £165K to £250K). We plan to move to new house, but we do have a plan to moved back to this house 15 years later as kids grow-up. Smaller house will be easier for us to maintain.

    We have few options
    Option 1 – Sell current house and buy big house
    Option 2 – Keep current house and rent it out. We will come back 15 years later. I guess we will not liable for any capital gain tax for the new house as the new house is our primary resident and we never sell our old house.
    Option 3 – Keep current house and rent it out. We found the house is not easy to maintain with tenants. We sell the current house few years later, after we moved to new house

    What are fellow landlords suggestions about what to do in this situation? Has anyone else been in a similar situation? What did you do? I also like to confirm, if I choose option 2 above. I am not liable to capital gain tax?

    Thanks

    #2
    quote "We plan to move to new house, but we do have a plan to moved back to this house 15 years later as kids grow-up. Smaller house will be easier for us to maintain."

    Well it looks like it is option 2 then, as option 1 and 3 don't meet your plans. That was easy!!

    Comment


      #3
      Select option 1 . When you want to downsize in 15 years time , buy a new-build smaller property.

      Comment


        #4
        How about

        Buy new house, let old house, in 1 years time review how the letting is goign and decide whether to sell or keep. If prices continue to rise you would gain one years rise with no CGT if you sell.

        Comment


          #5
          Can you realy guess what CGT rules will be 15 years from now?
          Never mind changes to the property/rental markets.

          Like any other investment, it's a gamble.
          Guess it right, make a pile.
          Guess wrong......

          Comment


            #6
            Originally posted by PJackson View Post
            How about

            Buy new house, let old house, in 1 years time review how the letting is goign and decide whether to sell or keep. If prices continue to rise you would gain one years rise with no CGT if you sell.
            Thanks. This sound like a plan. I haven't done buy to let before, but I did hear about the horrible about buy to let. That why I feel worry. But, buy to let can give me a chance to gain so retirement fund. That why I feel dilemma

            Comment

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