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pay mortgage / buy another ? - newbie Question

Started by spike589715, November 23, 2010, 04:58:10 PM

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spike589715

Hi
Sorry for such a basic  basic Question
My mother has recently died and left me her house - i will be letting it soon - no problem there
she has also left some money, the question is ... do I pay the mortgage on my house that I have a tenant in 70k ish (living with partner - her house) or buy another property to rent out ...
I guess I am looking at the tax situation is there a down side to paying off the mortgage in the house I rent currently ?
I do currently work full time

any tips on where to get some good financial advise - unbiased etc - I am happy to pay for good sound advise from someone who knows what there talking about and not looking for commission on products they punt .....

thanks for any thoughts tips etc

AUS

Hi Spike,

I guess it depends on how paying off your mortgage will alter your current tax liability. For example if you pay down the mortgage in full you can no longer claim deduction for any interest payments associated with the current rented house. On the other hand there are some bargains to be had in the property market which can seem tempting especially when you are a little flush. I'd speak to a tax accountant and have him/her work out your position for both scenarios.

I also found this link on the web which might give you some assistance, the calculator is about half way down the screen.

http://www.which.co.uk/money/tax/guides/which-tax-calculator/

Good Luck !

Shiminege

#2
I think you should continue paying the mortgage so that the paid money will not be wasted. You can bring a death certificate of your mother so that the company will know what proper action should be done. It is also better if you go straight forward to mortgage holder for your inquiries.


rusty_theron11

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Its really an outstanding post