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Hi everyone, I've been listening to Rob & Rob from the beginning of lockdown, nearly worked my way through all the podcasts :) I have been interested in property for many years but haven't purchased anything yet. I want to make the most of the stamp duty break and take the leap before march '21

My circumstances: I am a first time buyer so is my Fiance. We are planning on moving in together in 12-18 months. 

We would like to individually buy two properties now and live in them until we get married and then potentially move into one property and rent the other out. I was hoping to make  the most of being first time buyers separately and buy two properties as individuals now. I know we may be able to obtain consent to let depending on the lender when we decide to move in together.

What challenges do you see with this? is this the best thing to do? Are we better off waiting and buying one property to live and a BTL when we are ready to move in together?

In the long-term we want to grow a portfolio and build up a substantial passive income.

Your help and advice is much appreciated 

Thanks

Kev  

 

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  • 2 weeks later...

If the deals stack up then all good but it is uncertain times. When it comes to restructuring ahead of buying your own home or in contemplation of marriage, there’s currently good tax planning options to get your existing buy to let’s into a company without paying any tax.

Jerome

Jerome@TaxAntics.co.uk

www.TaxAntics.co.uk
 

 

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The questions I would ask myself in this situation is this:

   Is the house I am buying to live in going to make a good rental?

   It is going to cost substantially more to run 2 houses than one - does this outweigh the SDLT saving?

   Am I overpaying now when the market is hot and would it be better to wait until after the stamp duty holiday - especially as First Time buyers have a generous exemption anyway?

 

My gut feeling is that you would be better to buy a home that you want to live in together - even if you don't move in together immediately - and then look at a BTL later, but it comes down to the figures and your own preferences.

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  • 3 weeks later...

I agree with Julia - prioritise getting the right property for you both to live in long-term first, before thinking of a second BTL. Chances are, you probably want 2-3 bedrooms, good area, convenient for both your work places, etc.... things that all drive up the cost of the property that would be ideal. If you can afford this ideal property, and also another one - great! But by all means by both just before you get married, get married, and you would have escaped the second property SDLT.

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