I need some financial advice that takes into account potential capital gains tax on the property I rent out. I’m now considering buying a 2nd property that would be my home; I’d like to find out what the financial implications are of buying a 2nd home and also the implications should i decide to sell either one of those properties in the future. Would most financial/mortgage advisors be able to help me with this?
On loans yes, but not so much on tax.
If youre selling the rental then youll pay cgt on it as it wasnt your home. If you buy a home before you sell, youll pay an additional 5% stamp duty on top of the regular rate. If you then sell the rental within 3 years you may be able to claim the 5% back.