Buying in cash, renting, then using income for mortgage?

[fr453rB]

Hi everyone. I'm about to buy a studio in cash in France in a student city. Eventually, I intend to rent the place as guaranteed tennants there. Does anyone know how France works with mortgages: can I use the rental income from that paid-off property to get a mortgage on a slightly bigger place for myself to eventually live in?

A bit of background: I'm a contractor who works in run-down countries so my contract changes constantly hence I can't get a mortgage in my current situation.

Does this strategy make sense or does anyone have any better ideas?

 

[FWL]

I would guess the rental income would be classed as additional income when applying for a mortgage so you will be able to use it in your calculations - not sure of the tax rates in France though.

Maybe you could rent out your second home if you were away for long periods of time? Ah, second homes - what is the tax situation for them?

 

[realdeals]

It would probably be sensible to take advice on your personal taxation situation if you are spending long periods of time out of the country. I presume you are living in France at the moment?

 

[diyhelp]

Personally I think you need to clarify your tax situation before you proceed (and before anyone can give you advice on the forum).