As with everthing in life its a gamble but property is still the best investment in the present climate.
If you're renting at present and its a choice between renting or buying then you have to do some research on your area. I know that in some areas in the UK, for a first-time buyer, it is more beneficial to rent despite the rent being "dead money".
As for the tax consequences (I know what I'm talking about here) as it will be your private residence you will not pay any capital gains tax if you have one lodger but may if you have two....but that is only if you sell the property. Your sister would have to pay capital gains tax on any gain she has made regardless.
On the income tax side there is an allowance called rent-a-room relief which you can claim against the rents if the lodgers actually share the common parts of the property (kitchen, lounge, bathroom). Have a look at
this.
Just got to make the decision thats best for you.
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