Benefits and Renting a house out.

smanty

I am on income support and housing benefit full. I work 10 hours a week.

I am thinking of buying a property to rent out just a cheap one. £35000 for a flat and mortgage is only £175 a month. The rental income is £350. The reason I am doing this is for my two children future investment.

How will this affect benefit? Will I still get full housing benefit?

skint-student-nurse

the incoming rent you will be getting will count as income so it is more than likely your benefit will be affected.

DaisyFlower

How do you propose to get a mortgage only working 10 hours a week? Who would pay the rent of you find yourself without a tennant for weeks/months?

Perhaps when you are working full time and off the IS you an look at buying your own home for your childrens future.

krisskross

Think this thread is a wind up. Is anyone daft enough to think they can buy a flat, yet still claim full housing benefit on another property?

Teahfc

The whole reason the world is in its financial meltdown is through people borrowing money that could not pay back ...... Some times I wonder !

Oldernotwiser

krisskross wrote: »

Think this thread is a wind up. Is anyone daft enough to think they can buy a flat, yet still claim full housing benefit on another property?

Unfortunately, these days you probably can! (Agree about the wind up though.)

Oldernotwiser

smanty wrote: »

I am on income support and housing benefit full. I work 10 hours a week.

I am thinking of buying a property to rent out just a cheap one. £35000 for a flat and mortgage is only £175 a month. The rental income is £350. The reason I am doing this is for my two children future investment.

How will this affect benefit? Will I still get full housing benefit?

If you have enough money for the deposit on a flat and the buying expenses then it seems unlikely that you're genuinely eligible for IS!

healy

krisskross wrote: »

Think this thread is a wind up. Is anyone daft enough to think they can buy a flat, yet still claim full housing benefit on another property?

I was only thinking earlier that we had not had the Sunday afternoon wind up!

smanty

I am disabled myself. That is why i can only work 10 hours.

Oldernotwiser

healy wrote: »

I was only thinking earlier that we had not had the Sunday afternoon wind up!

It's quite a relief to see it's arrived, I can go and put the kettle on now.

cte1111

You would be unlikely to be able to claim IS, as any equity on the property would count towards your capital. So if the total of your savings and equity on the property was > £16,000, you would not be able to claim IS.

TBH if you are looking at the property as an investment, it seems better to wait, as the housing market is currently falling, and is likely to be worth less in the future than it is now.