Buying a property while on social housing

KMMT

aplacetolive wrote: »

As I am a newbie, could you explain me how it is ethically very wrong?

When we will get council flat/house we won't be a property owner anywhere in the world. But after getting the council accommodation declaring everything ie savings, salary, family income, I mean related all things if we buy another property say after a year on BTL
how that would be wrong?

My understanding is we are trying to come out from council accommodation if you see my long term goal. Then another family will be housed in the same council property.

Am I thinking right? If I am wrong could you please explain me.

It would be ethically wrong because you are living in social housing, ie, someone who can not afford to buy their own home, but then you save up, buy a home, & rather then live in it & give up the home you were given because you could not afford to buy, you would continue to live there & make money on a but to let!!

aplacetolive

KMMT wrote: »

It would be ethically wrong because you are living in social housing, ie, someone who can not afford to buy their own home, but then you save up, buy a home, & rather then live in it & give up the home you were given because you could not afford to buy, you would continue to live there & make money on a but to let!!

I will be paying full council rent, won't get some benefits as I will have a BTL property, will pay higher interest on mortgage and will work hard for my own home. How all this be wrong?

When I will get the flat, I am not in a position financially & job wise to buy any property, that's why council will provide if all the criteria I meet. After the provisional period when I will be secured then how it's be wrong to try to free that flat for another family first using BTL then residential mortgage when I will be able to change my career.

So basically you are saying if you are on council flat its wrong to be in a property ladder unless you move first from council flat.

If you are trying to say so, I am sorry I can't agree with you.

KMMT

aplacetolive wrote: »

I will be paying full council rent, won't get some benefits as I will have a BTL property, will pay higher interest on mortgage and will work hard for my own home. How all this be wrong?

When I will get the flat, I am not in a position financially & job wise to buy any property, that's why council will provide if all the criteria I meet. After the provisional period when I will be secured then how it's be wrong to try to free that flat for another family first using BTL then residential mortgage when I will be able to change my career.

So basically you are saying if you are on council flat its wrong to be in a property ladder unless you move first from council flat.

If you are trying to say so, I am sorry I can't agree with you.

I have not said that because you are in social you should not be able to get on the property ladder. Im saying that when you can afford a property to buy, you should buy it to live in, not rent it out to make money whilst continuing to live in social housing. I'm not asking you to agree with me. You asked why people would see this as ethically wrong. I am merely explaining to you why people would see it as such

sulphate

aplacetolive wrote: »

I will be paying full council rent, won't get some benefits as I will have a BTL property, will pay higher interest on mortgage and will work hard for my own home. How all this be wrong?

When I will get the flat, I am not in a position financially & job wise to buy any property, that's why council will provide if all the criteria I meet. After the provisional period when I will be secured then how it's be wrong to try to free that flat for another family first using BTL then residential mortgage when I will be able to change my career.

So basically you are saying if you are on council flat its wrong to be in a property ladder unless you move first from council flat.

If you are trying to say so, I am sorry I can't agree with you.

Call me old fashioned but to me it is unethical because council housing should be reserved for those in dire need of housing and who cannot afford to rent privately or buy their own property.

The purpose of social housing is not for someone to live in cheaply to save up for a deposit and then to make a profit on a BTL mortgage. If you can afford to buy a house on a BTL mortgage you can afford to buy or rent privately elsewhere, even if it is not in your desired location. I can't afford to buy in the city I grew up in, so I moved elsewhere.

If you have any savings remotely near to a 25% deposit you'd need for a BTL (and you must be anticipating saving a lot in a short time if you hope to buy 6 months after you move) I doubt you would qualify for council housing anyway, quite rightly.

My understanding of BTL landlords is that they go in for it for a long term investment and don't necessarily make a quick buck straight away.

aplacetolive

sulphate wrote: »

Call me old fashioned but to me it is unethical because council housing should be reserved for those in dire need of housing and who cannot afford to rent privately or buy their own property.

The purpose of social housing is not for someone to live in cheaply to save up for a deposit and then to make a profit on a BTL mortgage. If you can afford to buy a house on a BTL mortgage you can afford to buy or rent privately elsewhere, even if it is not in your desired location. I can't afford to buy in the city I grew up in, so I moved elsewhere.

If you have any savings remotely near to a 25% deposit you'd need for a BTL (and you must be anticipating saving a lot in a short time if you hope to buy 6 months after you move) I doubt you would qualify for council housing anyway, quite rightly.

My understanding of BTL landlords is that they go in for it for a long term investment and don't necessarily make a quick buck straight away.

I don't have any savings remotely, all in investment like share, ISA, savings account which actualy a current account. Because my salary is not high enough to get the amount of mortgage I need ATM I won't be able to buy a property. We are eligible for housing benefit because of low family income but not getting because of savings. We are saving up very hard but because of our complex need we are eligible for council accommodation.

leveller2911

aplacetolive wrote: »

I don't have any savings remotely, all in investment like share, ISA, savings account which actualy a current account. Because my salary is not high enough to get the amount of mortgage I need ATM I won't be able to buy a property. We are eligible for housing benefit because of low family income but not getting because of savings. We are saving up very hard but because of our complex need we are eligible for council accommodation.

Its quite simple when you think about it. If and when you move into Social Housing you then keep saving up for your deposit.

When you have enough for a deposit you buy a house and when you have a completion date you give the Council/Housing Association notice saying that you are moving out and ending your tenancy. You then move out of the Council house into the house you have bought. This then leaves the Council house free for the next family who need it.

moremore

Have not read the whole thread but this woman was living in social housing and claiming it as her second home. She is not short of a bob or two. Not sure of the outcome of that one.

http://www.insidehousing.co.uk/labour-peer-faces-eviction/6504509.article

More recent one Maria Miller expense scandal concerning second homes.

http://www.independent.co.uk/news/uk/politics/maria-miller-expenses-scandal-tory-mps-warn-culture-secretarys-continued-presence-in-cabinet-is-damaging-the-party-as-she-tells-constituents-i-have-let-you-down-9245698.html

I am aware of 2 council flats that have been vacant for a year and not let as yet the tenants died last year. With all the homeless you would think these flats would be let immediately.

aplacetolive

leveller2911 wrote: »

Its quite simple when you think about it. If and when you move into Social Housing you then keep saving up for your deposit.

When you have enough for a deposit you buy a house and when you have a completion date you give the Council/Housing Association notice saying that you are moving out and ending your tenancy. You then move out of the Council house into the house you have bought. This then leaves the Council house free for the next family who need it.

By the time the property price will go out of my reach and I will be priced out further and further from the job. The situation will be have a mortgage property but no job or a job near the property but can't afford the mortgage. I will loose the house and then back to square. But won't be able to apply Council for accommodation as I were a homeowner recently.

Everyone's circumstances, need is different. Not one size fits all.

leveller2911

aplacetolive wrote: »

By the time the property price will go out of my reach and I will be priced out further and further from the job. The situation will be have a mortgage property but no job or a job near the property but can't afford the mortgage. I will loose the house and then back to square. But won't be able to apply Council for accommodation as I were a homeowner recently.

Everyone's circumstances, need is different. Not one size fits all.

Then you rent the Council House/Housing Association house for life.. You will not get round the system and rent a council house and own a house at the same time. If you try it I will guarantee you will lose the Council house (breach of tenancy agreement) and also possibly lose the house you buy (breach of mortgage conditions)

You obviously haven't been in the UK long or your too young to understand but house prices go up..........and house prices go down so the trick is to buy a house when the prices have dropped.As time goes by you will realise that house ownership is not for everyone and you may never be in a position to buy. You may also want to go into further education and obtain better qualifications and this will enable you to get a better paying job which in turn may allow you to buy a house in the future.

Your making it out to be a complex situation and its not. The situation is very,very simple.

Instead of trying to con the taxpayer why not educate yourself on the history of the hosuing market and in particular the peeks and troughs of house prices since the mid 80,s till 2010.

aplacetolive

leveller2911 wrote: »

Then you rent the Council House/Housing Association house for life.. You will not get round the system and rent a council house and own a house at the same time. If you try it I will guarantee you will lose the Council house (breach of tenancy agreement) and also possibly lose the house you buy (breach of mortgage conditions)

You obviously haven't been in the UK.

Instead of trying to con the taxpayer why not educate yourself on the history of the hosuing market and in particular the peeks and troughs of house prices since the mid 80,s till 2010.

Con the taxpayer? What do you mean? If I do legally is it a con?

The area I live never saw price down every year up.

Why would I loose council flat if terms allows me I am free to buy a BTL property?

Why would I loose the BTL property for breach of mortgage condition? What breach? Living in council flat? That's why the mortgage is BTL.