Buying a flat outright-benefits?

cromwell1986

Hi
I've been made redundant. Ive suffered mental health problems for years and have no skills or career to speak of but I do try to work. I have around 50k in savings. This would buy me a 1 bed flat round here. If I do this will it affect my entitlement to jsa or esa or council tax benefit at any point in future?
Thanks

NYM

cromwell1986 wrote: »

Hi
I've been made redundant. Ive suffered mental health problems for years and have no skills or career to speak of but I do try to work. I have around 50k in savings. This would buy me a 1 bed flat round here. If I do this will it affect my entitlement to jsa or esa or housing benefit at any point in future?
Thanks

I'm so sorry about the redundancy.

It's admirable that you try to work and I hope you continue to be well enough to be able to do so.

If you purchase a property, why would you need to claim Housing Benefit ?

cromwell1986

yeah i edited it - i meant council tax benefit. This is worst case scenario i.e. if I become ill and unable to work

Caz3121

If you are purchasing the property to live in there is not impact on other benefits
If you are purchasing as an investment or to rent out then any means-tested benefits would be affected

[Deleted User]

Hi,

you would still be entitled to the 25% discount on council tax for single occupancy.

Bogalot

If you only have sufficient capital to buy the property keep in mind all the costs related to buying and the ongoing costs of ownership. A flat may be leasehold, there will be management/ factor fees to pay, and and any costs for major works (internal and external).

I wouldn't discourage you to buy, just to go into it with all the facts.

PasturesNew

I'd say "buy it". If you've the money then it gets you sorted and knowing where you'll be living. You're not at the whim of a landlord.

Once you're in you can then find "any job" because you've not got to think about whether it pays the rent etc. You just have to think about whether the job pays more than JSA + council tax without getting too caught up in the number of hours/rate.

Once you've got "any job" "the man" is then off your back. Your home, your income .... could be the perfect answer.

Yes, there are costs associated with property ownership etc, but you're saving on rent and uncertainty. No more agent fees and moving fees. No more 6-monthly or 12-monthly "we'll just reprint your rent agreement for £50-100" fees and other ridiculousness.

BUT .... you do have to ensure that what you buy is somewhere you really can live. Wouldn't do it if there's gang warfare outside every night.

cromwell1986

Thanks everyone for the kind replies
Pastures: you've kind of hit the nail on the head. I've discussed with my parents and the main reason for me doing this is so I can find a loner job like data entry which is the kind of job I enjoy. Even if it pays poorly which I'm sure it will at least I get everything to myself after income tax, council tax and utilities and I'll be left alone. Could even make a part time job work if necessary. We've seen a cash only flat for 35000 so we're going to see it tomorrow. I'm feeling really depressed after my last job. Hopefully the job centre can help me find something suitable.

NYM

cromwell1986 wrote: »

yeah i edited it - i meant council tax benefit. This is worst case scenario i.e. if I become ill and unable to work

I'm sorry, it was very late and I didn't notice you had edited your post. Apologies.

I'd buy. Personally, I've never liked the idea of renting a property that I couldn't do as I'd want to do to it.

PasturesNew

cromwell1986 wrote: »

I have around 50k in savings. This would buy me a 1 bed flat round here.

cromwell1986 wrote: »

I've discussed with my parents

We've seen a cash only flat for 35000 so we're going to see it tomorrow.

What I see here is a good idea rushed into.

What I see is that you've £50k and a good relationship with your parents.... if I were you I'd wait a bit and not "rush at" this £35k flat. I'd be looking to spend most of that £50k on a better flat, in a better area.

Spend as much as you can afford - that way you're going to be in a better place and better placed in the future if you wish to move.

If things improve and you want to move "up" then both will have increased in price proportionately, meaning you've less to find to move "up".

If you wish to sell up you can move "down" from £50k to £35k and pocket £10k. If you buy at £35k now that £15k difference could be frittered away too quickly.

Look at places £48-54k to spend £45-48k.

Loz01

I agree, spend most of the 50k and get set up somewhere decent in a nice area, someone you can really stay for the time being, not somewhere you'll be thinking "oh god I need to get outta this place" in 18 months.