Investing whilst living in a housing association flat?

Jamderson

"Let's just step back a minute. You are in subsidised housing, and there is a housing crisis on. And your idea is to own someone else's home and profit from the fact that they, like you, can't afford to buy the place they live in."

I am aware there is a housing crisis. I cannot fix this as much as I would like to.

I'm a physio working in NHS, I could move elsewhere in the country but would be leaving behind friends and family. Easier said than done!

How is a HA flat subsidised? Surely it's everything else that is overpriced!

I simply cannot afford to buy anywhere in London other than a box. I might as well stay put.

I am looking at being as responsible as I can be with my money. BTL would be a business. No different than continuing to live in social housing and setting up any other type of buisness - be it a restaurant , cafe , private clinic , etc.

At what point do you or anyone else think I should lose the HA flat I have lived in for most of my life?

Once again thanks everyone for the advice!

I really am intrested to read people's advice.

It's ok btw you can all be as judgemental as you like...

At the end of the day I have to do what's right for me. I can't change the crap housing situation the UK is in! And obviously I don't want to do anything that would be illegal...

Regards.

[Deleted User]

Well it seems like you will have the option to buy your home association house now, so maybe that's a good idea.

Just remember that becoming a landlord puts someone else in the position you are in. The rent will be more than the mortgage for them too.

Norman_Castle

There's no rush to capitalise on the money, find somewhere to park it and review your options on a regular basis. Owning a rental property will be much more stress and work with the potential to make a loss.

hackneylou

I would wait to see what happens re the things Boris is saying about giving peope living in HA properties the right to buy the property at a much reduced rate. Maybe you will be able to use the 80k along with a mortgage to buy your current property. 

Maskface

Jamderson said:

"Let's just step back a minute. You are in subsidised housing, and there is a housing crisis on. And your idea is to own someone else's home and profit from the fact that they, like you, can't afford to buy the place they live in."

I am aware there is a housing crisis. I cannot fix this as much as I would like to.

I'm a physio working in NHS, I could move elsewhere in the country but would be leaving behind friends and family. Easier said than done!

How is a HA flat subsidised? Surely it's everything else that is overpriced!

I simply cannot afford to buy anywhere in London other than a box. I might as well stay put.

I am looking at being as responsible as I can be with my money. BTL would be a business. No different than continuing to live in social housing and setting up any other type of buisness - be it a restaurant , cafe , private clinic , etc.

At what point do you or anyone else think I should lose the HA flat I have lived in for most of my life?

Once again thanks everyone for the advice!

I really am intrested to read people's advice.

It's ok btw you can all be as judgemental as you like...

At the end of the day I have to do what's right for me. I can't change the crap housing situation the UK is in! And obviously I don't want to do anything that would be illegal...

Regards.

Then buy a restaurant or a cafe. Buying property to rent out when you already live in social housing is NOT the same as any other business. For a start it indicates you no longer need social housing if you can afford to buy. Many people might question the morals or consider it an abuse of social housing to keep hold of a flat you don't need when you can afford to buy your own property elsewhere. That's not about being judgemental either, it's about principles. I wouldn't continue to live in social housing if I could afford to buy property. I'd either buy my own flat or buy another and give mine back to the council so that someone who can't afford to buy could use it. I'd contact your housing association and ask them directly. They might not allow you to own property elsewhere that you rent out for an income and still live in one of their flats at the same time. 

Maskface

luvchocolate said:

marcia_ said:

 If you were currently trying to get a HA property you would be refused if you owned property. 

 I would check your tenancy agreement thoroughly and ask the HA as its not likely to be allowed. 

Not true of the housing association I rent from 

Are you able to quote the terms for citation? I'm struggling to comprehend that you can live in social housing while owning another property that you rent out?

deannagone

I am afraid with most social housing, as long as you are using the social housing as your residence, there are no restrictions on owning another property.  If you apply for social housing and own another property there are.  If you apply for benefits whilst owning another property, it will stop you from getting benefits.  But there's little to stop you living in social housing whilst owning another property as long as owning another property happens once you already rent the social housing. 

I do know rent for my 3 bed maisonette (council) is a third of the rent for an equivalent 3 bed property if private renting.  So yes, I'd be rather uneasy of taking advantage of that.  But the OP is perfectly free to do that if that's what they decide.  As the property is going to have to be some distance away, so difficult to monitor or organise repairs (means you have to pay for and depend on a LA, which may be useless) - its not something I'd consider from a personal point of view when there are 'easier' ways to make money (you can lose money when renting if you get an undesirable tenant - credit checks and LL references don't protect enough).  But the OP is free to do this if they want to.

Maskface

deannagone said:

I am afraid with most social housing, as long as you are using the social housing as your residence, there are no restrictions on owning another property.  If you apply for social housing and own another property there are.  If you apply for benefits whilst owning another property, it will stop you from getting benefits.  But there's little to stop you living in social housing whilst owning another property as long as owning another property happens once you already rent the social housing. 

I do know rent for my 3 bed maisonette (council) is a third of the rent for an equivalent 3 bed property if private renting.  So yes, I'd be rather uneasy of taking advantage of that.  But the OP is perfectly free to do that if that's what they decide.  As the property is going to have to be some distance away, so difficult to monitor or organise repairs (means you have to pay for and depend on a LA, which may be useless) - its not something I'd consider from a personal point of view when there are 'easier' ways to make money (you can lose money when renting if you get an undesirable tenant - credit checks and LL references don't protect enough).  But the OP is free to do this if they want to.

I just find it absurd. Surely that's exploiting social housing? I'd still be getting the facts directly from the housing association themselves before doing anything. We don't know for a fact the ops housing association will allow it so telling them they are free to do it if they want to may be a bit premature.

Markneath

I wouldn’t go down the landlord route, I’m slowly selling off what I have, the problem is the Government and I come under Welsh Assembly not Westminster have made being a landlord way to complicated, with house prices as they are I see it as a great time to get out, not get in.

user1977

Maskface said:

deannagone said:

I am afraid with most social housing, as long as you are using the social housing as your residence, there are no restrictions on owning another property.  If you apply for social housing and own another property there are.  If you apply for benefits whilst owning another property, it will stop you from getting benefits.  But there's little to stop you living in social housing whilst owning another property as long as owning another property happens once you already rent the social housing. 

I do know rent for my 3 bed maisonette (council) is a third of the rent for an equivalent 3 bed property if private renting.  So yes, I'd be rather uneasy of taking advantage of that.  But the OP is perfectly free to do that if that's what they decide.  As the property is going to have to be some distance away, so difficult to monitor or organise repairs (means you have to pay for and depend on a LA, which may be useless) - its not something I'd consider from a personal point of view when there are 'easier' ways to make money (you can lose money when renting if you get an undesirable tenant - credit checks and LL references don't protect enough).  But the OP is free to do this if they want to.

I just find it absurd. Surely that's exploiting social housing? I'd still be getting the facts directly from the housing association themselves before doing anything. We don't know for a fact the ops housing association will allow it 

Why would it be up to them to "allow" it? If they have an assured tenancy then there's no implication that they ought to leave it just because they've come into an inheritance, or acquired an interest in another property.