Buying property, state benefits

**richy** · 5 April 2009, 14:50

Originally posted by contractor79 View Post

I'm considering buying the flat I'm renting to serve as a base. Contract job may come to an end this year. Next contract could be a few hours drive away. Have made lots of friends here and have a bird. I could put all the money I have into this property leaving me with small mortgage but little or no savings. Could this mean that I could claim state benefits if contract comes to an end?

Possibly. Income support and help with mortgage is available if you are unemployed. It's means-tested if you have more than 16k in savings, and it's slightly different depending on your work history (past contributions etc etc).

**tim123** · 5 April 2009, 15:20

Originally posted by contractor79 View Post

I'm considering buying the flat I'm renting to serve as a base. Contract job may come to an end this year. Next contract could be a few hours drive away. Have made lots of friends here and have a bird.

Does your lease allow you to keep pets?

tim

**contractor79** · 5 April 2009, 16:13

Originally posted by richy View Post

Possibly. Income support and help with mortgage is available if you are unemployed. It's means-tested if you have more than 16k in savings, and it's slightly different depending on your work history (past contributions etc etc).

ok thanks
would I need to dissolve the company, or make myself redundant somehow to claim this?

**scooterscot** · 5 April 2009, 17:10

Originally posted by contractor79 View Post

I'm considering buying the flat I'm renting to serve as a base. Contract job may come to an end this year. Next contract could be a few hours drive away. Have made lots of friends here and have a bird. I could put all the money I have into this property leaving me with small mortgage but little or no savings. Could this mean that I could claim state benefits if contract comes to an end?

Ask your local MP - I'm sure they'd know how to beat the system, they created it after all.

**pmeswani** · 5 April 2009, 20:19

Originally posted by scooterscot View Post

Ask your local MP - I'm sure they'd know how to beat the system, they created it after all.

Rent it out to them instead... That way you get your taxes back.

**contractor79** · 6 April 2009, 15:24

Originally posted by scooterscot View Post

Ask your local MP - I'm sure they'd know how to beat the system, they created it after all.

yes indeed, good thinking there

so what do you reckon guys? Current contract comes to an end this summer, renewal is doubtful as they're pulling the plug on many projects. Would you buy a property whilst on a contract instead of after it's come to an end? don't want to lose contract then try and buy something but realise I miss out on all the benefits somehow

**Flopsy** · 7 April 2009, 16:15

New build flats are one of the types of housing losing the most in the current housing crash. You may go into negative equity quite quickly unless you can get a really good deal on that flat.

Some mortgage companies are not giving good rates to new-build flat purchasers and often have a higher LTV ratio for that area. Not a problem for you though.

There is also the problem with increased social housing being bought in some new developements further decreasing flat prices.

The otherside of the coin of course, is the inequality in benefits between homeowners with little savings and people who are saving to buy a home. The house asset is not included in "savings" but the renters savings are.

The DWP check your bank account for about 1 year before the period you claim benefits in (they ask to see bank statements). If your "bird" lives with you and is working that may be used against you.

Buying property, state benefits