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Means Test: "Capital and Property not Personally Used"

  • 07-06-2009 11:37pm
    #1
    nutball
    Registered Users, Registered Users 2 Posts: 71 ✭✭


    I need to apply for Jobseeker's Allowance and I own a house that I don't live in (long story). I don't get any income from it, which apparently wouldn't be assessed as cash income anyway. Instead, it says on welfare.ie that the "value of the property" is assessed as means. But let's say the house is valued at 200k and has an outstanding mortgage of 180k, surely the only capital involved would be the 20k difference?


Comments

  • #2
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    The means test does not take ito account your mortgage/debt.
    The most common example is where a person owns a second house. If the house is let, the owner is assessed with the capital value of the property, not with the income from the letting. Similarly, the market value of leases and ground rents is assessed as capital; the income is not assessed.
    Any outstanding mortgage registered against the property is deducted from the market value.

    I just came across this on welfare.ie and I think this provision is unfair! It means that i can have multiple properties mortgaged to the hilt and still get JA and not be compelled by the state to sell my properties if i'm claiming dole. Someone tell my my analysis is wrong


  • #3
    nutball
    Registered Users, Registered Users 2 Posts: 71 ✭✭nutball


    Thanks, snubbleste - I don't know how I missed the line re. outstanding mortgages being deducted from the market value.

    I guess you're right in theory about people with multiple investment properties being able to claim JA, but I suppose that the combined capital value of their properties would generally drive them into a means band that would eclipse the weekly JA payment. Still, it doesn't make any sense that income from rental properties not be counted.


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