On the dole - house rented out

bandit!

Have a house rented out in Ireland, was over in the uk last 6 months, out of work now 2 years. Back in Ireland now staying with my daughter, is the rent I get going to be means tested? going to claim jobs seekers allowance. I know I can get 188 but what will they do??

riclad

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/means_test_for_social_welfare_payments/means_test_for_jobseekers_allowance.html



Capital includes property (not your home), savings and investments.

If you own property (excluding your home) or you have investments or any other form of capital, the value is assessed, using a standard formula (see below) whether or not you are getting an income from the property or investment. If property is rented you will not be assessed on the actual income from the letting. Any outstanding mortgage registered against the property is deducted from the market value to find the capital value.

The property and investments that may be assessed include savings in a bank account (or anywhere else), a house that you have let and stocks and shares. If you or your spouse, civil partner or cohabitant saves a portion of your social welfare payment each week, these savings as well as savings from most other sources will be taken into account as part of your means.

The formula for assessing the value of capital including property (but not your own home), savings and investments is as follows:

Capital Weekly means assessed
First €20,000 Nil
Next €10,000 €1 per €1,000
Next €10,000 €2 per €1,000
Balance (€40,000 +) €4 per €1,000

see above.

riclad

I Think they assess the value of the house , minus 20k,
minus the present mortgage,
then use the formula,
on the balance,

Next €10,000 €1 per €1,000
Next €10,000 €2 per €1,000
Balance (€40,000 +) €4 per €1,000

D3PO

the income from the property will be assessed, any equity in the property if there is any will also be assessed as part of a means test.

Mrs OBumble

My experience was that they ignored the income from the property, and only looked at it's capital value as per the forumula above.

Think about it: it's not really fair to treat capital as "income equivalent" and then also to include the actual income on top of that.