# Can you claim the dole if you have rental income?



## DG123 (23 Sep 2009)

Hi, I just want to check to check if I am eligible for the dole.  I have just returned to Ireland after approximately a year and a half abroad, and I am seeking work, but it's proving tricky.

I have rental income of approx 11k a year gross, but I have a mortgage on this apartment of approx 10k a year gross (interest only mortgage).  I don't live in the apartment.

Am I entitled to the dole or rent allowance?


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## enoxy (23 Sep 2009)

I'm in receipt of Jobseekers Allowance (JA) and Mortgage Interest Supplement whilst having rental property/income so that in itself is not a problem. The rental income is not the focus for Social Welfare but more the current value of the property _vis á vis_ the original price you paid for it. 

However I can't answer your question as to your own personal eligibility for "dole" (as you call it) because you will either have to have required # of stamps for Jobseekers Benefit or satisfy the means test for JA. 

Best approach is to apply for JB/JA and let the SW Inspector decide based on the information you provide them with to support your app/n.


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## Welfarite (24 Sep 2009)

Watch out for the Habitual Residence Conditions.


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## gipimann (24 Sep 2009)

Regarding Rent Supplement, you must have been renting here for 6 of the last 12 months before being eligible to apply for the supplement in the first place.  After that, it will be means-tested on your income (and the property, as enoxy described), and you will also be subject to the Habitual Residence Condition referred to by Welfarite.


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## Welfarite (24 Sep 2009)

From reading your previous posts of 2 years ago, it appears you bought a second property abroad, with mortgage secured on Irish-owned property. bear in mind that this will affect any means assessment if that is the case as the second property's value will be assessed in full as it is not your PPR.


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## DG123 (24 Sep 2009)

With regard to the Habitual Residence Condition, on a quick reading, it seems that I satisfy this without any problems.

With regard to the properties, neither is my principal residence.  I am not resident in either property.  Both are mortgaged.  Rental income barely covers each mortgage.  I have no other income.

Is it possible that I could be eligible for any entitlements or are chances slim?


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## DG123 (24 Sep 2009)

Also, in terms of the means test, is the value of the property for the means test the amount of capital left after deducting the value of the mortgage or is it gross?


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## Welfarite (24 Sep 2009)

Have a look here for more detail on means assessments. In your case, both houses will be assessed on their capital value as you are not living in either of them, less mortgage outstanding.


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## Bronte (24 Sep 2009)

Welfarite said:


> Have a look here for more detail on means assessments. In your case, both houses will be assessed on their capital value as you are not living in either of them, less mortgage outstanding.


 

Does that mean that if someone had 10 houses in negative equity that they would be assessed as zero means and be entitled to the dole?  

How is the capital value of the house arrived at?


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## Welfarite (24 Sep 2009)

Bronte said:


> Does that mean that if someone had 10 houses in negative equity that they would be assessed as zero means and be entitled to the dole?
> 
> How is the capital value of the house arrived at?


 

In theory, yes. The capital value is done by an EA


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