Affordable housing question (not obvious! hopefully...)

[mark_d]

Hi,
I've been looking into AH for a while now and was just wondering peoples thoughts on the following.
If I buy a 3 bed house/apt and then rent out 2 rooms to more or less cover the cost of the mortgage. Keep the 3rd room spare as my own but then rent in another area (effectively having two places of residence), is this ok under the first time buyer rules?!?
Reason why I would rent somewhere else is because the AH I would hope to get would be in an area than has a good chance of renting but not necessarily somewhere I would want to live (i.e close to work/friends etc).
Am I mad or does this make sense? - Was thinking it would be a good way to get myself a property and hopefully down the line afford to buy a 2nd in which to live instead of renting.

Any advise appreciated.

P.s I'm simplfying things here of course in that I realise that I'm not guarenteed to always have renters, the AH scheme is a lotto,extra cost on owning a house etc

 

[legallady]

this would be a total abuse of the AH scheme. It is supposed to help people get a home, not an investment. you should be ashamed of yourself. go off and pay full price for a house if you want an investment and leave the AH to those who want a home.

 

[truthseeker]

Total abuse of the system - affordable housing is not supposed to be an engine to allow someone to buy an investment property.

 

[Starky]

Hi,
I've been looking into AH for a while now and was just wondering peoples thoughts on the following.
If I buy a 3 bed house/apt and then rent out 2 rooms to more or less cover the cost of the mortgage. Keep the 3rd room spare as my own but then rent in another area (effectively having two places of residence), is this ok under the first time buyer rules?!?
Reason why I would rent somewhere else is because the AH I would hope to get would be in an area than has a good chance of renting but not necessarily somewhere I would want to live (i.e close to work/friends etc).
Am I mad or does this make sense? - Was thinking it would be a good way to get myself a property and hopefully down the line afford to buy a 2nd in which to live instead of renting.

Any advise appreciated.

P.s I'm simplfying things here of course in that I realise that I'm not guarenteed to always have renters, the AH scheme is a lotto,extra cost on owning a house etc

This is probably bending the rules a little alright. Remember your AH has to be your PPR in the state. So if you are residing somewhere else then the AH would not be your PPR so it would be an abuse of the system. If you want an AH then make sure its somewhere you would want to live, in DCC there are places in all parts of the city, some where to suit all, you may just have to wait longer to get place that suits you. Alternatively as I just posted on another thread if you wanted to go away for a few months that that would probably be ok, not as much as an abuse as you are going to be coming back. I know people may disagree with me, but the main thing is you should not really be trying to obtain a house that you have no intention of living in, long term through AH scheme. If your goal is to buy a house an not live in it then you need to save up and buy an investment property as suggested.

 

[ClubMan]

effectively having two places of residence

You cannot have more than one PPR at one time. As others have said this proposed scheme is almost certainly a clear abuse of the AH scheme. I am closing the thread.