Can you own property and still be a non-homeowner?

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Mark owns an investment property but doesn’t own his home. How is he assessed?

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Q. Mark
I own a residential unit that I have as an investment property. I own it outright and it is earning income. However, this is the only real estate that I own. I do not own my principal place of residence. Am I assessed as a non-homeowner under the assets test? Could you please advise?

A. The distinction between homeowners and non-homeowners has nothing to do with your investment property and everything to do with your principal place of residence.

So, assuming the most likely scenario in your situation, in which you do not have the legal title to the home in which you live and do not have reasonable security of tenure or that you are paying rent for your current accommodation, then you will be assessed as a non-homeowner.

Even if you are not paying rent, as long as you are living in a private home you will still be considered a non-homeowner.

However, if your home is owned by a company and the company gives you reasonable security of tenure in the home, then you will still be considered a homeowner for Centrelink purposes.

Also, if instead of a home you own a campervan, caravan, transportable home or boat as your place of residence, then you will still be assessed as a homeowner.

If you recently sold your home (within the last 12 months) and still intend to use some of the proceeds of that sale to build or buy a house within 12 months of that sale, you would also still be considered a homeowner for Centrelink purposes.

Do you have an unusual living situation for assessment purposes? How has Centrelink assessed your living arrangements?

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Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

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Written by Ben

7 Comments

Total Comments: 7
  1. 0
    0

    But the investment property will be an asset and included in CL asset test. You cant have it both ways.

  2. 0
    0

    How bloody petty is Centrelink? Campervan, caravan, transportable home or boat you are considered to be a home-owner …. what a joke.

  3. 0
    0

    Reading the article it say that if a company owns the house that I rent and live in and that I have reasonable security of tenure then I am a home owner. I think a lot of rental properties are owned by small mum and dad companies as investment properties and they have 3 x 3 x 3 leases or similar security of tenure from the tenants. The tenant is most likely unaware that they are home owners under the CL definition Also what about public housing that is owned by the government, isn’t that security of tenure How confusing and complicated is it all

    • 0
      0

      That is misleading, it should have said that if a Company that you own, and if the house is in the Company name, not your own name, then it can still be considered our principal home and remain a non asset.

  4. 0
    0

    This has made a difference to my thinking I move some where to check it out I rent for 6mths to a year my place just sits there my assets go from Single home owner $268,000 to non home owner $482,500 I will be double checking a diff of $214,500 as I have lived there for 10yrs no capital gains


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