Property not used as a home
A client may have a property (including boats and caravans) they do not use as a home for themselves or their family. Consider whether that property is a realisable asset.
There is an expectation that clients will utilise their own resources to support themselves, including any property that they may own or have an interest in that is not their home property or land on which their home is situated.
Points to consider when determining whether the property should be considered as a realisable asset include:
- What was the property originally bought for?
- What is the client's intention with the property?
- Is the property on the market?
- Is the asking price realistic?
- Is the property listed with a real estate agent?
- What is the location of the property?
If the property is a realisable asset you must then decide what effect this has on the assessable income.
When assessing the value of any realisable asset (for example, a piece of land or a rental property) you will need to calculate the net equity that the client holds in the asset.
In general you should treat any realisable asset the way you would 'cash assets'. If the applicable people's combined cash assets and realisable assets exceed the asset threshold, then this would be included as an assessable asset when calculating the rate of Income Related Rent.
Exception
A client's net equity in the former family home may be disregarded for a period of time when they have separated from their partner.
For more information see:
- Net equity in former home
- Net equity
- Core policy, Income Rental property income
