It seems that in an effort to afford that dream first home, some buyers resort to renting out rooms in their new home to assist with home loan repayments.
A recent survey of home buyers conducted by Mortgage Choice, revealed that 14 per cent of home buyers said that they intend to reduce their costs of living by sharing their property with others.
Property cohabitation works well for those who have already purchased their home as well as potential buyers who need to save up a deposit. House sharing can reduce the burden of home loan repayments even though it may not be the answer for everyone.
As first time home buyers are getting older, many take years to save up a deposit while either living at home with family or house sharing. If so, this would be especially prevalent in areas of dense housing and high property prices and living costs.
Sharing your home with others outside your family or romantic relationship is often a financial necessity when utility, petrol and other costs increase as they have recently. The same goes for home owners who are trying to make ends meet.
Research from RP Data shows capital city rents grew a solid 4.8 per cent in the first quarter of 2011 – markedly higher than the 2.9 per cent experienced in the year to March 2011.