In a bid to cope with the rising cost of living, more first home buyers are looking to rent out one or their more rooms after purchase.
According to a new survey by Mortgage Choice, 14 per cent said they would cut costs by sharing their property with others.
“With rents on an upward trajectory that we haven’t seen for some time, affordable share housing is a clever way to save more of a deposit or to save it faster. It can also help make home loan repayments less of a burden after the purchase, though it may not be the ideal scenario,” company spokesperson Kristy Sheppard said.
“Our regular consumer surveys show us first time property buyers are getting older. I wouldn’t be surprised if shared rental housing is an option increasingly utilised by older people as another way to make saving a home deposit easier. If so, this would be especially prevalent in areas of dense housing and high property prices and living costs.
“Inhabiting the same rental space with people 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 looking to create more room in their budget.”
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.