First homebuyers happy to take in boarders to pay the mortgage

June 15, 2011

Would you be willing to rent out the spare room, or live at home with the folks for longer in order to afford your own home? According to a new Mortgage Choice survey, young Australians are prepared to do both.

The survey of more than 1000 Victorians planning to buy within the next two years showed that aspiring property owners are willing to do whatever it takes to get a foothold on the property market.

Data showed that approximately 13 percent of first homebuyers plan to rent out a room in order to make their mortgage repayments more affordable.

The survey also revealed that among those who haven’t yet saved their first home deposit, staying at home with mum and dad for longer, or living in a share house was the most common way young people tried to save money. Eighteen percent of surveyed respondents said they were living with their parents, while 8 percent were living in share accommodation.

Mortgage Choice spokeswoman Kristy Sheppard said that as utility, petrol and living costs increase, the trend is for people to remain at home or in share houses for longer periods.

Please note, if you are planning to take in a lodger, check with the taxman before taking out a for-let ad. If a room in your home is used to generate income, your property may not be exempt from capital gains tax.

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