How the share economy can help first home buyers.

Released: 18 MAR 2015

Owning a home might not be as unachievable as many think, according to Flatmates.com.au’s Thomas Clement, who suggests renting out spare rooms to help pay the mortgage.

With average room rental prices in many Australian cities now hovering around $200 a week, the added income could help take the pressure of home owners stretched thin by repayments.

According to a survey of share accommodation households, Mr Clement said a quarter were live-in landlords renting out spare rooms to flatmates.

“Even though interest rates remain low, the rising cost of property has made home-ownership unachievable for many Australians.”

“Renting out a spare room gives potential home-owners a bit of extra income, making mortgage repayments a little easier on the hip pocket.”

Mr Clement said those with spare rooms could be making up to $15,000 per annum, per room.

“With the huge demand for share accommodation in Australia, spare rooms are now renting at a premium with some inner city Sydney rooms fetching well over $300 per week.” said Mr Clement.

Data released by the share accommodation site revealed that the average room across the nation was being rented for $183 per week, which would equate to just over $9,000 per annum.

Average room prices also appeared to reflect property prices in state capitals with Sydney leading followed by Melbourne, Perth and Brisbane.

“Those hoping to save for a deposit should also consider share accommodation.” said Mr Clement.

“Splitting the rent and bills will drastically reduce living costs and allow people to save for a deposit faster.”

“If you’re determined to own your own place, don’t touch your super, get a flatmate or two.”

ENDS//