Living in a share house is a unique experience typically done when you are young. However with the increasing cost of living, house sharing can have significant financial benefits that should be considered. If you are looking to buy a house but are lacking in funds, house sharing can be a good short term option to save money for a home loan deposit. It is important to understand what you could be saving and gaining by living in a share house.
Split Cost of Rent
By sharing the cost of rent with all of your housemates you are able to divide the cost you would be paying living alone by the number of housemates. The more people you share the house with the cheaper this becomes. While sharing a house with seven people may be daunting to most people, the amount of money you will save may make it worthwhile in the long run.
When you have decided on a place to move in and have signed a rental agreement you will need to pay a bond which is typically four weeks of rent. Having to pay four weeks of rent upfront can be difficult but is a lot easier to pay when you can split it multiple ways. By living with housemates you are able to split the cost of the bond with them making the bond more affordable.
As well as sharing the cost of rent, you can also share the cost of utilities with your housemates bringing down your living costs considerably. Some rental agreements may include utilities but for those that do not house sharing is a great option to lower your monthly costs and help you save for a deposit.
If you are moving into an already occupied share house you may find many of the furniture and appliances you would need to purchase are already present in the house. Sharing furniture allows you to reduce the costs of furnishing a new place but also lowers moving costs which is ideal for a temporary home.
Ultimately if you don’t mind sharing a few things, house sharing is a great, economical way to live and one that should be seriously considered if you wish to save up to buy your own house.
If you would like to learn more about how much you need for a deposit on your home loan please get in touch with us today.