PRD Research found many Australians aged 55 and over, particularly renters, were struggling financially due to low incomes and rent increases. 

It also found loneliness affected both owner-occupiers and renters, with one in four Australians experiencing loneliness, especially widowed, divorced or single individuals. 

The report said shared living was already a popular arrangement for young people and if more older people considered it, it could result in new property asset classes. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

The report found renters were more inclined to consider shared living than owner-occupiers, but both could reap the benefits of sharing a home. 

"All participants that were independently renting indicated that splitting the rent and operational expenses with another tenant is an effective way of easing financial struggles and stress," the report said. 

"In comparison, the majority of owner-occupiers were less positively inclined towards the idea of shared living and were instead re-entering or remaining in the labour force in order to sustain their financial positions. 

"However, owner-occupiers have indicated loneliness as a potential reason were they to consider shared living."

Survey respondents who were already in a shared living environment said the main reason behind their decision was affordability, but the move had helped in a variety of other ways.

"Furthermore, since entering shared living, these participants expressed that their financial struggles had eased, reduced their isolation, and in turn was allowing them to enjoy retirement more."

Maintaining rent an "unrealistic task" for many 

Many study participants said they hadn't considered shared living as a way to alleviate financial stress, but were open to the idea. 

"Yes, shared living is something I would be open to if it was the right person. It can get a bit lonely sometimes, and reducing operational expenses would be a major help," a 65 year old female participant said. 

"Struggling to keep up with the rental market, still manage to afford but not satisfied with the current property. Would be able to stay in somewhere a bit more liveable if I had help with the rent," a 75 year old male said. 

Financial Struggles and Loneliness 

prdoldreport01

Source: PRD Research

The study found for over 55s, maintaining rent on a single, and often government provided income, was an unrealistic task for many. 

"In addition, studies have shown that the growing number of older Australians aged 55 and over in the rental market is increasing and that median rental prices have increased in recent years," the report said.

"This is a concern as other research has shown that the stress of not owning your own home can lead to poor physical and mental health."

Almost 60% of survey respondents said 'yes' to shared living, with the majority of these renters. 

Those who said no said they were secure, not struggling, or had a lack of education on the topic, something the report highlighted the need for greater awareness on. 



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy