Shared living tipped to reduce financial stress and loneliness in over 55s

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.

Loan purpose

Refinancing

Loan amount

Update resultsUpdate

Compare

Filters

Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.49% p.a.	5.40% p.a.	$2,836	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	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.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable			$250	$250	60%				100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
Macquarie Bank	Macquarie Bank Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable			$248	$350	60%				Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Check your eligibility in as little as one minute	More details	Compare		Disclosure

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 

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