Share A Space

In the past, a share house has been associated with a party lifestyle of drinking, dirty plates, and squalid living conditions inhabited by students and young people. However, this perception of a shared house for rent has undergone a significant transformation. Because of rising house prices, young adults live at home longer, would-be first home buyers struggle to find an affordable property, and more people are opting for rentals. This makes living in a shared house more attractive to many people.

Shared accommodation involves:

Sharing a house, or moving in with flatmates has several benefits. For one thing, it allows you to share the cost of maintaining a home, including water expenses, power, maintenance and repairs, and other factors.

Furthermore, all of the various fees connected with purchasing a home are apportioned equally among the co-owners. This means you may buy a property at a fraction of the price you would if you were to purchase on your own.

If you have a lot of people insured and they each pay off the mortgage, you’ll generally finish it much quicker.

Legal Considerations

There are two main forms of co-ownership: tenancy in common and joint ownership.

Tenancy in common

A tenancy in common is a legal concept in Australia that allows two or more persons to share a property and manage their rights independently. If one of the tenants passes away and has a will, their interest is bequeathed to someone they select. Tenancy in common is a more adaptable style of property ownership because it enables people to own property in equal or unequal shares. In a co-ownership agreement, co-owners outline the specifics of their interests, rights, and responsibilities.

Joint ownership

Joint tenancy, which is often utilised by couples, is the other form of co-ownership. The entire interest in the property is owned by joint tenants as individuals, but they own nothing together. Joint tenancies also have the right of survivorship. This implies that if a tenant dies, the surviving joint tenant becomes the property’s owner.

Potential Risks of Sharing

There are a few things to keep in mind when attempting to find accommodation to share. Many of the dangers in shared accommodation are due to the fact that co-owners have joint and several liability.

If you’re using your co-owned property as security for your mortgage, you’re both jointly liable for each other’s debts. As a result, if one borrower fails to pay their mortgage installments and the other borrowers do not act to satisfy the outstanding amount, every owner’s credit rating will be damaged.

Further disputes may be over:

Share House Pros

Making friends

It might be tough to build your social circle at university, especially if you’ve just arrived from another nation or city. Moving into a shared apartment is an excellent approach to meet new individuals. Although you and your room buddies will start as strangers, living together may help lay the foundation for friendship development.

Saving money

Because there are generally more individuals available to assist cover the rent and bills, share houses tend to have lower living expenses. It’s difficult to live on a student budget, but living in a share house may help relieve some of the financial strain. Shared ownership mortgages generally require a 5% to 10% deposit. Because you’re only borrowing part of the property, mortgage lenders’ deposits will be considerably lower than those required for normal loans.

You might acquire additional pieces of the property, known as “stair casing,” which you can add to your ownership share over time by purchasing more parts at current market value. You’d still have to pay the service charge.

If the value of your house rises more than what you paid for it, a shared home may benefit your investment. This implies that any increase in value will go towards assisting

Freedom

Share housing provides an easy path to independence if you’re looking for the freedom that comes with living on your own. Living in a home alone can be frightening, but shared lodgings is the perfect compromise. You’ll still have housemates, but without many of the restrictions that come with calling your parent’s house home.

Share House Cons

Lack of privacy

Shared housing is notorious for its lack of privacy. You may have to queue for the toilet or wait until others use the kitchen before preparing your own meals. Shared housing isn’t likely to be a good fit for you if you can’t tolerate living in close quarters with individuals you don’t know.

Annoying people

Sharing

It’s tough to remember that caring for others is sharing when your housemate has been in the bathroom for over an hour and you’re desperate to go. With property share, learning to compromise is a necessary part of growing up, but it’s easy for frustrations to get the better of us. If you can’t tolerate the notion of sharing your living area with other people, you may be happier living alone.

Problems with leasing

Are you and some friends looking for a house and want to handle your property’s lease without the assistance of an agent? This may appear to be a smart idea, but rental agreements can have several intricacies. If someone leaves suddenly, you’ll need to pay their rent while they’re gone. There’s also the problem of splitting up bond payments and covering any property damage.