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Consumers take lodgers 'to help pay mortgage'

Consumers take lodgers 'to help pay mortgage'

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Date Published : Tuesday, July 01, 2008

Lodgers are being utilised as one solution to easing the financial burden felt by homeowners in Australia as mortgage repayments continue to squeeze consumer spending.

According to chief economist of the Housing Industry Association (HIA) Harley Dale, spare bedrooms are providing debt-burdened homeowners with a bit of extra cash, news.com.au reports.

The current level of interest rates and the global economic crisis combined with a tight housing market will lead more mortgage-holding Aussies to consider this course of action of the next 12 months, he suggested.

Describing it as a "smart" move by householders, Mr Dale advised taking a "common sense" approach to letting a room out to strangers.

"It looks as though we're at the start of a point of time where that free space is going to be scrutinised more closely than it would have been a year or two ago … easing the financial burden on the household," he told the news source.

The website noted that a poll of homeowners in Sydney, Perth and Melbourne are using rent from lodgers as a means of easing mortgage repayments and living costs.

Mr Dale has also commented on figures released by the HIA today, which show that the number of sales of new homes between builders and developers dropped by five per cent in May.

Responding to data showing that sales of new homes in New South Wales and Victoria slipped by the largest amounts, he said that mortgage repayments and the rising cost of living is dampening activity in the sector.

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