Anyone doing 'house hacking'?

Discussion in 'Investment Strategy' started by Alex123711, 15th Mar, 2018.

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  1. Alex123711

    Alex123711 Well-Known Member

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    living in a house/ unit and renting out the rooms? Is it worth it?
     
  2. thatbum

    thatbum Well-Known Member

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    Depends what you mean by worth it. Financially its probably better, at a cost to your personal lifestyle obviously.
     
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  3. Trainee

    Trainee Well-Known Member

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    Just another cool name for something people have been doing for hundreds of years.
     
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  4. mikey7

    mikey7 Well-Known Member

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    We considered renting a room to a friend who offered $300/wk. We ended up declining because it would have too much of an impact on our lives; mainly our routines and privacy.

    Sure, we would have saved a bit more, but sometimes it's not worth it.
     
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  5. Oliver

    Oliver Well-Known Member

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    You can do it when you're young or trying to save for a deposit.

    In Sydney prices are crazy, if you want to live close to the CBD, it's either you share a 2bd flat with another person/couple and end-up paying $300-$400 (all-included) or get your own 1bd flat but you'll have to pay at minimum $650 with charge or even more (again this is only an example of a unit in inner Sydney).

    Depends on the deal obviously but you could be saving around $250-$350 per week (again depends on the rent of the 2nd bedroom, rent of flat...) so maybe 13.000$ or more every year.

    Do you think this money is worth sharing your flat?

    I personnaly share at the moment because I'm in an acumulation phase and want to get as much money as possible but once you get into a relationship, sharing a flat kind of sucks haha
     
  6. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    In QLD if you did that during the 1st 12 months of owning the property you would need to pay back the difference between home transfer duty and investment transfer duty - counts as a disposal.
     
  7. charttv

    charttv Well-Known Member

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    did this for many years. last flatmate moved out over two years ago and i haven't sought a replacement. I enjoy prancing about the house naked now :)
     
  8. Blacky

    Blacky Well-Known Member

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    Did it a lot when I was young.

    At one point I rented a 3bedroom house for $300/week and then rented two of the rooms out for $150//each (including utilities).
    Worked well.
    I then rented of a couple of friends.

    When I was at uni we rented a house and shared all costs.

    In our day it was called ‘surviving’ or ‘living’ or ‘sharing’. It’s Nothing new.

    I’m not too sure why anyone under the age of 25 would want to live alone. Sharing is the most fun you can have with your pants on (most of the time).

    Once your a bit older, and with family the privacy is more valuable.

    Blacky
     
  9. Joynz

    Joynz Well-Known Member

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    That’s just share housing. Been around for centuries.
     
  10. Alex123711

    Alex123711 Well-Known Member

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    I never said it was anything new, read a few u.s forums about doing it, they seem to be able to do it and still make a profit after repayments etc.. I guess because property is so much cheaper there.
     
  11. Eric Wu

    Eric Wu Well-Known Member Business Member

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    do you own the house and renting rooms out? or subletting a rental property?

    if you own it, it might have impact on your CGT exemption when you sell it.
     
  12. thatbum

    thatbum Well-Known Member

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    Well if that's your question, then why not just ask that in the forums here directly?
     
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  13. Alex123711

    Alex123711 Well-Known Member

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    I thought I did, just called it something different?
     
  14. TapTap

    TapTap Well-Known Member

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    It’s massive in the UK by the sound of it. I’ve been listening to a podcast called IPI, they talk a lot about the HMO Strategy (house in multiple occupation) over there. Been around for ages but probably a little harder now. Sounds like you could have made a killing if you were onto it a decade ago.. like many things.
     
  15. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    I do it anyway .....with tenants in share :eek:
     
  16. Marg4000

    Marg4000 Well-Known Member

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    Why?
    Marg
     
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  17. TMNT

    TMNT Well-Known Member

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    Risk VS reward.

    Simple concept .

    But the risk is harder to quantity

    The reward is pretty simple to quantify
     
  18. Blueskies

    Blueskies Well-Known Member

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    There is no doubt it makes sense financially, you are just sweating the house harder to squeeze more income out if it, at a trade off to your own privacy.

    My first place was a Brisbane highset. First thing I did was build in underneath to make it a five bedder and leased out all the rooms individually. Then my girlfriend moved in and I charged her board as well. (She still married me so no hard feelings!) That setup completely covered the mortgage and I paid the place off in 7 years on a pretty modest income.

    Would I do it at my current stage in life - hell no! My nearest neighbour is over 100m away, and suits me just fine!
     
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  19. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    Back in the early 2000’s i had 4 students in my then 21sqm studio whilst i was paying it off:eek:
     
  20. mikey7

    mikey7 Well-Known Member

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    You get more room in prison..
     
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