Love Thy Roommate
Roommates get a bad rap. Often for good reason. I’ve had some seriously insane ones. There was the guy who made everyone leave their socks outside or the girl who insisted that you 'book' the bathroom. But there are some seriously attractive financial motives to have a housemate.
Take for example you bought an apartment in The Hill. Let’s say you have mortgage of $400,000 on the property which you have taken over 30 years at a rate of 4%. By contributing the housemates $150 rent per week to the mortgage you could save $121,613 in Interest and slash 11 and 7 months of your mortgage.
Let’s say you purchased in Mayfield and your mortgage Is a little higher at $450,000 but because of the extra space you are willing to rent out two rooms at $150 a pop. Take a look at what the extra rent can do for your mortgage repayments.
That’s more than halving the time of your mortgage with Interest savings of $181,977.
Having someone else payoff your mortgage doesn’t sound so bad does it. Its almost worth taking your socks off before you enter the house.