Kate McIntyre, Property Journalist
First published 19 Mar 2023, 5:00am
Danyal Diallo has come up with a clever way to flip the rental crisis on its head. Picture: Tim Hunter.
Young renter Danyal Diallo plans to flip the rental crisis on its head in a clever strategy that could save him up to $120 a week.
The 20 year old recently discovered just how cutthroat the Sydney rental market is after he moved to the Harbour City from Canberra to kickstart his career.
He scoured the market in six suburbs ranging from the west, north west, inner south and inner west facing queues of 10-15 renters at each shared house advertised.
Renters have taken to social media to vent their frustrations. Picture: Facebook.
“I visited 15 locations and some of those I went and saw the amount of people and thought, no chance,” he said. “The rent was so high too.”
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But after securing a room in a shared townhouse in Burwood for just under $300 a week, bills not included, he was inspired to take matters into his own hands.
Director of sales at Upside Realty James Kirkland.
His current landlord was ‘homevesting’ – renting out a couple of rooms in their own home to help pay down their mortgage.
After crunching the numbers he realised if he did the same he would be able to cover most of the mortgage repayments by renting out two rooms in a three bedroom townhouse.
This would give him stability while helping to create wealth over the long term.
“I want to own my own space,” he said. “Right now I feel like I’m throwing money away for somebody else’s mortgage.”
“It’s not your place – you feel like you’re a temporary guest there and that’s not a good position to be in.”
Director of sales at Upside Realty James Kirkland said more first homebuyers were becoming creative in order to escape the insecurity and rising cost of renting.
Aus Property Professionals director Lloyd Edge.
“We have examples of people who have been able to buy the place they were renting,” he said. “They want that security – the concern around increased rental prices has been such a major issue.”
He said those considering homevesting should look to suburbs that are either central to major metro hubs, such as the city or Parramatta, or close to universities and tafes.
Property investor and director at Aus Property Professionals Lloyd Edge said he has known a few people to buy and sublet their homes in a similar strategy.
He said it’s important for homevesters to speak with their accountant about any tax implications that could arise.
He also advised subletters to have a contract drawn up along the same lines as a standard tenancy agreement and request a bond in order to protect against loss of rent.
“I’d also recommend they have suitable landlord’s insurance in place, which can cover damage to the property and loss of rent,” he said.
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