Renting over 60: Your options from houseshares to private homes

Whether you’ve opted to sell your home and downsize, were forced out following the breakdown of a relationship or have simply never got a foot on the housing ladder, the rental market in Australia can be difficult to navigate.  It can be daunting to think about how you will manage to make ends meet, particularly if you’re retired and relying on the Age Pension – and that’s before you have even considered the seemingly countless options,.

For those looking to rent an entire house or unit, the average private rental property in Sydney will set you back an extortionate $582 per week, while Perth and Adelaide are the cheapest cities to rent in, according to research from Canstar Blue, with average weekly costs of $385 and $386 respectively. So it’s not surprising, considering the average fortnightly pension payment is just $933.40 for singles, that many over-60s are faced with financial stress while renting.

So, what other options are out there for over-60s who do not own their own homes?

Renting a private dwelling

It will come as no surprise that this is the most costly rental option available, however it’s understandable that you may want to live somewhere that you can make your own, without having to share your space.

If you feel that renting an entire property is the only option for you, then you need to be aware of the average costs across the country. However don’t forget that you may also be eligible for fortnightly Rent Assistance from the government if you already receive the pension or another welfare payment.

Living in a house share

The trend of living in a house share is something that most younger Aussies, particularly those who have moved overseas or attended University, will be familiar with, but would you consider living in a shared house in later life?

Many over-60s are now embracing the trend and opting to move into shared accommodation with other likeminded seniors to cut down the cost of housing. In fact, in 2016 Flatmates.com.au reported that the 60 to 64-year-old age bracket had the largest growth among sharers.

Not only can moving into a shared house lower your outgoings, it can also provide an opportunity to socialise and meet new friends. It’s also an opportunity to spend time around younger people, as many house shares are made up of a mix of ages.

Moving into a retirement village

Did you know you don’t actually have to be retired to move into a retirement village? These purpose built communities offer an affordable alternative for those approaching retirement age, or who have already given up work, who no longer wish to maintain a large family home or are seeking a more social lifestyle.

Around 184,000 older Australians currently live in retirement villages, according to the Property Council of Australia. The majority of villages operate on a lease tenure basis, meaning you are paying for the right to reside, you do not own the property, with the lump sum you are required to pay effectively equalling rent paid in advance.

Renting a senior unit

If you’ve thought about moving to a retirement village, but don’t quite have enough in the piggy bank to cover the upfront costs, then renting a senior unit could be the perfect solution.

Essentially a ‘try before you buy’ situation, many villages offer senior units for rent to those who aren’t quite ready to commit to a new home yet or would prefer not to tie up their entire life savings in a retirement unit. Costs will vary from village to village however they are primarily aimed at those who rely on the Age Pension.

Applying for affordable housing

Another option to consider is whether you may be eligible for government support in the form of affordable housing, which covers social housing, community housing, state-owned and not-for-profit owned housing. However, demand outstrips supply in this area with

Therefore it is important to bear in mind that social housing is allocated on a priority needs basis. While public rental housing, community housing and state-owned housing prioritise applicants by assessing their ‘greatest need status’. Those found to be in the greatest need would be people who are homeless, or facing homelessness due to a range of factors, such as extortionate rental costs to ill health which is made worse by current living standards.