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To board or not to board?


Should adults still living at home with mum and dad, pay board? And if so, how much?

Often news article surface talking about parents helping their kids 'get ahead' by adding to or paying the deposit, offering little or no board while they're saving or even adding equity into a property.

Whether to ask adults living at home to pay board seems to fall into two camps; those who will cover as many costs as they can for their adult children and others who consider that not asking for board doesn't 'teach them that life isn't free' according to a recent article (link below).

There are a significant number of adults living in their family home according to the Australian Institute of Family Studies figures which were released in May. This research suggest that 'almost half of men aged 20-24 are living under their parents' roof, while just under 40 per cent of women in the same age group are doing so'. See article link below.

The article also says that board 'is a lot cheaper than paying rent' and that parents seem to genuinely want to help but that there is always room for a frank discussion when the kids are out-earning the parents especially if they are winding down or preparing for retirement.

The article writer is based in Sydney so prices are likely to reflect that landscape but I think it's fair to say that some parts of Melbourne might be getting close. The couple quoted in the article pay $70 a week for a room at a parent's house while other figures of $100-$150 per week were suggested as reasonable.

Please note, as with any situation where mum and dad, or any other family members have added financially to the mortgage it's vital that appropriate legal advice is sort and taken heed of. New rules around guarantors have been put in place to protect all parties. I wrote here about what things to consider before becoming a family guarantor.

Article here

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