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More WA adults move in with par...

More WA adults move in with parents to save for deposit

Growing numbers of Australians are moving in with their parents to save for a deposit, according to the findings of a new study. 

Western Australia (WA) in particular is ahead of all other states in the country in this respect, a survey carried out by Homeloans has discovered. 

More than three-quarters of respondents had moved in with their parents or in-laws as part of an effort to save money, PerthNow reports.

A quarter of these individuals said saving for a deposit was the key motivating factor behind the decision - but this increased to a third for those from WA. 

Affordability in Perth has improved for people on middle to high incomes, according to Bankwest Curtin Economics Centre deputy director Rachel Ong, but those at the lower end of the pay scale have not benefitted from this trend. 

The 2016 Housing Affordability Report revealed that Perth homeowners with mortgages were spending 27 per cent of their income on housing costs. 

However, the figure stood at 34 per cent of income for regional WA, which is the second-highest rate of all regional areas in Australia - and goes some way to explaining the trend to move back in with parents to save for a deposit. 

Bernadette Smith lived away from parents in her 20s and rented while she worked full time. 

She suffered an injury that restricted her ability to work in her chosen field and did not want to share a house with strangers, but found it difficult to save in a one-bedroom rental. 

Ms Smith said she looks forward to being able to place a deposit on her own property - and welcomed the chance to do so by living with her parents. 

"It was a bit of an adjustment, but it was fine," she remarked. "It's exciting, the idea of a house, but it's a major debt and it scares me. I would buy something small, I don't need a big house."

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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