Stressed borrowers taking in lodgers

said she would continue to rent out a bedroom for at least two more years.

Mr Dale said he expected an increasing number of home owners to any spare bedrooms with renters in the next 12 months.

looks as though we at the start of a point of time where that free space is going to be scrutinised more closely than it would have been a year or two ago easing the financial burden on the household, he said

think, provided an element of common sense is used, it a smart way of relieving the current financial pressure. the tax man

Stressed homeowners who are thinking about taking in lodgers need to be aware of the Mulberry Bayswater Bags tax implications. Check with a financial expert about how taking in a lodger will affect your tax status. There can be a fine line between who the Australian Tax Office deems a boarder or lodger, and who they see as a tenant.

For a lodger, you have to be able to convince the tax office that any money you receive is going towards household expenses otherwise it will be classified as rental income. This means you could lose a portion of your capital tax gains exemption as you be seen to be running a business from your home. Get professional Mulberry Alexa Bags advice.

Stress levels rising

Mortgage stress recently hit its highest level in more than a decade, according to credit ratings agency Standard Poor's. Around 1.45 per cent of borrowers with standard mortgages were at least one month behind on their loan repayments in the three months to end of March, compared to 1.09 per cent in the December quarter.

Property research firm RP Data Mulberry Alexa Bags is predicting that up to 400,000 Australian households will be severely stressed by September, and 500,000 will be at least mildly stressed