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Moving into your own place is a major step. Whether you're a student or a young professional, living independently in an apartment comes with new responsibilities and financial pressures. Understanding what to expect and how to prepare can help you avoid unnecessary stress and costly mistakes.
This guide outlines typical costs, key support options and ways to manage your money effectively. It focuses entirely on the Australian context.
First-time renters often underestimate the full cost of independent living. Below is a breakdown of the main expenses you need to budget for:
Rent is your largest ongoing expense. Private rentals in capital cities can absorb 25 to 40 percent of your income, sometimes more for students or part-time workers.
Utility costs vary depending on the property type, location and usage. You can expect electricity bills between $80 and $150 per month, gas between $40 and $80 if your apartment uses it, and internet between $60 and $90 for a basic NBN plan. Water is often included in rent, but not always.
Groceries typically cost $80 to $120 per week for one person. Cooking at home is cheaper than eating out. Many renters also share bulk groceries to save money.
Public transport using Myki, Opal or Go Cards generally costs between $30 and $60 per week. Owning a car can cost between $150 and $250 weekly, depending on fuel prices, insurance, registration and parking.
Content insurance ranges from $150 to $300 per year. You should also budget for streaming services, cleaning products, medical expenses and any unexpected repairs or replacements. Students need to account for textbook or tech-related purchases throughout the year.
Australia’s rental housing system is regulated mainly at the state and territory level.
The Australian Government provides Commonwealth Rent Assistance to eligible Centrelink recipients. However, regulation and enforcement of tenancy law falls under the states.
NSW is governed by the Department of Communities and Justice. Victoria is overseen by the Department of Families, Fairness and Housing. Queensland falls under the Department of Housing. WA, SA, Tasmania, ACT and the NT each have dedicated housing departments handling private and social rentals.
Tenancy disputes and rental standards are regulated by bodies such as Fair Trading NSW, Consumer Affairs Victoria, and the Queensland Residential Tenancies Authority. They provide rental agreements, mediation support and general guidance.
Each state offers interest-free bond loans for low-income or eligible renters. These typically cover four weeks’ rent and sometimes rent in advance. NSW’s Rentstart, Victoria’s Housing Establishment Fund and Queensland’s Bond Loan scheme are the most widely accessed.
This payment is available through Centrelink for those receiving Youth Allowance, Austudy, JobSeeker or other qualifying support. It can ease weekly rent costs for eligible tenants.
Some state governments offer rebates on energy bills. Non-profits like Anglicare and the Salvation Army provide food, bill and rent assistance during emergencies. Community centres often manage these programs.
Many renters cannot afford the upfront costs of moving. This includes bond, rent in advance, furniture and connection fees. In these cases, a personal loan or rental bond loan can help bridge the gap.
Loan Owl is one example of a responsible lender offering personal loans for rent-related purposes. Their options include loans for personal uses such as rental bond payments, furniture purchases and emergency costs. Terms are flexible and rates are transparent, making it easier for first-time renters to manage repayments.
These types of loans are useful when:
Compare options before committing. Some personal loans carry establishment fees or interest charges that may not suit your income. Loan Owl’s terms are designed for affordability, which makes them a strong choice for first-time tenants.
Community organisations offer No Interest Loan Schemes (NILS) to people on low or fixed incomes. These are useful for essential household purchases, bond payments or rent in arrears. Repayments are usually spread over 12 to 18 months with no hidden charges.
Every state has tenant advice services and community legal centres. They help renters understand their rights, recover unfairly withheld bonds or challenge unlawful evictions.
In NSW, the Tenants' Union runs education campaigns and casework services. In Victoria, Tenants Victoria provides free phone consultations and online tools. Queensland’s QSTARS program offers phone support and in-person assistance across the state.
University students can also contact on-campus housing officers or welfare teams for help with rental stress, financial hardship or tenancy advice.
Renters moving out for the first time often face cash flow issues, underestimated expenses and limited credit history. These are the most common budgeting challenges:
CoreLogic, PropTrack and the Australian Bureau of Statistics report ongoing increases in median rent. For young people, affordability is deteriorating. The advocacy group Everybody’s Home found that no properties in Australia are affordable for those on Youth Allowance. Better Renting’s recent research shows over 60 percent of young tenants report spending more than half their income on rent.
AHURI research confirms that cost is the biggest barrier to housing independence for people under 30. Students and young professionals without financial backing face the greatest challenges.
Everybody’s Home and Better Renting continue to raise awareness about youth rental stress. Tenants’ unions across each state lobby for rental reform and provide day-to-day advice. National Shelter and ACOSS contribute to federal housing policy. Universities like UNSW conduct research into rental affordability through programs like City Futures.
Loan Owl is one of the few personal loan providers that actively markets to new renters, with simple application processes and repayment structures designed for younger adults. Their role is increasingly relevant as more Australians use loans for rent and essential living costs.
You do not need to be financially perfect to move out. What you do need is an accurate budget, awareness of what support exists and a plan for handling upfront and ongoing costs.
Use bond loans and rental assistance programs where possible. Consider personal loans from providers like Loan Owl if your situation requires extra funds. Most importantly, choose a rental property that fits within your monthly income after fixed costs.
Living independently comes with learning curves, but it is manageable with the right tools and information.
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Disclaimer
Loan Owl, a trading name for Simple Finance Group Pty Ltd (ABN 70 626 186 418) and holder of Australian Credit License 509422, operates as a lender and referral service. We do not endorse any specific credit contract. Upon receiving an offer or referral to a lending partner, they will evaluate your application, provide a suitable credit contract, and inform you of the outcome. Both we and our lending partners will disclose all fees, charges, and terms before any contract is entered into. We may receive a referral fee, the amount of which is not determinable. We advise seeking independent legal and financial counsel before engaging in any financial products. The rates and loan terms provided on this website are for indicative purposes only. Loan Owl, as a lender, may process applications within 60 minutes, and loan disbursement may occur immediately upon contract signing. However, the timing of fund disbursement depends on your banking institution's policies.
*Approved funds are transferred on the same day, subject to approval during business hours and completion of all required documentation including Pay to bank agreements. Transfer times may vary depending on your bank’s processing times. Not all banks support instant deposits, and some transactions may take longer to reflect in your account.