Not everyone is capable of earning a higher income. My example is real numbers in an area that is frequented by those on a low income. Welfare recipients currently rent $300 properties, so it could work. Obviously it won't be for everybody and it won't work in every area of the country.
So.....low income earners CAN rent at $300pw (Ive seen plenty that do), so that is achievable. Centrelink/DOH will even help with the initial bond application.
It could be a good leg up but first they need the knowledge that it CAN be done and the motivation to DO IT.
By doing this taking in boarders thing, wouldn't the person be doing exactly that - earn a higher income....i.e. have more $$$ coming in each week than before doing this ?
The are usually lots of different ways to achieve the same result.
People can also choose to just work an extra 8 hours and pick up $200 / week...... having boarders and being responsible for everything & re leasing etc etc will surely take up some time & stress.